Judgment of the Court (Third Chamber) of 14 February 2008 – Commission v Spain

(Case C‑274/06)

Failure of a Member State to fulfil obligations – Article 56 EC – National provision limiting the voting rights of shareholders in undertakings in the energy sector – Limitation applicable to public bodies

Free movement of capital – Restrictions – Company law – National legislation limiting the voting rights attaching to shares held by public bodies in national undertakings in the energy sector (Arts 56 EC and 58(1)(b) EC) (see paras 27, 53-54 and operative part)

Re:

Failure of a Member State to fulfil its obligations – Infringement of Article 56 EC – National provision which provides, in certain cases, for the limitation of voting rights in undertakings in the energy sector.

Operative part

The Court:

Declares that, by maintaining in force measures such as those laid down in Supplementary Provision No 27 to Law 55/1999 of 29 December 1999 on fiscal, administrative and social measures, in the version of that provision laid down in Article 94 of Law 62/2003 of 30 December 2003, which limits the voting rights of shares held by public bodies in Spanish undertakings operating in the energy sector, the Kingdom of Spain has failed to fulfil its obligations under Article 56 EC;

Orders the Kingdom of Spain to pay the costs.