(ANSA) - BRUSSELS, APRIL 26 - The European Commission has issued
an ultimatum to Greece, saying that the country must adapt to EU
rules on free movement of capital and right of establishment, in
line with the single market. Athens now has two months to give
a satisfactory response to observations made by Brussels, or
risks being hauled in front of the European Court of Justice.
Doubts over the failure to observe EU regulations were raised by the involvement of Deutsche Telekom (DT) in the Greek telecommunications company OTE, with a so-called "golden share" for the state. Greece and DT have drawn up a purchase agreement for 3.03% of OTE's shares, with each side eventually reaching a total of 25% plus one of OTE shares. The deal was ratified by a national law, which stipulates certain rules currently in force and contested by Brussels, including the veto rights for the state concerning mergers and the introduction of special rights for Athens, such as the right to appoint members of OTE's board of directors, even if they are only minority shareholders. The EU Commission believes that the Greek state has a series of powers that its share of stakes should not afford it, meaning that other investors as well as DT could be dissuaded from increasing their investments in OTE. (ANSA).
Doubts over the failure to observe EU regulations were raised by the involvement of Deutsche Telekom (DT) in the Greek telecommunications company OTE, with a so-called "golden share" for the state. Greece and DT have drawn up a purchase agreement for 3.03% of OTE's shares, with each side eventually reaching a total of 25% plus one of OTE shares. The deal was ratified by a national law, which stipulates certain rules currently in force and contested by Brussels, including the veto rights for the state concerning mergers and the introduction of special rights for Athens, such as the right to appoint members of OTE's board of directors, even if they are only minority shareholders. The EU Commission believes that the Greek state has a series of powers that its share of stakes should not afford it, meaning that other investors as well as DT could be dissuaded from increasing their investments in OTE. (ANSA).
