Brussels, 13/04/2011 (Agence Europe) - On Tuesday 12 April, MEPs on the European Parliament's legal affairs committee backed the idea of an optional EU legal contract when they adopted a draft report on European contract law by Diana Wallis (ALDE, UK). A European Parliament press release explains that a European system of contract law as an alternative to the differences in national contract laws, could encourage trade in the single market by improving consumer protection and legal security. The use of any such European contracts would be entirely voluntary, adds the press release.
At the moment, companies and small business in particular are put off cross-border trade because of legal complications arising from the different legal systems in other countries and therefore in July 2010, the European Commission published a Green Paper on the issue and held a public consultation exercise that will lead to draft legislation being unveiled after the summer break. It raised the question of optional European contracts between companies and consumers as an alternative to contracts under the member states' legal systems.
This idea is backed by the MEPs, who recommend that standard contracts should be published in all EU official languages and be provided initially solely for cross-border contracts, but member states would have the option to use them in the future for contracts within their own country.
Wallis said that the vote was an important step in the optional, simplified and flexible introduction of European contracts to give people entering contracts greater choice and ensure legal security in other countries. The contracts could be introduced quite quickly, she added.
In a press release, EU Commissioner Viviane Reding welcomed the vote, calling it good news for the single market and stating that she would be taking account of the EP's views in her work. (S.P./transl.fl)