EU Inc. Pushes for Pan-European Startup Structure with Eye on Global Competitiveness
Efforts are underway to create a unified company structure for startups across Europe, simplifying cross-border operations and bolstering the continent’s position in the global market. The initiative, known as EU Inc., is urging the European Commission to include its proposals in the 2025 Work Programme, fueled by the support of over 13,000 prominent tech leaders, investors, and political figures.
The objective? To establish a "28th Regime," a set of optional legal frameworks for EU companies that run alongside existing national rules. This structure would provide a standardized, streamlined platform for European startups to operate across borders, attracting talent, securing funding, and competing effectively with global giant.
"If we don’t act now, Europe risks falling further behind," warns Andreas Klinger, co-initiator of EU Inc. and an investor with Prototype Capital.
The proposed framework draws inspiration from successful community-driven campaigns, like the "Not Optional" initiative advocating for employee stock options in Europe. Key features include:
- Uniform company structure: Establishing a single EU-wide company type with standardized rules for corporate governance, capital, and share maintenance.
- Digital-first approach: A fully digital registry, dashboard, and standardized investment documents for accessible and efficient processes.
- EU-FAST: A new, open-source investment instrument inspired by existing convertible instruments designed to simplify fundraising.
- EU-ESOP: A standardized employee share option scheme across Europe to attract and retain talent.
Supporters highlight these pan-European standardizations as essential tools for European startups to scale up and compete on a global stage. The proposal has garnered the attention of high-ranking EU officials, including Ursula Von Der Leyen, President of the European Commission.
She has pledged to include the 28th regime for innovative companies in the Commission’s Political Guidelines, echoing the sentiment that national barriers hinder European startups from
reaching their full potential. “A startup from California can expand and raise money all across the United States," Von Der Leyen stated.
“But our companies still face way too many national barriers that make it hard to work Europe-wide with way too much regulatory burden.”
Meanwhile, Ekaterina Zaharieva, Commissioner for Startups, Research, and Innovation, intends to propose a framework for the 28th Regime in 2025, aiming to provide a "simpler, harmonised set of rules throughout the Union."
EU Inc. is calling on the entire startup community to actively engage, provide feedback, and contribute to the push for legislative implementation by January 2025. As the clock ticks, these initiatives mark a crucial step towards unlocking Europe’s potential as a global startup powerhouse.
