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, known as Rome II, will apply to
non-contractual obligations only.
Contractual cross-border disputes will be governed by another
Regulation, known as Rome I, while the international jurisdiction
of courts is governed by yet another Regulation – “Brussels I”.
The new Rome II text amends an earlier proposal adopted by the
Commission in 2003, and takes into account amendments proposed by
the European Parliament. These include amendments to uphold, in
business-to-business relations, choice of law agreements entered
into before the non-contractual obligation arises.
But the new text no longer covers defamation, following
difficulties in finding acceptable wording.
Although the proposal doesn’t seek to harmonise the substance of
national laws, its goal is to ensure that, when several courts from
different Member States are involved in a cross border dispute
relating to non-contractual obligations, they apply the same law
for the solution of the case.
This, says the Commission, not only strikes a reasonable balance
between the interests of the parties involved in a cross-border
dispute, but will also facilitate the mutual recognition of court
rulings in the European Union.
"This proposal, which affects every European citizen and
business, is indispensable in achieving a European area of justice
in which the outcome of a cross-border dispute is no longer wholly
dependant on which Member States Court it is tried," said European
Commission’s Vice President Franco Frattini, Commissioner
responsible for Freedom, Security and Justice.