Press conference by Viviane Reding, Vice-President of the EC, on modern insolvency rules to give businesses a second chance
Viviane Reding, Vice-President of the EC in charge of Justice, Fundamental Rights and Citizenship, gave a press conference on the proposal of the EC of modern insolvency rules to give honest businesses a second chance.
The EC proposed to modernise the rules on cross border insolvency which dated from 2000. Benefitting from ten years of experience, the new rules would shift focus away from liquidation and develop a new approach to helping businesses overcome financial difficulties, all the while protecting creditors' right to get their money back.
These new rules would increase the efficiency and effectiveness of cross-border insolvency proceedings, affecting an estimated 50 000 companies across the EU every year. This was a first step towards an EU "rescue and recovery" culture to help companies and individuals in financial difficulties; this was explored further in a policy communication adopted in parallel on the same day which identified those areas of national insolvency law which had the greatest potential to create an "unfriendly" business environment and to hamper the development of an efficient insolvency framework in the internal market.