Arlene McCarthy (S&D, UK), the MEP leading Parliament's work on this issue, has said "Millions of citizens make use of their right to live, work or do business anywhere in the European Union. It is therefore essential to ensure they also have the right to legal protection. It is still too easy for fraudulent traders to take people's money and escape the long arm of the law by moving their assets to another EU country." She explained that MEPs are therefore "calling for quick and effective measures so the victims of fraud, non-payment or non-delivery can have the assets of those who owe them money frozen and disclosed and are not denied recompense".
In a report drafted by Arlene McCarthy and approved by the Legal Affairs Committee on Tuesday, MEPs ask the Commission to come up with two draft EU regulations: one for a European Order for the Preservation of Assets and the other for a European Order on the Disclosure of Assets. They also suggest in some detail what shape this legislation should take.
The regulations should state which national courts have the right to issue such orders, say MEPs. A standard multilingual form should be available for requesting such orders. In addition, a set of safeguards for debtors should be provided. The European Order for the Preservation of Assets should be obtainable without initial notice being served on the debtor, and the cost of using it should be kept to a minimum.
Next steps
The European Commission has already informed Parliament that it plans to put forward a draft law on the freezing of debtors' assets by July 2011. Draft legislation on the transparency of debtors' assets is planned for 2013.
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