Rome II Regulation: new rules on cross-border disputes

The aim of the Regulation is to achieve legal clarity where there is a conflict of laws between EU Member States in civil and commercial matters. The Regulation will apply to non-contractual obligations only.

MEPs adopted their first reading of the so-called Rome II Regulation on Wednesday. It is the first time the European Parliament has acted as co-legislator in the area of private international law.

Among the 54 amendments adopted by MEPs this week to the European Commission proposal:

• In the case of traffic accidents, MEPs have made the victim’s place of residence the basis for calculating damages, instead of the country in which the damage occurred;
• In cases of defamation – or violation of rights relating to the personality – the European Parliament has clarified which country’s jurisdiction shall apply when a broadcast or publication reaches across EU borders.

European Parliament rapporteur Diana Wallis MEP said:

"The success of Rome II will now depend on good judicial co-operation, proper use and respect for one another’s laws. The record to date is patchy. Courts too often avoid the application of foreign law. This has to be closely monitored if we are to deliver a true area of civil and commercial justice."

Attention now turns to the Council of Ministers, who must give their views before the proposal can become law. If the Council does not accept all the amendments adopted this week, the proposal will return to the European Parliament for a second reading at a later date.