EU Urges Bulgaria to Respect Rules on Free Movement of Capital

EU Urges Bulgaria to Respect Rules on Free Movement of Capital

The European Commission urged Bulgaria to respect EU rules on the free movement of capital, as the privatisation and post-privatisation control act which the country has adopted introduces special rights for the state which could restrict the free movement of capital.

"Under this Act, even when one of the company's shareholders breaches its obligations under a privatisation contract, the special rights allow the Bulgarian State to impose mortgages and other security measures, not only on the property of that shareholder but also and in addition on the property of the privatised company," the Commission said.

The Commission added that if Bulgaria does not abolish these special rights, this might deter already existing EU investment in Bulgaria and dissuade others from investing in the future.

If the Bulgarian authorities do not reply satisfactorily within two months, the Commission may refer the matter to the EU Court of Justice.

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