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Vol. 10 No. 8 : 4 March 2004
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Parliament legal experts cool on Lloyd's action

LEGAL experts in the European Parliament are casting doubt on moves to ask President Pat Cox to take the European Commission to court for its role in the 'Lloyd's of London affair'.

The revelation comes as MEPs in the legal affairs committee prepare to decide whether they want the president to press the button triggering legal action.
Deputies are focusing on allegations the Commission failed to ensure that the UK government complied with European insurance law over the Lloyd's market before a new regime entered into force at the end of 2001.
Moreover, the Commission refused to answer a question from MEPs last month on whether the UK failed to abide by the rules in 1978-2001.
The Commission only said it was unable to rule on past failings by member states.
MEPs, including British Tory Roy Perry, believe the Parliament can now take the Commission to court under Article 197 of the EC Treaty for refusing to answer a question from deputies and under Article 232 of the treaty for failing in its duties as 'guardian of the treaties'.
But European Voice understands the assembly's legal service and experts in the legal affairs committee doubt if the Parliament could win.
And even if it did, the Commission would not be forced to pronounce that the UK did or did not meet the terms of the EU's insurance law.
A legal affairs committee official said that it would be difficult for the court to decide that the Commission had failed to act, because it had made numerous inquiries into Lloyd's, responding to complaints from citizens and petitions to the Parliament.
Aides to Pat Cox confirmed that the Parliament's legal service is sceptical - although they say the lawyers have not drafted a final opinion. But Perry said he was "never surprised by the innate conservatism of lawyers", adding that there was still scope for deputies to take the political decision to go to court.

© Copyright 2004 The Economist Newspaper Limited. All rights reserved.


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