EU Hits Pause On Third‑Party Litigation Funding: What's Next?

The European Commission has confirmed that it will not progress the regulation of Third-Party Litigation Funding (TPLF). Ireland is the European outlier in its continued prohibition of TPLF (under the rules of maintenance and champerty) with one legislative exception, yet to be commenced, in relation to international commercial arbitration. As we await the publication of the Law Reform Commission's much anticipated report on TPLF, which is expected late Spring 2026, we consider what the European Commission's decision means for the likelihood of TPLF reform in Ireland.

The European Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, Michael McGrath has confirmed that the European Commission will not progress the regulation of TPLF. This comes following the publication of the Report of the High-Level Forum on Justice for Growth where it is noted that the participants in the Forum were "very sceptical" about the need to regulate TPLF, and