An historic verdict by the General Court of the European Court of Justice powerfully reaffirmed the principle that Single Market rules prevent any discrimination against countries outside the Eurozone and that legislation agreed by all 28 member states trumps policy by the European Central bank .
The Court found in favour of the first of three different challenges brought by the UK against a 2011 policy by the ECB dictating that clearing houses that operate in Euro denominated product above a certain threshold should be located inside the Eurozone. In its judgement today the general Court of the ECJ declared that in setting location requirements for clearing houses the ECB European Oversight Policy Framework went beyond its remit and it annulled that part of the policy.
Reacting to the judgement British Influence’s Director Peter Wilding said:
“This is a really good day not just for the UK but for the future of the Single Market as a whole. The judgement confirms that the UK can and will stand up for itself and on behalf of other EU members that are not Eurozone members. The very founding principles of the Single Market were at stake: freedom of movement for capitals, freedoms of establishment anywhere within the EU territory. The court confirms that they these principles have to remain the basis of any policy agreed separately by the ECB or the Eurozone.”
He added: “The sceptics and the outers were praying for defeat, scaremongering as they always do. They were hoping to be able to crow today that our financial services industry is under attack, that the UK is isolated and marginalised by an increasingly powerful Eurozone and that we are better off out. I’d love to know what they are going to say now.”