Harmonising insolvency: the EU’s next chapter

Nearly three years have passed since the European Commission put forward its ambitious Proposal to harmonise core aspects of insolvency law across the European Union. Submitted to the Council and the European Parliament on 7 December 2022, this text targets key shortcomings and divergences that have long characterised insolvency proceedings in the European Union. 

In our recent publication we analyse:

• How the Commission’s Proposal aims to tackle legal uncertainty and reduce costs for creditors facing inconsistent insolvency regimes across the EU.
• The specific areas targeted for harmonisation—asset recovery, pre-pack proceedings, and creditor protections—and why these matter for businesses.
• Key amendments and divergences introduced by the Council and European Parliament, focusing on avoidance actions, pre-pack thresholds, and directors’ duties.
• The implications for businesses, including greater predictability and efficiency in cross-border restructurings.
• What lies ahead: upcoming trilogue negotiations, expected timelines, and the variable impact across Member States depending on the strength of their existing insolvency frameworks.