Doing business internationally sounds appealing. Until something goes wrong. Because if a customer abroad goes bankrupt, you are faced with a maze of national rules, slow procedures, and a great deal of uncertainty. Within the EU, this is now changing (to some extent).
EU agreement paves the way for more control
On June 12, 2025, European justice ministers reached an agreement on harmonizing parts of insolvency law. While this does not represent complete standardization, it is a significant step toward greater predictability, speed, and protection for creditors within the EU.
What has been agreed upon?
The proposal focuses on harmonizing fundamental rules on bankruptcy, such as:
- When and how insolvency proceedings may be initiated
- Obligations regarding transparency towards creditors and other stakeholders
- Rules for pausing or terminating procedures
The goal: Make cross-border investments safer and strengthen the internal (EU) market.
Read the official press release from the European Council here.
This is why it is already relevant for your risk analysis
If you work in credit risk or finance, you know how difficult it is to accurately assess international credit risks. Every country has different rules and different maximum payment terms, which leads to uncertainty, delays, and increases the risk of financial loss.
With this agreement, that's changing a bit. You'll get:
- More clarity about your rights as a creditor, especially when dealing with foreign customers
- Faster and more transparent handling of procedures
- Fewer unexpected risks in cross-border bankruptcies.
In short, you can better assess international risks and take action more quickly when necessary.
Interesting read: SEPA 2.0 is coming: are you ready for the new European standard?
This is just the beginning
The agreements are a step in the right direction, but full harmonization has not yet been achieved. Differences remain, particularly in complex cross-border insolvency cases. The upcoming negotiations between the Council and the European Parliament will determine how far the legislation will actually go.
Although this agreement is an important step, differences between Member States remain. Further harmonization is necessary to make a real impact, particularly in complex cross-border insolvencies.
What can you do?
Continue to actively monitor data and signals, both nationally and internationally. The better you know your customers and prospects, the faster you can respond when something goes wrong. Altares Dun & Bradstreet supports you with up-to-date and reliable data, so you can always make the right decisions.
Read more about our Credit Risk solutions here.
