Insolvency proceedings: new rules to promote economic recovery
Orlando: “The new legislation, through the protection of creditors, will contribute to the preservation of employment”
The Council approved a political agreement reached with the European Parliament on new EU-wide rules on insolvency proceedings.
The new rules are aimed at making cross-border insolvency proceedings more efficient and effective, benefiting debtors and creditors, facilitating the survival of businesses and presenting a second chance for entrepreneurs. They also bring the current insolvency regulation into line with developments in national insolvency laws introduced since its entry into force in 2002. Figures provided by the European Commission show that, every year in the European Union, these proceedings affect an estimated 200 000 businesses, meaning that 1.7 million jobs are at stake. One quarter of these insolvency proceedings have a cross-border element.
Minister Orlando, Italian Minister for Justice and President of the Council, said: “The agreement with the European Parliament on this important file is another achievement of the Italian Presidency and underpins the wider EU strategy to promote economic recovery and sustainable growth. The new legislation, through the protection of creditors and the survival of business, will contribute to the preservation of employment in these challenging times”.
For more information: Council of the European Union
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