A breath of fresh air from Europe

The European Commission has finally handed down its long-awaited proposal for the review of Regulation (EC) No 44/2001 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (COM (2010) 748 final, Brussels, 14 December 2010). Given the importance of the changes for the London market, a centre frequently chosen by way of arbitration agreement in commercial and maritime contracts, this article will discuss the amendments proposed in relation to the interface between the Regulation and arbitration. This author has previously criticised the suggestions made in the preceding Report and Green Paper (see [2009] STL, 9(9), 3-5), and is, to a certain extent, pleasantly surprised by the outcome of the revision. Nonetheless, the Proposal still requires significant clarification in order for it to be applied effectively.

The revision process

The Proposal is the most recent effort in what has been a somewhat drawn out revision of the Regulation; a process which is still not expected to be complete for another two years. In April 2009 the Commission issued, for public consultation, a report on the application of the Regulation (COM (2009) 174 final, Brussels, 21 April 2009) and a Green Paper that put forward suggestions for review of the Regulation (COM (2009) 175 final, Brussels, 21 April 2009). The consultation received a total of 130 responses from various stakeholders, including governments, national associations, law firms and individuals, not to mention the proliferation of academic comment that has ensued. Further conferences and meetings with national experts were convened, along with the constitution of a separate expert group on the issue of arbitration that met on three occasions in 2010. In its advisory role, the European Economic and Social Committee also issued an Opinion on the Commission’s Green Paper (2010/C 255/08, Brussels, 16 December 2009). Consequently, the European Parliament issued a Resolution on the implementation and review of the Regulation (2009/2140(INI), Strasbourg, 7 September 2010), which was promptly followed by the Proposal of the Commission in December 2010.