Metsola to Commission: Change legal basis for €150bn defence fund or face EU court

by Nicoletta Ionta

STRASBOURG – European Parliament President Roberta Metsola warned the Commission that bypassing Parliament for the billion-euro joint procurement loans could trigger legal action at the EU’s top court.

In a letter seen by Euractiv, Metsola urged Commission President Ursula von der Leyen to reconsider the use of Article 122 of the EU Treaty to fast-track part of the Rearm EU plan.

The clause, normally used in emergencies, allows the Commission to push through any proposal, reducing Parliament’s negotiating time to the minimum.

In this case, the Security Action for Europe (SAFE) initiative was presented in March under Article 122, which would provide €150 billion in loans for joint procurement of EU-made defence equipment.

But in April, the Parliament’s legal affairs committee backed a legal opinion rejecting the Commission’s approach. The Parliament’s legal service argued the legal basis was procedurally inappropriate, as the proposal fails to meet the threshold for emergency powers.

Now, Metsola could escalate the matter to the European Court of Justice, filing a case on behalf of Parliament in line with the recommendation from the legal affairs committee.

In her letter to both EU Council President António Costa and von der Leyen, she warned that bypassing the standard process risks “undermining democratic legitimacy by weakening Parliament’s legislative and scrutiny functions.”

“If the Council adopts this Regulation using Article 122 TFEU as the legal basis,” Metsola warned, “Parliament will examine the act pursuant to Rule 155 of its Rules of Procedure,” the first step toward a case at the European Court of Justice.

It will then be up to the Court to rule on the institutional power struggle and determine whether the chosen legal basis is valid.

*first published in Euractiv.com