Members' Research Service By / March 15, 2023

Harmonising certain aspects of insolvency law in the EU [EU Legislation in Progress]

On 7 December 2022, the European Commission tabled a proposal for a directive harmonising certain aspects of insolvency law.

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Written by Issam Hallak (1st edition).

On 7 December 2022, the Commission tabled a proposal for a directive aimed at enhancing and harmonising insolvency law in the EU. The proposal seeks to make it easier to recover assets from the liquidated insolvency estate; render insolvency proceedings more efficient; and ensure a predictable and fair distribution of recovered value among creditors. The directive would complement two recently adopted pieces of legislation, namely, the directive on pre-insolvency proceedings and debt discharge following insolvency proceedings, and the regulation on the determination of jurisdiction and applicable law for cross-border insolvency.

In the European Parliament, the referral was announced in plenary on 26 January 2023, and the file was assigned to the Committee on Legal Affairs (JURI). Parliament has expressed concern at the lack of harmonisation of insolvency law across the EU on several occasions in the framework of previous legislative procedures.


Proposal for a Directive of the European Parliament and the Council harmonising certain aspects of insolvency law
Committee responsible:Committee on Legal Affairs (JURI)COM(2022) 702
Rapporteur:Pascal Arimont (EPP, Belgium)2022/0408(COD)
Shadow rapporteur:René Repasi (S&D, Germany)Ordinary legislative procedure (COD)
(Parliament and Council on equal footing
– formerly ‘co-decision’)
Next steps expected: Awaiting committee decision
EU legislation in progress
Average recovery rate for loans in insolvency proceedings, EU-27 (%), 2018

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