Council Resolution On "A More Coherent European Contract Law"

(2003/C 246/01)

THE COUNCIL OF THE EUROPEAN UNION

I. RECALLING THAT:

1. As a follow-up to its Communication of July 2001 on European Contract law(1), the Commission adopted a Communication entitled: "A more coherent European Contract Law - An Action Plan"(2).

2. The European Parliament adopted a resolution on this Communication on 2 September 2003.

3. Taking into account the contributions received after July 2001, this Action Plan, on which views from all interested parties are being sought, suggests a long-term strategy based on a mix of non-regulatory and regulatory proposals.

4. In addition to appropriate sector-specific interventions, the Action Plan includes proposals aimed at increasing the coherence of the Community acquis in the area of contract law, at promoting the elaboration of general contract terms intended to be applied throughout the European Union and at further examining whether the diversity of contract law in the European Union may also require non-sector-specific solutions.

II. CONSIDERING THAT:

1. Community law rules, in particular in the area of contract law, should be consistent and ensure proper transposition into national law. In this context, the Common Frame of Reference suggested by the Commission could contribute to improving the quality and consistency of both existing and future Community legislation in this area. This Common Frame of Reference would not be a legally binding instrument.

2. It is essential to ensure a smooth and efficient functioning of cross-border transactions in the internal market. In this context, it would be useful to take appropriate and proportionate measures to facilitate the conclusion of cross-border contracts, to decrease transaction costs, and to allow all economic operators and consumers to make full use of the advantages offered by the internal market. Any measure, including the Common Frame of Reference, should correspond to the realities of the internal market and, therefore, to the practical needs of economic operators and consumers. Member States should be actively involved in their preparation and elaboration.

3. The coherence between the follow-up to the Action Plan and to the Green Paper on the conversion of the Rome Convention of 1980 on the law applicable to contractual obligations into a Community instrument and its modernisation should be guaranteed. The need for coherence with existing relevant international conventions aiming at the harmonisation of private law, in particular the United Nations Convention on Contracts for the International Sale of Goods of 11 April 1980, should also be taken into account.

III. WELCOMES:

1. The Commission Action Plan on "A more coherent European contract law".

2. The Commission's intention to elaborate a Common Frame of Reference, prepared on the basis of a research project under the Sixth Framework Programme for research and technological development(3), taking due account of all the different legal traditions of Member States.

The Commission's intention to inscribe the proposals included in the Action Plan inter alia within the objective of developing an area of freedom, security and justice and to ensure that they are complementary with the follow-up to the Green Paper on the conversion of the Rome Convention of 1980(4) on the law applicable to contractual obligations into a Community instrument and its modernisation(5).

IV. UNDERLINES THAT:

1. In order to achieve greater transparency, coherence and simplification of contract law, it also appears particularly useful to further improve, consolidate and codify, the existing EC legislation in the area of contract law;

2. The elaboration of EU-wide general contract terms can be useful; however, such general terms should be developed by the contractual parties themselves and respect mandatory Community law and national provisions, including the provisions regarding the protection and information of consumers. At this stage and in this context, it seems particularly useful to gather information on existing and future initiatives through the web-site envisaged by the Commission. It should nevertheless be understood that publication on this web-site should not be interpreted as a form of approval of such initiatives.

3. Further reflection is necessary on the need for non-sector specific measures, for example an optional instrument in the area of European contract law: the Commission should pursue this reflection, in close collaboration with Member States and taking due account of the principle of contractual freedom.

V. CALLS UPON THE COMMISSION TO:

Establish appropriate mechanisms both at political and expert level, including a discussion forum, in order to allow all Member States, the Council and the European Parliament, as well as researchers, legal practitioners and other stakeholders, to actively participate in the elaboration of the Common Frame of Reference. These mechanisms should ensure, through adequate consultation schemes, that the elaboration of the Common Frame of Reference takes into due account the principle of subsidiarity, the practical needs of economic operators and consumers and the established structures and legal cultures in Member States. Furthermore, the research project referred to in III.2 above should be carried out in a way to reflect all legal traditions of Member States.

VI. CALLS UPON THE MEMBER STATES TO:

Actively participate to the work of the Commission on the proposed follow-up measures and encourage the contributions of national stakeholders to the ongoing discussions at Community level.

VII. INVITES THE COMMISSION TO:

Regularly inform the Council and report to it at least every 12 months on the results of the ongoing discussion process and on the progress made in the area of European contract law.

(1) Doc. 10996/01.

(2) Doc. 7780/03.

(3) Decision 1513/2002/EC of the European Parliament and of the Council of 27 June 2002 concerning the sixth framework programme of the European Community for research, technological development and demonstration activities, contributing to the creation of the European Research Area and to innovation (OJ L 232, 29.8.2002, p. 1).

(4) Convention on the law applicable to contractual obligations opened for signature in Rome on 19 June 1980 (80/934/EEC; OJ L 266, 9.10.1980, p. 1; consolidated version: OJ C 27, 26.1.1998, p. 34).

(5) Doc. 5516/03.