German and French business law soon to be harmonized?
At the beginning of February 2020, the Franco-German Parliamentary Assembly set up a working group with the task of drawing up a common German and French business and bankruptcy law on both sides of the Rhine with the longer-term aim of inspiring a common European policy in this area.
Meeting for the third time in Strasbourg, the young Franco-German Parliamentary Assembly, which came into being in March 2019, has just approved the setting up of a working group to draw up the main principles for harmonising French and German business and bankruptcy law.
A new German and French Business Law Code for SMEs
The new legally binding Franco-German and French code, which will result from the joint work of eight French and eight German MPs, is thus supposed to focus on small and medium-sized enterprises and facilitate cooperation between companies in the two countries. By increasing bilateral trade in the private sector, the aim is to further integrate the economies of the two countries to create a Franco-German economic area with common rules.
This working group will take as its starting point the report on the drafting of a European business code by Valérie Gomez-Bassac, member of the National Assembly’s European Affairs Committee, submitted in July 2019 to French Foreign Minister Jean-Yves Le Drian.
The standardisation of German and French business law is a priority of the common policy of the French President, Emmanuel Macron, and Chancellor Angela Merkel, as defined on the occasion of the signing of the Treaty of Aachen in January 2019.
This harmonization will enable the creation of a Franco-German economic zone with common rules by promoting cross-border economic projects. By drawing up this new common legal code of German and French business law. The tow countries hope to set a precedent that will inspire all the States of the European Union and put an end to national legal particularities.
The programme of the Franco-German Parliamentary Assembly
Franco-German Parliamentary Assembly meets at least twice a year, publicly, under the chairmanship of the President of the National Assembly, Richard Ferrand, and the President of the German Bundestag, Wolfgang Schauble. These sessions take place alternately in France and Germany. In addition to harmonising business law, the Franco-German Parliamentary Assembly advocates improving cross-border transport between the two countries, in particular by restoring rail links that were interrupted after the Second World War, such as the one between Colmar and the German town of Vieux-Brisach.