TNW Weekly Briefing

The European Union is taking significant strides to foster a more integrated and competitive tech ecosystem. A key development is the launch of "EU Inc," a novel pan-European legal company structure aimed at simplifying startup operations across member states. This initiative is designed to reduce the complex legal fragmentation that has historically hindered cross-border growth for European technology firms. This new framework, referred to as the "28th regime," will allow startups to incorporate once and then function seamlessly throughout the EU. By standardizing corporate and investment structures, EU Inc aims to significantly lower the friction for scaling companies, making it easier for them to attract capital and expand their reach. While the strategic impact on market expectations is immediate, the full operational benefits are anticipated to be realized between 2027 and 2028. The implications of EU Inc are far-reaching, particularly for European startups and scale-ups seeking to compete on a global stage. Founders, venture capitalists, and international investors will benefit from a more predictable and unified legal landscape. Furthermore, the EU is also proposing mandatory rules to phase out "high-risk" technology suppliers from critical infrastructure, signalling a broader commitment to enhancing digital sovereignty and security across the bloc.