EU Warns Italy Not To Block Foreign Invest In Telecom Italia
BRUSSELS -(Dow Jones)- European telecoms commissioner Viviane Reding has warned the Italian government against blocking foreign investment in Telecom Italia in a letter seen Thursday by Dow Jones Newswires.
The letter, dated April 16, was sent to European Commission President Jose Manuel Barroso and three other European commissioners.
In it, Reding said she was concerned about plans to introduce new telecom legislation to "force the breakup" of Telecom Italia.
This new telecom law comes at the same time when foreign investors were planning to take a stake in Telecom Italia, Reding noted. U.S. telecommunications company AT&T recently backed away from taking a stake in the Italian operator, but commission officials wants to ensure that other foreign groups were free to make an investment.
"The reports coincided with renewed speculation that foreign investors were planning to purchase a stake in the company," Reding writes in her letter. "This episode shows that there are still protectionist pressures in Member States that affect the telecommunications sector."
In her letter, Reding said she had discussed the issue with Italian Telecom Minister Paolo Gentiloni. The Italian minister "explained to me the political situation, but reassured me that the legislation currently envisaged in Italy would be made fully compliant with E.U. law."
Despite these assurances, Reding said the commission must prepare "for the moment when the legislative proposals in Italy become more concrete and .... to respond with a clear and timely Commission position if needed. Above all, we must ensure that this form of regulation is not influenced by protectionist tendencies that hobble investment."
-By William Echikson,Dow Jones Newswires; 32-2-741-1480; william.echikson@dowjones.com
(END) Dow Jones Newswires "
Posted to the site on 19th April 2007
