New EU rules came into force on 10th January that are designed to help businesses and consumers resolve cross-border legal disputes more easily and save an expected €48 million each year across the EU.
The new rules abolish the previous procedure, which could be costly and lengthy but was apparently still used around 10,000 times a year to get judgments in civil and commercial matters recognised in other EU countries.
The introduction of the new rules followed a 2010 survey, which found that almost 40% of businesses would be more inclined to trade outside their home market if the procedures for settling court disputes abroad were simplified. They contain a number of key provisions, including:
- An enforceable judgment in civil and commercial matters in one Member State will be automatically enforceable anywhere in the EU.
- Consumers and employees will be better protected in legal disputes involving non-EU countries.
- Legal certainty for choice of courts agreements between companies will be increased.
“This is very good news for Europe’s citizens and SMEs,” commented Vera Jourová, the EU’s Commissioner for Justice, Consumers and Gender Equality. “These new rules could bring savings of between €2,000 and €12,000 per individual case. It is a successful delivery on the promise to cut red tape and strengthen the EU’s Single Market.”
“Such action will make a significant difference in particular for small and medium enterprises and will open up many more opportunities for business across Europe,” she added.
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