As Europe is facing a severe economic and social crisis, the European Union is taking action to promote economic recovery, boost investment and safeguard employment. The economic crisis has a direct effect on people, jobs and businesses. It has led to an increase in the number of failing businesses. In the period between 2009 and 2011, an average of 200,000 firms went bankrupt per year in the European Union. About 25% of these bankruptcies have a cross-border element. About 50 % of all new businesses do not survive the first five years of their life.