Britain in EU clash over legal aid

BRITAIN is heading for a fresh showdown in Europe over plans to grant legal aid to businesses and individuals pursuing civil cases across national frontiers.

If enacted, the proposals would send the UK's annual bill for civil legal aid, already about £730m, spiralling further out of control.

Denmark, which holds the European Union presidency, is pushing the idea as part of an agenda for 'cross-border enforcement of rights'. The package aims to make it easier for businesses and individuals to collect debts and pursue legal claims throughout Europe.

Civil legal aid in Britain is not available for fighting any cases abroad, other than the small number heard by the European Court of Justice, which interprets EU law. Nor is it usually available in business disputes.

Denmark's proposal would throw open legal aid to cases being pursued anywhere in the EU and to business-related litigation in general. The Lord Chancellor's Department predicted: 'There is going to be a fairly lengthy process of negotiation on this one.'

The Government is keen on the principle that a citizen of an EU state who is pursuing a claim in another member state should have the same entitlement to legal aid as that country's own citizens. But it opposes any proposal, such as that tabled by Denmark, that would force Britain to expand greatly the scope of its legal aid system.

It is not clear if Britain could veto any plan it does not like, or whether the proposal would qualify as an 'internal market' measure, and thus be subject to majority voting.

Denmark's Ministry for European Affairs said the package on cross-border rights was an important part of its agenda for the presidency. It insisted: 'There should be easier access to justice across national borders.'

British ministers want to leave control of legal aid systems, which vary widely across the EU, in the hands of individual governments. Soaring legal aid bills in Britain led to a major reform two years ago that attempted to replace state funding for many civil cases with no-win, no-fee arrangements with solicitors.