President Basescu passes new Insolvency Code

Newsroom 24/06/2014 | 17:02

President Traian Basescu signed into law the new Insolvency Code. The legal framework establishing the new preemptive and insolvency procedures was attacked in Constitutional Court on Aprill 22 by a group of PNL deputies who argued that the bill goes against free access to justice and the right to property.

On May 21st, the Constitutional Court established that the bill is in fact constitutional. Prime-minister Victor Ponta asked the head of the court, Augustin Zegrean, to send president Traian Basescu the motivation for the decision so that the Insolvency law can finally be promulgates.

The motivation was sent on June 18th, after Zegrean asked for a month to edit the official document.

The new Insolvency Code, which was backed by a EUR 380,000 World Bank loan, was approved by MPs in the Chamber of Deputies on April 15 by 212 votes to 111 and eight abstentions, with Prime Minister Victor Ponta claiming the new bill combats “wise guys” that use the insolvency to evade paying taxes.

“The idea to have, based on the insolvency law, a support for the fair ones, which pay taxes, wages, and work everyday and for a law designed to tackle the wise guys that understood it is better to buy TV stations and politicians rather than pay their taxes, I think it is an important step,” said PM Ponta.