European Law on Lawyers (EuRAG)
Das European Law on Lawyers (abbreviation: EuRAG) forms the central law in Germany for implementing and regulating the freedom of establishment and the freedom to provide services for members of the legal profession from member states of the European Union and the European Economic Area. The law sets out the conditions under which legal services may be provided in Germany by individuals from these countries, thereby ensuring the integration of the European internal market in the legal profession.
Historical Background and Legal Basis
The EuRAG came into force on August 1, 2000. Its background was the implementation of several European directives, in particular Directive 77/249/EEC of 22 March 1977 to facilitate the effective exercise of the free provision of services by lawyers and Directive 98/5/EC of the European Parliament and of the Council of 16 February 1998 to facilitate the permanent exercise of the profession of lawyer in a member state other than that in which the qualification was obtained.
The EuRAG creates a legal framework for cross-border legal services, which is essential in light of the economic interconnection and increasing international cooperation within Europe.
Scope and Purpose of the EuRAG
The EuRAG regulates two main areas:
- Temporary activity in Germany: Lawyers from EU or EEA countries may provide services temporarily in Germany under their original professional title.
- Permanent establishment in Germany: Members of the European legal profession may establish themselves permanently in Germany and may also use the German title “Rechtsanwalt” if they meet the legal requirements.
Requirements for Activities under the EuRAG
Temporary Activity (§§ 25 to 33 EuRAG)
Lawyers from EU/EEA countries may provide cross-border legal services in Germany under the following conditions:
- Home country-based lawyer’s admission: The person must be authorized to practice the profession under the title of their home country.
- Practice under German law: Services generally require knowledge of German law. Legal advice and representation in judicial proceedings are sometimes limited.
- Notification and proof requirements: Before engaging in activities in Germany for the first time, notification to the competent authority is required, including submission of specific documents (e.g. EU home lawyer’s admission).
Permanent Establishment (§§ 4 to 24 EuRAG)
The following requirements, among others, apply for permanent establishment in Germany:
- Professional qualification in the home country: Admission to practice as a lawyer in the home country must be present.
- Entry in registers: The person is entered in a special register.
- Professional title: Initially, the activity is performed under the professional title of the home country; upon fulfillment of certain requirements, admission under § 11 EuRAG can be obtained, permitting use of the German professional title “Rechtsanwalt”.
- Recognition of qualifications: Proof of professional suitability can, under certain conditions, be replaced by at least three years of actual and regular practice in German law.
Rights and Duties under the EuRAG
For the beneficiaries, the EuRAG confers extensive rights but also obliges them to comply with the principles of German law.
Rights
- Free access to the German market: EU/EEA lawyers may work in Germany on a permanent or temporary basis.
- Equal rights to practice the profession: After complete integration through admission as “Rechtsanwalt”, essentially the same rights exist as for lawyers qualified in Germany.
Duties
- Compliance with professional regulations: Legal practice is performed in compliance with the professional obligations applicable in Germany.
- Professional indemnity insurance: There is in principle a requirement to maintain insurance in order to ensure the protection of clients.
- Supervisory mechanisms: Compliance with legal requirements is monitored by the competent authorities.
Recognition Procedures and Examinations
A central element of the EuRAG is the possibility of demonstrating equivalent qualification for the legal profession by means of an aptitude test or three years’ practice under German law.
- Aptitude test: As an alternative to three years of practice, an aptitude test on knowledge of German law may be taken.
- Proof of practice: Proof of actual practice in legal work under German law is regulated in detail and is usually demonstrated through work samples, references, and documentation.
Significance of the EuRAG for European Integration
The EuRAG plays a key role in the Europeanization of legal advisory services. It ensures that services by practitioners from other member states may also be approved in Germany, strengthens cross-border legal activity, and promotes mutual recognition of qualifications within the European internal market.
Common Use Cases and Practical Relevance
The law is of particular importance for
- corporate mergers with international elements,
- cross-border investments,
- corporate acquisitions and sales with locations in several EU/EEA states,
- advising private individuals with multiple residences or activities in different EU/EEA countries.
Especially against the backdrop of European mobility, the EuRAG makes a significant contribution to legally securing and enabling international activities in the field of law.
Literature and Further Legal Sources
- Text of the European Law on Lawyers (EuRAG)
- Directive 98/5/EC of the European Parliament and of the Council of 16 February 1998
- Directive 77/249/EEC of the Council of 22 March 1977
Summary
The EuRAG enables legal service providers from EU and EEA countries to access the German market in a structured way and sets out in detail their rights and obligations when utilizing their qualifications in Germany. It is a central component of the legal framework for implementing freedom of establishment and the free movement of services within Europe. The practical and legal impact of the EuRAG extends to many areas of life and business with international ties, and thereby makes a decisive contribution to the functioning of the European internal market in the field of the legal professions.
Frequently Asked Questions
In which cases is the EuRAG applicable for foreign lawyers?
The Act on the Activity of European Lawyers in Germany (EuRAG) is relevant whenever lawyers established in Germany from a member state of the European Union (EU), another contracting state of the Agreement on the European Economic Area (EEA), or Switzerland wish to practise law in Germany. Legally, the EuRAG applies when these individuals seek admission or temporary provision of services within Germany. The provisions of the EuRAG particularly cover the requirements for establishment as a European lawyer pursuant to § 3 et seq. EuRAG, recognition of the foreign professional qualification, as well as registration with the local bar associations. It governs the extent of practice rights, particularly whether court representation or advisory services may be provided, and prescribes specific evidentiary and conduct obligations in accordance with the German professional code of conduct. Furthermore, the EuRAG covers cases of permanent establishment as well as short-term cross-border provision of services, each with specific regulations regarding notification, cooperation with German lawyers, and professional supervision.
What documentary requirements apply to European lawyers under the EuRAG?
European lawyers must comply with extensive requirements under the EuRAG in order to practise in Germany. In particular, this includes proof of the right to use the professional title in their home country, usually by presenting a current professional ID card or an official certificate from the competent bar association in their home country. In addition, when registering with a German bar association, proof of an existing professional liability insurance policy is required, meeting the requirements of § 51 of the Federal Lawyers’ Act. For temporary services, notification of the activity is also necessary, and if applicable, proof of qualification for specific tasks (such as court representation). Compliance with these requirements is monitored by the local bar associations, and failure to comply may lead to denial of registration or a prohibition on practising.
What activities may European lawyers carry out in the German legal system under the EuRAG?
The EuRAG differentiates between permanent establishment and temporary provision of services. With permanent establishment, the EuRAG grants, after registration with the competent bar association, the right to practise to the same extent as German lawyers in all legal fields, although in court practice—in particular in representation before federal courts—special admission requirements and collaboration duties may apply (Article 5(3) EuRAG and § 206 BRAO). Foreign lawyers providing services temporarily in Germany may offer cross-border legal services, but there are restrictions on court representation before certain courts and an obligation to cooperate with a domestic law firm, especially in criminal cases. The scope of advice itself is generally broad and includes both national and international law, provided no procedural restrictions apply.
What professional duties and supervisory functions are essential under the EuRAG?
By working in Germany, European lawyers are subject to the professional obligations under German law, in particular those of the Federal Lawyers’ Act (BRAO), the Rules of Professional Practice (BORA), and the Specialist Lawyers’ Act (FAO), as far as these are applicable. There is an obligation to maintain client confidentiality, a duty of secrecy, a prohibition on representing conflicting interests, and compliance with professional regulations. The local bar associations exercise professional supervision and are authorized to impose disciplinary measures in case of violations. Breaches may lead to sanctions under German law and, where applicable, to invocation of supervision by the home country’s authority. At the same time, European lawyers remain under the supervision of their home bar, resulting in double professional supervision over practice.
How is professional qualification recognized under the EuRAG when integrating into the German legal profession?
The EuRAG provides for European lawyers who wish to practise permanently in Germany and later be admitted as German Rechtsanwalt, the possibility of an “aptitude examination procedure” (§ 11 EuRAG). For this purpose, the applicant may apply for admission to the legal profession under § 4 EuRAG if they meet the requirements of § 5 EuRAG, in particular proof of several years of practice as a permanently established European lawyer in Germany or successful completion of an aptitude test according to § 11 EuRAG. The aptitude examination verifies whether the applicant has the necessary knowledge of German law for practising in Germany, with an emphasis on areas such as civil law, criminal law, procedural law, and professional law. The conduct and assessment are the responsibility of the judicial examination offices of the federal states. A positive assessment leads to full recognition and admission as a German Rechtsanwalt under § 4a BRAO.
What restrictions exist on taking on mandates for European lawyers under the EuRAG?
European lawyers are subject to specific restrictions regarding the assumption of mandates. For example, in criminal and certain civil matters—especially before higher German courts—they may only take on mandates if they work together with an admitted German Rechtsanwalt (§ 28 EuRAG), in order to ensure compliance with procedural requirements and proper representation under German law for the parties involved. For court appearances before the Federal Court of Justice, there is also a restriction, since a specific and personal admission is required regardless of the origin of the lawyer. Mandate acceptance is also not permitted if the European lawyer cannot provide the qualifications or registration required under the EuRAG with the competent bar association.
How is cooperation with German lawyers regulated within the framework of the EuRAG?
The EuRAG explicitly provides for cooperation with German lawyers, especially in court representation and proceedings where national laws require specific legal qualifications or admissions. The form of cooperation does not have to be in the form of a company or partnership, but may also be on an ad hoc basis. The aim is to ensure the legal quality and adherence to rules of conduct towards the client and the court. The cooperating German Rechtsanwalt in these cases takes on an advisory and supervisory role to ensure the correct application of German law and compliance with relevant professional and ethical requirements, in accordance with Article 5(3) EuRAG and § 206 BRAO.
Can professional misconduct in relation to the EuRAG be sanctioned, and what is the procedure?
Professional violations by European lawyers against the EuRAG or relevant German professional regulations are prosecuted by the respective competent German Bar Association. The procedure largely corresponds to that for domestic lawyers, meaning violations can lead to warnings, fines, or ultimately exclusion from legal practice in Germany. Additionally, in certain cases, notification or even disciplinary proceedings by the home bar association in the country of origin are possible. Sanctions are imposed while observing the principle of proportionality and the rights of the affected lawyer, including the right to be heard and the possibility of judicial review. Depending on the severity of the breach of duty, the range of sanctions extends from simple warnings to withdrawal of the right to practice the profession within Germany.