The importance of better EU insolvency regimes (Paul McGhee, Julio Suarez, Gary Simmons, VOX)

The European Commission aims to propose new legislative on business insolvency by the end of 2016. This column presents new research that seeks to quantify the impact of improving EU-wide insolvency regimes. It suggests that improving insolvency regimes could reduce corporate bond spreads by 18 to 37 basis points, expand EU GDP by 0.3% to 0.55% over the long term, and increase employment by 0.6 to 1.2 million new jobs. A number of proposals for targeted harmonisation are also outlined.

http://voxeu.org/article/importance-better-eu-insolvency-regimes