The European Commission expects to complete a new trans-Atlantic data sharing agreement with the US in the next three months.

The European Court of Justice recently ruled that the existing EU-US agreement is invalid, forcing the commission to start negotiations with the US on a renewed and safe framework on transfer of personal data.

The new framework must meet the requirements identified in the court ruling, with respect to limitations and safeguards on access to personal data by the US public authorities.

It also includes amendments to other adequacy decisions to make sure that data protection authorities (DPAs) remain free to probe individual complaints.

European Commission vice-president for digital single market Andrus Ansip said: "We need an agreement with our US partners in the next three months. The Commission has been asked to take swift action: this is what we are doing.

"The EU and the US are each other’s most important trading partners. Data flows between our continents are essential for people and businesses. While alternative tools exist, a safer new Framework is the best solution to protect our citizens and cut red tape for businesses, especially start-ups."

The EU and the US failed to reach a new deal to replace the Safe Harbor even though they have been in negotiations over the last two years.