LUXEMBOURG, 29/09/06 - The Dutch government's 'golden share' in postal concern TNT infringes EU competition rules, the European Court of Justice ruled yesterday.

The golden share allows Finance Minister Gerrit Zalm to block certain decisions, even if the State only owns a minority stake in TNT. The special share was introduced when state company PTT was privatised. In 1998, PTT was split up into telecom company KPN and postal company TPG, today called TNT.

The State sold its golden share in KPN to the telecom company for 1 euro in December 2005. But Zalm still has a golden share in TNT.

A finance ministry spokesman says the State will comply with yesterday's ruling as quickly as possible. "It fits in with the plans that we actually already had," he added. The golden share in TNT is expected to be sold to the company itself. It cannot be traded on the bourse.

The golden share in KPN turned out to be a big obstacle when Telefonica of Spain wanted to acquire KPN in spring 2000. The Spaniards were hesitant about the State's involvement, even though Zalm was prepared to divest the golden share under certain conditions. According to the European Court of Justice, the Dutch government has an unlawful veto right for important decisions by TNT.

The case against the Netherlands was brought by the European Commission. "The judgement is very good news. An important decision," commented a spokesman. "Other EU countries had therefore better just give up their golden shares immediately and keep to the EU rules."