The EU-Inc initiative, backed by over 13,000 signatures from tech leaders, venture capitalists, and political figures, is urging the European Commission to create a single pan-European startup entity under a ’28th Regime’ in the 2025 Work Programme. The proposal aims to streamline cross-border operations, enhance competitiveness, 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 to simplify administrative processes for startups operating in multiple countries. The proposal also includes an EU-FAST investment instrument, inspired by the US’ SAFEs and France’s BSA AIRs, to standardise and expedite investment processes across Europe. Additionally, it advocates for an EU-wide Employee Share Option Scheme with standardised rules to attract and retain talent.
The initiative has received endorsements from leading European founders, investors, and startup associations.
EU-wide startup governance proposal
European Commission President Ursula von der Leyen has included the ’28th Regime’ for innovative companies in the Political Guidelines for the EU Commission, emphasising the need to remove national barriers that hinder startups from operating seamlessly across Europe.
Ekaterina Zaharieva, Commissioner for Startups, Research, and Innovation, has announced plans to propose a framework for the ’28th Regime’ in 2025. Michael McGrath, Commissioner for Democracy, Justice, and the Rule of Law, has also expressed support for the initiative. Andreas Klinger, Co-initiator of EU-Inc, highlighted the risks of inaction, stating that Europe risks falling further behind if it does not act now.
The proposal’s blueprint builds upon prior documentation and incorporates insights from discussions with the startup community and policymakers across Europe. As the European Commission prepares its 2025 Work Programme, the inclusion and implementation of the EU-Inc proposal could mark an important step towards a more unified and dynamic European startup ecosystem. The collective momentum from the tech community and political leaders reflects the shared recognition of the need for structural reforms to ensure Europe’s competitiveness on the global stage.
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