Court says EU can freeze assets

The court has yet to rule on about 15 similar cases

The European Court of Justice has ruled that the EU has the right to freeze the assets of people on a United Nations list of suspected terrorists.

Its power to do so had been challenged by applicants in Sweden, whose funds were frozen in 2001.

The court said EU governments were obliged to enact UN Security Council decisions and had the power to do so under EU treaties.

It also ruled that the applicants' human rights had not been violated.

Test case

EU member states have frozen the assets of about 450 people and organisations who feature on a list drawn up by the UN Sanctions Committee.

All those on the list are suspected of having links to al-Qaeda, Osama Bin Laden or the Taleban.

The case was brought by the Al Barakaat Internatonal Foundation and two individuals, Ahmed Ali Yusuf and Yassin Abdullah Kadi.

It is the first of about 15 such cases to come before the court in Luxembourg.

Other applicants include the Iranian Mujahideen, the Kurdistan Workers' Party (PKK) and a university lecturer from the Netherlands.

'Legitimate fight'

In this first case, the applicants argued that their human rights had been breached, because the UN had not allowed them to defend themselves before adding their names to the list, and because there was no right of appeal.

They also said they had been deprived of the right of peaceful enjoyment of their property and subjected to inhuman and degrading treatment by being left without funds.

The court ruled: "The freezing of funds constitutes one aspect of the United Nations' legitimate fight against international terrorism."

It added that individuals whose assets have been frozen could apply for funds to cover basic expenses.

Yassin Abdullah Kadi is a Saudi who heads the Saudi-based Muwafaq Foundation, which the US alleges is an al-Qaeda front organisation.

Ahmed Ali Yusuf heads the Swedish-based charity Al-Barakaat International Foundation, which claims to fund aid programmes in Somalia.

Mr Yusuf's lawyer, Thomas Olsson, said he would appeal against the ruling.