The government has won key concessions which are likely to allay its initial fears that the Rome I Regulation would create too much legal uncertainty and greater costs. The UK and Denmark are the only countries that have not yet signed up.


The draft rules, which will apply to contracts throughout the EU, are intended to help the internal market function more smoothly. The Ministry of Justice (MoJ) is expected to launch a consultation on the rules shortly.



Dorothy Livingston, chairwoman of the City of London Law Society's financial law committee and one of many City lawyers involved in the MoJ's discussions on the proposed law, said: 'The original legislation was drafted in such a way as to lend legal uncertainty to just how much discretion the courts were allowed... If a particular member state legalised marijuana, for example, would criminals be free to argue that international drug running - under that state's legal system - was not against the law? The amended version now closes the door on this.'



Clifford Chance, Simmons & Simmons and Allen & Overy also consulted with the MoJ on the issue.



Jonathan Rayner