European Order for Payment Procedure – an Effective Tool for Recovering Claims from Foreign Contractors

In practice, many entrepreneurs refrain from pursuing claims against foreign debtors, assuming that this would require conducting court proceedings abroad, engaging local attorneys, obtaining an apostille, or going through complex recognition and enforcement procedures in another country. In many cases, however, there is a much simpler solution – the European order for payment procedure regulated by Regulation (EC) No 1896/2006.

This procedure was specifically designed to facilitate the recovery of uncontested monetary claims in cross-border matters within the European Union. The Regulation applies in all EU Member States except Denmark.

What is the European order for payment procedure?

The European order for payment may be particularly useful for entrepreneurs selling goods or services abroad, but also for individuals pursuing due and payable claims against entities having their registered office or place of residence in another EU Member State.

The procedure was intended as a simplified mechanism for recovering cross-border debts without the need to conduct full court proceedings before the courts of the debtor’s state.

What types of claims may be pursued?

Under this procedure, it is possible to pursue monetary claims for a specific amount that are already due and payable, i.e. claims for which the payment deadline has expired. In practice, these will most commonly include unpaid invoices, claims arising from sales agreements, service agreements, or acknowledged commercial obligations.

The procedure applies to civil and commercial matters of a cross-border nature, meaning cases in which at least one of the parties is domiciled or has its registered office in a Member State other than the court seized of the matter.

The Regulation excludes, among others, tax, administrative, insolvency, and social security matters, as well as most tort claims.

How does the procedure work?

One of the greatest advantages of the European order for payment procedure is the possibility of obtaining an enforceable title without conducting full evidentiary proceedings.

The claimant files an application using the standard Form A, indicating the parties, the amount of the claim, and the basis for the claim. If the application meets the formal requirements, the court should generally issue a European order for payment within approximately 30 days.

For the purposes of this procedure, standard forms have been prepared and are available in all EU languages on the European e-Justice Portal. In many Member States, it is also possible to file applications electronically.

When does the European order for payment become enforceable?

If the defendant does not lodge a statement of opposition within 30 days of service of the order, the European order for payment automatically becomes enforceable.

Importantly, an enforceable European order for payment issued in one Member State is recognised and enforceable in other EU Member States without the need for separate recognition proceedings or a declaration of enforceability.

In practice, this means that the creditor may refer the matter directly to the enforcement authority in the debtor’s country – without the need to sue the contractor again abroad.

What is required for enforcement abroad?

The greatest advantage of this procedure is the simplification of cross-border enforcement of claims. In many cases, there is no need to obtain an apostille, legalise documents, or conduct additional proceedings for recognition of the judgment abroad.

To initiate enforcement abroad, the following documents are generally required:

• a copy of the European order for payment,
• a declaration of enforceability issued by the court,
• where required by the state of enforcement, a translation of the documents.

The enforcement itself is then conducted in accordance with the national laws of the state in which the debtor’s assets or bank accounts are located.

Why is it worth remembering this procedure?

The European order for payment procedure will not resolve every commercial dispute, but in the case of uncontested and due claims, it may constitute a fast and highly effective tool for recovering money from foreign contractors.

For many entrepreneurs, it may be a genuine alternative to costly and time-consuming litigation before the courts of the debtor’s state.