Businesses hoping for a standard set of rules for enforcing judgments from the UK courts in European states post-Brexit appear to have suffered a setback in the form of opposition from the European Commission to the UK joining the Lugano Convention.

The UK applied a year ago to join the Convention, which provides for the recognition and enforcement of judgments across EU and EFTA member states. It would require the agreement of all the existing contracting states, and while Switzerland, Norway and Iceland have indicated their support, EU member states are said to be divided.

It had been reported that the EU Commission was in favour, but according to reports following a meeting yesterday, it has recommended that the UK should not be allowed to join.

EU member states and the Council of Ministers are due to reach a decision in the next few weeks.