On 12 July 2011 EU Justice Commissioner Viviane Reding published a statement on the way forward for collective redress at EU level.  The statement follows a consultation by the Commission in February 2011 to identify common legal principles relating to collective redress in order to develop a coherent European approach (see issue 508 of Community Week).

The Commission has identified three main options:

  • take no further action on the basis that the arguments in favour of EU level action are not compelling;
  • encourage developments in Member States by issuing a Recommendation; or
  • take legislative action either as a sectoral initiative or as a horizontal instrument.

As the collective redress initiative applies to a broad diversity of areas, ranging from antitrust to environment, the project is being lead by three Commission departments: those for justice, competition and consumer affairs.

It is clear that the relevant Commissioners have not reached agreement on which course of action to take. Furthermore, there are diverging views within the Commission about whether there should be any legislative intervention on collective redress at EU level considering some Member States have already introduced collective redress mechanisms into their national laws and others are contemplating such reforms. A key concern for the Commission is whether an EU level system would fit into the legal orders of all Member States and that US-style class actions are not introduced into Europe.

Further to this statement, Joaquin Almunia, EU Competition Commissioner, has indicated that he intends to propose specific legislation for the private enforcement of antitrust measures, suggesting that individual departments may adopt different initiatives.

The Commission is currently analysing the high level of responses to its consultation and plans to issue a Communication on its approach by the end of 2011.

To view Community Week, Issue 529; 15th July 2011 in full, Click here.

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