The European Commission has facilitated cross-border insolvency procedures by making access to information on insolvency available through one reference point, making it more practical for the public. In a press release dated 7th July 2014, the European Commission confirmed that it has launched a pilot project where there will be a linking up of databases from seven member states: Czech Republic, Germany, Estonia, Netherlands, Austria, Romania and Slovenia. The number of member states grouping their databases is expected to increase in due course. On 7th July, Johannes Hahn, EU Commissioner responsible for Justice, stated: “Today marks an important step forward in promoting efficient and effective justice to foster economic growth.”
This information must be publicly accessible via the internet and interconnected via the e-Justice Portal. This will serve as a tool for creditors and investors looking to invest their businesses in Europe. Access to EU-wide insolvency registers will improve the efficiency and effectiveness of cross-border insolvency proceedings. The initiative comes ahead of modernised European insolvency laws (IP/12/1354) that would make it obligatory (48 months after adoption) for member states to publish key information on insolvency proceedings in electronic insolvency registers. Some of the benefits of such framework include:
- Availability of vital insolvency information free of charge, in the languages of the European Union
- Quicker, real-time access to insolvency information crucial for business decisions through a single point of access
- Clear explanations on the insolvency terminology and systems of the participating member states will help users to understand the content better.
The Regulation is expected to be adopted by the end of the year.
Access to the insolvency registers is available here .