City law firms practising in Italy could soon be able to undercut their Italian competitors if the European Court of Justice (ECJ) adopts an opinion of the Advocate-General that the setting of minimum fees in Italy is illegal and anti-competitive.

The fixing of minimum fee rates by the Italian government restricts the freedom to provide services and is not justified by an overriding reason in the public interest, Miguel Poiares Maduro said earlier this month. 'The minimum fees... neutralise the competitive advantage of lawyers established outside Italy,' he said.


Mr Poiares Maduro added that Italian citizens wishing to instruct a foreign lawyer are unable to benefit fully from the common market, because they are denied access to cheaper legal services.


In Italy, compulsory minimum and maximum rates for lawyers' fees are fixed by legislation, with scales set every two years by the National Council of the Bar and approved by the justice minister.


The Advocate-General's opinion is not binding on the ECJ, but in practice the court approves it in most cases.


A Law Society spokeswoman said: 'If the opinion is confirmed by the court, solicitors wishing to provide services in Italy will be able to do so taking account of all their costs and expenses, which the current system does not permit. This would lead to a more level playing field.'