A minimum long-term debt requirement could lend greater confidence that the combination of equity owners and long-term debt holders would be sufficient to bear all losses at the firm, thereby counteracting the moral hazard associated with taxpayer bailouts while avoiding disorderly failures.
In spite of all efforts aimed at harmonisation in the EU, in many areas continental Europe still does not have a joint, internationally applicable legal framework that can compete with English common law. There are debates at the EU level as to whether the 28th regime could be used as an alternative to the traditional harmonisation of legal provisions.