European Legislation Journal Archive


European Legislation Vol. 19 No. 71/2020

Content

DIRECTIVE 2019/1023 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ON PREVENTIVE RESTRUCTURING FRAMEWORKS
Duško DIMITRIJEVIĆ
European Legislation, 2020 19(71):5-21
Abstract ▼
In certain situations, enterprises and entrepreneurs may find themselves in considerable financial difficulty, which is often a result of over-indebtedness, technical and technological obsolescence, inadequate organizational structure, and a large number of employees, which all, more or less, affects their unproductiveness, unprofitability and uneconomic. For the financial recovery of such entities, on 20 June 2019, the European Parliament and the Council adopted Directive 2019/1023 on preventive restructuring frameworks. The said Directive is establishing an institutionalized reorganization model necessary for the preservation of the aforementioned entities in the internal national market. Unlike the bankruptcy procedure, which, as a rule, leads to disqualification, that is, the elimination of companies from the market, preventive restructuring provides a “second chance” for their survival in the economic systems of the Member States. Restructuring involves the implementation of preventive measures such as discharge of debt (which often involves writing off or rescheduling them), as well as implementing a reorganization aimed at changing the composition and structure of assets and capital, maintaining control of current operations and optimally regulating redundancies. In addition, special emphasis in restructuring is on the long-term viability of business entities and avoiding bankruptcy, which could endanger the interests of creditors and owners, as well as the economic system as a whole. The implementation of the Directive, therefore, contributes to the achievement of a plan of economic consolidation and social cohesion within and outside the European Union.
COUNCIL DIRECTIVE ON THE ESTABLISHMENT AND MARKING OF EUROPEAN CRITICAL INFRASTRUCTURE AND ASSESSMENT OF THE NEED TO IMPROVE ITS PROTECTION
Dalibor KEKIĆ, Aleksandar ČUDAN
European Legislation, 2020 19(71):22-37
Abstract ▼
The paper aimed to highlight the importance of critical infrastructure for the Republic of Serbia and recognize it as such within the European framework. The first outlines of critical infrastructure are recognized in the Green Paper on a European Critical Infrastructure Protection Program. Subsequently, a series of regulations were passed concerning critical infrastructure. Within the framework of the current Critical Infrastructure Law, a special chapter is devoted to European Critical Infrastructure. Therefore, it is necessary to fully approximate the law, as well as the legal acts with the EU regulations. In this regard, it is necessary to investigate all regulations related to critical infrastructure, so that all by-laws in the Republic of Serbia are systematic, i.e., to avoid a collision. Particular attention should be paid to cyber security, the related information network, as one of the main pillars of critical infrastructure security.
CULTURAL RIGHTS IN THE CASE­LAW OF THE EUROPEAN COURT OF HUMAN RIGHTS
Aleksa NIKOLIĆ
European Legislation, 2020 19(71):38-51
Abstract ▼
In this paper, the author tries to show the development of cultural rights in the practice of the European Court of Human Rights. The introduction first emphasizes poor development but also the increasing importance of this group of human rights. The paper then analyzes the normative framework of cultural rights in the Council of Europe’s legal system. Thereafter, the author examines the ECHR practice in the field of cultural rights, especially in light of the most significant judgments the Court has made regarding the right to education, the right of access to culture, and the right to artistic expression. The paper then analyzes the legal nature of the ECHR judgments in the field of cultural rights. At the end of this paper, the author summarizes the importance of the Court’s judgments, as well as its role in furthering cultural rights.
COMMENTARY ON PREVENTIVE RESTRUCTURING OF COMPANIES IN FINANCIAL DIFFICULTIES UNDER EU LEGISLATION
Larisa MASTILOVIĆ
European Legislation, 2020 19(71):52-69
Abstract ▼
A bona fide and economically prospective debtor, which is in financial difficulties, but until the bankruptcy proceedings occur and the bankruptcy proceedings are initiated, in the event of the consent of the majority of creditors, may initiate a preventive restructuring procedure, the consequences of which will extend to the dissenting creditors. By such regulation, it is possible to achieve the necessary unified legal will of the debtor and all creditors. Otherwise, different creditors would differently assess the economic position and prospects of the debtor, and such diversification would reduce the likelihood of successful implementation of preventive restructuring. At the same time, such a rule justifiably requires a balance of interests to be struck in favor of dissenting creditors, who are guaranteed a minimum of what they would receive if the preventive restructuring procedure was not initiated, which establishes the economic balance of interests of all entities. However, the guarantee given to dissenting creditors leads to interference with the freedom of entrepreneurial activity since only those measures can be implemented which do not create a risk of violation of the guaranteed right given to dissenting creditors. In practice, this means that these funds, which are guaranteed by dissenting creditors, cannot be used to undertake entrepreneurial restructuring because their result is uncertain and thus cannot be a basis for increasing the debtors\' financial resources. However, in exceptional cases, European legislation provides for the possibility of adopting a restructuring plan without the consent of the majority of creditors in the event of obtaining the consent of the court. Nevertheless, the borrower is economically stimulated to obtain the factual approval of as many creditors as possible because creditors cannot be legally compelled to make new loans, which is usually required by the borrower. At the same time, preventive restructuring cannot be initiated without the consent of the debtor (at the initiative of most creditors).
POTENTIAL RESOURCES OF THE EUROPEAN UNION FINANCING
Ivana VUJIČIĆ
European Legislation, 2020 19(71):70-82
Abstract ▼
This paper provides an overview of the current European Union\'s sources of funding and challenges to the existing system, analyzes possible sources in the future, and criteria for selecting new sources of funding that could be considered by policy makers at the EU level in reform financing system. The European Commission proposals for the introduction of new sources of financing for the European Union budget are described. The possible financing scenarios of the European Union were discussed, as well as the possible importance of reforming such a financing system for the European Union and the Republic of Serbia.