Romanian government locked in battle with Europe over foreign lawyers

Restrictive Regime: Authorities push ahead to impose draft law on foreign solicitors

Expectations that Romania would open up to foreign law firms were hit last week by a shock volte-face by the Romanian government.

At a high-level meeting with the European Commission, the Romanians contested the Commission's claim that a new draft lawyers law discriminated against foreign lawyers.

Linklaters, Norton Rose, Sinclair Roche & Temperley, CMS Cameron McKenna and Taylor Joynson Garrett all have offices in the country.

In the run-up to the meeting, which related to Romania's accession to the European Union, the Romanians had given informal commitments to drop the law.

They now intend to push ahead with it at once.

The law is second on a list of priority legislation that the government hopes to pass before an election at the end of this month.

It is understood that the Commission will pursue the matter as a matter of urgency.

Other countries, such as Poland, Hungary and the Czech Republic, have in the past backed down on restrictive regimes for foreign lawyers in the face of their accession agreements.

To join, a country's laws must be compatible with EU law, including the lawyers' rights of establishment directive.

The law would require firms to register to set up in Romania, ensure that the number of Romanian lawyers in the firm was at least equal to the number of foreign lawyers, and demand that all fees billed by foreign lawyers be paid in Romania.

City lawyers in Romania were unwilling to comment before official minutes of the meeting are released.

Most are broadly in favour of the law even though they said it is well established as anti-competitive.

But they argue that it is a step in the right direction because at the moment, there is no formal regime at all.

One source said: 'There is no likelihood that it will be passed by the president before the election; on the other hand, we could all wake up tomorrow morning and find that it has become law, but we think it's reasonably unlikely.'

Most lawyers viewed the stalemate as counter-productive.

'That is very Romanian.

They think we are all idiots outside Romania and that they're very clever.

It's clearly anti-competitive,' said one, and another added: 'I've seen a lot of hostility and over-reaction on the part of lawyers and diplomats.

I think they've gone overboard.'

Neil Rose and Anne Mizzi