Towards a Common European Legal Framework for Innovative Companies
Actualmente, como Director de Asuntos Europeos en Euro-Funding, cuento con más de 14 años de experiencia en análisis e incidencia política pública europea, especialmente en los sectores de las energías renovables y solar. Dirijo la oficina de representación en Bruselas, establecida en 2022, centrada en programas de financiación europeos como Horizonte Europa y el Fondo de Innovación. También soy miembro del Consejo de Administración de la EAIC, donde colidero el Grupo de Trabajo del Fondo de Innovación y contribuyo activamente a iniciativas de incidencia relacionadas con las negociaciones del presupuesto de la UE para 2028-2034.
Apasionado por la cooperación y la coordinación, me esfuerzo por establecer alianzas estratégicas y supervisar análisis competitivos detallados en toda Europa. Mi función también incluye la gestión de proyectos financiados por la UE para E.DSO, desde la formación de equipos hasta la gestión financiera. Mi objetivo es seguir impulsando el crecimiento de nuestras actividades en Europa, a la vez que reforzo nuestra posición en el ecosistema europeo de innovación e investigación.
On 20 January 2026, the European Parliament adopted a set of recommendations aimed at shaping a new European legal framework to support innovative companies, marking a significant step in the EU’s ambition to strengthen its internal market and unlock growth potential for startups, scale-ups and dynamic SMEs. These recommendations will feed into a forthcoming legislative proposal from the European Commission — expected in early 2026 — that seeks to establish what has become known across Brussels as the “28th Regime.”
At its core, the 28th Regime is designed to offer businesses a single, harmonised set of corporate rules across all EU Member States. The aim is to simplify cross-border expansion, reduce legal complexity and make the EU a more attractive destination for investment and innovation. This initiative is particularly relevant within the context of the EU Innovation Act, a broader policy effort to address structural barriers that hinder companies from scaling across the bloc.
What the 28th Regime Would Do
The European Parliament’s recommendations centre on the creation of a new corporate form, tentatively labelled the Unified European Company (S.EU), which would be valid and recognised across all 27 Member States. This corporate status would be optional — companies could choose to adopt it or continue under national law — but if adopted, it would allow firms to operate throughout the Single Market with a single legal regime rather than navigating 27 different national company law systems.
A key proposal is that this framework should be:
- Fully digital and allow company incorporation within 48 hours, eliminating bureaucratic delays, streamlining procedures and lowering entry barriers for entrepreneurs.
- Built around a minimal paid-in capital requirement of just one euro, making it accessible even for early-stage ventures.
- Supported by a multilingual digital portal to facilitate communication with authorities and provide investors with transparent, readily accessible information.
The ambition is that this regime would not only simplify company formation and operations, but also enhance legal certainty for investors and stakeholders across the bloc.
Investment, Finance and Flexible Governance Models
One of the standout elements of the Parliament’s report is its focus on alternative financing models. Recognising that innovative companies often rely on diverse sources of capital — from venture capital to angel investors — the recommendations propose optional mechanisms to decouple economic rights from voting rights. This means an investor could contribute capital and share in profits without exerting influence over strategic decisions — a feature particularly vital for high-growth, technology-focused ventures where governance flexibility enhances attractiveness to sophisticated financiers.
In addition, Parliament has backed moves to harmonise instruments such as employee share ownership plans and stock options across the EU. Such instruments are critical tools for attracting and retaining talent — a recognised challenge for European startups competing globally for skilled workers. A harmonised stock options regime is already gaining political traction among MEPs as part of the broader 28th Regime debate.
Territorial and Ecosystem Considerations
The debate around the 28th Regime also highlights regional disparities within the EU. Members from Southern Europe, for example, have stressed that companies in these regions currently face greater obstacles when it comes to commercialising research and accessing cross-border networks. The Parliament’s recommendations call for urgent measures to improve collaboration between SMEs, startups, scale-ups and research institutions, addressing persistent fragmentation that has stifled scaling in parts of the bloc.
A complementary dimension is the call for specialised dispute-resolution mechanisms — particularly ones capable of operating in English — to support companies engaging across Member States. Such mechanisms would reduce legal uncertainty and arbitration costs, factors often cited by investors as barriers to cross-border growth.
Where the 28th Regime Fits in the EU Innovation Agenda
The 28th Regime is part of a wider EU competitiveness and innovation strategy. European institutions have consistently highlighted that, while the EU produces world-class research, it lags behind in turning innovation into globally competitive firms. Regulatory fragmentation, varying national legal systems and complex compliance requirements have been repeatedly identified as structural obstacles to scaling. The forthcoming Innovation Act seeks to address these issues by streamlining regulatory hurdles throughout the innovation lifecycle — from research and development to market entry and cross-border expansion.
In this context, the 28th Regime represents a structural instrument that could reduce cross-border friction and integration costs, complementing broader regulatory initiatives. The Commission’s work programme for 2026 places this initiative at the centre of its competitiveness and single market modernisation agenda.
Political Debate and Competing Perspectives
While the proposal has garnered strong support within the European Parliament — passing its recommendations with 492 votes in favour — it has also sparked debate. Proponents argue that a harmonised legal form will foster investment, unlock new growth opportunities and make the EU a destination of choice for innovative firms. The idea has even been highlighted by European Commission President Ursula von der Leyen at high-profile global forums, framing the initiative as part of a strategic push to make Europe “the easiest place in the world to start, fund, and grow a tech company.”
However, critics — including labour unions and some MEPs — have raised concerns that an overly harmonised regime could undermine existing labour protections and social standards codified in national law. These debates underscore an enduring tension at the heart of EU policymaking: balancing economic integration and competitiveness with strong social standards and national prerogatives.
Indeed, areas such as labour law, insolvency frameworks and taxation remain sensitive national competences, and future negotiations will need to carefully balance regulatory simplification with respect for Member State competencies and social protections.
Next Steps and Expected Timeline
It is important to note that the Parliament’s recommendations are non-binding. The next phase lies with the European Commission, which will consider these proposals and prepare a legislative text — anticipated by the first quarter of 2026. Once published, this proposal will enter the EU’s ordinary legislative procedure, involving detailed negotiations between the European Parliament and the Council of the European Union. The degree of consensus achieved during this trilogue process will be critical in shaping the final content and scope of the regime, as well as its implementation timeline — with realistic projections suggesting adoption and entry into force may occur between 2027 and 2028.
The 28th Regime represents a strategic opportunity in the EU’s ongoing effort to build a more competitive, coherent and innovation-friendly single market. By offering an optional, harmonised corporate framework alongside national regimes, the initiative aims to lower barriers for cross-border expansion, attract investment, strengthen talent retention, and support the emergence of European champions capable of competing at global scale.
For innovators, investors and project developers, this initiative signals a commitment at the highest political level to reducing fragmentation and enhancing legal certainty across the EU. While debate continues over its final design, the 28th Regime forms a cornerstone of the EU’s broader push to modernise its business environment — aligned with the objectives of the Innovation Act and wider competitiveness tools.
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