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

Abstract

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.

Keywords: Insolvency, Bankruptcy, Restructuring, Regulatory Competition, Brexit, European Directive

JEL Classification: D61, D7, G33, K00