EU Considers “EU–INC” to Rival Delaware’s Corporate Model, Boost Innovation
A movement to create a pan-European corporate entity, dubbed “EU–INC,” is gaining traction as policymakers seek to address a significant gap in the continent’s ability to foster and scale innovative companies, potentially reshaping the global economic landscape.
Inspired by Delaware’s success in attracting businesses since 1913 with a streamlined registration system and reduced bureaucracy, EU–INC aims to allow founders to launch, raise capital, hire, and grow seamlessly across Europe. Currently, a startup seeking to expand across the European Union faces a complex web of regulations, differing employment codes, and incorporation requirements in each of the 27 member states – a stark contrast to the unified market enjoyed by U.S. companies. This fragmentation has contributed to a substantial disparity in venture capital funding, with the U.S. commanding 52% of global funds compared to Europe’s 5% share, as highlighted in a report by former Italian Prime Minister Mario Draghi.
The initiative has garnered over 18,000 signatories and support from prominent entrepreneurs and investors, including leaders from Mistral, DeepMind, Stripe, Supercell, Index Ventures, and Y Combinator. Advocates point to the fact that publicly traded companies started in Europe over the past 50 years are collectively valued at approximately $420 billion, while their U.S. counterparts approach $30 trillion. The concept envisions a standardized system for investment documents and employee stock options valid across the EU, serving 450 million consumers. More information about the initiative is available at eu-inc.org.
While the European Commission President Ursula von der Leyen has committed to reform, concerns are emerging that proposed solutions may be incremental and insufficient. Supporters of EU–INC argue that a fundamental restructuring is necessary to truly address the issue of fragmentation and unlock Europe’s innovative potential, mirroring the impact Delaware had on American economic dynamism. The European Commission is expected to announce its next steps regarding regulatory reform in the coming weeks.
