Policies

Committee on Legal Affairs

Position of the EPP-ED Group

Company law

One of EPP-ED's main priorities is to create an entrepreneur-friendly environment that improves the situation of European companies. The EU regulatory framework for company law and corporate governance needs to be adapted to the growing trend of the European companies to operate cross-border within the EU and the continuing integration of European capital markets. Cross-border economic activity is being pursued by far more than just large-scale businesses. Many SMEs have been increasingly active across the Member States and we must continue improving and simplifying their access to the Internal Market.

The legislative acts, to which the rapporteurs belonging to the EPP-ED Group substantially contributed in this legislative term, focused, inter alia, on strengthening shareholder voting rights, simplifying company law (review of the Fourth and Seventh, as well as the Third and Sixth company Directives) and fostering efficiency and competitiveness of businesses with special attention to specific cross-border issues.

In the further process of modernizing the EU company law, the Group has initiated the legislative process on the European Private Company (EPC). Upon Parliament's intervention, the Commission has now announced to come up with the proposal by mid-2008. In spite of Commission's reluctance to continue with a legislative proposal on the Fourteenth Company Law Directive (transfer of registered office), the EPP-ED stresses that this long-awaited Directive would fill a lacuna in the system of the Internal Market for companies. The Group is also actively participating in the debate on hedge funds, with particular focus on transparency of investors, acquisition of stakes and the exercise of shareholders' rights.

Contract law

There is a general need for more coherence in EU legislative projects to decrease the danger that law will become unsystematic and unpredictable for both citizens and the business sector.

All three institutions the European Parliament, the Council and the Commission are dealing with the project of establishing a Common Frame of Reference (CFR) for European contract law. Such a CFR for the contact law is meant to enhance the coherence and quality of the Community private law. The exact details of the CFR still remain to be defined, i.e. whether the outcome should be interinstitutional agreement, toolbox or an optional legal instrument.

The EPP-ED Group clearly sees that CFR is one of the most significant pre-legislative undertakings in this parliamentary term (and spilling over into the next term). The Group is aware of the importance of this process where the fundamental guidelines for the further development of civil law in the EU are being shaped. It is therefore of no surprise that the initiative to set up a working group on CFR in the European Parliament came from the EPP-ED Group, Mr Lehne being the Chairman of the CFR working group.

In parallel to the CFR for European contract law, the review of the consumer acquis is taking place. Codifying consumer protection rules and practices at EU level and ensuring uniform enforcement of these rules will create a coherent and common environment guaranteeing protection of their rights throughout the EU.

Better law-making and simplification of the EU law

The “better lawmaking and simplification of the EU law” has been one of the top priorities of the EPP-ED Group throughout this legislative term. The Group has taken a critical stand with regard to the regulatory inflation and unnecessarily complex and unclear laws resulting in excessive administrative burdens and difficult implementation.

Realism is the first step towards a success; therefore the Group insists on independent assessments of the consequences of legislation. Impact assessments must be systematically carried out in the context of a legislative process and the laws need to leave sufficient room for manoeuvre to adapt to the local context and to regional specificities.

The Group will continue exerting further pressure so that the laws are drafted in simpler and clearer way and in parallel they are able to achieve agreed policy goals efficiently.

Intellectual property rights

Creative ideas resulting in inventions and innovations serve as the guarantors of Europe's economic strength and progress. Patents are a driving force for promoting innovation, growth and competitiveness; however the single market for patents is still incomplete.

In April 2007, the Commission issued a communication on enhancing the patent system in Europe which clearly showed that the EU must deliver on the Community patent and sound litigation arrangements. In today's competitive global economy the EU cannot afford to lag behind in an area as crucial as patent policy. That is why it is important that the European Parliament, the Council and the Commission work together towards a political consensus on real improvement of the patent system.

The EPP-ED Group recognises the need for adequate protection of intellectual property rights and supports the initiative towards an affordable, secure and efficient patent system which would give incentives for investment and research efforts.

Judicial cooperation

Good results and substantial progress have been achieved so far in the area of international private law (applicable law). The key steps achieved providing citizens with greater legal certainty include: successful conclusion of Conciliation Committee negotiations on the Rome II Regulation (non-contractual obligations), agreement on the Rome I Regulation (contractual obligations), and setting of guidelines for the Maintenance Regulation and also the Rome III Regulation (family law). With an active engagement of the EPP-ED Group, the work needs to continue.

The Group's aim is to make recourse to law for citizens easier and less costly. It contributed substantially to the recently adopted Regulation creating a European Small Claims Procedure. As a result of this legal act, it will be easier to enforce cross-border claims. Enforcement of a judgment given in these proceedings has become simpler: the complicated procedure that was necessary in the past for an order for enforcement has been done away with. The procedure has been designed to be user-friendly by using standard forms and by reducing the costs of proceedings. Another example is the Regulation on the payment order, which has been also adopted in this legislative term. It will simplify, speed-up and reduce the costs of litigation in cross-border cases and facilitate enforceability of claims.

The Committee on Legal Affairs has been dealing with legislative proposals introducing criminal law aspects in the enforcement of intellectual property rights and environmental law. According to the rulings of the European Court of Justice, introduction of criminal sanctions is possible when these are required for the effective implementation of Community law; however the determination of the type and level of the criminal penalties to be applied does not fall within the Community’s competence but within the competence of the Member States. The EPP-ED insists that the principles of subsidiarity and proportionality must be respected. Before any steps are taken towards introducing Community legislation harmonising criminal law, it needs to be demonstrated that all the necessary legal conditions for such a Community action have been met.