EU court rejects Basque group compensation claim

LUXEMBOURG, Feb 27 (Reuters) The European Union's top court rejected today compensation claims by two Basque groups for being blacklisted by the European Union as terrorist organisations, saying it was not competent to rule on the case.

Gestoras Pro Amnistia and Segi are listed by the European Union as being part of the Basque separatist organisation ETA, which the 27-nation bloc bans as a terrorist group.

Both groups were asking the European Union for compensation of 1 million euros as well as 100,000 euros for their spokespersons, saying that being added to the EU list had harmed their reputations and freedom of expression.

But the European Court of Justice, backing a ruling of its Court of First Instance, said it was not competent to deal with the case as the groups could refer the matter of their EU blacklisting to a national court.

Spain's Supreme Court ruled last month that Segi and other street gangs linked to ETA were ''terrorist organisations.'' Gestoras Pro Amnistia defends the rights of ETA prisoners.

ETA planted a bomb in a car park at Madrid airport in December last year, killing two people and bringing a nine-month peace process to an abrupt end.

The terrorism listing of Gestoras Pro Amnistia and Segi calls for the European Union's police and judicial authorities to cooperate fully in any investigation concerning them.

But this is not legally binding and does not require EU states to freeze their assets, an EU official said.

REUTERS MS KP1704