Press Release: Internal Market: Commission inquiries into prohibition on purchase of UK Premium Bonds in Ireland

The European Commission has decided to send an official request for information to Ireland on its rules that bar Irish residents from purchasing United Kingdom Premium Bonds, which are state-backed investment products where, instead of interest payments, investors have the chance to win tax-free prizes. They are comparable with a similar Irish product known as 'Prize Bonds'. Under Irish law, residents are not allowed to take part in lotteries run in other countries. The Commission disputes the classification of UK premium bonds as a lottery, and also wishes to verify whether the measure in question is compatible with the free movement of capital (Article 56 EC Treaty) and with the free movement of services (Article 49 EC Treaty). The letter of formal notice is the first step in an infringement procedure under Article 226 of the EC Treaty. The Irish Government has two months in which to respond. The Commission hopes that the answer it receives will lead to an early and satisfactory resolution of the matter.