In a written ministerial statement made on 5 April 2011, the Minister of State from the Ministry of Justice, Lord McNally, announced that the UK government has chosen to opt in to the European Commission (EC) proposals for reform of the Brussels Regulation on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters. The UK government will also be participating in negotiations on the final wording of the revised Regulation.

The EC published its proposals for reform on 14 December 2010 (see Legal update, Brussels Regulation reforms: European Commission proposes to retain arbitration exception). The proposals include a draft amended Regulation, which introduces improvements to the interface between the Regulation and arbitration.

Before the UK government made its decision on whether to opt in to the reformed Brussels Regulation, on 28 March 2011, a debate was held in the House of Commons by European Committee B in which it was agreed that the UK should opt in to the revised Regulation now, as opposed to opting in after negotiations, or not opting in at all.

The debate recognised that the EC's draft Regulation is not perfect as it stands and that there are issues which need changing. However, opting in at this stage would better enable the UK to secure any changes to the revised draft through negotiation. According to Parliamentary Under-Secretary of State for Justice, Jonathan Djanogly, the aspects which require adjustment, and which will be raised by the UK in negotiations, include the exclusion of arbitration from the scope of the Regulation.

The government has consulted with UK arbitration experts, who have indicated that the EC's proposals in this area do not fully resolve the uncertainties created by Allianz SpA v West Tankers Inc (Case C-185/07), which reduced the ambit of the exclusion of arbitration from the scope of the Regulation (see Legal update, West Tankers ECJ judgment: full report). In negotiations, the government will push for a fully comprehensive removal of arbitration from the scope of the Regulation.

The debate also provided an overview of the responses to the Ministry of Justice's consultation, Revision of the Brussels I Regulation – How should the UK approach the negotiations, in which the question as to whether the UK should opt in to negotiations on the revised Brussels Regulation was raised (see Legal update, MoJ consults on EC proposal to amend arbitration exception in Brussels I Regulation). 86% of those who replied to the question thought that an opt in was in the national interest. The government hopes to publish the full response to this consultation over the coming months.

Sources: Hansard, House of Lords Ministerial Statements, 5 April 2011, at column WS139 and Hansard, House of Commons debates, 28 March 2011, at column 3.