The European Commission has initiated infringement proceedings against the Government for failing to implement legislation requiring financial transparency in State companies.

The Commission did not specify any sector, but said such legislation would enable it to examine "long-standing" complaints in the broadcasting sector alleging that State-owned companies were receiving more funding than was due.

Ireland was among six states that had failed to inform the Commission of provisions adopted to comply with new reporting requirements, it said. Last week the director-general of RTÉ, Mr Bob Collins, said the State broadcaster would provide more transparent accounts in future.

The Competition Commissioner, Mr Mario Monti, said: "The adoption of separated accounts showing clearly the costs of public service obligations and their financing will create a more level playing field for sectors open to competition."

Bid rumours push up Green share price

in Green Property gained 30 cents to close at €9.30 yesterday, amid rumours that UK property giant Land Securities was preparing a bid for the company.

A spokeswoman for Land Securities refused to comment on a British Sunday newspaper report that the group was ready to bid up to €1.2 billion for Green, dismissing the story as "speculation".

A spokesman for the Irish company was also reluctant to be drawn, saying only that comment on any takeover bids made would be issued "in due course". At least three rival bidders are believed to have expressed an interest in Green over recent months.

Goodbody analyst, Mr Peter Horgan, said the price quoted in the weekend report implied an "excessive" share valuation of €11.60. A price of €10 per share would be more realistic, he said.

Mr Horgan expects a takeover deal to be settled before Green Property posts interim results next month.

Estate agents report budget boosts prices

CHANGES in the last budget contributed to an increase in house prices over the first half of the year, according to two of the largest estate agents in the Republic, writes Colm Ward.

Sherry FitzGerald and Douglas Newman Good both reported price increases, although they differed on the exact extent. Sherry FitzGerald reported a rise of 6.3 per cent in second-hand house prices, while the Douglas Newman Good estimate was slightly higher, at 7 per cent.

A reduction in supply of one- third compared to the first six months of last year was cited as another factor in the price rise.

"The re-introduction of interest relief for tax purposes on borrowings for rented residential property combined with the more favourable stamp duty regime for investors has definitely contributed to increased demand," said Mr Paul Murgatroyd of Douglas Newman Good.

The estimate by Sherry FitzGerald that investors were responsible for 18 per cent of properties bought in the last six months appears to support this analysis.

The average price of a second-hand house in Dublin was €292,147 in the second quarter of this year. The increase in prices was not confined to the capital, with Sherry FitzGerald estimating that prices rose across the State by 6.4 per cent over the past quarter and 12.3 per cent over the first six months of the year.

Merrill Lynch cuts targets for indices

MERRILL Lynch yesterday cut its year-end targets for the major US, British and European indices. The investment bank pulled its projections for the Standard & Poor's 500 index back to 1,050 from 1,200. The S&P currently stands at 990.

Merrill also trimmed its FTSE 100 target to 5,000 from 5,500, compared to the present 4,685.80, and the Eurostoxx 50 figure to 3,400, from 3,800. It closed yesterday at 3,131.4. - (Reuters)

NI Energy Bill aims to reduce prices

NEW proposals aimed at driving down electricity prices in the North could be introduced in the Energy Bill in September, Northern Ireland's Enterprise Minister Sir Reg Empey said yesterday.

Sir Reg is in discussions with the energy industry concerning the long-term generating contracts that have kept prices artificially high.

"I hope in September to be bringing forward proposals which will go some way to alleviate the problems," he said.