REGULATORY SCRUTINY BOARD OPINION Proposal for a COUNCIL DECISION on the accession by the European Union to the Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters

EUROPEAN COMMISSION
Brussels, 23.4.2021
SEC(2020) 279 final
REGULATORY SCRUTINY BOARD OPINION
Proposal for a COUNCIL DECISION on the accession by the European Union to the
Convention on the Recognition and Enforcement of Foreign Judgments in Civil or
Commercial Matters
{SWD(2021) 192 final}
{SWD(2021) 193 final}
Europaudvalget 2021
KOM (2021) 0388 - SEK-dokument
Offentligt
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This opinion concerns a draft impact assessment which may differ from the final version.
Commission européenne, B-1049 Bruxelles - Belgium. Office: BERL 08/010. E-mail: regulatory-scrutiny-
board@ec.europa.eu
EUROPEAN COMMISSION
Regulatory Scrutiny Board
Brussels,
RSB
Opinion
Title: Impact assessment / Accession by the European Union to the
Convention on the Recognition and Enforcement of Foreign
Judgments in Civil or Commercial Matters
Overall opinion: POSITIVE
(A) Policy context
The 2019 Hague Convention on Recognition and Enforcement of Foreign
Judgments in Civil or Commercial matters (the Judgments Convention)
establishes an international system for the recognition and enforcement of
foreign judgments on civil and commercial cases.
This initiative proposes that the EU accedes to the Judgments Convention. This
would regulate how third country judgments are recognised and enforced within
the EU. It would also regulate how EU judgements are recognised and enforced
in third countries.
(B) Summary of findings
The Board notes the additional useful written information provided and
commitments to make changes to the report.
The Board gives a positive opinion. The Board also considers that the
report should further improve with respect to the following aspects:
(1) The report does not distinguish or assess the preferred option in a clear
way. It is therefore not sufficiently clear why it is chosen.
(C) What to improve
(1) The report should better explain the legal nature and remit of the Judgments
Convention, and which countries are likely to join it. It should clarify the impact
of the EU’s accession to the Convention on other existing conventions (e.g.
Lugano Convention, Choice of Court Convention) and on bilateral agreements
between Member States and signatory countries.
Ref. Ares(2021)2727977 - 23/04/2021
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(2) The report should strengthen the rationale for the initiative by clarifying the
impact of legal uncertainty concerning foreign judgments on EU companies’
decisions to engage or not in international trade and investment. It should also
be clearer on the problems that relate to the areas considered for possible
exclusions (declarations).
(3) The report should better distinguish the preferred option in the section that
describes the options, either by presenting it as a self-standing option or a
distinct sub-option (under the option that considers different possible EU
declarations). Subsequently, it should be assessed (and compared) along the
other options to better substantiate the final choice of the preferred option.
Although all four options have a similar cost-benefit outcome, the report should
better explain what distinguishes them and what the preferred choice entails.
(4) The report should better integrate stakeholder opinions. It should be clear
where views differ on specific issues. In particular, the report should clarify
stakeholders’ support for the different options, including the preferred one.
The Board notes the estimated costs and benefits of the preferred option in this
initiative, as summarised in the attached quantification tables.
Some more technical comments have been sent directly to the author DG.
(D) Conclusion
The DG may proceed with the initiative.
The DG must take these recommendations into account before launching the
interservice consultation.
Full title Proposal for a Council Decision on the Accession by the
European Union to the Convention on the Recognition and
Enforcement of Foreign Judgments in Civil or Commercial
Matters
Reference number PLAN/2020/5402
Submitted to RSB on 19/03/2021
Date of RSB meeting Written procedure
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ANNEX: Quantification tables extracted from the draft impact assessment report
The following tables contain information on the costs and benefits of the initiative on which the
Board has given its opinion, as presented above.
If the draft report has been revised in line with the Board’s recommendations, the content of these
tables may be different from those in the final version of the impact assessment report, as published
by the Commission.
I. Overview of Benefits (total for all provisions) – Preferred Option
Description Amount Comments
Direct benefits
Reduced costs for EU
businesses and citizens
when seeking to have a
European judgment
recognised and enforced
in another Contracting
State
EUR 1.1 to 2.6 Million During the reference period (2022-
2026) a decrease of 10-20% of costs
related to the recognition and
enforcement of European judgments in
the selected third countries is expected
to occur in each case, bringing the total
to the amount presented in the left
row.
Shorter length of
proceedings for EU
businesses and citizens
when seeking to have a
European judgment
recognised and enforced
in another Contracting
State
By 3 to 6 months The current average length of
proceedings for the recognition and
enforcement of European judgments in
third countries ranges between 9 to 23
months and is thus expected to
decrease by 3 to 6 months.
Improved access to
justice, increased legal
certainty and
predictability in
international dealings
An improved and more predictable regime
for recognition and enforcement of
European judgments in other Contracting
States.
Likewise, the current system will improve in
many EU Member States.
Non quantifiable
Beneficiaries: EU businesses and
citizens
Businesses and citizens from outside
the EU will also benefit from an
improved system for recognition and
enforcement of third-country
judgments in many Member States
Indirect benefits
Increase in international Between 0.3% and 1.6% For the reference period (2022-2026)
trade in goods and services as well as
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trade and investment foreign direct investment with the
selected third countries is expected to
increase with figures of between 0.3%
and 1.6%.
Beneficiaries: Mostly businesses
engaged in in international trade and
investment but indirect benefits
expected to ultimately translate in
improved economic growth and job
creation
Judgments from outside
the EU will be recognised
and enforced only where
they are in line with EU
fundamental principles
and respect the EU acquis
As the recognition and enforcement of
judgments under the Convention is subject
to a number of refusal grounds and depends
on the jurisdiction assumed by the court of
origin, third-country judgments will only
gain recognition and enforcement if in line
with EU fundamental principles and acquis.
The declaration excluding the recognition
and enforcement of third-country
judgments that ruled on commercial leases
(tenancies) of immovable property situated
in the EU ensures full compliance with the
acquis (the Brussels Ia Regulation)
Non quantifiable
Beneficiaries: EU businesses and
citizens
II. Overview of costs – Preferred option
Citizens/Consumers Businesses Administrations
One-off Recurrent One-off Recurrent One-off Recurrent
Implemen-
tation of the
Convention
Direct costs - - - - Negligible -
Indirect costs - - - - Negligible -
Application
of the
Convention
Direct costs - - - - - Negligible
Indirect costs - - - - - Negligible
Electronically signed on 23/04/2021 10:57 (UTC+02) in accordance with article 11 of Commission Decision C(2020) 4482