The European Commission has decided to refer Italy to the Court of Justice for maintaining restrictions on access for certain foreign securities to its domestic market in violation of European Union's (EU) Treaty rules on free movement of capital (Article 73b). Following pressure from the Commission, the Italian authorities have eliminated some restrictions on foreign securities by adopting new legislation (legislative decree no.415) in 1996. However, other restrictions remain in place in violation of EU law. In particular, there is an obligation to notify the Bank of Italy in advance of transactions above a certain threshold and the Bank of Italy retains discretionary powers to delay and even forbid certain issues and offerings.

Source:
MIDDAY EXPRESS
News from the Spokesman's midday briefing
25 / 03 / 98