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A unified rulebook for startups

During the Italian Tech Week in Turin, European Commission President Ursula von der Leyen unveiled plans to create “one simple set of rules” for companies operating in the single market. The project is intended to lay the foundation for a pan-European business entity – a structure that would make it easier for startups to expand across the Union.

Von der Leyen emphasized that this isn’t about painstakingly aligning 27 different national systems but about building “something entirely new.” In practice, this would introduce a so-called “28th regime” – a uniform legal framework running alongside national corporate regulations.

While ambitious, the announcement quickly ran into the realities of European politics. Intense discussions are underway in the European Parliament about the shape of the new rules, and some MEPs warn against overreaching unification.

European Parliament: caution over enthusiasm

Social Democrat René Repasi, the lead MEP for the proposal, favors a more moderate approach. Rather than creating a completely new legal regime, he suggests harmonizing existing national regulations. Full unification, he argues, could spark disputes between member states and stall the project for years.

Repasi cautions that introducing a brand-new system would require unanimity in the Council – a near-impossible task in the current political climate. Past reform attempts that got stuck in intergovernmental negotiations highlight the real risks.

Meanwhile, members of the Parliament’s Legal Affairs Committee are set to discuss amendments to the proposal on 13 October. Publicly, it seems only the Christian Democrats have opposed Repasi’s stance, while other political groups remain split, with no clear majority on either side.

Startups: “More courage, fewer compromises”

The startup community has welcomed the Commission’s initiative with enthusiasm, though there’s a sense of urgency. The organization EU Inc, representing European tech companies, has been lobbying for months for bold reform, arguing that differences between national systems are a major barrier to entrepreneurship in the EU.

According to EU Inc, watering down the proposal would only deepen existing administrative obstacles. Companies operating in multiple countries must currently navigate varying requirements for registration, taxes, and legal responsibilities.

From their perspective, a “single set of rules” could finally level the playing field against American and Asian tech giants. If the Commission sticks to its ambition, the new framework could mark a breakthrough in building a truly European digital market.

Union opposition and workers’ rights

Not all voices are positive. Germany’s DGB trade union has strongly opposed the Commission’s proposal, warning it could undermine workers’ rights to participate in company decision-making.

These concerns are significant because DGB maintains close ties with Germany’s Social Democrats, the party Repasi also belongs to. Moreover, the party currently controls the Ministry of Justice in Berlin, which could practically block more ambitious measures at the EU Council level.

Questions about labor standards have also surfaced in economic talks between France and Germany in September. Both countries, traditionally defenders of the social market economy, fear that regulatory simplification could spark a “race to the bottom” in worker protections.

Political background: innovation vs sovereignty

The “28th regime” idea fits within a broader push by von der Leyen’s Commission to emphasize Europe’s technological sovereignty. For many observers, it’s an attempt to regain ground after multiple crises – from the pandemic to economic tensions caused by the war in Ukraine.

Yet the question remains: will a unified business regime strengthen the single market, or deepen internal divisions? Some member states may see it as an attempt to curtail their national control over economic law.

While the Commission’s goal is to make life easier for entrepreneurs, there is a real risk that the project could become another symbol of North-South or core-periphery divisions in the EU. Balancing business flexibility with social protection will be the true test of the European economic project’s maturity.

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