Parliament to confirm more harmonised insolvency rules for EU companies

The new rules ensure better insolvency coordination across member states and make EU more attractive for foreign and cross-border investment.

On Tuesday, MEPs greenlighted with 498 votes in favour, 90 against and 28 abstentions their provisional agreement with member states on a more aligned insolvency standards in the EU agreed in November 2025.

Simpler asset-tracing and better protected creditors

The new rules make it easier for insolvency practitioners to trace assets belonging to an insolvent company since they will get access to beneficial ownership registers, to national registers and databases and they will also be receiving more information from national authorities with access to national bank account registers and from those performing cross-border search. All insolvency practitioners, regardless of EU country of their appointment, will be guaranteed the same conditions for access to court.

If company concludes legal acts within three months before initiating an insolvency procedure and they are beneficial to some creditors while detrimental to others, the new rules ensure they will become void and unenforceable. To better protect creditors’ interests, there will be a possibility to establish a creditors’ committee.

Advance sale of debtor’s business and more accountable directors

The “pre-pack proceedings”, allowing the sale of a still operational debtor’s business will now be available across the EU. For this purpose debtors will remain at least partially in control of their assets during the preparation phase leading to insolvency procedure. To improve access to insolvency for microenterprises, MEPs ensured that EU countries will have the possibility to adopt laws allowing for easier winding-up proceedings.

There will be stricter requirements for directors of insolvent companies across the EU. With the exception of preventive restructuring proceedings, they will have to submit a request to open insolvency proceedings within three months in order to avoid liability for damages caused to creditors.

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Following the plenary vote, Legal Affairs Committee (JURI) rapporteur Emil Radev (EPP, BG) said: “The new EU insolvency rules will make procedures faster and more cost-effective, while strengthening protection for all parties involved. Enhanced access to registers for insolvency practitioners will ensure more effective asset recovery, particularly in cross-border cases. The introduction of pre-pack proceedings will accelerate the sale of companies in financial difficulty, helping to preserve jobs. The reform aims to provide greater legal certainty for businesses and investors, supporting increased cross-border investment and strengthening confidence in the European economy.”

Next steps

Once formally approved by the member states, the directive will enter into force twenty days after its publication in the Official Journal.

Background

To advance capital markets union, facilitate cross-border investment and improve the functioning of the internal market, the European Commission proposed new rules in December 2022 addressing differing national approaches to insolvency and advancing their harmonisation.