In the Permanent Representatives Committee (COREPER II) the Member States approved, on 5 February, the compromise text regarding the Proposal of the Regulation creating a European Account Preservation Order. This allows for a first reading agreement, after the formal voting in the European Parliament and the Council.

The general objectives of this proposal are to facilitate the recovery of cross-border claims for citizens and businesses, in particular small and medium-sized enterprises (SMEs) and improve the efficiency of enforcement of judgments in civil and commercial matters concerning cross-border disputes. The new Regulation will help reduce the risks involved in cross-border trade, increase the confidence of traders, improve payment behaviour of debtors in cross-border situations and encourage more cross-border business activity. 
"I would like to emphasise the importance of today’s agreement in the Committee of Permanent Representatives (COREPER II) on the Proposal of the Regulation creating a European Account Preservation Order, which was also one of the priorities of the Greek Presidency. In a tough economic climate for Europe, it is vital for the economies of Member States to be able to provide citizens and businesses with a significant procedural tool that can help them recover their cross-border claims in a quick and efficient manner. Today’s agreement, not only supports the objective of a free movement of judgments in civil and commercial matters within the European Union, but also strengthens the concept and substance of the ‘Europe for Citizens’ Programme. We would like to congratulate and at the same time thank all Member States and the European Commission for their cooperation in achieving such a result for the sake of European citizens. We are convinced that our co-legislator, the European Parliament, will soon endorse the political agreement reached today", said Minister of Justice, Transparency and Human Rights, Charalampos Athanasiou.

More specifically, the new regulation aims at:

• Enabling creditors to obtain account preservation orders on the basis of the same conditions, irrespective of the country where the competent court is located
• Allowing creditors to obtain information on the whereabouts of their debtors' bank accounts
• Reducing costs and delays for creditors seeking to obtain and enforce an account preservation order in cross-border situations.

The Regulation seeks to establish a new and self-standing European procedure for the preservation of bank accounts which will enable a creditor to prevent the transfer or withdrawal of his debtor's assets in any bank account located in the European Union. The European procedure will be available to citizens and companies as an alternative to procedures existing under national law.

The European Account Preservation Order will complement existing instruments in the area of civil justice, e.g. Regulation (EC) No 44/2001 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters ("Regulation Brussels I"), which solely ensure that a judgment given in one Member State is recognised and enforceable in another Member State but do not contain any provision on how a judgment is actually enforced. To date, the procedural modalities of enforcement of a judgment or other enforceable title are exclusively governed by national law.

Background
Small and medium-sized enterprises (SMEs) make up 99% of businesses in the EU. Around 1 million of them face problems with cross-border debts and up to €600 million a year in debt is written off because businesses find it too expensive or difficult to pursue lawsuits in other EU countries. Citizens also suffer when goods bought online are never delivered or an absent parent fails to pay maintenance from abroad.

The new Regulation will contribute to economic activity in the Single Market and improve the efficiency of enforcement of judgments in the EU regarding bank accounts and debtor's assets.