The Impact of Social Policy on Cross Border Insolvency

Cross-border insolvency can often be impeded by the lack of legal coordination between jurisdictions, both in terms of differences in insolvency systems and in other more fundamental differences in legal approach to regulation generally. The European Insolvency Regulation (“EIR”) is one attempt to increase cross-border coordination in an area that is important to business related market activities. While the EIR aims to coordinate insolvency proceedings within the EU, gaps remain between Member state insolvency procedures as well as in other regulations linked to insolvency. The content and even the fundamental aims of regulation differ throughout the EU, exemplified through a comparison between the UK and France below. One legal area that can be a particular obstacle to effective cross-border business coordination is social policy regulation which impacts corporate rescue success