Proposal for a Directive harmonising certain aspects of insolvency law

Summary:

Legislative initiative tabled by the European Commission on 7 December 2022, seeking to harmonise aspects of insolvency proceedings across the European Union (EU). This is a text with EEA relevance.

Further information:

The lack of harmonised insolvency regimes has been identified as one of the key obstacles to the freedom of capital movement in the EU and to greater integration of the EU's capital markets. Rules are fragmented along national lines, and so they deliver different outcomes across Member States. It also creates legal uncertainty as regards the outcomes of insolvency proceedings and lead to higher information and learning costs for cross-border creditors compared to those who only operate domestically.

This draft law seeks to reduce the fragmentation of insolvency regimes and to create common standards across all Member States, thus facilitating cross-border investment. EU-wide measures aim to ensure a level playing field and avoid distortions of cross-border investment decisions caused by lack of information about and differences in the designs of insolvency regimes.

It was adopted by the European Commission on 7 December 2022, as part of a legislative package aimed at further developing the Capital Markets Union (CMU).

• Primary Source

Official

EUR-LEX: SWD(2022)395: Staff Working Document accompanying the Proposal - Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2022:395:FIN

EUR-LEX: SWD(2022)396: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2022:396:FIN

European Commission: Policies: Insolvency proceedings https://commission.europa.eu/strategy-and-policy/policies/justice-and-fundamental-rights/civil-justice/civil-and-commercial-law/insolvency-proceedings_en

European Commission: Publications: Capital markets union: clearing, insolvency and listing package https://finance.ec.europa.eu/publications/capital-markets-union-clearing-insolvency-and-listing-package_en

European Commission: Press Release, 07/12/2022: Capital Markets Union: new proposals on clearing, corporate insolvency and company listing to make EU capital markets more attractive https://ec.europa.eu/commission/presscorner/detail/en/ip_22_7348

European Commission: Questions and Answers on the Commission's proposals on corporate insolvency and listing (7 December 2022) https://ec.europa.eu/commission/presscorner/detail/en/qanda_22_7349

European Commission: Remarks Commissioner McGuinness at the press conference on new proposals to boost the EU's Capital Markets Union (7 December 2022) https://ec.europa.eu/commission/presscorner/detail/en/statement_22_7558

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