A single EU Inc. across 27 member states: How the July compromise text can still deliver a usable corporate regime for European startups

Luca Enriques, Casimiro A. Nigro and Tobias Tröger

No 122, SAFE White Paper Series from Leibniz Institute for Financial Research SAFE

Abstract: The European Commission's proposal for EU Inc., the company-law cornerstone of the "28th regime", promises an optional European company form with fully digital incorporation within 48 hours and at a maximum cost of EUR 100. Its practical value for innovative startups, however, depends less on fast registration than on whether the financing and governance arrangements agreed by founders and investors have the same legal effect throughout the Union. The Council's first compromise text of 17 July 2026 keeps the welcome features of the proposal but leaves national law much more room to determine whether, and how, such arrangements are given effect. An EU Inc. could thus end up governed by 27 versions of national mandatory rules, reproducing the very fragmentation it was meant to overcome. This paper proposes six recommendations that ring-fence a self-contained European corporate core, protect standard financing documents, make negotiated rights over cash flows, control and exit effective as written, align liability, distribution and employee-equity rules with startup needs, and guarantee cross-border equivalence and uniform interpretation.

Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:safewh:344220

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