ECJ Rejects Pringle Challenge To EU Bailout Fund

Dublin Labour MEP, Emer Costello, has welcomed this morning's European Court of Justice's decision to reject Thomas Pringle's challenge against the establishment of the permanent EU bailout fund, the European Stability Mechanism (ESM), and its finding that the ESM complies with EU law.

The ESM has already started operations as a permanent successor to the temporary European Financial Stability Facility, from which Ireland is drawing loans under the bailout programme.

She said: "The purpose of the ESM is to ensure that the Eurozone countries may, in times of crisis, establish a stability mechanism to assist countries that are at risk of insolvency.

"The ESM is in fact an insurance policy or safety net that is of crucial importance to our emergence from the Troika programme next year and our continued economic recovery.

"The European Council has agreed to break the link between sovereign debt, and the ESM is being actively considered as a potential fund for the financing of bank re-capitalisation, a move that could significantly reduce Ireland's bank debt.

"If Deputy Pringle got what he wanted, Ireland would be left at the mercy of the financial markets and our borrowing costs would rise. I therefore very much welcome this morning's ECJ decision."

(CD/GK)