European order for payment procedure: Regulation 1896/2006

Here's a further development of European civil procedure and conflicts of law.

Regulation 1896/2006 creating a European order for payment procedure has been adopted by the European Parliament and the Council.

The basic idea of Regulation 1896/2006 is to set up a simplified system for collecting uncontested debts between member States. The Regulation lays down a standard form of order to be issued by the court having jurisdiction according to Regulation 44/2001 at the request of the creditor. That order is then to be served on the defendant debtor. The defendant has the opportunity to oppose the claim. If the defendant opposes the claim, the proceedings will continue before the court that issued the order as normal civil or commercial litigation. If the defendant does not oppose the claim, the order becomes enforceable and no further exequatur is necessary.

Regulation 1896/2006 will apply from December 12th, 2008. It will apply in the United Kingdom and Ireland, which opted in under Article 3 of the Protocol on the position of the United Kingdom and Ireland annexed to the EU Treaty. It will not apply to Denmark in accordance Articles 1 and 2 of the Protocol on the position of Denmark annexed to the EU Treaty.