EU insolvency harmonisation “a step too far”

Author: | Published: 3 Aug 2011

Europe’s latest attempt to harmonise aspects of insolvency law will face significant cultural and political hurdles, according to a UK partner.

European Parliament released a draft report in early June which, among other things, looks to identify areas in national insolvency laws that could be harmonised across the EU.

These areas include the opening of insolvency proceedings, filing of claims, avoidance actions, qualification and work of liquidators, and restructuring plans.

However Christian Pilkington of White & Case in London said that given the large differences between the priorities of each country’s insolvency process – England is creditor friendly for example, while France and Italy are employee focused – it would be too difficult to find a suitable balance.

“Personally it’s an admirable goal, but I honestly think it’s one step too far for individual member states with such different cultural and political backgrounds,”...