Research on the 2008-2014 financial crisis highlighted the challenges of creating a generalized model to predict corporate insolvency, consistent with prior literature. Analyses of ratios associated with insolvency risk revealed significant cross-country variations concerning corporate mortality rates. This variability stemmed from two main factors: the divergent interests of financial creditors influenced by jurisdictional differences, and the political, legal, and economic measures adopted to mitigate the crisis. These factors significantly impacted companies' economic stability, as reflected in their mortality rates during the crisis.

Identifying external factors affecting insolvency outcomes remains challenging due to limitations in data availability across countries, sectors, and firm sizes. These limitations hinder the establishment of time series data for representative analysis. To address these issues, this research leverages data from EUROSTAT and BACH (Bank for the Accounts of Companies Harmonized) to analyze the relationships between various factors and business mortality rates across Europe.

Building on this framework, the present study examines the impact of economic policies implemented by the European Union to counter the effects of the COVID-19 pandemic. Specifically, it evaluates whether these policies reduced business closures or facilitated a more efficient market adjustment by supporting viable firms' continuity while enabling less viable firms to exit the market. This analysis provides insight into the effectiveness of policy measures in fostering economic resilience during crises and contributes to the broader understanding of insolvency dynamics in varying economic contexts.