On 7 December the European Commission published its proposal for a directive seeking to level the playing field across the EU Member States in relation to certain aspects of insolvency law. The Proposal for a Directive of the European Parliament and of the Council harmonising certain aspects of insolvency law (2022/0408 (COD)) is seeking to converge insolvency rules, with the aim of making them more efficient and effective in terms of creditor recoveries. In order to achieve this it is looking to create common standards across all EU Member States which in its view will facilitate more cross border investment. As such this proposal for harmonising certain aspects of insolvency law forms part of the wider EU Capital Markets Union initiative announced in 2020, which is a key project designed to further financial and economic integration across the EU.
In this briefing we look at some of the highlights of the proposed reforms as drafted at present.