On 8 February2026, Michael McGrath, Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, Commissioner outlined at the Forum Europa in Brussels the main aspects of upcoming proposal for the EU’s 28th regime (scheduled for adoption on 18 March), referred to as “EU Inc”, which aims to create a single, optional corporate framework across member states. This framework will primarily target private, limited-liability companies, especially startups seeking to scale up, allowing them to comply with a single set of rules instead of varying national laws.
Although details on the exact areas of law to be harmonised remain undecided, the Commissioner prefers a Regulation, or else a mixed approach where parts of the framework are introduced through a Regulation and others through a Directive to effectively reduce legal fragmentation. The regime would not undermine employment standards and workers’ rights but would harmonise tools like employee stock options to help companies attract and retain talent. No sector-specific regimes are planned. The goal is to close Europe’s innovation gap by facilitating company growth.
The plan aims to “reduce fragmentation and allow companies to operate across the single market under a coherent set of rules”. He stressed that “it sounds simple” but acknowledged that “there’s a reason it hasn’t happened so far: it’s difficult, it’s complex, and it requires broad political support”. According to the Commissioner, EU-INC “is at the heart of our ambition to address the challenge of European competitiveness” and will allow companies to establish themselves and grow across borders “more quickly and seamlessly using digital tools such as the EU Enterprise Certificate”.
McGrath explained that EU Inc. will be built on four key pillars.
- It will be “a digital-by-default framework” that will allow companies to establish themselves and grow across borders more quickly.
- It will be based on “flexible and modern governance” that will offer “adaptable governance tools that reflect the realities of how modern companies are created and grow”.
- It will provide “better tools to attract and retain talent”, making it easier for companies to offer “competitive forms of remuneration, including employee share options with harmonized features that work across the EU”.
It will guarantee “better access to investment” by streamlining “how companies raise capital across borders”.
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