[the truth]

Originally Posted by DemolitionRed

Nigel Farage thinks EU law prevents nationalisation. Ironically he seems to have got this from a recent post http://www.leftfutures.org/2015/09/e...tionalisation/ on Left Futures by Westminster University’s Danny Nicol. Professor Nicol argues that the Treaty on the Functioning of the EU (TFEU) and EU liberalisation directives prohibit renationalisation of energy utilities, as proposed by Jeremy Corbyn.

I have a lot of respect for Professor Nicol and recommend his excellent book. But I can’t help but feel that, in this instance, he has reduced a complex area of law to a zero sum conclusion. There are many forms of “nationalisation” that would never be touched by the TFEU (such as taking utilities into municipal control, as has happened in Germany). Furthermore, EU law wouldn’t prohibit the sort of nationalisation proposed by Mr Corbyn.

Let’s be clear, the Corbyn plan isn’t for complete nationalisation. Mr Corbyn wants to nationalise the grid (the infrastructure that transports gas and electricity from generator to supplier), the “Big Six” energy companies and the railways.

EU law explicitly protects the right of member states to nationalise industries. Art. 345 TFEU states “The Treaties shall in no way prejudice the rules in Member States (MS) governing the system of property ownership.” In his book Professor Nicol argues that this provision has recently been ignored by the ECJ. This is largely correct but it does not justify the conclusion that it will always be ignored. read more: http://labour-uncut.co.uk/2015/10/02...gainst-eu-law/

"Under Article 106, the EU prohibits public monopolies exercising exclusive rights where this violates EU... competition rules. The EU’s Court of Justice has interpreted Article 106 as giving private companies the right to argue before the national courts that services should continue to be open to private-sector competition. Nationalised services are prima facie suspect and must be analysed by the judiciary for their “necessity”. Thus the EU has given companies a legal right to run to court to scupper programmes of public ownership."

[DemolitionRed]

Originally Posted by the truth

"Under Article 106, the EU prohibits public monopolies exercising exclusive rights where this violates EU... competition rules. The EU’s Court of Justice has interpreted Article 106 as giving private companies the right to argue before the national courts that services should continue to be open to private-sector competition. Nationalised services are prima facie suspect and must be analysed by the judiciary for their “necessity”. Thus the EU has given companies a legal right to run to court to scupper programmes of public ownership."

Yes but the reason for deep analysis is to ensure that national company is none profitable. A none profitable company is neither in competition or expected to go into competition with anyone, as was seen in the 'Ambulanz Gloeckner' case. All it does is regulate how a national enterprise can run compared to a private enterprise.

What the EU has done is make it far easier to privatize and the opportunities given have been embraced by every British government since Thatcher but not so much by some other EU member states.