The European insolvency directive, an opportunity for France to focus on the long term?
Posted in Restructuring EN, Position Notes
by Sophie Vermeille, founder of the Rules for Growth Institute and Eva Fourel, member of the Rules for Growth Institute
The directive adopted by the Council of Europe on 6 June 2019 offers an opportunity for France to make a paradigm shift towards a more efficient insolvency law. For the time being, French law confuses the objective of efficiency with that of equity, privileging the preservation of existing jobs in the short term and thus penalizing the French economy. It is important to understand that an effective law can achieve, in the long term, not only the equity objectives thus pursued, but also the economic objectives set at the level of the European Union.