The European Commission has proposed a regulation that would force courts and other judicial authorities across the EU to recognise an uncontested order secured by a creditor for the recovery of owed money held in another member state
It is the first solid legislation framed by the commission under a broad policy to promote the mutual recognition of legal decisions made in all EU countries. In this instance, a creditor would be able to secure a European Enforcement Order in their own national courts to claim money owed, either where a debtor has admitted liability or has failed to contest an application for recovery of debt. The commission said that this order would enable creditors to avoid "any burdensome administrative or judicial procedure" in the debtor's home country that could impede their claim. Member States would decide which national court was empowered to issue an order. Under the existing system, the courts of the debtor's country have to sanction any action. The proposal now has to be agreed by the EU Council of Ministers to become law.