MEP's report on implementation of Directive triggers EC response
The UK government will know by December whether the European Commission (EC) will take legal action against it for not properly implementing EU insurance directives.
This was the outcome of Monday's meeting in which a report was presented to the EC Petitions Committee by MEP
Roy Perry.
Commissioner for financial services Fritz Bolkestein made the Commission's case and promised a response by the end of the year.
Perry's report alleges that successive UK governments have failed to properly apply EU insurance Directives - particularly 73/239 - in relation to Lloyd's.
In a draft of the report, Perry concluded: "This whole saga has been characterised by secrecy and delay, bringing into question the reputation of the UK government and the European Commission."
The EC gave notice to the UK government last December that it was considering taking action that could result in the matter being taken to the European Court of Justice. It is still considering whether to proceed with such action.
A Treasury spokesman said the government has been in discussions with the EC for some time and it has provided it with full replies to all its inquiries.
"Our position remains unchanged in that we believe the UK government implemented in full all EC obligations relevant to Lloyd's," he said.
Lloyd's condemned Perry's report on Monday, describing it as "inaccurate and unbalanced."
Perry said if the Commission decides not to follow through with the case, then a European Parliament committee of inquiry should be set up to investigate.
