EU Entrepreneurs Push for “EU Inc”: A Game-Changer for European Startups and Innovation

EU Entrepreneurs Push for New Corporate Structure to Boost Competitiveness

In a bid to enhance Europe’s global competitiveness, a grassroots movement of entrepreneurs and venture capitalists is advocating for a new EU-wide corporate status known as “EU Inc” or the “28th regime.” This initiative aims to create a unified corporate structure for innovative companies across the European Union, drawing comparisons to the Delaware C-Corp in the United States.

The push for EU Inc comes as Europe faces challenges in fostering business growth across its member states. Existing structures like the ‘Societas Europaea’ have failed to gain significant traction, leaving startups and scale-ups grappling with complex regulatory landscapes as they attempt to expand internationally within the EU.

The movement has garnered substantial support, with prominent VC firms and startup founders endorsing the initiative. Andreas Klinger, a key figure in the campaign, has helped spearhead efforts that have resulted in a petition amassing over 11,000 signatures.

Strategically, supporters plan to submit the final petition on December 1, aiming to place EU Inc on the agenda of the new EU commissioners. The initiative has already received backing from European Commission reports and has caught the attention of President Ursula Von der Leyen.

National organizations are also rallying behind the cause. France Digitale, a French startup and VC lobby organization, along with various startup associations across Europe, have thrown their weight behind the proposal. Advocates are pushing for a regulation to ensure uniformity in implementation across EU member states.

The campaign draws lessons from previous initiatives, such as the Not Optional campaign for stock option policies, emphasizing the importance of sustained lobbying efforts to effect change at the EU level.

However, the path forward is not without obstacles. Concerns have been raised about potential bureaucratic hurdles and the differences in capital maintenance regimes across EU countries. To address these issues, specific proposals like the “1€ company” concept are being put forward.

The implications of this initiative extend beyond the startup ecosystem. With Brexit looming, questions arise about potential UK alignment with EU Inc. Campaigners stress that this move is crucial for Europe to maintain its competitive edge in the global market.

As the movement gains momentum, EU Inc supporters remain optimistic about the future, seeing this as a pivotal moment for European innovation and economic growth. The coming months will be critical in determining whether this ambitious vision for a unified European corporate structure will become a reality.