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EU ends legal case against Italy over motorways

BRUSSELS- European Union regulators have terminated a lawsuit launched against Italy over motorway concessions, the European Commission said on Thursday.

"Following reforms in the Italian motorway sector, the European Commission has decided to close an infringement procedure against Italy concerning restrictions on the free movement of capital and on the freedom of establishment," the EU executive said in a statement.

In November 2006 the EU's internal-market chief launched legal action against Italy, saying the rules overseeing how motorway concessions are granted there did not give enough legal certainty for rival companies operating in the sector.

Commission experts had taken the view that Italy's new system on motorway operator licences and concessions might "unduly restrict the free movement of capital and the right of establishment ... of potential EU investors", it said.

After Italy amended the law, many of the Commission's concerns were addressed, it said, adding that all concession contracts should now be equally treated under the new rules.

"The closure of this case is without prejudice to the ongoing procedures on the same topic relating to state aid and transport policies as well as those in the field of public procurement," the statement said.