London Daily

Focus on the big picture.
Thursday, Jul 02, 2026

EU move to take UK to court fuels Brexiteers’ arguments

EU move to take UK to court fuels Brexiteers’ arguments

Brussels takes London to top EU court over Romanian state aid scheme amid sensitive Northern Ireland talks.
A decision by the EU to take Britain to court for the first time after Brexit is poorly timed given the fragile Northern Ireland protocol talks, experts warned.

Former British Brexit Minister David Frost said a move by the European Commission to refer the U.K. to the Court of Justice of the EU (CJEU) in relation the “Micula brothers” saga is “extraordinary” and “political.” The referral supports his argument that the EU court should not have jurisdiction in Northern Ireland, Frost said on Thursday.

The Commission in Brussels on Wednesday referred the U.K. government to the CJEU, the bloc’s highest court, claiming that a U.K. Supreme Court ruling ordering the Romanian government to pay compensation to investors who lost out on state subsidies “breached the principle of sincere cooperation” and was illegal under EU law.

The Commission’s referral decision comes in the midst of sensitive negotiations on post-Brexit Northern Ireland trade rules, in which the U.K. is trying to limit the role of the CJEU in the region. Commission officials said the decision was not linked to the Northern Ireland talks.

But Frost, a long-time opponent to the supremacy of the CJEU, hit back by saying the Commission’s move was “proof as to why it is not safe to live under European Court of Justice jurisdiction, in Northern Ireland or anywhere else.”

The Tory peer and former chief Brexit negotiator for the U.K. criticized the CJEU’s “very expansive view of its own role,” warning the British government “must think carefully how it engages with the process now.”

Alexander Rose, a lawyer at DWF who specializes in subsidy control, said the EU risks coming across as “petty and vindictive” by making this move after Britain’s exit from the EU. He questioned the timing of the decision by the Commission, arguing it “plays into the hands of EU’s critics” and comes at a time when German and Polish courts “have been challenging the primacy of EU law.”

“The arguments we’ll hear are likely to add fuel to that fire,” Rose said. “This action appears unnecessary and ill-judged given the wider context.”

The case dates back to 2008, when a private investment tribunal forced Romania to pay tens of millions of euros to Ioan and Viorel Micula, two investors who run a drinks-to-biscuits food empire in northern Romania.

When Romania joined the EU, Bucharest terminated an investment incentive scheme to comply with EU state aid law. However, an investment tribunal argued the brothers, as Swedish passport holders and therefore foreign investors, had a right to those subsidies as they had “legitimate expectations” that those incentives would be available.

The investment tribunal forced Romania to pay a hefty compensation to the Miculas, but the Commission considered that the payment was state aid and ordered its recovery. In 2019, the EU General Court annulled the Commission’s decision, arguing that EU law was not applicable for the period before Romania’s accession to the EU in 2007.

The ruling by Britain’s top court was issued during the Brexit transition period, leading to questions as to whether it may have been different if the U.K. was still part of the EU.

With its referral decision, the Commission wants the CJEU to determine whether Britain broke the law by adjudicating a legal question that was already before EU courts. If the CJEU rules that was indeed the case, it could fine the U.K.

Brussels argued that the U.K. Supreme Court’s judgment “has significant implications for the application of EU law to investment disputes.”

Under the Brexit Withdrawal Agreement, the Commission may, within four years after the end of the Brexit transition, initiate proceedings before the CJEU if it considers that the U.K. has failed to comply with the EU treaties before 2021.

Steve Peers, professor of EU law at the University of Essex, said the Commission did not need to take Britain to the CJEU now.

“The timing is odd because the Commission won an appeal two weeks ago in the EU courts, but the appeal didn’t fully end the litigation,” he said. “There’s still another few years until the litigation gets settled in the EU courts and the Commission could still wait until the end of the four-year period.”
Newsletter

Related Articles

0:00
0:00
Close
UK DEFENCE AND TECHNOLOGY STRATEGY TILTS TOWARD SOVEREIGN CAPABILITY AND INDUSTRIAL INVESTMENT
UK ECONOMIC POLICY OUTLOOK SHAPED BY LEADERSHIP TRANSITION AND FISCAL SIGNALS
STERLING STRENGTHENS AMID SHIFTING MONETARY OUTLOOK AND GLOBAL LABOUR MARKET SIGNALS
UK HPV VACCINATION PROGRAM NEARLY ELIMINATES CERVICAL CANCER DEATH RISK IN YOUNG WOMEN
UK EXPANDS PRISON SAFETY REVIEW AS GOVERNMENT SEEKS WIDER SYSTEM REFORM
UK DRIVES DIGITAL ASSETS STRATEGY WITH NEW STABLECOIN REGULATORY MODEL
UK TO EXPAND AI INFRASTRUCTURE THROUGH NEW EUROPEAN TECHNOLOGY PARTNERSHIP
UK LAUNCHES £15 BILLION DEFENCE TECH SHIFT TOWARD ADVANCED MILITARY SYSTEMS
CIVIL SERVICE FACES SHIFT IN POWER STRUCTURE AS REGIONAL GOVERNANCE PLANS EXPAND
WHITEHALL CONSIDERS MAJOR DECENTRALISATION PLAN WITH SECOND GOVERNMENT HUB IN MANCHESTER
UK TARGETS SERVICES EXPORT GROWTH IN TRADE TALKS WITH CHINA AMID GEOPOLITICAL TENSIONS
POLICE WATCHDOG PROBES OFFICERS OVER HANDCUFFING OF DYING TEENAGER IN HAMPSHIRE CASE
UK REGULATORS UNVEIL DUAL OVERSIGHT FRAMEWORK FOR STABLECOINS AND DIGITAL ASSETS
KEIR STARMER ANNOUNCES £15 BILLION DEFENCE TECHNOLOGY BOOST IN FINAL MAJOR POLICY MOVE
ANDY BURNHAM SIGNALS STRICT FISCAL RULES AS LABOUR LEADERSHIP RACE SHAPES MARKET OUTLOOK
POUND STERLING HITS ONE-YEAR HIGH AS BANK OF ENGLAND SIGNALS NO IMMINENT RATE CUTS
UK Government Confirms Rejected Asylum Seekers to Remain Amid Enforcement Challenges
UK-China Economic Talks Focus on Services Trade and High-Value Sectors
Buckingham Palace Revamp Plans Unveiled to Modernise Royal and Public Facilities
Two Dead After Light Aircraft Crash in Essex Field, Investigation Underway
Princess Diana Marked at 65 With UK Tributes Reflecting on Her Public Legacy
England Teachers Face New Pay Cap Rules for Academy School Leaders Under Education Reform
Dublin Security Alert Escalates After Stabbing and Reports of Transport Disruption
UK Government Faces Scrutiny Over £10,000 Asylum Living Cost Contribution Requirement
England Prepares World Cup Knockout Match Against Democratic Republic of Congo
Northern Rail Project Warned of HS2-Style Cost Risks by UK Parliamentary Committee
UK Tightens Asylum Rules as Most Rejected Applicants Expected to Remain in Country
UK Heat Health Alert Issued as Temperatures Expected to Exceed 30°C Across England
Halifax Brand to Disappear From UK High Streets in Lloyds Banking Group Restructuring
England Teachers Receive 6.6 Percent Pay Rise Over Two Years as Schools Warn of Budget Strain
UK Defence Spending Plan Sparks Budget Clash as Regional Infrastructure Projects Face Pressure
Inquest Continues in Northern Ireland into Death of Noah Donohoe in Belfast
UK Travel Industry Calls for Suspension of New EU Border System During Peak Holiday Season
Telegraph Media Group Acquired by German Media Firm in £575 Million Deal Completion
House of Commons Warns Northern Rail Upgrade Risks Repeating High-Speed 2 Cost Overruns
UK Transport Unions Warn of Summer Strike Action Over Pay Disputes
UK Health Secretary Calls Maternity Care Review a “Watershed Moment” for NHS Reform
Nigel Farage Faces Questions Over £270,000 Payment Linked to Gold Marketing Firm
Labour Government Faces Internal Division Over North Sea Oil and Gas Policy Direction
National Screening Committee Invites New Proposals for UK Health Screening Programmes
UK and China Hold Industrial Strategy Talks on Trade and Export Growth Opportunities
UK Defence Funding Gap Widens as £4.7 Billion Shortfall Puts Pressure on Spending Priorities
United Kingdom Faces Historic Demographic Shift as Deaths Forecast to Exceed Births in England and Wales
United Kingdom Introduces Major Motability Scheme Reforms Targeting £1 Billion in Long-Term Savings
Global Billionaire Numbers Rise 13 Percent Amid Artificial Intelligence Stock Boom
Body of Fifteen-Year-Old Boy Recovered from Manchester Reservoir
Major Rail Disruption in UK After Cows Stray Onto Intercity Tracks
UK Launches National Campaign to Reduce Water Consumption After Heatwave
Foreign Secretary David Lammy Raises Case of UK Woman Death with US Authorities
Shetland Islands Council Approves Subsea Tunnel Plans Linking Major Islands
×