BRUSSELS: EU governments backed changes to the EU Inc startup plan on October 23, prompting founders to warn that the revised framework could fragment Europe’s company rules.
The Council of the European Union adopted its position on the proposed 28th regime. Companies could choose EU Inc instead of existing national corporate structures.
Under the plan, businesses could register online within two days for up to €100. The framework would cover the bloc’s 27 member states.
The European Commission proposed the scheme in March to make it easier for companies to expand across borders. However, the Council changed digital procedures and narrowed the proposed employee stock-option scheme.
Its position limits the scheme to smaller firms, with thresholds of 750 employees and €150 million in annual turnover. Startup advocates argue that the changes weaken the original ambition.
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Simon Schaefer, an organiser of the EU Inc campaign, told Euronews that reliance on national legal systems could preserve differences between countries.
Founders have objected to removing a proposed central European company registry from an earlier Council draft. Trade unions have raised separate concerns about workers’ rights.
They fear companies could exploit differences in national employment laws. The Council maintains that its revised framework strengthens safeguards against abuse.
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Brussels is also pursuing financial support for growing businesses. The Commission has committed €1 billion to the Scaleup Europe Fund, which aims to raise €5 billion. It targets European technology companies seeking capital to expand.
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Meanwhile, the European Parliament’s legal affairs committee failed to approve its draft position on October 19. Formal negotiations between Parliament and EU governments can begin once lawmakers agree their position.
EU governments have adopted a negotiating position on EU Inc that preserves simplified company registration but changes key provisions, drawing criticism from startup founders concerned about fragmented rules.
