engleski

Burden Sharing Principle in Rescue and Restructuring – No Pain, No Gain

Following the adoption of the new Commission's Guidelines on rescue and restructuring, the authors look closer into the principle of burden sharing to contextualize the impact of implementation of the Guidelines in practice, given the case law at hand. The stringent rules of rescue and restructuring of firms in difficulties provide the opportunity and chance to give them economic, production and employment rise where assessed viable and necessary. Yet, although welcoming the introduction of the burden sharing as a largely positive principle, the authors feel there is a space to (re)consider the proportionality of burden sharing principle, its limits as well as the effect. The rightful expectation of the State is to “cash in” the original investments by taking over debt-to-equity principle, thus being represented through ownership and accumulating all the owner’s rights as per national company’s law and other biding legislation, dependant on the Member state in question. The authors question the extent at which the State, firstly, enters the firms by assuming equity and, secondly, exercises its owner’s right with(out) the political context.

Burden sharing, firm in difficulty, restructuring aid, state aid

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