Brussels, 08/06/2011 (Agence Europe) - A further step has been taken in EU efforts to build a base of harmonised laws for consumers and companies concluding contracts in the single market. It was by the wide majority of 521 to 145, with 8 abstentions that the European Parliament (EP), in Strasbourg on Wednesday 8 June, gave the go-ahead to the principle of optional European rules which, if the Council also gives its backing, will mean that the European Commission will be able to bring forward a proposal on a European contract law. The EP vote gives the green light to a compromise negotiated with the Council in the evening of Tuesday 7 June on the political options to allow the matter to continue to progress.
MEPs, following the position of rapporteur Diana Wallis (ALDE, UK), who drafted an own initiative report approved by the EP legal committee, said that an optional instrument, allowing consumers and companies to choose either European law or their national law, should be complemented by a reference “toolbox” to ensure the consistency and quality of the legislation on European contract law.
Andreas Schwab (EPP, Germany), chief negotiator on issues relating to consumers' rights in distance sales and off-premises contracts (see EUROPE 10344), opined that this was a balanced compromise: “With this broad harmonisation of consumer rights, we have taken a step forward for both traders and consumers.”
Commission Vice-President with responsibility for Fundamental Rights Viviane Reding, who is keen to bring greater coherence to contract law in Europe, making it easier to do business cross-border, welcomed the EP vote. “I am looking closely at all the possibilities to ease cross-border transactions, and I believe the option favoured by the European Parliament could be a very good choice. It would give Europe's 500 million consumers more opportunities to shop across borders while cutting transaction costs for small businesses - the backbone of our economy. I will work closely with the European Parliament and all member states to see how to turn today's vote into an attractive legal reality”, she said.
The costs related to transactions (for example, adapting contractual conditions and trade policies, or obtaining a translation of the arrangements in force) and the inherent legal uncertainty in the application of foreign contract laws make it difficult for small and medium-sized enterprises to grow in the internal market, even though they represent 99% of companies. EP negotiators are hoping that the Council will give formal confirmation on Thursday 9 June. (A.N./transl.rt)