Has the troika infringed EU citizens’ fundamental rights through its insistence on austerity measures in crisis-hit countries? It’s a question that seems set to be analysed in ever greater detail and may lead to claims being made against the European Central Bank, the International Monetary Fund and the European Commission, after the ECJ ruled that citizens are entitled to sue the troika.





The Luxembourg-based court’s decision was based on the banking crisis that hit Cyprus in 2013. At the time, the troika and the Cypriot government agreed to a restructuring, which involved uninsured deposits of over €100,000 being used to recapitalise the Bank of Cyprus. In return, the embattled country received a bailout from the European Stability Mechanism.





As a result, some investors lost a large amount of money and then decided to sue the Commission and the ECB for damages. Although the ECJ’s judges dismissed the case as they ruled that stabilising the banking system served the common good of the EU, they added that bringing damages against the troika is possible in principle, if someone’s fundamental rights have been breached.



