The Directive (EU) 2026/799 aims to improve the efficiency of the functioning of the capital markets in the EU and the predictability of the insolvency proceedings across Member States. As such, the Directive represents a further step towards reducing fragmentation in EU insolvency law by introducing minimum harmonisation standards.

The Directive addresses the following five pillars of minimum harmonisation in targeted areas of insolvency law:

  1. Avoidance actions;
  2. Pre-pack proceedings;
  3. Asset tracing;
  4. Creditors’ committees; and
  5. Duty to file for insolvency.

Next steps

From 21 April 2026 onwards, Member States will have two years and nine months to transpose the Directive into their national legislation. Until then, existing national insolvency frameworks will continue to apply. Each of the Member States is allowed to implement the Directive and keep any rules that provide greater protection for the general body of creditors.

Further details are available in the press release of the Council of the EU, the EU Law Tracker and the text of the Directive.