The European Central Bank (ECB) has been hit with its second lawsuit from The British Treasury as it attempts to block the ECB’s proposed “location policy”.

The UK holds the highest position in Europe’s financial sector and has strongly opposed the ECB’s proposal on the grounds that it is unlawful. The ECB proposal seeks to ban the clearing of houses that fall outside the boundaries of the Euro-zone from processing over 5% of the trade in any single euro-denominated instrument.

The ECB maintains that its policy is a necessary safety measure that has been proposed in order to provide a quick response to any eventuality that could go wrong in the process. They also say that the policy will eliminate the need for several central banks to co-ordinate efforts.

The dispute was filed with the European Court of Justice (ECJ) in late January, following indications by ECB in November that it would plough ahead with its plans regardless of concerns voiced by the UK.

A Treasury spokesman said; “There is no change to our policy, approach or position in any way – the government continues to believe the ECB’s proposed ‘location policy’ contravenes European law and fundamental single market principles by preventing the clearing of some financial products outside the euro area.”

He also added that the government remains optimistic that the dispute will have a peaceful resolution, but that legal action was motioned to protect The City’s interests.

Transferring money to Europe

If you are looking to invest in Europe, think carefully about how you will be transferring money to Europe. Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

So if you are looking to send money overseas, to Europe for example – which you will inevitably have to do if you are looking to make a property investment – be sure to compare the market before you buy your overseas currency.