To promote a more entrepreneurial spirit, a pan-European framework for the early restructuring of businesses could offer a true second chance for entrepreneurs. To benefit from a capital markets union, insolvency frameworks would also need to remove sources of cost unpredictability in cross-border insolvency procedures, which are often hidden in national insolvency laws or are not sufficiently dealt with in the current EU framework. Moreover, measures to harmonise insolvency laws could have positive impacts on the banking union, and particularly those harmonising the hierarchies of claims could strengthen the functioning of the resolution mechanism. The diffusion of best practices in credit recovery procedures could help to improve the management of non-performing loans by fostering liquidity in secondary markets. In addition, this report contributes to defining areas for further action, such as the opening and governance of proceedings and reliefs.
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