MINISTRY OF JUSTICE
News Release (099/08) issued by The Government News Network on 25
July 2008
Proposals which
will better protect UK businesses trading in Europe have been
agreed by Ministers today.
The Government undertook a consultation on whether to opt-in to
Rome I Regulation - which provides clarity over which law applies
if a dispute arises over a contract made between people or
businesses from different countries, allowing cross border-trade
to continue with confidence. The overwhelming response to the
consultation was yes.
International Justice Minister Bridget Prentice MP said:
"I am delighted that the vast majority of those who
responded to the consultation were in favour of the proposal.
"Much of the business conducted by the UK is done by
contract, and with international parties. Contracts are the basic
building block of many of the financial transactions that occur in
huge numbers in the City of London and throughout the UK every
day. For these businesses and individuals, it is crucial that the
law applying to their contracts is certain and predictable. That
is what this regulation will achieve."
When the European Commission first announced the proposals in
2005, the UK Government took the unusual step of opting out of the
proposals, as they would not have been in the interests of UK
businesses. However, following intense negotiations, a
substantially revised and hugely improved version has now been agreed.
Notes to Editors:
1. On 2 April 2008, the UK launched a public consultation
exercise, seeking the views of UK business stakeholders on whether
the Government should now seek to opt in to the Rome I Regulation.
The consultation closed on 25 June. The overwhelming response was
acceptance of the Government's recommendation that the UK
should now seek to opt in to Rome I.
2. The Regulation will come into force on 17 December 2009.
3. The UK is currently seeking the consent of the European
Commission to participate in the Regulation. The UK will try to
seek to implement the Regulation at the same time as the
Regulation became enforceable in the other Member States.
Press Notice
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