30.6.2000 Official Journal of the European Communities L 160/1 (Acts whose publication is obligatory) COUNCIL REGULATION (EC) No 1346/2000 of 29 May 2000 on insolvency proceedings THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Com- munity, and in particular Articles 61(c) and 67(1) thereof, Having regard to the initiative of the Federal Republic of Germany and the Republic of Finland, Having regard to the opinion of the European Parliament(*), Having regard to the opinion of the Economic and Social Committee (2), Whereas: (1) The European Union has set out the aim of establishing an area of freedom, security and justice. (2) The proper functioning of the internal market requires that cross-border insolvency proceedings should operate efficiently and effectively and this Regulation needs to be adopted in order to achieve this objective which comes within the scope of judicial cooperation in civil matters within the meaning of Article 65 of the Treaty. (3) The activities of undertakings have more and more cross-border effects and are therefore increasingly being regulated by Community law. While the insolvency of such undertakings also affects the proper functioning of the internal market, there is a need for a Community act requiring coordination of the measures to be taken regarding an insolvent debtor’s assets. () Opinion delivered on 2 March 2000 (not yet published in the Official Journal). (?) Opinion delivered on 26 January 2000 (not yet published in the Official Journal). (4) It is necessary for the proper functioning of the internal market to avoid incentives for the parties to transfer assets or judicial proceedings from one Member State to another, seeking to obtain a more favourable legal position (forum shopping). (5) These objectives cannot be achieved to a sufficient degree at national level and action at Community level is therefore justified. (6) In accordance with the principle of proportionality this Regulation should be confined to provisions governing jurisdiction for opening insolvency proceedings and judgments which are delivered directly on the basis of the insolvency proceedings and are closely connected with such proceedings. In addition, this Regulation should contain provisions regarding the recognition of those judgments and the applicable law which also satisfy that principle. (7) Insolvency proceedings relating to the winding-up of insolvent companies or other legal persons, judicial arrangements, compositions and analogous proceedings are excluded from the scope of the 1968 Brussels Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters(3), as amended by the Conventions on Accession to this Convention (4. (8) In order to achieve the aim of improving the efficiency and effectiveness of insolvency proceedings having cross- border effects, it is necessary, and appropriate, that the provisions on jurisdiction, recognition and applicable law in this area should be contained in a Community law measure which is binding and directly applicable in Member States. (3) OJL 299, 31.12.1972, p. 32. () OJL 204, 2.8.1975, p. 28; OJ L 304, 30.10.1978, p. 1; OJ L 388, 31.12.1982,p.1; OJ L 285,3.10.1989, p. 1; O] C 15, 15.1.1997, p.- L.