Extracts from the press conference by Viviane Reding on modern insolvency rules to give businesses a second chance
Type: Summary of press conference
End production: 12/12/2012 First transmission: 12/12/2012
On 12 December 2012, Viviane Reding, Vice-President of the EC in charge of Justice, Fundamental Rights and Citizenship, gave a press conference in Strasbourg. On this occasion, she presented a new Commission's proposal to modernise Europe’s rules on cross-border business insolvency, helping to give otherwise viable businesses a ‘second chance’
The Commission is proposing to modernise the current rules on cross border insolvency which date from 2000. Benefitting from ten years of experience, the new rules will 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.
The new rules will increase the efficiency and effectiveness of cross-border insolvency proceedings, affecting an estimated 50 000 companies across the EU every year. This is a first step towards an EU "rescue and recovery" culture to help companies and individuals in financial difficulties; this is explored further in a policy communication adopted in parallel today which identifies those areas of national insolvency law which have the greatest potential to create an "unfriendly" business environment and to hamper the development of an efficient insolvency framework in the internal market.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Viviane Reding, Vice-President of the EC in charge of Justice, Fundamental Rights and Citizenship, at the press conference titled "Giving business a second chance", held in Strasbourg.
||Soundbite by Viviane Reding (in ENGLISH): If you have businesses which are trying hard not to go bankrupt, to stay on, and to overcome short term difficulties, we believe they need to get a second chance. And we think most of all about that 1 million Small and medium-sized enterprises (SME's) in Europe which have subsidiaries in other Member States and that is why we need to have new European rules which help those businesses to survive and to maintain the jobs.
||Soundbite by Viviane Reding (in ENGLISH): That is why now; we are obliging the Member States to publish key decision about the opening of insolvency proceeding, for example. Some Member States do it but not all, in the future all 27 Member States have to do it so that this court information can be easily accessed throughout the EU. And we are going to interconnect these registers.
||Soundbite by Viviane Reding (in ENGLISH): This is for the Commission, the first step to an EU rescue and recovery culture to help companies and individuals in financial difficulties. Of course, we know that in some cases where bankruptcy is fraudulent or irresponsible, we don't want to help those cases. This is why there has to be a serious separation of the rules for the honest entrepreneurs who are running into difficulties and the fraudulent ones which should not be helped out, of course.
||Viviane Reding leaving the press conference