The EU’s long-awaited
proposal for a Europe-wide business insolvency framework
was welcomed by the market yesterday - but the task at hand
must not be underestimated.
Plans for a more harmonised regime across member states were
originally outlined in the
action plan for building a capital markets union (CMU) last
The final proposal has been widely compared to the
US’ chapter 11 procedures.
"The Commission’s proposed directive on
insolvency reform is a big step in the capital markets union
project, as it addresses the problems caused by divergent
national insolvency regulations across Europe," said Simon
Lewis, chief executive of the Association for Financial Markets
in Europe (Afme).
"Creating a consistent EU insolvency framework will benefit
Europe's capital markets and the economy in general by
providing greater certainty for market participants, reducing
costs for investors, increasing...