EC Asks Bulgaria to Obey Free Movement of Capital Rules
Bulgaria in EU | March 21, 2013, Thursday| 1068 views
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According to the EC, the Privatization and Post-Privatization Control Act in Bulgaria introduces special rights for the Bulgarian State which could restrict the free movement of capital. File photo
The European Commission has requested from Bulgaria Thursday to respect EU rules on free movement of capital, under Article 63 of the Treaty on the Functioning of the EU.
The announcement was made by the EC press service, cited by the Bulgarian Focus news agency.
According to the EC, the Privatization and Post-Privatization Control Act in Bulgaria introduces special rights for the Bulgarian State which could restrict the free movement of capital.
Under this Act, even when one of the shareholders in a company breaches obligations under a privatization contract, these special rights allow the Bulgarian State to levy mortgages and other guarantee measures, not only on the property of this shareholder, but also on the entire property of the privatized company.
If Bulgaria does not eliminate these special rights, this might discourage already existing EU investments in Bulgaria and dissuade others from investing in the future.
As Bulgaria has not yet repealed these restrictions, the Commission requests from the country to take immediate action to fully comply with EU rules.
If the Bulgarian authorities do not react satisfactorily within two months, the Commission may refer the matter to the EU Court of Justice.
Tags: EC, Bulgaria, free movement of capital, rules, Privatization and Post-Privatization Control Act, special rights, Bulgarian State, investments, European Court of Justice
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