Luxembourg claims legal right to be the European Banking Authority's new home

The Irish Government hopes to bring the institution to Dublin...

Luxembourg claims legal right to be the European Banking Authority's new home

Picture by: Thanassis Stavrakis / AP/Press Association Images

Luxembourg has 'thrown its hat in the ring' to become the new home of the European Banking Authority (EBA) and says it has a "legal claim" to host it.

That's according to letter Luxembourg Prime Minister Xavier Bettel sent to EU Council President Donald Tusk and European Commission head Jean-Claude Juncker following the triggering of Article 50.

The institution is currently based in London and is in a hurry to secure a new home.

Ireland's Government has openly campaigned for the EBA to come to Ireland.

It employs some 170 people and could boost Ireland's credentials as a major financial hub.

Deals

Luxembourg claims that legislation from 1965 (when only six nations were in the Union) means the EBA must move to Luxembourg.

At the time, European leaders made a commitment to locate European bodies "concerned with finance" in the Grand Duchy.

While the EBA was set up in London and the ECB is located in Frankfurt - Luxembourg said that these locations were agreed to as exceptions to the rules.

The EBA is best known for its carrying out of bank stress tests.

Alternatives 

It has been suggested that it may be merged with the European Insurance and Occupational Pensions Authority in Frankfurt.

French officials have also been campaigning to bring it to Paris.