European CEOs urge Brussels to strengthen EU Inc. legislation

Fifty European CEOs and investors have issued a joint letter to EU policymakers urging them not to weaken the proposed ‘EU Inc.’ law currently under negotiation in Brussels. The legislation aims to make starting and operating businesses across EU borders cheaper and easier, with approval expected by the end of the year.

Signatories, including representatives from Index Ventures, Accel, Balderton, Atomico, and EQT, warn that the current negotiations may result in a version that fails to meet the needs of startup founders. They argue that instead of adding a new layer of bureaucracy on top of 27 existing national systems, the law should create a genuine European corporate form.

Key demands from the group include maintaining the ‘freedom to choose a legal headquarters’ so founders are not forced to centralize all operations in one location. They also advocate for a single, reliable European registry rather than a technical interface for national systems, and suggest that tax obligations for employees should only trigger upon the sale of company shares.