Insolvency laws: increasing convergence of national laws to encourage cross-border investment

EU Commission initiative 

Confederation of Finnish industries EK supports goals of initiative ”Insolvency laws: increasing convergence of national laws to encourage cross-border investment”. EK finds that it is important goal to increase the predictability of insolvency law framework in EU. Still EK finds that possible
new actions should be still carefully considered before legislative proposals.

EK stresses that it should be priority to follow implementation of latest insolvency directive and finish on-going insolvency legislation proposals.

When on-going legislative amendments have been implemented it is possible to see, what actions should be done next. We find important to have some knowledge of the impact of these on-going-changes first before any new legislative proposals.

EK finds there is need to develop insolvency regulation as part of the European capital markets union-agenda. EK wants to stress that competitiveness of state’s insolvency regime is important factor in investment decisions of investors. EK finds important to evaluate first what could be achieved with non-legislative instrument. We find that legislative instrument should not be used until on-going directive implementation processes has been finished.

Still, EK wants to stress that when assessing legislative proposals that go to the core of Member States’ civil justice systems, the review of the initiative must be carried out very carefully and the basis of jurisdiction carefully assessed.

EU Commission – Insolvency laws: increasing convergence of national laws to encourage cross-border investment