Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

EU move to take UK to court fuels Brexiteers’ arguments

EU move to take UK to court fuels Brexiteers’ arguments

Brussels takes London to top EU court over Romanian state aid scheme amid sensitive Northern Ireland talks.
A decision by the EU to take Britain to court for the first time after Brexit is poorly timed given the fragile Northern Ireland protocol talks, experts warned.

Former British Brexit Minister David Frost said a move by the European Commission to refer the U.K. to the Court of Justice of the EU (CJEU) in relation the “Micula brothers” saga is “extraordinary” and “political.” The referral supports his argument that the EU court should not have jurisdiction in Northern Ireland, Frost said on Thursday.

The Commission in Brussels on Wednesday referred the U.K. government to the CJEU, the bloc’s highest court, claiming that a U.K. Supreme Court ruling ordering the Romanian government to pay compensation to investors who lost out on state subsidies “breached the principle of sincere cooperation” and was illegal under EU law.

The Commission’s referral decision comes in the midst of sensitive negotiations on post-Brexit Northern Ireland trade rules, in which the U.K. is trying to limit the role of the CJEU in the region. Commission officials said the decision was not linked to the Northern Ireland talks.

But Frost, a long-time opponent to the supremacy of the CJEU, hit back by saying the Commission’s move was “proof as to why it is not safe to live under European Court of Justice jurisdiction, in Northern Ireland or anywhere else.”

The Tory peer and former chief Brexit negotiator for the U.K. criticized the CJEU’s “very expansive view of its own role,” warning the British government “must think carefully how it engages with the process now.”

Alexander Rose, a lawyer at DWF who specializes in subsidy control, said the EU risks coming across as “petty and vindictive” by making this move after Britain’s exit from the EU. He questioned the timing of the decision by the Commission, arguing it “plays into the hands of EU’s critics” and comes at a time when German and Polish courts “have been challenging the primacy of EU law.”

“The arguments we’ll hear are likely to add fuel to that fire,” Rose said. “This action appears unnecessary and ill-judged given the wider context.”

The case dates back to 2008, when a private investment tribunal forced Romania to pay tens of millions of euros to Ioan and Viorel Micula, two investors who run a drinks-to-biscuits food empire in northern Romania.

When Romania joined the EU, Bucharest terminated an investment incentive scheme to comply with EU state aid law. However, an investment tribunal argued the brothers, as Swedish passport holders and therefore foreign investors, had a right to those subsidies as they had “legitimate expectations” that those incentives would be available.

The investment tribunal forced Romania to pay a hefty compensation to the Miculas, but the Commission considered that the payment was state aid and ordered its recovery. In 2019, the EU General Court annulled the Commission’s decision, arguing that EU law was not applicable for the period before Romania’s accession to the EU in 2007.

The ruling by Britain’s top court was issued during the Brexit transition period, leading to questions as to whether it may have been different if the U.K. was still part of the EU.

With its referral decision, the Commission wants the CJEU to determine whether Britain broke the law by adjudicating a legal question that was already before EU courts. If the CJEU rules that was indeed the case, it could fine the U.K.

Brussels argued that the U.K. Supreme Court’s judgment “has significant implications for the application of EU law to investment disputes.”

Under the Brexit Withdrawal Agreement, the Commission may, within four years after the end of the Brexit transition, initiate proceedings before the CJEU if it considers that the U.K. has failed to comply with the EU treaties before 2021.

Steve Peers, professor of EU law at the University of Essex, said the Commission did not need to take Britain to the CJEU now.

“The timing is odd because the Commission won an appeal two weeks ago in the EU courts, but the appeal didn’t fully end the litigation,” he said. “There’s still another few years until the litigation gets settled in the EU courts and the Commission could still wait until the end of the four-year period.”
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Danube Drought Exposes Nazi Wrecks and Pushes Central Europe’s Power System to the Brink
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
UK Drought Cuts Harvests and Raises Food-Security Fears
UFO: Pentagon Releases Video of Unidentified Object Tracked Over Middle East
Ukraine Tells Senate Republicans Its Drone War Offers a Blueprint for America
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Senate Scrutinises AI-Driven Personalised Pricing
Spain Seeks Mainland Transfers for 1,100 Children Stranded in Ceuta
Spain and Morocco Trade Blame After 72,000 Migrants Enter Ceuta
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Europe’s Heat and Drought Are Now Disrupting Power, Shipping and Tourism
Europe’s Drying Rivers Trigger Power Cuts, Factory Shutdowns and Wildfire Emergencies
Record-Low Danube Forces Nuclear Cuts and Emergency Power Curbs
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
×