The application ratione temporis of the insolvency regulation in new member states

On 5 July 2012, the CJEU rendered a ruling in Erste/BCL on the temporal application of the Insolvency Regulation in Member States that joined the EU after the Regulation's initial entry into force on 31 May 2002 (new Member States). ¹ The uncertainties of interpretation concerned 'cross-date' proceedings; that is, when the insolvency proceeding was launched before the accession of the (new) Member State but after the Regulation's original entry into force (in the old Member States) and remained pending also after the accession. Taking into account that 44.4 per cent of the Member States joined the EU after the Insolvency Regulation's entry into force (12 out of 27 Member States), ² the ruling has an enormous practical and economic relevance, which will be refreshed following the accession of Croatia.