The Rome Convention of 1980 only came into force in April 1991. It does not apply in certain disputes, including those involving wills and property rights related to family relationships, arbitration agreements and disputes governed by company law.
The purpose of the new initiative is, according to the Commission, to discuss whether the convention should be updated and converted into a Community instrument.
The Rome Convention 1980 allows the signatories of a contract to choose the law applicable to their contract, and to select the court which will hear disputes arising from that contract.
If the parties have not stated the applicable law, the Convention provides that the contract will be governed by the law of the country with which it is most closely connected – usually the habitual residence of the party performing the contract, or the place of central administration for businesses.
The Convention does not provide for a judicial body which would hear disputes involving its interpretation. This is, according to the Commission, a shortcoming that inhibits the co-operation between Member States' courts.
To solve this problem, the Commission has suggested that the Rome Convention should be converted into a Community instrument. If this happens, Member States' courts will be able to ask the European Court of Justice to interpret the provisions of the convention, in cases of dispute.
Such a conversion would also, the Commission argues, be an opportunity to update the law in certain areas, such as consumer protection and employment contracts with cross-border elements.
The Commission, which has included its proposals in a Green Paper, is now asking businesses and individuals to submit their opinions. The consultation will be open until 15th September 2003.
For more information, see:
europa.eu.int/comm/justice_home/unit/civil_en.htm
The Rome Convention of 1980 can be found at:
www.rome-convention.org/instruments/i_conv_
orig_en.htm
