In the wake of the global financial crisis, the economically weaker countries of the European Uni... more In the wake of the global financial crisis, the economically weaker countries of the European Union that adopted the euro as a common currency soon started to feel the pressure of markets. In a monetary union, with one single central bank in charge of the monetary policy but without a common fiscal policy, or even an adequately coordinated one, those countries with oversized government structure and/or an internal balance of payments deficit became rapidly affected by the lack of confidence that was rapidly spreading in the global financial markets. It started with Greece, moved to Ireland and Portugal and the risk of full contagion to Italy and Spain, the euro zone's 4th and 5th largest economies, posed a real threat to the existence of the euro itself. In light of this, the EU has realized the need to react. Some new measures have been adopted and more – the majority – have been announced but are not even underway yet. This article concentrates on the measures that relate directly to the risk of insolvency of a member state; to its prevention, control and avoidance (ex ante mechanisms), and to the instruments foreseen for its solution (ex post mechanisms, with particular regard to the new European system of collective action clauses). It is here suggested that the measures aimed at strengthening the controls, increasing transparency and beefing up the powers of the European institutions create a robust framework capable of avoiding future crises. Conversely, it is argued that the reactive mechanisms envisaged in the new framework might not be so adequate. Europe might have erred by prioritizing “public law” solutions over “private law” mechanisms, since this type of approach could lead to unfair and inefficient results. Although the European collective action clauses will not help to solve the current crisis, they could place euro zone countries in a better position to tackle future sovereign crises. However, the current design of collective action clauses could be improved and uncertainties remain as to their implementation. It is here concluded that there has not been a better time than this one to opt for a comprehensive solution to sovereign insolvency in the euro zone, a solution that involves public and private creditors in an organized, full sovereign debt restructuring mechanism.
This book addresses one of the critical issues of any insolvency by providing analysis of the law... more This book addresses one of the critical issues of any insolvency by providing analysis of the law and practice in relation to creditor claims. As with the two previous volumes in the series, the book provides a comparative view by setting out the relevant law and practice in nineteen jurisdictions, drawing out the divergences and common features of domestic insolvency laws from a broad spectrum of countries. Areas covered include submission of claims, verification and admission of claims, ranking of insolvency and administration claims, treatment of non-enforceable claims, and voting and participation rights. Quality, uniformity, and the high level of detail of National Reports are the key benefits of this book.
The "Centre of Main Interests" ("COMI") is one of the most relevant concepts ... more The "Centre of Main Interests" ("COMI") is one of the most relevant concepts in the international insolvency scene. It is used as the main criterion to assign jurisdiction in cross border insolvency cases in the vast majority of the European countries, the United States and every state that has incorporated UNCITRAL's Model Law on Cross Border Insolvency (since the recent adoption by Kenya, 41 states across the globe). The concept, as such, was for the first time introduced in a normative text in Europe. This paper analyses the evolution of the concept in the context of the European legal framework. First, its origins are traced with a view to identifying the reasons for its creation and the main policies behind its adoption. Then a general description of the interpretation of COMI in the most important judicial cases is provided. And finally the current state of things, with the recent recast of the European Insolvency Regulation, is assessed. It will be here argued that, despite its faltering inception, the evolution of the COMI has turned it into an adequate criterion to determine jurisdiction in cross border insolvency cases, and that, looking forward, an interpretation that is respectful with the economic rationale of the concept may help ensure that only positive forum shopping takes place between EU countries.
For hundreds of years, European states have waged war with one another. Only since the XIX centur... more For hundreds of years, European states have waged war with one another. Only since the XIX century, more than 40 wars (including 3 global wars) have devastated the continent and decimated its population. The European Union has provided the longest period of peace and prosperity that the citizens of Europe have come to know in generations. This needs to be preserved, even at all economic costs. It is argued that the only way to ensure a preservation of the status quo is to deepen into economic and social unification. It is also argued that precisely the flawed design of the economic pillar of European integration is going to bring along the necessary reforms that would otherwise not be accomplished due to insufficient political will and lack of social consensus. The economy will thus be a catalyzer for integration.
The COVID-19 crisis caused an unprecedented global disruption of economic activity, which was esp... more The COVID-19 crisis caused an unprecedented global disruption of economic activity, which was especially intense in Spain due to the nature of its economy. Many legal and institutional reforms were adopted, and extraordinary economic measures implemented. As interim reforms are lifted and economic incentives wear off, Spain will need to grapple with the economic damage caused by the pandemic. Arguably, the reform of the insolvency system recently approved, which precedes and is independent of the measures enacted to stave off risks caused by the pandemic, provides an enhanced and improved framework to deal with business insolvency. Spain now counts on a state-of-the-art hybrid restructuring system and a modern regulation to deal with the financial and economic distress of micro enterprises. However, the special legislation approved during COVID, and the side effects of the economic measures came with a cost and are already interfering with the day-to-day application of the new insol...
In the wake of the global financial crisis, the economically weaker countries of the European Uni... more In the wake of the global financial crisis, the economically weaker countries of the European Union that adopted the euro as a common currency soon started to feel the pressure of markets. In a monetary union, with one single central bank in charge of the monetary policy but without a common fiscal policy, or even an adequately coordinated one, those countries with oversized government structure and/or an internal balance of payments deficit became rapidly affected by the lack of confidence that was rapidly spreading in the global financial markets. It started with Greece, moved to Ireland and Portugal and the risk of full contagion to Italy and Spain, the euro zone's 4th and 5th largest economies, posed a real threat to the existence of the euro itself. In light of this, the EU has realized the need to react. Some new measures have been adopted and more – the majority – have been announced but are not even underway yet. This article concentrates on the measures that relate directly to the risk of insolvency of a member state; to its prevention, control and avoidance (ex ante mechanisms), and to the instruments foreseen for its solution (ex post mechanisms, with particular regard to the new European system of collective action clauses). It is here suggested that the measures aimed at strengthening the controls, increasing transparency and beefing up the powers of the European institutions create a robust framework capable of avoiding future crises. Conversely, it is argued that the reactive mechanisms envisaged in the new framework might not be so adequate. Europe might have erred by prioritizing “public law” solutions over “private law” mechanisms, since this type of approach could lead to unfair and inefficient results. Although the European collective action clauses will not help to solve the current crisis, they could place euro zone countries in a better position to tackle future sovereign crises. However, the current design of collective action clauses could be improved and uncertainties remain as to their implementation. It is here concluded that there has not been a better time than this one to opt for a comprehensive solution to sovereign insolvency in the euro zone, a solution that involves public and private creditors in an organized, full sovereign debt restructuring mechanism.
This book addresses one of the critical issues of any insolvency by providing analysis of the law... more This book addresses one of the critical issues of any insolvency by providing analysis of the law and practice in relation to creditor claims. As with the two previous volumes in the series, the book provides a comparative view by setting out the relevant law and practice in nineteen jurisdictions, drawing out the divergences and common features of domestic insolvency laws from a broad spectrum of countries. Areas covered include submission of claims, verification and admission of claims, ranking of insolvency and administration claims, treatment of non-enforceable claims, and voting and participation rights. Quality, uniformity, and the high level of detail of National Reports are the key benefits of this book.
The "Centre of Main Interests" ("COMI") is one of the most relevant concepts ... more The "Centre of Main Interests" ("COMI") is one of the most relevant concepts in the international insolvency scene. It is used as the main criterion to assign jurisdiction in cross border insolvency cases in the vast majority of the European countries, the United States and every state that has incorporated UNCITRAL's Model Law on Cross Border Insolvency (since the recent adoption by Kenya, 41 states across the globe). The concept, as such, was for the first time introduced in a normative text in Europe. This paper analyses the evolution of the concept in the context of the European legal framework. First, its origins are traced with a view to identifying the reasons for its creation and the main policies behind its adoption. Then a general description of the interpretation of COMI in the most important judicial cases is provided. And finally the current state of things, with the recent recast of the European Insolvency Regulation, is assessed. It will be here argued that, despite its faltering inception, the evolution of the COMI has turned it into an adequate criterion to determine jurisdiction in cross border insolvency cases, and that, looking forward, an interpretation that is respectful with the economic rationale of the concept may help ensure that only positive forum shopping takes place between EU countries.
For hundreds of years, European states have waged war with one another. Only since the XIX centur... more For hundreds of years, European states have waged war with one another. Only since the XIX century, more than 40 wars (including 3 global wars) have devastated the continent and decimated its population. The European Union has provided the longest period of peace and prosperity that the citizens of Europe have come to know in generations. This needs to be preserved, even at all economic costs. It is argued that the only way to ensure a preservation of the status quo is to deepen into economic and social unification. It is also argued that precisely the flawed design of the economic pillar of European integration is going to bring along the necessary reforms that would otherwise not be accomplished due to insufficient political will and lack of social consensus. The economy will thus be a catalyzer for integration.
The COVID-19 crisis caused an unprecedented global disruption of economic activity, which was esp... more The COVID-19 crisis caused an unprecedented global disruption of economic activity, which was especially intense in Spain due to the nature of its economy. Many legal and institutional reforms were adopted, and extraordinary economic measures implemented. As interim reforms are lifted and economic incentives wear off, Spain will need to grapple with the economic damage caused by the pandemic. Arguably, the reform of the insolvency system recently approved, which precedes and is independent of the measures enacted to stave off risks caused by the pandemic, provides an enhanced and improved framework to deal with business insolvency. Spain now counts on a state-of-the-art hybrid restructuring system and a modern regulation to deal with the financial and economic distress of micro enterprises. However, the special legislation approved during COVID, and the side effects of the economic measures came with a cost and are already interfering with the day-to-day application of the new insol...
En esta obra destacados expertos analizan las dimensiones política y jurídico-económica que rodea... more En esta obra destacados expertos analizan las dimensiones política y jurídico-económica que rodean a la crisis económica en Grecia y que facilitan las claves para entender el resultado de las elecciones de enero de 2015. En la primera parte del libro se cubren varios de los aspectos políticos de la crisis. Se analizan los resultados de las dobles elecciones de 2012, con especial atención a dos de los protagonistas de las mismas – SYRIZA y Aurora Dorada- y a los cambios que se han producido en la competición partidista. Se traza el origen de las iniciativas ciudadanas que, en muchos casos, están contribuyendo a paliar los devastadores efectos de la crisis en la capital. El Estado aparece en el punto de mira como razón última de la crisis y se ilustra en detalle a través del papel de los principales medios de comunicación. Asimismo, se analiza la interacción entre el gobierno griego y los líderes de la Unión Europea durante la primera fase de la crisis y la influencia que esta ha tenido en sus países vecinos de los Balcanes. La segunda parte del libro está dedicada a la dimensión jurídico-económica de la crisis. En una situación sin precedentes en la Eurozona en la que se cerraron los mercados internacionales para Grecia y el gobierno se vio abocado a sentarse a negociar con numerosos organismos internacionales, el papel de los expertos jurídicos y económicos en el complejo proceso de negociación, primero, y de implementación de sus resultados, ha sido crucial.
To participate, please REGISTER via email (italzen@zedat.fu-berlin.de). Against the background o... more To participate, please REGISTER via email (italzen@zedat.fu-berlin.de). Against the background of a global economy, the current pandemic is likely to bring about a "legal pandemic" of mass insolvencies, thus threatening an economic and social collapse.The banking system remains the central pillar for the stability of a debt-structured, financialised economy, but – as shown by the financial crisis triggered in 2008 – it is also the possible epicentre of a domino-effect of insolvencies. The seminar aims at discussing the following: how did Italy and Germany tackle the emergency in the credit sector? Is the EU-legal framework on NPLs and bank capital requirements capable of preventing the risks of a legal pandemic? What is the role of the European Union and of private law?
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