European lawmakers provided a cautious endorsement on Thursday, 9 July, for a new EU-wide corporate framework designed to streamline operations for small businesses across the continent. The proposal, introduced by the European Commission in March and frequently called the ‘EU Inc’ or ’28th Regime,’ functions as an optional rulebook. It seeks to accelerate and simplify the registration process for start-ups, potentially allowing for online company creation with no minimum capital requirement and a fee of just €100.
During the parliamentary vote, MEPs supported the integration of a consolidated corporate tax base, standardized tax returns, and simplified value-added tax procedures. Slovakian liberal MEP Ludovít Ódor, speaking in Strasbourg, emphasized that the report supports the broader goal of fostering growth and prosperity for European talent. While acknowledging the need for a unified regime to achieve scale in Europe, Ódor expressed reservations about the US state of Delaware model, noting that he does not advocate for replicating it due to concerns regarding worker rights.
The initiative has sparked debate over the balance between liberalization and protection. S&D lawmaker René Repasi, who is leading the parliament’s position on the law, recently criticized the commission’s proposal for being overly skewed toward liberalization. He argued that the draft fails to address essential European safeguards, particularly regarding money laundering and the protection of workers. To mitigate these risks, Repasi has proposed adding provisions for employee board-level participation, enabling steward-owned company structures, and encouraging member states to establish specialized judicial chambers and alternative dispute resolution mechanisms.
As Ireland currently holds the EU’s six-month rotating presidency, the nation is positioned to be a significant beneficiary of the new framework, given its existing appeal as a hub for Big Tech and retail giants like Amazon and Temu. Peter Burke, Ireland’s minister for enterprise, tourism, and employment, stated on Wednesday that the presidency remains focused on advancing key legislative files to enhance the operating environment for businesses across the European Union.
