EU Inc campaigners accuse lawmakers of 'killing' reforms

Campaigners advocating for the EU Inc initiative have accused European lawmakers of significantly weakening plans for a new pan-European company structure. The critics argue that the proposed reforms have lost their original intent and are now merely a simplified system for rapid company incorporation.

Founders and investors involved in the campaign have voiced concerns, stating that months of negotiations have stripped the proposed legislation of its most crucial provisions. These provisions were intended to facilitate cross-border operations for businesses within the European Union.

The EU Inc initiative, first introduced in 2020, aimed to establish a unified and efficient framework for setting up and managing companies across EU member states. The goal was to stimulate cross-border trade and foster innovation, attracting both large technology firms and smaller startups.

Key elements originally envisioned included mechanisms for registering companies in multiple member states, managing capital increases, simplifying acquisitions, and establishing a European company statute. However, critics contend that many of these aspects have either been removed or substantially diluted, leaving behind a basic registration process.

The campaigners express apprehension that the weakened version of the proposal may diminish its appeal, potentially hindering the development of a digital single market within the EU. They are urging lawmakers to reinstate the original ambition of the reform.