More awareness raising and support necessary for Early Warning
04 April 2019
Early Warning Europe organised an Expert Network Meeting in Brussels to discuss the recently adopted “Directive on preventive restructuring frameworks, second chance and measures to increase the efficiency of restructuring, insolvency and discharge procedures”.
The European Commission and the Romanian Presidency informed the audience of the reference to early warning in the Directive and how it should be interpreted. This is an achievement in itself for SMEs. Participants also discussed the steps to take at national level and how some member states will implement early warning to support entrepreneurs in financial trouble waters.
The discussion highlighted the importance of creating a common ground for the culture of prevention and restructuring in all member states. One of the biggest challenges is still the fear of stigmatisation associated with restructuring and bankruptcy. The early warning element of the Directive should act as an incentive and encourage entrepreneurs and SMEs to seek assistance at an early stage.