Brussels, 17/01/2003 (Agence Europe) - The European Commission intends to modernise and transform the "Rome I" Convention applicable to contractual obligations. This Convention of 1980 entered into force eleven years ago and helps to ensure the mutual recognition and enforcement of judicial decisions throughout the European Union. The key to the vaults of the system is the principle of contractual autonomy, whereby the different parties can select the law applicable to their contract. If no choice is forthcoming by either party, the Convention applies the "proximity principle" given that the contract is governed by the law of the country with which it "has the closest links" a priori, the country of residence for the party that carries out the main service. The judge, however, maintains a substantial leeway for interpreting decisions and the Convention includes special rules favouring the so-called "weaker" parties.
This week he Commission adopted a Green Paper in the first step to modernise this text. It explained that in a general way the law contained shortcomings and ambiguities on the essential points in the Convention and then examines the different articles, noting the problems and the possible solutions. The Green Paper may re-shape consumer protection and cross-border work contracts. In the context of transforming the Convention into a Community instrument - directive or regulation - the Commission points our that the Convention of Rome is the only instrument of international civil law at a Community level that would have the substantial advantage of allowing for a uniform interpretation of its rules by submitting them to the jurisdiction of the European Court of Justice.
In its Green paper, the Commission explains that the European Union will not be able to become a genuine single market that facilitates the free movement of goods, people, services and capital, without a common area of justice in which every citizen has the sale rights in each Member State, as well as the Member State where he lives. The Commission also stresses that the different parties are often discouraged to exercise their rights in a foreign country because of the incompatibility and complexity of the different national legal and administrative systems. This is particularly the case for citizens and SMEs.
The Green Paper is due to be set up on the website: (http: //europa.eu.int/comm/justice_home/ unit/civil_en.htm).
The Rome Convention is part of a number of texts - in force or in preparation - aimed at facilitating regulation in the EU and international litigation in civil law (with the exclusion therefore of criminal or public law). The Brussels 1 regulation that since March 2002 replaces the Brussels Convention, settles the question of what country the courts are competent in cases of litigation. The Rome Convention is the follow-up given that it resolves the issue of what law is applicable. The difference being is that Rome only applies to contractual obligations, whereas Brussels also applies to criminal law. This explains why the Commission last year launched a consultation on the new Rome II instrument, which focuses on non-contractual obligations. The Commission will also soon be announcing an Action Plan on contract law in the EU, in the follow up to the communication of 2 July 2001 on "European contract law", which takes on board the issue of the harmonisation of national laws.