Select Committee on European Union Minutes of Evidence


Examination of Witnesses (Questions 120-133)

Mr Onno Brouwer and Mr Georg Berrisch

29 NOVEMBER 2006

  Q120  Chairman: As to where it sits I do not know it greatly matters, but would you envisage it would usefully continue to sit in Luxembourg?

  Mr Berrisch: We think it would be useful to have all the Courts of the Community in one place.

  Q121  Chairman: As to appeals, obviously if there were judicial panels, then on the face of the statute under 225a appeals would go before the CFI, which is why you are introducing by that scheme a fourth level. But if it is another chamber of the existing CFI then nothing has changed; is that right?

  Mr Berrisch: That is right.

  Q122  Chairman: I do not think there is much more we need ask on that aspect, do we? If contrary to your view there were to be a fourth layer, a new panel, then should the appeal be to a specialised chamber of the CFI?

  Mr Berrisch: We do not think that this would necessarily have to be a specialised chamber of the CFI because we think these appeals should be on points of law only and not on points of fact. We do not think that this would necessarily have to be a specialised chamber.

  Q123  Chairman: Assuming that the CFI were freed from these cases at first instance, should they be given jurisdiction to hear preliminary references from the courts in Community competition law cases?

  Mr Brouwer: We have debated that point a number of times within our delegation and it is quite a difficult debate because there are pros and cons on transferring preliminary ruling procedure decisions to the CFI. That has to do with the function that the Court of Justice actually fulfils in safeguarding the consistency and uniformity of the application of Community law. The suggestion has been made in some of the debates that maybe there is indeed a logic, if you do have a more specialised chamber in the Court of First Instance, to have at least pure competition law questions eventually referred to the CFI. As has been indicated, often questions are however linked in with other questions of Community law, so you may have very few cases where there is a pure question of competition law and no other element of Community law involved, but one could think about that and whether it then makes sense to actually allow for a question to be referred to the CFI, with the proviso of course that if the CFI then feels that the case raises broader questions, if it is a very fundamental question, then the CFI can still refer it to the Court of Justice to rule upon.

  Q124  Chairman: The Civil Service Tribunal, as I understand it, is currently the only form of judicial panel brought into being under Article 225a, is that right, with effect from 1 January this year?

  Mr Berrisch: That is right.

  Q125  Chairman: Do you know roughly how long that took to bring into being? How long a process would it be if it were thought by some a good idea to introduce new judicial panels to deal with competition cases or merger cases?

  Mr Brouwer: It will take a number of years—many years.

  Mr Berrisch: The possibility was included in the Nice Treaty. I do not recall when exactly the Nice Treaty came into force but since then the possibility has existed. If I remember correctly, that was one of the first tribunal possibilities discussed, and you see how long it took, and that should not have been so difficult because it is politically not a very controversial area. So it will take some time.

  Mr Brouwer: Many years.

  Mr Berrisch: Of course, once you have one tribunal in place you can experience how these panels work and you can learn from that, and establishing a second time might be significantly easier.

  Q126  Chairman: If you were simply introducing new competition chambers within the CFI and doing that as a scheme different merely from having a larger CFI and therefore a greater capacity to take competition appeals, how long would that take and would it need any alteration to the procedural rules that we discussed earlier as requiring unanimity in Council?

  Mr Berrisch: My Lord Chairman, my understanding is that the CFI already now decides which case to allocate to which chamber and to which reporting judge and also decides on the composition of the chambers. These two possibilities combined—the chambers with competition experts that are at the Court and then just make sure to assign these cases to these chambers and then you are there.

  Q127  Chairman: So that reform could take place if it was thought a good idea without any especial delay?

  Mr Berrisch: That would be my understanding.

  Q128  Chairman: Is there anything else that your august body, the CCBE, feels that we should know or should usefully be taken into account by us as a possible way ahead in terms of improving the existing practices?

  Mr Brouwer: My Lord Chairman, if I may I would just like to come back on one point that has been mentioned; the autonomy of the Court to adopt its own rules, because I think it is important to know that our permanent delegation is in favour of having more autonomy for the Court to adopt the rules. We are slightly cautious in the sense there is another important point we are also making, which is that we very much advocate that the European Community actually adheres to the European Convention of Human Rights, because that will also make a difference. At present, if ever you have procedures before the courts which you would consider problematic, you do not have external control.

  Q129  Chairman: So you want the Community to accede to the Strasbourg Convention and that would eliminate the need for the present restrictions on the Court's autonomy and ability to regulate its own procedures? Is that your point?

  Mr Brouwer: I think it is an important point to say that there is a certain link.

  Q130  Chairman: I follow that point entirely. Can I just be clear insofar as you think it would be a good idea to give them more autonomy, in what specific area, what particular procedural rules do you think at the moment are inhibiting the sorts of reform and expedition that we are looking to achieve here?

  Mr Berrisch: I think now you have a very strict way in which procedures have to be conducted: application two months before a defence; the possibility of a reply and rejoinder; no possibility of bringing new pieces of evidence or introducing new evidence during the course of the proceedings. This makes it a very rigid procedure. If one could give more flexibility to the Court to conduct that and not have this rigid regime in place, I imagine that could lead to efficiency gains. There are maybe other possibilities of allowing the Court to dispose of some pleas that are clearly unmerited in a more simple way so the Court does not have to explain everything in detail, more of a summary judgment on certain points. At the moment the Court is also very cautious that its judgments are subject to appeal to the European Court of Justice, and one of the grounds of appeal could always be that the Court has not provided sufficient reasoning for its decision. These are all areas where you could have flexibility introduced.

  Chairman: I think it would be enormously helpful, and I hope it will not be too tiresome for you, if we could possibly prevail upon you to supply us in writing with a short list of the procedural rules that you currently think are too constrictive and which could, with advantage, cease to be subject to the constraints of unanimity in Council, to indicate how, in other words, you would shift the line to allow the Court to improve its own procedures. Do you see what I am asking for? That would help us enormously.

  Q131  Lord Lester of Herne Hill: I wonder whether in doing that you could reflect on the following: I perfectly understand if I were a Dutch or German lawyer in societies ruled by the rule of law, why I would be cautious about giving to courts the power to fashion their own rules of procedure rather than saying the legislature had the primary obligation to get the core rules. I understand all of that, but in the context of the European Union, the general principles of law recognised already by the Court of Justice include, do they not, rules about proportionality and fairness and natural justice which the Court regards itself as bound by. One can always go to Strasbourg in a theoretical case and say the Court of Justice got it wrong and the Member States are all liable for authorising it. Therefore, would it not be sensible to give the Court of Justice as much discretion as possible, while emphasising the principles that must be applied by the Court in fashioning its rules, rather than trying to demarcate that which the legislator should deal with and that which the Court should deal with?

  Mr Brouwer: That is a very clear point and we will also comment upon that because I think that it is also a very good point. What is clear, and we have seen this in the Senator Lines case in Strasbourg, is that if you do feel there is an issue you have to bring a case against all the Member States...

  Q132  Lord Lester of Herne Hill: I appreciate that.

  Mr Brouwer: ...and that is quite a big issue but of course we will also comment upon that.

  Q133  Lord Lester of Herne Hill: Of course this Committee has in the past reported our wish that the European Community should be able to be directly bound, so in the history of our Committee we have come to that conclusion.

  Mr Brouwer: It is an important point for us; we have advocated that very strongly.

  Chairman: Thank you very much. Unless anyone else has other questions, it only remains for me to thank you very much indeed for coming. Can I, like Lord Jay, commend the brevity of your written contribution as an example to us all, and no doubt others. Thank you very much indeed.





 
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