The Italian exclusion of farming enterprises from major insolvency proceedings: An assessment of its appropriateness within the European Union insolvency context

Abstract

The article examines the Italian approach to farming enterprises' insolvency. In Italy, farmers were traditionally excluded from the application of insolvency proceedings regardless of their corporate status. In the last decade, they have gained limited access to special insolvency procedures developed for consumers and small enterprises. The study seeks to compare the Italian perspective with the insolvency frameworks of the other European Union (EU) member states and place the Italian approach within the broader EU insolvency framework. The article questions the validity of the Italian exclusion of farmers from the major insolvency proceedings in light of the modern rationales of insolvency law (i.e., restructuring, rescuing and second chances). In doing so, the article has a fourfold structure. First, the article analyses the current Italian approach to the insolvency of farming enterprises. Second, it compares the Italian approach to the regimes concerning farmers' access to insolvency proceedings of the other 26 EU member states. Third, it analyses the EU insolvency framework concerning farmers' insolvency and evaluates the impact of the Directive on Restructuring and Insolvency on the rationale of the Italian insolvency regime. Last, the article seeks to put forward policy recommendations for future reforms of farmers' insolvency in Italy.