Brussels, 16/05/2007 (Agence Europe) - After four years of intense negotiations, the European Parliament and the Council, meeting late into the night of Tuesday in the Conciliation Committee, finally approved a regulation on the law applicable to non-contractual obligations (Rome II). European states have been trying to harmonise the rules on conflicts of law in criminal matters since 1972. “We have succeeded in attaining a compromise which will bring significantly more legal certainty and clarity to the citizens of Europe,” said German Federal Justice Minister Brigitte Zypries, who led the negotiations for the Council under German presidency. This measure seeks to ensure that courts in every member state apply the same law in cross-border legal disputes involving civil liability, thus facilitating mutual recognition of court decisions in the European Union (see EUROPE 8510). “This is the first time that the EU has put into a regulation an extensive area of private international law where there was no pre-existing international Convention,” said the Parliament's rapporteur Diana Wallis (ALDE, UK) remarking upon the Parliament's extended powers (co-decision) on matters of civil law. “The EP has left its mark on several other issues, including party autonomy and flexibility to the general rule,” she pointed out, noting that the way was open for future legislation on matters such as defamation and treatment of foreign law. Justice Commissioner Franco Frattini, who also attended this final marathon, and who influenced the negotiations, said he was satisfied with the agreement. “This is a fundamental instrument,” he said, adding that it was “unacceptable” that, in settling damages caused to people and goods, there could be such vast differences in the ruling depending on the court. Despite a political agreement reached in Council at the end of April and the two European Parliament readings (see EUROPE 9182 and 9347), negotiations proved very difficult. “It was really hard to find a compromise,” said a source who was present during negotiations.
Compromise was reached on several major sticking points. The co-legislators decided to exclude the highly controversial defamation by media from the scope of the regulation, and called on the Commission to bring forward a detailed study on this issue by the end of 2008. The Commission committed itself to taking all appropriate measures after this study. Another important point was civil liability for injuries caused, usually in accidents. It was decided the law applicable would be the law of the country where the accident happened, unless damages involved nationals of the same country. The Commission made a statement in which it undertook to carry out a study which “would pave the way for a Green Paper” on compensation for victims of road accidents. At this point, a special revision clause with a shortened timetable (before the end of 2008) will apply. Parliament fought very hard to get what it wanted in this section. It also succeeded in getting a preamble added to the text, stipulating that the judge should take account of the victim's elements of fact and the cost of medical care in his/her country of origin, because these can vary enormously depending on the country in which the accident took place. On competition law, the Council accepted the rule insisted on by the Parliament and which had been suggested by the Commission on Article 6-3 (see EUROPE 9391). In the event of damage caused by a cartel, the victim will be able to ask the judge to apply one single law, the law of the interior market principally concerned. This measure, which somewhat surprised the Council, aims to make it easier to pursue cartels. The Council managed to get a preamble inserted on the internal market (Article 27-d) which states that the law designated by Rome II should not restrict the free movement of goods and services. This addition was included for the benefit of e-trade companies. Council and Parliament also agreed on a broad definition of environmental damage, using the 2004 directive on environmental responsibility as their starting point. Finally, with regard to the application by the judge of foreign law, the co-legislators reached agreement on the basis of a statement in which the Commission committed itself to reviewing the way in which courts apply the law in the various member states, leading the Commission, perhaps, to consider further measures in the future. For all that was not covered by a special revision clause, the general clause applies: the presentation by the Commission of a study four years after the regulation comes into force. The agreement will still have to be formally adopted by the plenary session of the Parliament and by the Council within eight weeks. The regulation will then be applied by member states' courts from the start of 2009. The regulation is set to be published in the Official Journal in July 2008, at which date it will also come into force. (bc)