Early Warning Europe welcomes the decision of the Council of the European Union on the adoption of common rules to prevent insolvency in Europe
12 June 2019
The decision of the Council of the European Union is the last step of the legislative process
The Council of the European Union adopted the Directive (EU) that establishes common rules on preventive restructuring frameworks, second chance and measures to increase the efficiency of restructuring, insolvency and discharge procedures.
The vote marks the end of the legislative process. As from the publication of the Directive in the Official Journal, members states will have two years to implement the Directive. An important element of the new rules is the introduction of early warning tools for companies in financial difficulties, as established by Article 3 of the Directive.
Since 2016, the Early Warning Europe project advises entrepreneurs and supports them to manage crisis, to deal with bankruptcy and to get a second chance. The project started as a pilot in Greece, Italy, Spain, and Poland. Three additional EU countries, Croatia, Finland and Slovenia, have already signed a memorandum of understanding to develop Early Warning systems. The Early Warning Europe project is committed to help achieve the objectives of the new rules set by the Directive and to ensure the implementation of Article 3 that guarantees the development of early warning mechanisms in Europe.