In recent weeks, successful European tech founders and investors, along with their associations, have been drumming up support for a Europe-wide petition (1). Their goal is the introduction of a standardised European corporation for innovative start-ups, the EU Inc. One of the initiators is Andreas Klinger (2), who describes himself as an investor and CTO of various ‘cool’ companies. At the end of April 2024, he published an appeal (3) that could not leave any European cold. The article, which has now been viewed around 70,000 times, is entitled ‘Dear Europe, please wake up - eu/acc’ and features the European flag.
He writes: ‘Europe is special to me as I consider myself a proud European, but damn we need to talk.’ He fears that Europe will fall to fourth place worldwide in terms of the latest technologies. The reasons for this are not taxes or a European mentality that shies away from hard work or risk. This US meme should no longer be believed in Europe. The cause of the dramatic gap is friction losses resulting from the 27 different legal systems of the member states.
Standardisation instead of regulation
He therefore proposes two innovations: firstly, the urgent introduction of the EU Inc., a legal foundation for innovative, small companies that is valid for all EU member states. This first standard could be followed by others. This would simplify the founding of start-ups and their financing, so that they would have an easier time profiting from the EU single market in the future. The establishment of the European Corporation (SE) (4), which, however, is not intended for small companies, shows that this works.
The EU Inc. would be comparable to the ‘Delaware Inc.’, the US ‘de facto standard for legal entities for start-ups’. Standardisation instead of regulation should point the way forward. The second innovation - surprise - would not be so new for all member states, because it involves early and better English teaching. Better English skills would enable media and networks to expand across the entire EU.
The petition is addressed to the new European Commission, which will take up office at the beginning of December 2024. According to the right of petition (5), it would actually be addressed to the European Parliament. However, in her political guidelines for the next Commission, with which she presented herself for election on 18 July, Ursula von der Leyen had already announced that she would propose a so-called 28th regime. This is intended to allow innovative founders ‘to benefit from a simpler, harmonised set of rules in certain areas’.
There are only winners
The Commission is already setting the sails. The European Parliament will also support this course. The conservative Finnish MEP Aura Salla said in her speech to the plenary on 26 November: ‘We need to build rapidly one single entry point for new companies entering the EU market - harmonise, streamline and speed up our licensing processes.’ (7). The European Council, the representation of the member states, still has to be brought on board. Logically, there should be no objections from there either. The introduction of the EU Inc. would not disadvantage any member state.
Should member states nevertheless not want to participate, a ‘coalition of the willing’ could be formed. All others could join later if interested. The EU must deliver now; there is no second chance.
Margit Reiser-Schober
Error in content? Error in translation? – eurolandpost(at)gmx.eu
original language German, translation by deepl
- A pan-European entity for Europe’s startups
https://www.eu-inc.org/
- https://x.com/andreasklinger (X-Account)
- https://klinger.io/ (Artikel)
- Societas Europaea (SE)
https://wirtschaftslexikon.gabler.de/definition/societas-europaea-se-46610
- Petitionsrecht
https://www.europarl.europa.eu/factsheets/de/sheet/148/das-petitionsrecht
- Ursula von der Leyen
Europe’s choice – Political Guidelines fort the next European Commission 2024−2029
Stasbourg 18 July 2024 , S.7
https://commission.europa.eu/document/download/e6cd4328-673c-4e7a-8683-f63ffb2cf648_en?filename=Political%20Guidelines%202024-2029_EN.pdf
- EP-Abgeordnete Aura Salla am 26. November 2024:
https://x.com/AuraSalla/status/1861446715099746774