The EC has reiterated the potential of existing EU-rules on mediation in cross-border legal disputes, reminding Member States that these measures can only be effective if put in place by Member States at national level.

Settling disputes and disagreements through court is not only costly and time-consuming, it can also destroy profitable business relationships. Cross-border cases are more complex due to different national laws and jurisdictions as well as practical matters like cost and language. Alternative dispute resolution (ADR) through impartial mediators can address these problems and build constructive solutions. But it needs skilled mediators and clear rules that both parties can trust. Cross-border mediation is trickier, as it needs to span different business cultures and both sides need common rules they can rely on.

For this reason, EU rules on mediation, which entered into force in 2008, have to be applied by May 2011. They create legal guarantees to mediation and ensure a high-quality process by applying codes of conduct or mediator training. So far, four countries (Estonia, France, Italy and Portugal) have informed the Commission that they have implemented the EU-rules on mediation in national legislation.

The EU Mediation Directive applies when two parties who are involved in a cross-border dispute voluntarily agree to settle their dispute using an impartial mediator. Member States are to make sure mediated agreements can be enforced. According to a recent EU-funded study, the time wasted by not using mediation is estimated at an average of between 331 and 446 extra days in the EU, with extra legal costs ranging from €12,471 to €13,738 per case.

Mediation can solve problems between businesses, employers and employees, landlords and tenants, or families, so that they can maintain and even strengthen their relationship in a constructive way, a result that cannot always be achieved through court proceedings. All that is missing are cross-border rules giving parties certainty about the process and its enforceability.

A crucial element in any mediation is trust in the process, especially when two parties come from different countries. For this reason, it was launched on July 2004 a European Code of Conduct for Mediators, that has been developed by a group of stakeholders with the assistance of the European Commission.

If mediation fails, disputes can always revert to traditional court proceedings.

The Commission expects that, by May 2011, 26 Member States will have put these EU- rules in place (Denmark, has opted not to enforce these rules). Furthermore, Lithuania and Slovakia have notified the names of competent courts for enforcing cross-border mediation settlements.

Before 21st May 2011, the Member States should notify the Commission the measures they adopt to put the Directive in place, even though most of them already had similar rules in place at national level before the adoption of the Directive.

Some countries already have rules for mediation in certain sectors; for example, Ireland and Denmark in labour relations, Finland for consumer disputes, Sweden for traffic accidents or France and Ireland for families. Portugal has been training mediators since 2001.

Member States are to provide information on courts competent before to make mediated agreements enforceable, so that the Commission can publicise this information to make it easier for citizens and businesses to use mediation.