It is the first legislation framed by the commission under a broad policy to promote the mutual recognition of legal decisions made in all EU countries.
In this instance, a creditor would be able to secure a European Enforcement Order to claim money owed, either where a debtor has admitted liability, or has failed to contest an application for recovery of debt.
This order, said the EC, would enable creditors to avoid ‘any burdensome administrative or judicial procedure’ in the debtor’s home country that could impede their claim. It added that the proposal, which must be agreed to by the EU Council of Ministers to become law, was a ‘pilot project’ for mutual recognition.