The European Commission is pushing for a pan-European startup initiative called EU-Inc. The proposal aims to create a single entity for startups under a ’28th Regime’ in the 2025 Work Programme. The initiative has received over 13,000 signatures from tech leaders, venture capitalists, and political figures.
It seeks to streamline cross-border operations and foster innovation across Europe. The ’28th Regime’ would harmonise corporate governance, capital requirements, and share capital maintenance rules across EU member states. It would feature a digital-first approach with a fully digital registry, a unified dashboard, and standardised investment documents.
The proposal also includes an EU-FAST investment instrument and an EU-wide Employee Share Option Scheme. It has received endorsements from leading European founders, investors, and startup associations. European Commission President Ursula von der Leyen has included the ’28th Regime’ in the Political Guidelines for the EU Commission.
Eu startups under one regime
Ekaterina Zaharieva, Commissioner for Startups, Research, and Innovation, plans to propose a framework for the ’28th Regime’ in 2025. However, Arthur Jordão, executive director of Europe Startup Nations Alliance (ESNA), says there is a “big mountain to climb” before the EU-wide company status becomes a reality.
The concepts are not new, and progress toward ESNA standards has been slow. Armando Melone, a policy officer at the Commission’s DG GROW, suggested a “step by step” approach to implementing the Capital Markets Union (CMU). President von der Leyen has highlighted the need for unprecedented inter-commissioner collaboration.
ESNA identified five priorities for the proposed strategy: reducing bureaucracy, attracting talent, safeguarding IP rights and tech transfer, closing the investment gap, and fostering an entrepreneurial culture. Jordão emphasized the need for a cultural shift towards risk-taking in Europe. The European Commission has also proposed the introduction of a 28th regime to facilitate access to the EU internal market for start-ups.
This initiative aims to streamline regulatory processes and promote innovation within the European Union.
