Challenges of the Knowledge Society (May 2024)
PROPOSAL FOR A DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL HARMONISING CERTAIN ASPECTS OF INSOLVENCY LAW - INTRODUCTORY ASPECTS
Abstract
Insolvency is an area inextricably linked to the evolution of investment, capital markets and the single market, the convergence of insolvency regimes at Member State level being a major concern of the European legislator. However, given that existing EU legislation only covers pre-insolvency and debt relief measures as well as the rules on applicable law in cross-border insolvency cases, disparities between national rules remain in the substantive regulation of this area, which creates difficulties for stakeholders and discourages cross-border investment. The new legislative proposal, which opts for targeted intervention, aims to ensure economic benefits for investors, creditors, businesses (including micro-enterprises) by reducing legal uncertainty in the case of insolvent debtors. Clearly action at European level is more appropriate to ensure convergence of specific elements of Member States' insolvency rules. EU level measures would ensure a level playing field, facilitating cross-border investment and contributing to the achievement of a robust Capital Markets Union. Without wishing to give an exhaustive presentation of the proposal, we will try to focus on some of the novelties, in particular pre-pack procedures, avoidance actions and the simplified procedure for the winding-up of micro-enterprises, while also referring to the provisions of the relevant national rules (Law no. 85 of 25 June 2014 on pre insolvency and insolvency proceedings).
