THE European Commission has formally threatened Greece with a European Court of Justice (ECJ) case over its requirement that companies providing local third-party motor insurance must belong to the Greek National Association of Insurance Companies.

Brussels said this could 'risk preventing or discouraging insurance companies from other European Union member states from entering the Greek market, and is thus risk of restricting competition on prices and on the access of policyholders to a wider selection of companies'. It added that policyholders in Greece risked 'having to pay more for their motor insurance policies' as a result and that the rule was an unnecessary burden on Greece-based insurance companies.