The European Parliament yesterday backed changes to do away with 27 national rules for recognising judgments in cross-border court cases, in a move expected to help businesses and consumers resolve disputes more easily, reports Global Legal Post.

Proposed by the European Commission. The move will determine which national court has jurisdiction in cross-border cases, and will also detail how judgments issued in one EU country are applied to another.

Overwhelming support

Commission Vice-President Viviane Reding — the EU’s Justice Commissioner — welcomed the overwhelming support (567 votes in favour, 28 votes against with six abstentions), stating on the EU’s web site: ‘Removing bureaucratic obstacles, extra costs and the legal uncertainty of having 27 different and often contradictory systems makes the single market more attractive. This is a very good example of how justice policies can stimulate growth.’

Costly procedures

The new system proposes to abolish the ‘exequatur’ procedure – in which companies must go through costly court procedures to get a judgment in civil and commercial matters recognised in another EU country. It is anticipated that the move could save businesses and consumers up to €48 million a year.

The draft legislation now awaits final adoption, expected to take place at the next Council of Justice Ministers in December 2012.