Jens Lowitzsch (ed.), Berlin: INSOL EUROPE / Inter-University Centre at the Institute for East European Studies, Free University of Berlin, 2007.

498 pages, ISBN-13: 978-3-929619-43-1.

The following preface represents the views of its author on the subject and not the official position of the European Commission.

A modern bankruptcy law is key to efficient market economies. In 2001, in order to share good practices in the area of business failure and to initiate a dialogue among experts and policy makers, the European Commission organised, together with the Dutch Ministry of Economic Affairs, a seminar on Business Failure in Noordwijk, the Netherlands. The good practice cases identified were then published in the European Commission booklet "Helping businesses overcome financial difficulties". 

In 2002, the European Commission published "Bankruptcy and a Fresh Start", a collection of data on the legal and social consequences of business failure. In the context of the Best Procedure project on "Restructuring, Bankruptcy and a Fresh Start", the European Commission analysed this study together with experts from the EU-15, Norway and some candidate countries with a view to agreeing on a set of indicators and benchmarks on four topics: early warning systems for preventing bankruptcy; improving insolvency procedures and promoting restructuring; facilitating a fresh start after bankruptcy; and tackling the negative perception of bankruptcy among public opinion. The final report of the expert group, released in 2003, formu-lates policy guidelines which include incentives for early reaction to financial difficulties, easy access to reorganisation and speedy and efficient liquidation proceedings.

Following these initiatives at EU level, many EU countries – although to varying degrees – are currently making a policy commitment to addressing the issue of business failure. In the context of the renewed Lisbon Strategy for growth and jobs, around one third of the 27 Member States have put forward plans to reform their national insolvency legislation. As a result, half of the Member States have recently taken measures to reduce the discharge periods, remove restrictions attached to bankruptcy or streamline bankruptcy proceedings. Further, an increasing number of legal systems are now opting for restructuring and business continuity rather than liquidation. To speed up the pace of reforms, the European Commission is now publishing a Communication that presents policy recommendations with a focus on a fresh start after bankruptcy.

Many Eastern European countries have drawn inspiration from the latest developments in insolvency law in the EU-15. It is hoped that the country specific analysis and systematic approach of this book will help impart fresh impetus to reforms and deepen the understanding of insolvency law in the new Members of the EU, Croatia and other countries in Central and Eastern Europe. This volume could serve as a catalyst for fur-ther research and trigger changes that contribute to the success of the EU's Strategy for growth and jobs.

Sonia Herrero Rada
European Commission
Directorate-General for Enterprise and Industry