The Supreme Court has ruled that the European Stability Mechanism Treaty does not involve a transfer of sovereignty from the state and does not need to be ratified by the people in a referendum.

The seven judge court was giving its ruling in a challenge by the Independent TD, Thomas Pringle to Ireland's ratification of the treaty.

The court also refused to grant an injunction preventing the state from ratifying the treaty.

The court has referred the question of the validity of the European Council decision of March 25 last year and the question of whether Ireland by entering into and ratifying the Treaty would undertake obligations incompatible with the treaties of the EU, to the European Court of Justice.