(March 18): The European Union has unveiled a red-tape-cutting plan dubbed “EU Inc” to boost the emergence of companies that could compete on the world stage with US and Chinese rivals.
The linchpin of the European Commission’s proposal is a set of measures to allow firms to incorporate once under a single EU-wide regime and operate seamlessly across the 27-member bloc. It also includes the possibility for companies to set up EU-wide employee stock option plans — with taxes being levied on income generated only once stocks are sold.
“We are making it drastically easier to start and grow a business all across Europe,” commission President Ursula von der Leyen said in a statement on Wednesday. “Any entrepreneur will be able to create a company within 48 hours, from anywhere in the European Union, and fully online.”
The commission, the EU’s executive arm, is betting that reducing administrative burdens and increasing legal certainty will make the bloc more attractive to startups and investors while helping homegrown firms scale more effectively. Other parts of the package include fully digital incorporation procedures, streamlined governance and tax rules and no minimum share capital requirements.
Politically, the step reflects mounting concern about Europe’s ability to compete with the US and China, particularly in attracting high-growth companies. Brussels has framed the initiative as part of a broader effort to make Europe the easiest place in the world to start and grow a business.
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