EU Insolvency Regulation – New Proposal
The European Commission has just announced a proposal amending the Regulation on Insolvency Proceedings.
The draft Regulation was published on the same day as the Action Plan (12 December 2012). At first glance this proposal represents a step forward for workers insofar as the proposal tries to make it easier for companies to stay afloat and restructure while maintaining employment. In a statement the EU's Justice Commissioner, Viviane Reding, said: "Our current insolvency rules need updating to make it easier for viable businesses in financial difficulties to keep afloat rather than liquidating. 1.7 million jobs are lost to insolvencies every year – we want to give honest companies and the people they employ a second chance."
The proposal is available for downloading here: