The Problem of Bankruptcy in EU Countries in Modern Conditions

• Authors: Cvetkova Irina

Title variants

PL

Problem upadłości w krajach UE

• Languages of publication: RU

Abstracts

RU

Актуальность исследования обусловлена последствиями пандемии COVID-19, которая в корне изменила мировую экономику, спровоцировав глобальную рецессию. Юридические лица понесли существенные убытки, являясь основными субъектами экономической деятельности и, как следствие, физические лица стали неплатежеспособными. За этим последовал энергетический кризис, вызвавший повторную рецессию и массовое банкротство бизнеса и физических лиц – потребителей. В условиях сложной эпидемиологической, экономической и геополитической обстановки страны ЕС были вынуждены создать дополнительные правовые механизмы, с целью более эффективного регулирования института банкротства. Целью исследования выступает анализ последствий пандемии COVID-19 и энергетического кризиса, их влияние на рост банкротств в странах ЕС и меры, принимаемые для оздоровления экономики и защиты фундаментальных прав физических лиц по их возвращению в экономический оборот. Тенденции и выводы, сформулированные автором, позволили подчеркнуть важность применения процедуры банкротства. В статье использованы теоретический и эмпирический методы исследования.

EN

The relevance of conducting research on this issue results from the consequences of the COVID-19 pandemic, which fundamentally changed the global economy, provoking a global recession. Legal entities suffered significant losses, being the main subjects of economic activity, and, as a result, individuals became insolvent. This was followed by the energy crisis, which caused a second recession and massive bankruptcy of businesses and individuals – consumers. Under the conditions of a difficult epidemiological, economic and geopolitical situation, the EU countries were forced to create additional legal mechanisms in order to more effectively regulate the institution of bankruptcy. The aim of the study is to analyze the consequences of the COVID-19 pandemic and the energy crisis, their impact on the growth of bankruptcies in EU countries and measures taken to improve the economy and protect the fundamental rights of individuals to return them to economic circulation. The trends and conclusions formulated by the author allowed to emphasize the importance of applying bankruptcy proceedings. The article uses theoretical and empirical research methods.

Keywords

RU

банкротство; должник; кредитор; пандемия COVID-19; энергетический кризис

EN

bankruptcy; COVID-19 pandemic; creditor; debtor; energy crisis

• Publisher: Instytut Nauk Społecznych i Bezpieczeństwa Uniwersytetu Przyrodniczo-Humanistycznego w Siedlcach
• Journal: De Securitate et Defensione. O Bezpieczeństwie i Obronności
• Year: 2023
• Issue: 1(9)
• Pages: 73-94

Dates

published

2023-09-28

Contributors

author

Cvetkova Irina

• Baltic International Academy

References

• 1. Actions to extend the Availability and Improve the Quality of Debt-advice Services for Euro-pean Households. Tenders Electronic Daily. 2019. 2019/S 211-514673, Contract notice. In: https://ted.europa.eu/udl?uri=TED:NOTICE:514673-2019:TEXT:EN:HTML.
• 2. Adamus Rafal. 2020. Simplified restructuring procedures in Poland as an example of crisis management in connection with the COVID–19 pandemic. International Cooperation and Comparative Law Review. Volume 20. No. P.1.
• 3. Ahlström Richard, Edström Sonya, Savemark Matias. 2014. The Swedish Consumer Agency, Report 2014: Is debt relief rehabilitative? Finance Watch, Response to the Consultation on the Evaluation of the Consumer Credit Directive, P.6. https://ecdn.eu/wp-content/up-loads/2020/02/Money-Matters-Vol.-12-2014.pdf.
• 4. Balz Manfred. 1996. The European Convention on Insolvency Proceedings. 70 Amer Bank-ruptcy Law. Р.485. https://heinonline.org/HOL/LandingPage?handle=hein.journals/am-bank70&div=30&id=&page=.
• 5. Balloch Cynthia, Djankov Simeon, Gonzalez-Uribe Juanita, Vayanos Dimitri. 2020. A restart procedure to deal with COVID-19, London School of Economics, Working Paper series. P.293-303.
• 6. Bork Reinhard. 2017. Preventive Restructuring Frameworks: A ‘Comedy of Errors’ or ‘All's Well That Ends Well? Int Corp Rescue, P. 425.
• 7. CERIL Executive Statement 2020‐1 on COVID‐19 and Insolvency Legislation. CERIL 2020. In: www.ceril.eu/news/ceril-statement-2020-1.
• 8. Charter оf Fundamental Rights оf еhe European Union 2012/C 326/02, 26.10.2012. Offi-cial Journal of the European Union. https://eur-lex.europa.eu/legal-con-tent/EN/TXT/?uri=celex%3A12012P%2FTXT.
• 9. Code de commerce. For a definition of the concept of “cessation de paiements”, see art L631‐1. Legifrance. https://www.legifrance.gouv.fr/codes/id/LEGITEXT000005634379.
• 10. Commission Recommendation C(2014) 1500 final of March 12, 2014 on a new approach to business failure and insolvency. 14.03.2014. Official Journal of the European Union. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014H0135.
• 11. Corporate Insolvency and Governance Act 2020, as amended by Rules 2 and 3, Corporate In-solvency and Governance Act 2020 (Coronavirus) (Suspension of Liability for Wrongful Trading and Extension of the Relevant Period) Regulations 2020 (UK) (SI 2020/1349), Schedule 14.
• 12. Council Regulation (EU) 2015/848 of the European Parliament and of the Council of May 20, 2015 on insolvency proceedings (recast). Official Journal of the European Union. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32015R0848.
• 13. Council Regulation (EU) 2022/1854 of 6 October 2022 on an emergency intervention to ad-dress high energy prices. 2022. Official Journal of the European Union. https://eur-lex.eu-ropa.eu/legal-content/EN/TXT/?uri=CELEX:32022R1854.
• 14. Covid-19 Outbreak: Implications on Corporate and Individual Insolvency. World Bank, April 2020. https://pubdocs.worldbank.org/en/912121588018942884/COVID-19-Outbreak-Implications-on-Corporate-and-Individual-Insolvency.pdf.
• 15. Demertzis Maria and Domínguez-Jiménez, Annamaria Marta and Lusardi. 2020. The financial fragility of European households in the time of Covid-19, Bruegel Policy Contribution Issue n˚15, July 2020. http://aei.pitt.edu/103258/.
• 16. Debt Part 3: The imprisonment of civil debtors. 2010. Law Team, Oireachtas Library & Re-search Service Spotlight. https://data.oireachtas.ie/ie/oireachtas/libraryRe-search/2010/2010-05-26_spotlight-debt-part-3-the-imprisonment-of-civil-debt-ors_en.pdf.
• 17. Di Martino Paolo. 2005. The Historical Evolution of Bankruptcy Law in England, the US and Italy up to 1939: Determinants of Institutional Change and Structural Differences. Söder-törnshögskola. http://goo.gl/dwtgXf.
• 18. Directive 2019/1023 of the European Parliament and of the Council of June 20, 2019 on pre-ventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring. Official Jour-nal of the European Union. https://eur-lex.europa.eu/legal-con-tent/EN/TXT/?uri=CELEX%3A32019L1023.
• 19. Euler Hermes Global trade credit insurance leader. Allainz. https://www.eulerher-mes.com/en_global.html.
• 20. DG FISMA Report. 2021. Report on the results of the feasibility assessment for the develop-ment of a financial competence framework in the EU. European Comission.
• 21. Fischer Nikolaj. 2003. “Rechts‐Harmonisierung” – Schlagwort order Rechtsprinzip? – Kritische Anmerkungen zum Prozess der “Rechts‐Angleichung”. Verbraucher und Recht. Р.374.
• 22. Fox Paul, Norwood Peter, Glantz Emily. 2022. From debtor prisons to being prisoners of debt. A Finance Watch report. P.5. https://www.finance-watch.org/wp-content/up-loads/2022/01/Personal-insolvency-paper-january-2022.pdf.
• 23. Graeber David. 2011. Debt: The First 5,000 Years. Brooklyn, N.Y: Melville House, Print.
• 24. Gromek Broc Katarzyna, Parry Rebecca. 2004. Introduction. Corporate Rescue. An Overview of Recent Developments from Selected Countries in Europe. Eds.B.Gromek, R.Parr. The Hague; London; New York: Kluwer Law International. Р. 236.
• 25. Gurrea-Martínez Aurelio. 2021. “Insolvency Law in Times of COVID‐19”. Ibero‐American Institute for Law and Finance Working Paper 2/2020. https://ssrn.com/abstract=3562685.
• 26. Inability to face unexpected financial expenses. EU-SILC survey. https://ec.europa.eu/euro-stat/en/web/products-datasets/-/ILC_MDES04.
• 27. Holger Hansen, Knolle Kirsti. 2022. Germany agrees 200 bln euro package to shield against surging energy prices. Reuters. https://www.reuters.com/business/energy/german-govt-agrees-relief-package-response-soaring-energy-prices-sources-2022-09-29/.
• 28. Jérusalmy Olivier, Fox Paul and Hercelin Nicolas. 2020. Is the human dignity of individ-ual debtors at risk? Finance Watch. https://www.finance-watch.org/wp-content/uploads/2020/01/Report_Human-dignity_final_with-annex.pdf.
• 29. Lehmann Andreas. 2021. Germany Implements New Insolvency Laws and Restructuring Tools. Squire Patton Boggs. https://www.restructuring-globalview.com/2021/01/ger-many-implements-new-insolvency-laws-and-restructuring-tools/.
• 30. Manual on Government Deficit and Debt - Implementation of ESA 2010 - 2019 edition. 2019. Eurostat: https://ec.europa.eu/eurostat/en/web/products-manuals-and-guidelines/-/ks-gq-19-007.
• 31. Martin Nathalie. 2005. The Role of History and Culture in Developing Bankruptcy and Insol-vency Systems: The Perils of Legal Transplantation. UNM Law. https://digitalreposi-tory.unm.edu/law_facultyscholarship/34/.
• 32. McCormack Gerard and Keay Andrew. 2016. Study on a new approach to business failure and insolvency: Comparative legal analysis of the Member States’ relevant provisions and practices. Tender No. JUST/2014/JCOO/PR/CIVI/0075. University of Leeds. https://www.ilauk.com/docs/ilaaf2016study_on_a_new_approach_to_business_fail-ure_and_insolvency.pdf.
• 33. Monnet Jean. 1978. Memoirs. Doubleday&Company Inc. Р.109, 417. https://ar-chive.org/stream/MonnetJeanMemoirs/Monnet%2C%20Jean%20-%20Mem-oirs_djvu.txt.
• 34. Tartara Karol, Kaliński Mateush. 2022. Simplified Restructuring Proceedings Report on the First Year of Functioning of Simplified Restructuring Proceedings In Poland. Tatara & Partners Restructuring & Insolvency Law Firm. P.2.
• 35. Official website of the International Monetary. https://www.imf.org/en/Search#q=bank-ruptcy&sort=relevancy .
• 36. Ordonnance n 2020‐341 du 27 mars 2020 portant adaptation des règles relatives aux difficultés des entreprises et des exploitations agricoles à l'urgence sanitaire et modifiant cer-taines dispositions de procédure pénale. Legifrance. https://www.legifrance.gouv.fr/loda/id/JORFTEXT000041762344.
• 37. Overcoming the stigma of business failure, for a second chance policy: Implementing the Lis-bon Partnership for Growth and Jobs (November 27, 2009) COM(2007) 584 final (Au-gust 19, 2021) European Commission. https://www.cedefop.europa.eu/sl/news-and-press/news/overcoming-stigma-business-failure-second-chance-policy-implementing-lisbon.
• 38. Parry Rebecca, Gromek Broc Katarzyna. 2004. Introduction. Corporate Rescue. An Overview of Recent Developments from Selected Countries in Europe. The Hague; London. New York: Kluwer Law International. Р. 236.
• 39. Paterson Sarah. 2015. “The Adaptive Capacity of Markets and Convergence in Law: UK High Yield Issuers, US Investors and Insolvency Law”. 78(3) Modern Law Rev. Р.431.
• 40. Pearce John and Robbins Keith. 1994. “Retrenchment Remains the Foundation of Business Turnaround”. Strateg Manage 15(5) . Р. 417.
• 41. Proposal for a COUNCIL REGULATION Establishing a market correction mechanism to pro-tect citizens and the economy against excessively high prices. 2022/0393 (NLE). 2022. Council of the EU: https://eur-lex.europa.eu/legal-con-tent/EN/TXT/?uri=CELEX%3A52022PC0668.
• 42. Recommendation CM/Rec(2007)8 of the Committee of Ministers to member states on legal solutions to debt problems. Council of Europe. 20.06.2007. https://search.coe.int/cm/Pages/result_details.aspx?ObjectId=09000016805d5b81.
• 43. Robbins Keith and Pearce John. 1992. “Turnaround: Retrenchment and Recovery”. Strateg Manage 13(4). Р.287.
• 44. Strupczewski Jan. 2021. Exclusive: EU faces bankruptcies and bad loans as COVID-19 help for firms ends - EU document. Reuters. https://www.reuters.com/article/us-eurozone-eu-rogroup-solvency-idUSKBN2AB0SJ.
• 45. Qiyan Ong, Walter Theseira, Irene Y. H. Ng. 2019. Reducing debt improves psychological functioning and changes decision-making in the poor. Proceedings of the National Acad-emy of Sciences, DOI: 10.1073/pnas.1810901116.
• 46. Warren Elisabeth. 2014. Bankruptcy and Article 9. Statutory Supplement. New York: Wolters Kluwer. P.23.
• 47. Wessels Bob. 2014. European Law Institute Projects Conference Thursday 25 September 2014, Zagreb, Croatia. Business Rescue in Insolvency Law – Setting the Scene. European Law Institute. https://goo.gl/MIF4ao.
• 48. Whatever it takes reloaded? Europe’s fiscal response to the energy crisis. 04.10.2022. Allianz Research: https://www.allianz-trade.com/en_global/news-insights/economic-in-sights/europe-fiscal-response-energy-crisis.html.

Identifiers

DOI

https://doi.org/10.34739/dsd.2023.01.06