European Council backs EU-wide corporate regime amid union criticism

In a recent meeting, the European Council adopted a unified stance on a new corporate legal framework dubbed “EU Inc.”, creating a 28th optional regime for businesses across the bloc. Companies could choose this EU-wide structure instead of the 27 national company laws, with the aim of simplifying cross-border operations and investment, especially for startups and scale-ups. The Council’s text refines the original proposal by simplifying the framework, rationalising digital provisions, adjusting employee share-purchase options, strengthening safety-net measures and ensuring better compatibility with internal-market freedoms.

It also instructs the Council Presidency to begin negotiations with the European Parliament after the Parliament finalises its own position. Meanwhile, unions organized protests in Brussels in early September, arguing that the draft omits essential labour-rights safeguards and could enable firms to register in member states with weaker social standards, use share options instead of wages and bypass employee consultation, potentially undermining wages and working conditions.