EU Inc. must strengthen Europe's competitiveness through stronger regional innovation

The European Committee of the Regions (CoR) adopted an opinion on the EU Inc. Framework during its plenary session on 2 July, calling for a European company framework that enables all regions and cities to benefit from greater investment, innovation and sustainable growth.

Against the backdrop of increasing global competition and geopolitical uncertainty, CoR members stressed in the opinion that enhancing Europe's competitiveness must remain a strategic priority and called on the European Commission and Member States to accelerate structural reforms that attract investment, foster innovation and prevent the outflow of talent and capital from the European Union.

CoR members highlighted that regions and cities, which helps to create the ecosystems where businesses innovate, invest and create jobs, must be fully integrated into the design and implementation of the new framework. They welcomed the ambition to establish a European 28th-regime for companies but insisted that the initiative must go beyond simplifying business registration. It should reduce cross-border administrative burdens, improve access to finance, increase legal certainty and support companies throughout their entire life cycle, regardless of their size, sector or location.

The opinion stresses that the new framework should be accessible to all types of businesses – not only to start-ups and scale-ups, but also to manufacturing, industrial, craft, logistics and social-economy enterprises. CoR members called on the European Commission to ensure that cooperatives and other social-economy organisations can also benefit from simplification while preserving their specific legal characteristics.

To avoid creating new legal uncertainty, CoR members urged the Commission to clarify the relationship between EU Inc. and national company law. They also called for a distinct European model that respects Member States' legal traditions while preventing regulatory arbitrage, abuse and the creation of letterbox companies.

Local and regional leaders further called on the European Commission to assess the territorial impact of the initiative, particularly regarding the proposed European employee stock option scheme. While welcoming the scheme as a tool for attracting talent, CoR members warned that the absence of tax harmonisation could concentrate skilled workers in Europe's largest metropolitan areas. Regions must retain sufficient flexibility to use local incentives that help attract and retain talent.

Quote:

Rapporteur Roberta Angelilli (IT/ECR), Vice-President of the Lazio Region: "For too long, Europe's entrepreneurs have faced 27 different sets of rules when trying to expand across borders. Too often, promising European companies either remain small, relocate or are acquired by global competitors. If we are serious about closing the competitiveness gap and keeping innovative companies in Europe, we must make it easier to do business in the Single Market. EU Inc. is a concrete step towards a simpler, more business-friendly Europe that rewards growth, innovation and ambition. To unlock our competitive potential, the EU Inc. must be a simple, effective and attractive framework for all types of businesses."

Background:

• Video and photos of the debate.
• The Commission presented on 18 March 2026 EU Inc., a new single set of corporate rules that will be the same and apply across the EU. This will make it easier for businesses to start, operate and grow across the EU. Its optional, fully digital procedures would enable innovative companies to scale up and incentivise them to stay in Europe and encourage those who once looked elsewhere to return. EU Inc. is part of the new broader 28th regime intended to help businesses seize the benefits of the Single Market.

Contact:

Theresa Sostmann

Tel: +32475999415

Theresa.Sostmann@cor.europa.eu