The Rise and Fall of Regulatory Competition in Corporate Insolvency Law in the European Union

The Rise and Fall of Regulatory Competition in Corporate Insolvency Law in the European Union

Horst Eidenmüller

Series number :

Serial Number: 
456/2019

Date posted :

July 01 2019

Last revised :

June 27 2019
SSRN Share

Keywords

  • insolvency • 
  • Bankruptcy • 
  • restructuring • 
  • regulatory competition • 
  • Brexit • 
  • European Directive

In this essay, I discuss the rise and fall of regulatory competition in corporate insolvency law in the European Union. The rise is closely associated with the European Insolvency Regulation (EIR, 2002), and it is well-documented. The UK has emerged as the ‘market leader’, especially for corporate restructurings.

The fall is about to happen, triggered by a combination of factors: the recasting of the EIR (2017), the European Restructuring Directive (ERD, 2019) and Brexit (2019). The UK will lose its dominant market position. I present evidence to support this hypothesis.

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