DUBLIN | Tue Jun 19, 2012 1:22pm EDT(Reuters) - Ireland's High Court began hearing a challenge to the European Union's new bailout fund on Tuesday, launched by a politician who said the European Stability Mechanism (ESM) was not compatible with the Irish constitution.
Parliament is expected to ratify Ireland's participation in the ESM in the coming days, but the High Court could block it.
Ireland does not have a veto over the ESM treaty, which must be approved by 90 percent of the capital base of the euro zone to come into effect. But if it does not ratify, it would be blocked from accessing ESM funds when its EU/IMF bailout expires at the end of next year.
Independent member of parliament Thomas Pringle wants the government to hold a referendum on the ESM, a requirement for any change in Irish law that transfers significant powers to the EU.
The treaty would dilute the sovereignty of the state and give the Irishfinance minister "powers beyond what have been given to him by law," Senior Counsel John Rogers, representing Pringle, told the High court.
"We suggest that the treaty is at odds with the terms of the treaties of the European Union," he said. "We say that on that account this state is not free to ratify and complete that treaty."
Pringle said he expected the hearing to last between five and seven days. (Reporting by Sarah O'Connor; Writing by Conor Humphries; Editing byRobin Pomeroy)
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