Currently, solicitors may pursue professional activity in another European Union country where they pursue activities on a temporary basis.

A recent case before the European Court of Justice permitted lawyers to establish themselves under home title in another member state subject to certain conditions, but the Rights of Establishment Directive will definitively allow lawyers from one member state to practise under their home title in another member state on a permanent basis.The Law Society's lobbying efforts meant it got almost everything it wanted from the directive, ensuring the opening up of markets in important countries such as France, Germany and Spain.

While the process of implementation of the directive by Parliament has been delayed, work continues within the Law Society to ensure that implementation will be possible by March 2000, the date set by legislation.

A key feature of the directive is that lawyers are to be subject to local registration and regulation in the country in which they are established.This means the Law Society will be required to allow established EU lawyers to participate in its affairs and join in with general professional activities, and it is essential we work to ensure that solicitors practising in other member states enjoy the same benefits and activities.Historically, solicitors in England and Wales have not had any problem with others advising on English law, on the basis that open markets are generally good for business.

But it is anticipated that the directive will be a big step forward in many continental jurisdictions where, up until now, local lawyers have had a monopoly in the provision of local legal advice.There will probably prove to be interesting times ahead as member states seek compliance with the directive by local professions.

Monitoring other member states' compliance with the directive is clearly going to be very important.Of particular interest is the situation regarding professional indemnity insurance.

The directive provides that the host member state may require a lawyer practising under his home-country professional title either to take out professional indemnity insurance or to become a member of a professional guarantee fund in accordance with the rules which that state lays down for professional activities pursued in its territory.

Lawyers will be exempted from this requirement if they can prove they are covered by similar insurance taken out or a guarantee provided in accordance with the rules of their home member states, provided such insurance is equivalent in terms of the conditions and extent of cover.

It is believed that no insurance scheme elsewhere in the EU is equivalent to the cover currently provided in England and Wales, and so all EU lawyers registering with the Law Society may be required to take out at least additional coverage.

Such additional requirement is likely to cause consternation with EU lawyers seeking to register with the Law Society but it is clearly in the public interest that all lawyers practising in England and Wales should provide the same level of cover.Overall, it is believed that the directive will be of great benefit to the solicitors' profession, since it will ensure that solicitors' preferred mode of operation overseas - practice under home title - is guaranteed in other member states.The Law Society's European Group meets in London but there are regional groups.

Solicitors practising EU law may also benefit from taking out a free subscription to the Law Society's Brussels Agenda, which outlines key recent developments in EU practice of interest to all lawyers in the EU.This is an excellent publication, which not only deals with professional practice but also wide-ranging law reform.