F&F involvement in case before the European Courts

Date: 11th May, 2010

Managing partner, and head of the Marine Litigation department, Dr Ann Fenech was in Luxembourg on the 11th May assisting the Attorney General of Malta in a case instituted by the European Commission against the Government of Malta. The demand being made by the Commission to the Court of Justice is that Malta was in breach of Regulation 3577 when the Government of Malta entered into a Public Service Obligation with Gozo Channel Co Ltd prior to Malta's accession to the EU. Malta's defence essentially revolves around three pillars:

1. That Malta could never be in breach of Regulation 3577 because Malta was not a member of the EU when it entered into the PSO;
2. That during the negotiations between Malta and the Commission prior to accession, Malta had declared its intention to enter into such an agreement prior to accession, which agreement would be of a temporary nature and which would terminate some time after Malta's accession; and finally
3. That in any event Article 4(3) of Regulation 3577 States that, "The existing public service obligations remain in force up to the expiry date of relevant contracts."