Advocates for a unified European corporate structure are intensifying their pressure on lawmakers to ensure the final version of “EU Inc” remains robust and viable. In an open letter released on Thursday, a coalition of prominent startup founders and venture capitalists stressed that the proposed framework must not be diluted during ongoing negotiations.
The initiative seeks to create an EU-wide company statute, allowing businesses to incorporate under a single legal regime and operate seamlessly across member states. Supporters describe it as Europe’s potential equivalent to the Delaware C Corp, designed to reduce cross-border fragmentation and stimulate entrepreneurial growth.
While the campaign has garnered support from top EU authorities, promoters expressed concern that the final legislation could become “unusable” if its central provisions are weakened. With approximately 100 days remaining before European institutions adjourn for winter recess, the letter urges policymakers to safeguard the proposal, arguing it has the potential to unlock investment and remove regulatory friction that currently hinders European companies.
Negotiations between the European Parliament and the Council are still underway, complicated by competing national interests. Germany’s notary association, for instance, has raised objections to various aspects of the European Commission’s draft. Despite these hurdles, EU Inc backers emphasize the importance of specific technical details that determine whether the corporate form is actually adopted by founders.
Key demands include the establishment of a single central registry and a tax rule stipulating that employees are taxed only when they exercise or dispose of stock options, rather than at the time of grant. Martin Mignot, a partner at Index Ventures and a supporter of the campaign, previously told TechCrunch in 2024 that the movement would be closely watching these finer details, noting that they often distinguish a usable corporate form from one that is ignored.
The latest letter features endorsements from high-profile investors, including Accel partner Sonali De Rycker, Sequoia partner Michael Moritz, and Atomico founder Niklas Zennström. On the entrepreneurial side, supporters include founders of unicorn companies such as Alan, ElevenLabs, Lovable, Mistral, and Synthesia.
Several of these companies maintain their headquarters in the United States. By highlighting their support, the campaign sends an implicit message to lawmakers: a strong EU Inc framework could encourage these firms to relocate their legal homes to Europe, reversing a trend of American-based headquarters for European-founded startups.
Will this actually change anything? Delaware already has the ecosystem. I doubt European bureaucracy will suddenly become startup-friendly overnight.
Finally, some high-profile support. The current fragmentation is killing innovation. Let’s see if they actually deliver on this.