EU court rules VHI must beef up its reserves by €300m

THE VHI is illegally operating as an insurance company with just half the amount of money set aside to meet commitments that it is supposed to have under EU law, the European Court of Justice has found.

It must find around €300 million immediately to bring its reserves up to the minimum, the court said, dismissing claims by the Government that it could not afford to do so and that it would cause difficulties for the VHI, or upset the private health insurance market.

The court also ordered the state to pay the costs of the action.