The EU–INC movement, launched in October 2024, has issued an urgent appeal to European leaders, warning that current negotiations are diluting the proposed pan-European company framework. Founders argue that the initiative, which was intended to enable scaling across the Single Market, is losing the essential provisions that would make it effective.
The European Commission introduced the legislative proposal in March 2025, following an announcement by President Ursula von der Leyen at Davos. The original plan included fully digital incorporation within 48 hours, simplified corporate rules, and a common framework for employee stock options to help startups compete for talent.
Campaigners have identified five critical requirements for the framework: free choice of registration, a common stock option system, a central digital registry, preservation of local worker protections, and universal access for all company types. These elements aim to replace the current fragmented system of 27 different legal regimes.
The proposal faces opposition from the European Trade Union Confederation (ETUC), which fears that a pan-European structure could lead to regulatory arbitrage. The ETUC warns that companies might register in countries with weaker labor laws, potentially undermining collective bargaining and national employment standards.
Investors and founders report that existing administrative hurdles, such as complex legal paperwork and inconsistent equity schemes, frequently deter cross-border investment. Critics argue that without meaningful reform, Europe risks continuing to export its future unicorns to more business-friendly environments like the United States.
