Scaling up European firms: the case for an EU company law regime to unlock cross-border investment, innovation and growth

Adam Baumann, Zakaria Gati, Daphne Momferatou, Laura Parisi and Lucia Quaglietti

Economic Bulletin Articles, 2026, vol. 6

Abstract: Europe’s competitiveness challenge is increasingly recognised as a scale-up challenge. Firms expanding across the Single Market continue to face regulatory burdens and legal fragmentation throughout their life cycle, increasing the cost and complexity of cross-border operations. This article examines how these barriers affect the ability of firms to scale up and assesses the extent to which the European Commission’s proposal for an optional European corporate form (EU Inc.) could help firms. By introducing a harmonised company law framework, its proposal has the potential to reduce transaction costs, improve legal certainty and facilitate cross-border investment, complementing the objectives of the Single Market and the savings and investments union. Still, EU Inc. is not a silver bullet. Its effectiveness will depend on its final design, take-up by firms, consistent implementation across Member States and complementary progress in capital market integration and reducing broader regulatory fragmentation. JEL Classification: K22, G38, F36, L51, L25

Keywords: 28th regime; company law; competitiveness; EU fragmentation; EU Inc.; EU Single Market; regulatory barriers; savings and investment union; scaling-up (search for similar items in EconPapers)
Date: 2026-09
Note: 471525
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