{{B}}tExt 4{{/B}}

EuropE is DEspErAtE to suCCEED in BusinEss. two yEArs Ago, thEEuropEAn union’s lisBon summit sEt A goAl oF BEComing thE worlD’s lEADing EConomy By 2010.But suCCEss, As Any nEw- AgE ExECutivE CoACh might tEll you, rEquirEs ConFronting thE FEAr oF FAilurE. thAt is whyEuropE’s ApproACh to BAnkruptCy urgEntly nEEDs rEForm. inEuropE, As in thE unitED stAtEs, mAny hEAvily inDEBtED CompAniEs ArE shutting up shop just As thE EConomy BEgins to rECovEr. ironiCAlly, thE upturn is oFtEn thE momEnt whEn wEAk Firms FinAlly FAil.ButAmEriCA’s FAilurEs hAvE A Big ADvAntAgE ovErEuropE’s wEAklings: thEir Country’s morE rElAxED ApproACh to BAnkruptCy. in thE unitED stAtEs thEChAptEr 11 lAw mAkEs going Bust An orDErly AnD EvEn routinE proCEss. Firms in trouBlE simply Apply For BrEAthing spACE From CrEDitors. mAnAgErs suBmit A plAn oF rEorgAnizAtion to A juDgE, AnD CrEDitors DECiDE whEthEr to givE it A go or to ComE up with onE oF thEir own.CrEDitors hAvE A sAy in whEthEr to kEEp thE Firm running, or to liquiDAtE it. iF thEy kEEp it running, thEy oFtEn EnD up with A Big Chunk oF Equity, iF not outright Control. But shutting A BustEuropEAn CompAny is hArDEr in two othEr wAys. First, with no EquivAlEnt oFChAptEr 11, BAnkruptCy ForCEs CompAniEs to stop trADing ABruptly. thAt DAmAgEs thE vAluE oF thE CrEDitors’ potEntiAl AssEts, AnD mAy Also CAusE hAvoC For CustomErs. sEConD, A CompAny thAt trADEs ACross thEEuropEAn union will FinD thAt it hAs to ABiDE By DiFFErEnt BAnkruptCy lAws in thE 15 mEmBEr stAtEs, whosE Courts AnD ADministrAtors mAy mAkE ConFliCting AnD somEtimEs inCompAtiBlE stipulAtions. thE ABsEnCE oF provision For nEgotiAtions BEtwEEn CompAniEs AnD CrEDitors inCrEAsEs thE tEmptAtion For govErnmEnt to stEp in. whEn govErnmEnts Do not ComE to thE rEsCuE, thE lACk oF ClEAr rulEs CAn lEAD to ChAos.As A rEsult oF All this,EuropE’s tEEtEring Firms miss thE ChAnCE to BEComE morE CompEtitivE By sElling AssEts to othErs who might mAnAgE thEm morE EFFiCiEntly. thEir siCklyAmEriCAn rivAls survivE, trAnsFormED, to swEEp thE FiElD、 An opportunity now Exists to think AgAin ABoutEuropE’s ApproACh to BAnkruptCy. thEEuropEAn union is ExpECtED to issuE A nEw DirECtivE on thE suBjECt in mAy. gErmAny hAs BEgun to upDAtE its insolvEnCy lAw.AnD lAst yEArBritAin proDuCED A whitE pApEr sAying thAt A rigiD ApproACh to BAnkruptCy CoulD stiFlE thE growth nEEDED to mEEt lisBon’s goAls.

ACCorDing to tExt, whAt is BEyonD thE ABility oFEuropE’s FAiling Firms now isA．to DEFECtAmEriCAn CompEtitivE rivAls.
B．to Comply with DiFFErEnt lAws.
C．to EsCApE thE Control oF govErnmEnts.
D．to nEgotiAtE with thEir CrEDitors.