Single market

It looks quite obvious that thinking of single market in Brussels is one way street. When goods can move over member state’s borders easily seems to satisfy Commission. However, this could not be more wrong. The business acts of closing a deal and delivering is only the first step. The problems and difficulties start when seller is trying to collect the money from delivered goods or services.

In many new member states claim is the first step in the fight to delay payment or to manage without paying at all. The lower court instances for example in Baltic countries do not understand common European system of handling claims. In most of the cases buyers do not allow official goods inspector to see the claimed goods. In many cases goods have already been used or sold forward before the claim was made. Even in the case there is inspection reports on the case courts overlook them in favour of local buyer. Particularly foreign party has difficulties to find out if bribes were used.

The big problem also is that for example managing directors do not have rights to make deals if it is not particularly stipulated by the board of the company. This means that seller should always check the buyer’s rights to close contracts. In many court cases buyer’s party has declared this fact in court and even though the goods have been used the court has adjusted the payment from the original value. These cases have increased greatly during the current recession.

Despite of the good feelings and intentions in Brussels lot of improvements must be done before the common understanding of how to business should be conducted between EU countries. SOLVIT certainly helps the situation but if there is court judgement or criminal act in the case situation is very difficult if not impossible.

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