The European Commission has begun legal action against the Portuguese Government, which it accuses of throwing "illegal and burdensome" obstacles in the way of security companies from other member states who want to work in the country. A case will now be tried in the European Court of Justice, subsequent to Brussels and Lisbon failing to solve their differences.
Ultimately, judges have the power to order Portugal to comply with the Commission’s wishes. If the country’s powers-that-be ignore a court ruling then Portugal could be subject to massive daily fines on a recurring basis – fines that would be payable until full compliance is offered.
Looking at the detail of the case, the Commission states that Portuguese law (decree 231/98) stipulates only those companies with a certain amount of capital and offices in Portugal are allowed to provide security services. This is irrespective of whether or not those foreign security firms have proven themselves to be competent to work legally in another European Union member state.
As a result, the Commission claims that Portugal is in direct breach of its treaty obligations to allow freedom of trade and provision of services for and by all EU companies.
