The European Court of Justice has ruled against Donegal South West TD Thomas Pringle’s challenge to the European Stability Mechanism (the permanent European bail-out fund).
The court ruled today there is nothing in EU law to prevent ratificaton of the amendment which establishes the ESM. The establishment of the ESM does not breach the “no-bailout clause” in European law, the court said, nor does the amendment which sets up the EU give the EU any new legal powers.
“The amendment … merely confirms the existence of a power possessed by the member states,” the court stated. “Since that decision does not confer any new power on the member states, the right of a member state to conclude and ratify the ESM Treaty is not subject to the entry into force of the change.”
Deputy Pringle said: “I am disappointed the Court of Justice did not agree with our interpretation of the ESM and the impact it will have on the European Union and the European Treaties. I think it was vitally important, however, that this ESM would be tested in the highest court possible and we’ve achieved that by having the questions referred to the ECJ.”
The case was heard by the full ECJ panel of 27 judges in October, after being referred there by a Supreme Court judge in Ireland for clarification on a number of legal issues.