Europe is facing a challenge to stay competitive in the global tech scene, and one potential solution gaining attention is the creation of a new EU-wide corporate status for innovative companies, known as the “28th regime.” This initiative, spearheaded by the EU Inc movement, aims to provide a structure similar to the Delaware C-Corp in the U.S., making it easier for startups to expand across the continent.
The EU Inc petition has garnered significant support from entrepreneurs, VCs, and startup founders, with endorsements from prominent figures like Niklas Zennström and Patrick Collison. These backers believe that a new company vehicle would facilitate cross-border investments and address fundamental structural issues that currently hinder the growth of European startups.
While the European Commission has shown tacit support for the 28th regime, there are concerns about the potential bureaucratic hurdles and differences in national regulations that could impede its implementation. France Digitale, a French startup and VC lobby group, has put forward a detailed proposal for the new corporate status, calling for a common regulation to avoid inconsistencies in national transpositions.
Lessons learned from past campaigns, such as the Not Optional initiative for stock option policies, are being applied to the EU Inc movement to ensure a comprehensive and effective strategy. However, there are still challenges ahead, including the impact of Brexit on the initiative and the need to navigate diverse capital maintenance regimes across EU countries.
Despite these obstacles, supporters of EU Inc remain optimistic about the potential benefits of a pan-European tech champion and the opportunity to drive innovation in the region. With the growing global competition in the tech sector, Europe must take decisive action to avoid falling behind and ensure its position as a key player in the industry.
The momentum behind the EU Inc campaign reflects a unified industry voice advocating for essential reforms to support the growth of startups and foster a more innovative ecosystem in Europe. By focusing on this singular goal, supporters believe that the initiative can serve as a platform for addressing other complex issues like stock options and exits in the region. The road ahead may be challenging, but the determination of the EU Inc movement signals a collective commitment to driving positive change in the European tech scene.
