In December 2012 the European Commission issued a policy communication called “A new European Approach to Business Failure and Insolvency” and a proposal to amend the EU Insolvency Regulation
The proposed new European approach to business insolvency focuses on helping sound business to survive, while at the same time protecting creditors’ rights.
The Commission has highlighted a number of areas where differences between domestic insolvency laws could potentially hamper the establishment of an efficient insolvency legal framework within the EU market. Key issues include the time required to discharge a debt, the conditions for opening proceedings, the filing of claims and the rules for restructuring plans.
In July, a public consultation was launched to seek views from stakeholders on areas where harmonisation of national insolvency laws might bring benefits. The consultation aims to identify the issues on which a new European approach to business failure and insolvency should focus in order to develop a rescue and recovery culture across all EU member states. It further outlines certain benefits which the harmonisation of specific areas of national insolvency law might bring.
The public consultation remains open until 11 October 2013 and interested parties can view the consultation questionnaire here.