El blog de Maria

The European Commission intends for a foreign judicial decision to be enforced to be as easy as at home. This is the aim of the continental order for freezing and seizure of bank accounts to ensure the recovery of debts between companies and consumers. This order will be useful to combat delinquency, and will simplify, accelerate and ensure the recovery of debts between companies and consumers in different states of the European bloc.

The proposal, which is expected to be effective by June 2011 have the support of the European Parliament since 23 November 2010.

Currently, just  37% of transborder debts are recovered. The system is studied to be consistent with the national systems of enforcement.  This order tries to bring easiness to citizens and SMEs as these economic actors are the most vulnerable to defaults due to financial constraints and lack of means to enforce rights before the law. As a result, ordinary consumers and SMEs are very reluctant to engage in transactions with customers, partners or suppliers in other EU countries, which prevents them from exploiting the enormous potential market that Europe has.

The procedure will be applicable to any claim for payment under a commercial transaction and will be mainly governed by the principle of effectiveness. So to keep the surprise effect, the order should be implemented without prior notification to the debtor and be delivered to the bank as quickly as possible.

The rights of the debtor will be safeguarded by ensuring the right of a fair procedure and allegations.In order to prevent abuses, the court deciding on the case could force the creditor to offer guarantees that will serve to cover his liability and compensation to the debtor if the order is eventually not justified and cause damage.

Gaudi Balcony by Gorgeoux at Flickr.com