13 Common Frame of Reference
| (28847)
12269/07
COM(07) 447
| Second Commission Report on the Common Frame of Reference
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| Legal base | — |
| Document originated | 25 July 2007
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| Deposited in Parliament | 3 August 2007
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| Department | Ministry of Justice
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| Basis of consideration | EM of 5 September 2007
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| Previous Committee Report | None
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| To be discussed in Council | Not applicable
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| Committee's assessment | Legally and politically important
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| Committee's decision | Cleared
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Background
13.1 The Common Frame of Reference (CFR) project explores ways
of harmonising private law throughout the EU, mainly in the area
of contract law. Following the first Annual Conference on the
CFR project, held at the Mansion House in September 2005, the
Competitiveness Council produced conclusions in November 2005
in response to the Commission's first progress report on the project.
These reiterated the Conference message that the Commission should
refocus their work on EU contract law in order to give priority
to the review of the consumer acquis. The Commission duly reorganised
their work programme and schedule of workshops to concentrate
on consumer law topics.
The document
13.2 The document contains the Second Progress Report from the
Commission which summarises the work on the CFR since the publication
of the first report in September 2005. The Commission refers to
its earlier Green Paper on the review of the consumer acquis published
in February 2007 which was informed by the work to that date.
Meanwhile the academic network retained by the Commission has
continued with their work to produce what the Commission refers
to as the "academic CFR". It is expected that this will
be published at the end of 2007.
13.3 The Commission report indicates that the third
Annual Conference on contract law, hosted by the German Presidency
in Stuttgart in March 2007, highlighted that although there was
enthusiasm for the creation of the CFR, there was still uncertainty
as to its nature and function. With this in mind, the German Presidency
then produced a paper on the content, scope and purpose of the
CFR. A subsequent paper produced by the Presidency went on to
propose a number of options for deciding the purpose, scope, content
and binding effect of the future CFR.
13.4 The Commission Progress Report then explains
how the Commission has re-prioritised the work on the contact
law project and outlines the substantive issues that have arisen
in the CFR and the review of the acquis workshops and the meetings
of the Member States Experts Group. The Commission also reports
on the results of workshops with stakeholders and Member States
on the structure of the CFR and summarises the input to date from
the European Parliament and the Council.
13.5 In its conclusions, the Commission notes that
in relation to EU consumer contract law, the relevant CFR findings
will be incorporated into the review of the EU consumer contract
law acquis. The Commission also notes that the academic researchers
are expected to present their draft CFR by the end of the year.
The Commission states that it will consult with other institutions
and stakeholders to select the relevant paths of the draft CFR
that correspond to the common legislative objective. The Commission
will then carry out further work before deciding whether to issue
a White Paper that would set out its approach. The Commission
has invited the Council to express its position on the remainder
of the work on the CFR.
The Government's view
13.6 In her Explanatory Memorandum of 5 September
2007, the Parliamentary Under-Secretary at the Ministry of Justice
(Bridget Prentice) gives a cautious welcome to the publication
of the Commission's Second Progress Report on the CFR. At the
same time the Minister explains that:
"Whilst the Government accepts that the functioning
of the internal market is a proper matter for appropriate EC legislation,
it also considers that the general law of contract is a matter
for the Member States."
13.7 In relation to the Commission's Report in particular,
the Minister goes on to comment as follows:
"The Report does not raise any new policy implications
apart from underlining the fact that the Commission's work on
the CFR is continuing. The Commission has [sic] also invited the
Council and the European Parliament to give a view on the remainder
of the work of the CFR. We do not know how the Presidency will
respond to this but we are considering the issues raised.
"The Report states that the Commission will
start work on the 'academic CFR' as soon as it is published with
the possibility of producing a White Paper next year. The Government
will continue to consider its position on the remainder of the
work on the CFR but the next major development is likely to be
the Government's response to the publication of the 'academic
CFR' and/or a proposal from the Commission. The Government will
keep Parliament informed of further developments on this project."
Conclusion
13.8 We thank the Minister for her brief summary
and comments on the proposal. We are content with the Government's
firm assurance that it considers contract law to be a matter for
Member States. Accordingly, we clear the document from scrutiny.
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