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Pringle's challenge to ESM treaty rejected by High Court

However, a legal issue has been referred to the European Court of Justice.

Image: Sam Boal/Photocall Ireland

THE HIGH COURT has rejected a challenge which claimed that the European Stability Mechanism (ESM) Treaty was incompatible with the Constitution of Ireland.

Making a ruling in the High Court, Justice Mary Laffoy rejected Independent TD Thomas Pringle’s challenge to the European treaty.

She also said she was satisfied that the treaty was compatible with European Union law.

Pringle initiated proceedings, arguing that ratification of the ESM treaty could mean Ireland would lose direct control over its financial affairs. His lawyers also claimed that a referendum was required to pass the treaty.

Judge Laffoy said she was “satisfied that…participation in the ESM Treaty will not involve any transfer or diminution of sovereignty”.

She did, however, refer one legal issue to the European Court of Justice as a result of the legal challenge taken by the Donegal deputy. She has asked the court to examine what would be the effect and operability of the ESM if one or more Member States failed to give notice that they intended to approve the establishment of the ESM.

The outcome of that reference will bind all euro area Member States, not just Ireland.

The court said it would not seek an injunction to restrain the Government from ratifying the ESM Treaty.

Pringle told RTÉ Radio this evening that he would be appealing the decision to the Supreme Court tomorrow.

More: Independent TD launches legal challenge against ESM treaty>

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