The European Union approach to cross border insolvencies. The European Insolvency Regulation.
1. Introduction:
In an increasingly internationally operating business world, where from the commercial point of view, borders are just a nuisance and not very relevant, and an "open market approach" is often economically necessary, one would be inclined to ultimately aim at harmonisation of insolvency laws and the universal effect of insolvency proceedings. The tremendously increased speed of transport, travel, information and the interdependence of economies would certainly justify such harmonisation and such universal effect.
On 31 …
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…optional clause whereby special insolvency regimes applicable to, for instance, banks or insurance companies may be excluded from its scope.
6. Conclusion:
The EU Regulation only has limited provisions of substantive law. Also, the universal approach (within the EU) of the EU Regulation can be limited in case of secondary proceedings (if there is an establishment in another Member State).
Therefore, in my opinion the UNCITRAL Model Law is the best solution for cross border insolvency.
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