Bloomberg News

Irish Lawmaker May Appeal Court Ruling on ESM Ratification

July 09, 2012

Irish lawmaker Thomas Pringle said he “retains the option” of appealing a High Court ruling in Dublin paving the way for the ratification of domestic legislation on the European Stability Mechanism.

Pringle, who challenged the constitutionality of the laws, said he may appeal to the country’s Supreme Court. He said he would study the written judgement and details of Judge Mary Laffoy’s comment in court that she will refer one outstanding question on the case to European courts in Luxembourg.

“It’s only half time,” Pringle told reporters outside the courts complex in Dublin.

European leaders moved to create the ESM, which will have firepower of about 500 billion euros ($615 billion), to combat the escalating euro-region debt crisis. The ESM treaty comes into force when countries representing at least 90 percent of its paid-in capital have ratified it. Ireland is responsible for 1.6 percent of total capital. Germany’s Constitutional Court will hear a challenge tomorrow on the ESM.

Participation in the ESM treaty will not transfer or lessen Irish sovereignty to the ESM, the judge said. Judge Laffoy said there’s still a question about “the effect and operability of the ESM,” which covers the 17 members of the euro area, if all 27 EU governments haven’t given notice of ratification of an amendment to the EU’s founding treaty that allows the fund to be set up.

She said guidance from the EU Court of Justice is needed to address the issue.

“The establishment of the ESM treaty at the earliest possible date is something that this government has negotiated hard to achieve,” Irish Finance Minister Michael Noonan said. “This will serve as a positive backdrop as we look to build upon the positive return to the T-Bills market” last week “and return to bond markets next year.”

The National Treasury Management Agency on July 5 sold 500 million euros ($625 million) of bills due in October at a yield of 1.80 percent, the first auction since September 2010.

The yield on Ireland’s 5 percent security due in October 2020 fell 2 basis points to 6.27 percent today. The rate was at 7.11 percent on June 28, and exceeded 14 percent about a year ago.

-- Editors: Dara Doyle, Tony Aarons

To contact the reporter on this story: Joe Brennan in Dublin at jbrennan29@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


Steve Ballmer, Power Forward
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus