EU set to disentangle cross-border disputes

Lawyers settling cross-border financial disputes within the EU will be offered a simplified system for receiving and sending payments, allowing them to bypass complicated national administrative rules.

The EU Council of Ministers of Justice and Home Affairs agreed in principle to establish this ‘European Order for Payment Procedure’, hastening the payment of compensation, debts or damages in uncontested cross-border cases.

A council statement said: “The objective of the system is to simplify, speed up and reduce the costs of litigation in cross-border cases concerning uncontested pecuniary claims.”

Disputes covered by the new system could, for instance, include a UK company buying defective goods from a German supplier: if the Germans accepted blame, the new common system could be used to administer refunds.

Currently, cross-border complainants tangle with EU national administrative procedures, which are often time-consuming and complicated.

The new system can be used for civil disputes involving any kind of EU court or tribunal.

Denmark will not participate in the system.