Europe’s new permanent rescue fund does not violate EU law and there is nothing to stop member states implementing the treaty, the European Court of Justice has ruled.
The ruling on Tuesday by Europe’s highest court removes a legal threat hanging over the European Stability Mechanism, a €500bn bailout fund created to provide assistance to members of the eurozone in financial difficulty.
“The court holds that its examination has disclosed nothing capable of affecting the validity of decision 2011/199 [to set up the fund],” said the court in its first judgment on the fund.
The ruling, which is likely to set a legal precedent for other legal challenges to the ESM, dismissed a challenge made by Thomas Pringle, a leftwing Irish parliamentarian.
Mr Pringle claimed the ESM unlawfully breaches provisions of the EU treaties concerning economic and monetary policy.
Read more: Court rules Europe rescue fund within law - FT.com
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