In its bitter fight to overturn the FIA's budget cap proposals Ferrari has seen the court hearing it brought before the Tribunal de Grande Instance in Paris where it argued that it had a right to veto technical changes made to F1 thrown out this morning.

Ferrari are fighting against the FIA's voluntary budget cap, which is proposed to be set at £40 million, and will allow teams that sign up to it greater technical freedoms that those that decline to cap their budgets. The Italian F1 team believed that it has a right of veto over technical changes made to F1 and that the arbitrary introduction of the new regulations has breached that right. However the magistrate disagreed with Ferrari's view: "There is no risk of any imminent damage which should be prevented or obviously illegal trouble which should be stopped," magistrate Jacques Gondran de Robert said in a statement issued earlier today. The FIA in turn had argued that Ferrari hadn't used the opportunities available to question the process and that the veto was no longer valid.

Ferrari and several other teams - including Red Bull, Renault and Toyota - are fighting the budget cap and have said they won't lodge an entry by next week's deadline as things stand. However FIA President Max Mosley is adamant that he will push through a budget cap and won't budge from his deadline for lodging an F1 entry for 2010. Reacting to the court's verdict this morning, Mosley told Reuters: "No competitor should place their interests above those of the sport in which they compete. The FIA, the teams and our commercial partners will now continue to work to ensure the well-being of Formula One in 2010 and beyond."

This morning Ferrari posted a statement on its website ahead of the ruling mocking the FIA's plans for a 'second tier' of new entry F1 teams. "They couldn't almost believe their eyes, the men at women working at Ferrari, when they read the papers this morning and found the names of the teams, declaring that they have the intention to race in Formula 1 in the next year," read the statement posted on the ferrari.com website. "Looking at the list, which leaked yesterday from Paris, you can't find a very famous name, one of those one has to spend 400 Euros per person for a place on the grandstand at a GP (plus the expenses for the journey and the stay..). Wirth Research, Lola, USF1, Epsilon Euskadi, RML, Formtech, Campos, iSport: these are the names of the teams, which should compete in the two-tier Formula 1 wanted by Mosley," the Ferrari statement continued, before concluding: "Can a World Championship with teams like them - with due respect - can have the same value as today's Formula 1, where Ferrari, the big car manufacturers and teams, who created the history of this sport, compete? Wouldn't it be more appropriate to call it Formula GP3?"