Free movement of capital: Cyprus referred to court
Friday 25 November 2011
Cyprus had been temporarily allowed to maintain restrictions with regard to the acquisition of a second home by EU nationals, as well as nationals of Iceland, Norway and Liechtenstein. However, these measures expired on 30 April 2009. The European Commission, tired of Nicosia’s repeated postponements to avoid complying with EU law, decided, on 24 November, to refer Cyprus to the EU Court of Justice for infringement of its EU obligations. Following a reasoned opinion sent by the Commission, on 6 April, the executive notes that Cyprus “only submitted a proposal for draft amendments without indicating any concrete timetable for its adoption”. The Commission also underlines that “any incompatibility of national rules with treaty provisions can only be redressed by adopting other binding domestic provisions, having the same legal force as those which require to be amended, and providing for sufficient legal certainty”.