The Malta Chamber of SMEs welcomes MCESD Chairperson David Xuereb to its offices
01 February 2024
Malta Chamber of SMEs President Mr Paul Abela and Deputy President Mr Philip Fenech welcomed...
New EU rules
making it easier for companies to recover claims across borders have been
adopted today by EU Ministers. Member States in the General Affairs Council signed
off on the agreement recently reached with the European Parliament to establish
a European Account Preservation Order (MEMO/14/101) – a Regulation that will be directly applicable in the Member States
(except in the UK and Denmark which have an opt-out in this area).
Account Preservation Order is essentially a European procedure that will help
businesses recover millions in cross-border debts, allowing creditors to preserve
the amount owed in a debtor's bank account. The proposal had been made by the
European Commission in July 2011 (IP/11/923).
"Every Euro counts: Small and medium-sized enterprises are the backbone
of European economies, making up 99% of businesses in the EU. Around 1 million
of them face problems with cross-border debts. In economically challenging
times companies need quick solutions to recover outstanding debts. This is
exactly what the European Account Preservation Order is about," said
Johannes Hahn, EU Commissioner responsible for Justice during Vice-President
Viviane Reding's electoral leave. "Today's
adoption is good news for Europe's SMEs and the economy. Thanks to these new rules,
small businesses will no longer be forced to pursue expensive and confusing
lawsuits in foreign countries."
While the EU's
internal market allows businesses to enter in cross-border trade and boost
their earnings, today around 1 million small businesses face problems with
cross-border debts. Up to €600 million a year in debt is unnecessarily written
off because businesses find it too daunting to pursue expensive, confusing
lawsuits in foreign countries. The European Account Preservation Order will help
recovering debt across borders by preventing debtors from moving their
assets to another country while procedures to obtain and enforce a judgment on
the merits are ongoing. It would thus improve the prospects of successfully
recovering cross-border debt.
Next steps: After its
publication in the Official Journal – the EU's Statute book , expected in June
2014, the Regulation will be directly applicable in the Member States (except
in the UK and Denmark).
The new European Account Preservation Order will allow creditors to
preserve funds in bank accounts under the same conditions in all Member States
of the EU (except the UK and Denmark where the new EU rules will not apply).
Importantly, there will be no change to the national systems for preserving
funds. The creditors will be able to choose this European procedure to recover
claims abroad in other EU countries. The new procedure is an interim protection
procedure. To actually get hold of the money, the creditor will always have to
obtain a final judgment on the case in accordance with national law or by using
one of the simplified European procedures, such as the European Small Claims
Account Preservation Order will be available to the creditor as an alternative
to procedures existing under national law. It will be of a protective nature,
meaning it will only block the debtor's account but not allow money to be paid
out to the creditor. The procedure will only apply to cross-border cases. It
provides common rules relating to jurisdiction, conditions and procedure for
issuing an order; a disclosure order relating to bank accounts; how it should
be enforced by national courts and authorities; and remedies for the debtor and
other elements of defendant protection.
Parliament's Legal Affairs Committee (JURI) voted to back the Commission's
proposal (MEMO/13/481) in May 2013. Ministers discussed the proposal at the Justice Council
meeting on 6 June 2013 and reached a general approach on 6 December 2013 (SPEECH/13/1029). The European Parliament issued its support for the proposal in a
plenary vote in April 2014 (see MEMO/14/308).
The Malta Chamber of SMEs represents over 7,000 members from over 90 different sectors which in their majority are either small or medium sized companies, and such issues like the one we're experiencing right now, it's important to be united. Malta Chamber of SMEs offers a number of different services tailored to its members' individual requirements' and necessities. These range from general services offered to all members to more individual & bespoke services catered for specific requirements.
A membership with Malta Chamber of SMEs will guarantee that you are constantly updated and informed with different opportunities which will directly benefit your business and help you grow. It also entails you to a number of services which in their majority are free of charge and offered exclusively to its members (in their majority all free of charge).