European Commission Proposes Review of Recast Brussels Regulation, Including Arbitration Exception

The European Commission has <a href="https://ec.europa.eu/transparency/documents-register/detail?ref=COM(2025)268&lang=en" target="_blank" class="news-text_link">released a report</a> on the application of the Recast Brussels Regulation, announcing a formal review of the regulation. This review will focus on the arbitration exception, particularly its application to judgments enforcing arbitral awards.

The Recast Brussels Regulation determines which EU member state court has jurisdiction over a dispute and facilitates the recognition and enforcement of judgments across member states. Similar to its predecessor, <span class="news-text_italic-underline">Council Regulation (EC) No 44/2001</span>, it does not apply to arbitration (Article 1(2)(d)).

In the case <span class="news-text_italic-underline">London Steam-Ship Owners' Mutual Insurance Association Ltd v Kingdom of Spain (Case C-700/20) EU:C:2022:488</span>, the CJEU addressed whether a judgment under section 66 of the <span class="news-text_italic-underline">Arbitration Act 1996</span>, enforcing an arbitral award, qualified as a "judgment" within the meaning of Article 34(3) of the 2001 Brussels Regulation.

The CJEU ruled that such a judgment could be considered a “judgment” under this provision if the content of the arbitral award could have been the subject of a national court judgment under the Regulation. This decision referred to the incompatibility between the foreign judgment and a judgment confirming an arbitral award, rather than the award itself.

The Commission's report indicates that the review will consider:

• The apparent inconsistency between the CJEU's ruling in <span class="news-text_italic-underline">London Steam-Ship</span> and the national case law of several member states, where the arbitration exception covers both the recognition and enforcement of arbitral awards and judgments confirming such awards.
• The absence of a lis pendens rule for arbitration proceedings, which could reduce the risk of conflicting judgments if the Regulation included a clear rule prioritising arbitration-related cases.

Depending on the review’s outcome, it could significantly affect the enforcement of arbitral awards within the EU and the legal community will be closely monitoring any developments.