‘EU Inc’ is a missed opportunity for start-ups
Financial Times • • business
Key Points:
- The European Commission has proposed a new “EU Inc” company structure aimed at overcoming the fragmentation of 27 national corporate laws to help start-ups scale across the EU more easily, responding to calls from influential figures like Enrico Letta and Mario Draghi.
- The proposal offers flexible funding rules, harmonised employee stock options, and streamlined digital procedures to facilitate quick setup and liquidation of innovative companies across Europe.
- However, the plan falls short on legal certainty, as national courts will still interpret the rules and member states must integrate the new company type into their existing registries, leading to concerns about inconsistent application and continued complexity.
- Resistance from national governments and trade unions, worried about labor standards and regulatory competition, has led the Commission
