62018TJ0577_INF
Judgment of the General Court (Second Chamber, Extended Composition) of 8 July 2020 –Crédit agricole Corporate and Investment Bank v ECB
(Case T‑577/18)
(Economic and monetary policy – Prudential supervision of credit institutions – Article 18(1) of Regulation (EU) No 1024/2013 – Administrative pecuniary penalty imposed by the ECB on a credit institution – First subparagraph of Article 26(3) of Regulation (EU) No 575/2013 – Continued breach of capital requirements – Negligent breach – Rights of defence – Amount of the penalty – Obligation to state reasons)
1.
EU law – Interpretation – Methods – Literal, systematic and teleological interpretation
(see para. 42)
2.
Economic and monetary policy – Economic policy – Supervision of the EU financial sector – Single supervisory mechanism – Prudential supervision of credit institutions – Obligation to obtain the permission of the competent authorities before classifying a capital instrument as a Category 1 instrument – Concept of permission of the competent authorities – Scope
(European Parliament and Council Regulation No 575/2013, Art. 26(3))
(see paras 43-47, 53-57)
3.
Action for annulment – Jurisdiction of the EU judicature – Interpretation of EU law – Guidance from an administrative authority – Binding nature – Absence
(Art. 19 TEU)
(see para. 59)
4.
Economic and monetary policy – Economic policy – Supervision of the EU financial sector – Single supervisory mechanism – Prudential supervision of credit institutions – Continued breach of capital requirements – Negligent breach – Concept – Scope
(European Parliament and Council Regulation No 575/2013, Art. 26(3); Council Regulation No 1024/2013, Art. 18(1))
(see paras 65-70, 74-81)
5.
EU law – Principles – Rights of defence – Application to any procedure opened against any person likely to end in a measure adversely affecting him – Principle to be assured even in the absence of legislation governing the procedure in question
(see para. 85)
6.
Economic and monetary policy – Economic policy – Supervision of the EU financial sector – Single supervisory mechanism – Prudential supervision of credit institutions – Administrative pecuniary penalty imposed by the European Central Bank (ECB) – Statement of objections – Necessary content – Observance of the rights of the defence – Criteria for assessment
(Council Regulation No 1024/2013, Art. 22(1); European Central Bank Regulation No 468/2014, Art. 126)
(see paras 90-94)
7.
Action for annulment – Pleas in law – Infringement of essential procedural requirements – Inadequate statement of reasons – To be considered of the Court’s own motion – Obligation to comply with the audi ateram partem principle
(Arts 263 and 296 TFEU)
(see paras 106, 107)
8.
Economic and monetary policy – Economic policy – Supervision of the EU financial sector – Single supervisory mechanism – Prudential supervision of credit institutions – Administrative pecuniary penalty imposed by the European Central Bank (ECB) – Amount – Discretion enjoyed by the European Central Bank – Obligation to state reasons – Scope – Decision which is insufficiently clear as to the methodology applied and the factors taken into consideration to determine the amount of the penalty – Regularisation during the proceedings – Not permissible – Insufficient statement of reasons
(Art. 296 TFEU; Council Regulation No 1024/2013, Art. 18(1) and (3))
(see paras 112-123, 127-139)
Re:
Application under Article 263 TFEU for annulment of Decision ECB/SSM/2018-FRCAG-76 of the ECB of 16 July 2018, taken pursuant to Article 18(1) of Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the ECB concerning policies relating to the prudential supervision of credit institutions (OJ 2013 L 287, p. 63) and imposing on the applicant an administrative pecuniary penalty of EUR 300000 for continued breach of the capital requirements laid down in Article 26(3) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ 2013 L 176, p. 1, and corrigenda OJ 2013 L 208, p. 68, and OJ 2013 L 321, p. 6).
Operative part
The Court:
1.
Annuls Decision ECB/SSM/2018-FRCAG-76 of the European Central Bank (ECB) of 16 July 2018 in so far as it imposes on Crédit agricole Corporate and Investment Bank an administrative pecuniary penalty of EUR 300000;
2.
Dismisses the action as to the remainder;
3.
Orders Crédit agricole Corporate and Investment Bank to bear its own costs;
4.
Orders the ECB to bear its own costs.