Will judgments given outside of an exiting member state be recognised and enforced by the courts of that exiting member state?
If a member state exits the EU, either unilaterally or consensually, there will need to be legislation that deals with how that state will continue to handle judgments from the remaining EU member states. Currently, judgments from other EU member states are recognized and enforced subject to and in accordance with the Judgments Regulation (Regulation 44/2001). There will need to be legislation that explains whether the Judgments Regulation will continue to apply or not and, if not, what mutual recognition and enforcement of judgment arrangements will apply in future.
If a member state exits the Euro but remains in the EU1, then the Judgments Regulation continues to apply.
In both scenarios: (a) non EU judgments presumably will still follow whatever existing arrangements are in place for the recognition and enforcement of such judgments; and (b) the exiting member state of either the EU or the Euro will also probably impose measures restricting capital movements and dealing with redenomination which would have an impact on the ability to pay judgments to creditors outside the exiting member state of either the EU or the Euro and also cause difficulties with judgments obtained in Euro.
- See Scenario risk section as to current EU legislation not providing for a member state to exit the Euro without exiting the EU so in this scenario a member state would need to have rejoined the EU.
View Eurozone risk matrix
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