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Free movement of capital: the Commission shelves proceedings brought against France over legislation requiring co-owners to inform managing agents of their address in France

European Commission - IP/07/906   27/06/2007

Other available languages: FR DE

IP/07/906

Brussels, 27 June 2007

Free movement of capital: the Commission shelves proceedings brought against France over legislation requiring co-owners to inform managing agents of their address in France

The European Commission has shelved infringement proceedings brought against France on account of its legislation requiring co-owners to give their managing agent an address in France. This requirement would constitute an undue obstacle to the free movement of capital, infringing Article 56 of the EC Treaty. The decision to shelve these proceedings has been taken following a change to French law to abolish the requirement.

The Commission had sent France a reasoned opinion (IP/06/441) as the legislation in question[1] put co-owners who live in other European Union countries at a disadvantage compared with residents of France. Investment by non-residents in property located in a Member State's territory is regarded as a capital movement within the meaning of Article 56 of the EC Treaty, which prohibits restrictions on capital movements.

On 1 March 2007 the French Government published Decree No 2007-285[2] which came into force on 1 April 2007 and abolishes the requirement for co-owners to give their managing agent an address in France or a French overseas department. In future, the protection to be afforded to the co-owner will be ensured by sending a registered letter with an acknowledgment of receipt or a fax notification to the co-owner's real or elected domicile.

Information on infringement proceedings against all Members States can be found at:

http://ec.europa.eu/community_law/eulaw/index_en.htm


[1] Article 65 of Decree No 67-223 of 17 March 1967 (as amended by Decree No 2004-479 of 21 May 2004).

[2] Journal Officiel No 53, 3.3.2007 p. 4061, text No 24.


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