EU Commission issues formal notice over status of VHI
Published 27/02/2012 | 17:12
THE EU Commission has issued the Government with a formal notice in relation to the status of the VHI ... and it has two months to respond.
It follows the European Court of Justice ruling against Ireland last September, which found the State had failed to apply EU law in relation to regulation of the insurer.
The Department of Health said the effect of the September ruling is that the VHI can no longer benefit from derogation from the requirement to be authorised by the Central Bank, or to have minimum reserves..
The Department added that the formal notice received today was a procedural one and that it would continue to work with the Commission to deal with the issue.
It said that since the judgment, the Government had engaged with the Commission and worked with the VHI and the Central Bank on an application for authorisation.