Earlier this spring, the European Commission presented a proposal for a “EU Inc.”, a single corporate form applicable across the entire European Union – see TSIkompakt from 18 March 2026. The Committee on Economic and Monetary Affairs (ECON) of the European Parliament has now expressed its support for the initiative in an open letter. ECON views the proposal as an important step toward strengthening the European Single Market for innovative companies. At the same time, it notes that additional measures, particularly with regard to scale-ups, are needed, as these companies often leave the EU in search of better growth opportunities.
Key Points of the ECON Letter
Specifically, ECON proposes, among other things, the following measures:
- Improve access to public capital markets to enable EU Inc. companies to raise growth financing through initial public offerings (IPOs).
- Strengthen employee participation and stock option programs to help companies attract top talent and retain employees within European growth businesses over the long term.
- Consider an optional tax framework that would increase the attractiveness of the EU Inc. model for founders, employees, and investors.
- Simplify cross-border expansion by allowing companies to operate under a single European legal framework rather than having to comply with 27 different national regulatory regimes.
- Promote growth financing within Europe in order to retain more capital, innovation, and value creation within the European Single Market.
Outlook
The message of the ECON letter is clear: Europe does not primarily have a start-up problem, but rather a scale-up problem. Therefore, the EU Inc. initiative should be intended not only to make it easier to establish innovative companies, but also to help them grow, raise capital, and attract talent without having to leave the European market. Overall, the European Commission’s initiative continues to gain support.