Make a difference for Europe: EU-Inc.!
A few days ago, the European Commission published its work plan for 2026. The title for the entire programme is ‘Europe's moment of independence’. (1) It begins with measures for sustainable prosperity and competitiveness, which are obviously priorities. Under the goal of ‘competitiveness and innovation’, the first project mentioned is the ‘28th regime’. This refers to the introduction of a standardised legal corporate structure that is intended to make it much easier to establish and grow innovative companies across Europe in the future. This is a great success, especially for the European start-up scene and all its supporters in business and politics!
For years, and increasingly since 2024, they have been campaigning with great commitment for the pan-European EU-Inc. or the so-called 28th regime. This legal framework would allow founders to overcome the fragmentation of the European single market into 27 legal systems. (2) EU-Inc. would significantly reduce costs for start-ups and scale-ups, finally creating competitive conditions comparable to those across the Atlantic. Furthermore, EU-Inc. should make it possible to attract talent from all over Europe and get stock options up and running across Europe. Isabel Schnabel, member of the Executive Board of the European Central Bank, mentions an additional, often underestimated point: "If the fixed costs for setting up branches in other Member States are high, small countries will always be underserved. Overcoming fragmentation also promotes convergence.‘ (3)
Regulation instead of directive!
The introduction of the ’28th regime" is therefore at the top of the European Commission's agenda. It is now up to Commissioner Michael McGrath, responsible for democracy, justice, the rule of law and consumer protection, to lead the work on the 28th regime. (4) The following problem is particularly evident here: in its ‘draft report’ of 30 June 2025, the European Parliament called on the Commission to present a proposal for a directive for the 28th regime by the first quarter of 2026. (5) This prompted harsh criticism from the European Startup Network, which stated that ‘half-hearted measures have never produced a champion’. (6) Unlike regulations, directives only specify end results. It is left to the member states to decide how to adapt their laws in order to achieve the objective by a certain date. (7) The start-up scene now has a great and justified fear that there will be 27 additional legal frameworks for innovative companies, but no autonomous one that applies across Europe.
Marvin Baumann, an investor at Prototype Capital, (8) contributed to the formulation of the EU-Inc. policy proposal for the European start-up scene. He says: "We are currently at a critical juncture. The 28th regime will stand or fall with the regulation or directive. Many in Brussels believe that it is simply a matter of finding a compromise that is enforceable. However, the real difficulty is to build a 28th regime that will actually be used by founders in the end. To achieve this, it must be a regulation. We now need a similar signal of ambition for the 28th regime, as Chancellor Merz recently expressed at the pan-European stock exchange."
Campaign for EU-Inc.: a new style of politics in the EU
The combined efforts and spirit of optimism of the European start-up scene and proven political heavyweights in European politics are remarkable. The start-up associations of the member states, as well as Mario Draghi, Enrico Letta (with their reports) and Ursula von der Leyen, to name just the most prominent, are pulling together for the 28th regime. What is happening here, completely transparently and with the participation of the community, is more than just lobbying for a new form of enterprise. It is political participation and an expression of the solidarity of innovative entrepreneurs with Europe. They know its advantages and want to work and invest here. They are fighting for a future in Europe that will benefit everyone else as well. Those committed to the European start-up ecosystem should therefore not be disappointed, in the common interest of Europe!
How it all began
In October 2024, a coalition of Europe's most prominent entrepreneurs and investors launched the EU-Inc. campaign. The aim was to create a Europe-wide start-up entity within the framework of the ‘28th regime’ (virtual 28th state). (9) This was to offer an alternative to the 27 national laws. By 28 January 2025, an EU-Inc. policy proposal (10) had been collaboratively drafted, entitled ‘An industry draft for the upcoming 28th regime’. (11) The first core element of the proposal, in addition to the standardised corporate structure, is harmonised rules for corporate governance, capital and share capital. The ‘digital-first approach’ is to apply, with a fully online-based register, a dashboard and standardised investment documents simplifying the establishment and management of companies. In addition, there would be EU-FAST Investment, a new, standardised open-source investment instrument, and finally an EU-wide employee stock option programme with standardised rules, which would help to attract and retain talent.
The policy proposal was submitted on 30 January 2025 with 13,000 signatures on the petition to Commissioners Michael McGrath (Democracy, Justice, Rule of Law and Consumer Protection) and Ekatarina Zaharieva (Start-ups, Research and Innovation). (12) On 30 June, the European Parliament published the above-mentioned draft. From 8 July to 30 September, the European Commission held a public consultation. (13) Anyone who wished to comment was invited to participate in the decision-making process for a Europe-wide legal form for companies.
Margit Reiser-Schober
Errors in content – errors in translation: eurolandpost(at)gmx.eu
- Europäische Kommission, Arbeitsplan 2026
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52025DC0870&qid=1761126156157
- Webseite EU-Inc.:
https://www.eu-inc.org/
- Isabel Schnabel, Mitglied des Direktoriums der EZB
https://x.com/Isabel_Schnabel/status/1980756942084608500
- Kommissar Michael McGrath:
https://commission.europa.eu/about/organisation/college-commissioners/michael-mcgrath_en?prefLang=de#responsibilities
- Draft Report des Europäischen Parlaments vom 30. Juni 2025
https://www.europarl.europa.eu/doceo/document/JURI-PR-773199_EN.pdf
- European Start-up Network, 15. Juli 2025
https://alliedforstartups.org/wp-content/uploads/Joint-Statement_-Half-Measures-Never-Built-a-Champion-1.pdf
- Unterschied zwischen Verordnung (Regulation) und Richtlinie (Directive)
https://european-union.europa.eu/institutions-law-budget/law/types-legislation_de
- Marvin Baumann
https://x.com/MarvinTBaumann
- „EU Inc.: Europe's Bold Push for a Unified Startup Entity“
https://www.linkedin.com/pulse/eu-inc-europes-bold-push-unified-startup-entity-ilaria-pkjnc
- This is a collaborative workspace to create a policy proposal: A Blueprint for implementing the EU–INC.
https://proposal.eu-inc.org/?v=14d076fd79c58146b048000caeed686a
- EU-Inc. Politikvorschlag für das 28. Regime:
https://file.notion.so/f/f/f3929546-4240-45f1-9d17-45414437789a/5cb54e6b-d20e-494d-9e34-e0d2c24aaf00/FINAL_EU-Inc_Policy_Proposal_-_An_industry_blueprint_for_the_upcoming_28th_Regime.pdf?table=block&id=1ba076fd-79c5-8041-a0eb-c9fb38271fb9&spaceId=f3929546-4240-45f1-9d17-45414437789a&expirationTimestamp=1762192800000&signature=fOAVbXFONT58u4jUUZYyr8MyjV7B4fw1-SrYA3xdFbI&downloadName=FINAL+EU%E2%80%93INC+Policy+Proposal+-+An+industry+blueprint+for+the+upcoming+28th+Regime.pdf
- Kommissare nehmen am 30. Januar 2025 die Petition entgegen:
https://www.linkedin.com/posts/michael-mcgrath-td_this-week-in-brussels-i-was-pleased-to-receive-activity-7290769868503613441-08np
- Öffentliche Konsultation
https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/14674-28th-regime-a-single-harmonized-set-of-rules-for-innovative-companies-throughout-the-EU_en