CONFERENCE

Insolvency and Fresh Start after Business Failure

Enterprise Europe, Brussels, 28 February 2006 - The Directorate-General for Enterprise and Industry is organising a "Conference on Insolvency and Fresh Start" in Brussels on 28 March. It will focus on ways of preventing bankruptcy, tackling the stigma attached to business failure and promoting a fresh start subsequent to failure.

Françoise Le Bail, the Deputy Director-General and SME Envoy, will open the conference. Speakers from the Commission, the World Bank, the United Nations Commission for International Trade Law and the Organisation for Economic Cooperation and Development will explain their various initiatives in this field. Information will be given on the recent Spanish insolvency law with its emphasis on restructuring rather than business liquidation, France's centres for bankruptcy prevention and Germany's "culture of the second chance" initiative. An entrepreneur who faced bankruptcy will share her own experience.

The European Charter for Small Enterprises notes that "some failure is concomitant with responsible initiative and risk-taking and must be mainly envisaged as a learning opportunity". It calls for an assessment of national bankruptcy laws in the light of good practice.

It is good that serious thought and initiative is being applied to this area of business evaluation. The "culture of the second chance" is far more progressive than "you failed - good - bye!"

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