Brussels, 23/03/2016 (Agence Europe) - On Wednesday 23 March, the European Commission launched a public consultation on an effective insolvency framework for the EU.
It feels that a lack of effectiveness and differences of approach in this area are making it harder for investors to assess the credit risk, particularly for cross-border investments. The European Commission states that it wishes to help businesses to overcome financial difficulties, whilst maximising the value received by the creditors, shareholders, employees, investors and tax authorities in question. It is to focus in particular on the rules aiming to support businesses encountering temporary problems to restructure their debts and to give them a second chance if they are financially viable.
Recently, the Association for Financial Markets in Europe (AFME) put at a minimum of €41 billion the benefits of a reform of the European insolvency framework. The Commission hopes to be able to present a legislative proposal by the end of this year. (Original version in French by Elodie Lamer)