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
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×