Your business friendly EU has your debts covered

EU releases drafts of insolvency laws

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  EC proposes US inspired insolvency rules to increase risk taking and reduce bankruptcies
  
  


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  Proposes firms should be able to stop paying suppliers and banks for a four month period while restructuring debts
  
  


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  Says over-indebted businessmen (what about women?) should have their debts cancelled 3 years after bankruptcy
  
  

Where to start with this one then?

Firstly, when businesses get into trouble, suppliers are the first to not get paid, so how will the EU address that or is the big fat finger going to be offered?

Secondly, while bankruptcies are a feature of businesses, going down the US route is far from ideal on so many levels, not least the wipe-clean and start all over again as if nothing"s happened scenario.

Thirdly, there should be tighter laws on how much insolvency firms can take as fees before creditors get paid out.

Whatever level of business is affected, it"s always the little man that gets screwed. If they want to help SME"s then forget QE, give these businesses a backstop, not the banks.

Your business friendly EU has your debts covered
Your business friendly EU has your debts covered
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