Eumedion in favour of targeted European harmonisation of insolvency law

News · 25-03-2021

Eumedion believes that targeted harmonisation of certain definitions and procedures would help investors better manage legal risks of their cross-border exposures. This is the view of Eumedion in its response to the Eurpean Commission's consultation on the convergence of insolvency law of EU Member States that was submitted today.


In December 2020, the European Commission published a consultation document on the convergence of insolvency law. Eumedion is of the opinion that discrepancies between the Member States' insolvency laws may create barriers to the free movement of capital in the internal market. In its response Eumedion refers to the diverging time-limits, lengths of procedures as well as diverging overall procedural efficiency. This may make it more difficult to anticipate the outcome for value recovery, making it harder to price risks, including for debt instruments. Eumedion points out that generally the longer restructuring processes take, the more value is destructed for investors. In its response Eumedion endorses the remark in the Final Report of the High Level Forum on the Capital Markets Union that targeted harmonisation of certain definitions and procedures would help investors better manage legal risks of their cross-border exposures. 

Relevant documents

Response to European insolvency laws consultation

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Consultation document on the convergence of European insolvency laws

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