EU Insolvency Harmonisation Directive Approved: Practical Implications

A key new directive harmonising certain aspects of insolvency law was published in the Official Journal of the European Union on 1 April 2026.

Directive (EU) 2026 / 799 (the “Directive“), which aims to reduce complexity arising from the differing insolvency rules across Member States, was adopted by the European Parliament on 10 March 2026 and approved by the Council of the European Union on 30 March 2026.  Member States now have just over two years and nine months to transpose the Directive into national law.

The Directive provides new minimum rules in respect of insolvency proceedings in each Member State, divided into five main pillars: (1) avoidance actions; (2) pre-pack proceedings; (3) duty to file for insolvency; (4) creditors’ committees; and (5) asset tracing.