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The European Commission has been trying for months to make its preferred approach in respect of EU contract law more palatable to the Council and the European Parliament. The Commission does not tire of claiming that the introduction of a 28th contract law in addition to the existing 27 national contract laws was what consumers really wanted. However, as the Chamber of Labour and The European Consumers' Organisation BEUC have explained on several occasions, this approach burdens the consumer with the decision, which contract law should apply. This week, the Legal Affairs Committee of the European Parliament voted on its position on EU contract law. Unfortunately, the serious concerns of BEUC and the Chamber of Labour were not considered at all.
The discussion about a European contract law is still at an early stage. A so-called Green Paper discusses the possible approaches concerning this subject, in which every organisation and every EU citizen can participate within the scope of a Consultation. The European Parliament also muscles in, publishing a report on this subject. Both consumer organisations and employer organisations have either voiced scepticism or reject the proposal of the Commission to create a 28th contract law in addition to national acquis. The Chamber of Labour points out that the current Rome I Regulation, which provides for a principle of favourability for consumers, would be undermined as a result.

In spite of the warning voices on behalf of both entrepreneurs and consumers, the Legal Affairs Committee has now approved the text of the Liberal MEP Diana Wallis. With cross-party support – only four MEPs voted against the report, among them the Austrian MEP Regner. In view of the broad majority vote in the Committee, there are hardly any changes expected in the plenary.

Following the carte blanche of the European Parliament, one can now assume that the legislative proposal of the Commission, whose publication is planned before the end of the year, will look accordingly and include the introduction of a 28th contract law. Whether the European Parliament and the Council will change their conduct concerning the legislative procedure after all remains to be seen.

More information is available in our article European consumer protection: Does the Commission send Trojan horses?