- Fragmented national insolvency rules increase legal uncertainty and deter investors.
- Insolvency proceedings in the EU can take up to 3.5 years, and court costs can consume up to 15 per cent of the insolvency estate.
- cep proposes a four-pillar reform strategy, including a voluntary European ‘28th regime’ for cross-border insolvency cases
The European Union aims to deepen its Capital Markets Union to facilitate investment. Yet a key building block is missing: a reliable framework for corporate insolvencies. Whilst a so-called ‘28th regime’ in company law is currently being discussed at European level – for instance in the form of a new European company form (‘EU Inc.’) – insolvency law has so far played only a minor…