Official Journal of the European Union

C 24/3

(Case C-118/07)

(Failure of a Member State to fulfil obligations - Article 307, second paragraph, EC - Failure to adopt appropriate steps to eliminate incompatibilities between the bilateral agreements concluded with third countries prior to accession of the Member State to the European Union and the EC Treaty - Bilateral investment agreements concluded by the Republic of Finland with the Russian Federation, the Republic of Belarus, the People’s Republic of China, Malaysia, the Democratic Socialist Republic of Sri Lanka and the Republic of Uzbekistan)

2010/C 24/03

Language of the case: Finnish

Parties

Applicant: Commission of the European Communities (represented by: M. Huttunen, H. Støvlbæk and B. Martenczuk, Agents)

Defendant: Republic of Finland (represented by: J. Heliskoski, Agent)

Interveners in support of the defendant: Federal Republic of Germany (represented by M. Lumma and C. Blaschke, Agents), Republic of Hungary (represented by J. Fazekas, Agent), Republic of Lithuania (represented by D. Kriaučiūnas, Agent), Republic of Austria (represented by C. Pesendorfer, Agent)

Re:

Failure of a Member State to fulfil obligations — Breach of the second paragraph of Article 307 EC — Failure to take the appropriate steps to eliminate the incompatibilities with the Treaty relating to the provisions on transfers in the bilateral investment agreements concluded by the Republic of Finland with the Russian Federation, Belarus, China, Malaysia, Sri Lanka and Uzbekistan

Operative part of the judgment

The Court:

1.Declares that by not having taken appropriate steps to eliminate incompatibilities with the Treaty concerning the provisions on transfer of capital contained in the investment agreements on the mutual promotion and protection of investments entered into by the Republic of Finland with the former Union of Soviet Socialist Republics of which the Russian Federation is the successor (agreement signed on 8 February 1989), the Republic of Belarus (agreement signed on 28 October 1992), the People’s Republic of China (agreement signed on 4 September 1984), Malaysia (agreement signed on 15 April 1985), the Democratic Socialist Republic of Sri Lanka (agreement signed on 27 April 1985) and the Republic of Uzbekistan (agreement signed on 1 October 1992), the Republic of Finland has failed to fulfil its obligations under the second paragraph of Article 307 EC.;

2.Orders the Republic of Finland to pay the costs;

3.Orders the Federal Republic of Germany, the Republic of Lithuania, the Republic of Hungary and the Republic of Austria to bear their own costs.

(<span class="super">1</span>) OJ C 95, 28.4.2007.