EU Inc. - a single harmonised set of rules for innovative companies throughout the EU.

Key points

The EESC:

• notes that the EU Inc. proposal is intended to make the EU a more attractive place to start, scale and retain businesses, using a set of governance and financing tools deployed in a more integrated, digital and cross-border way;

• highlights the fact that effective and sustainable corporate governance is a key component of successful companies and should be a part of any legal structure of a company, including proportionate safeguards;

• notes that the registered office and the principal place of business of an EU Inc. may be located in different Member States and points out that the EU Inc. framework needs to provide for effective safeguards against fraud, money laundering, abusive corporate arrangements and the circumvention of workers' participation rights;

• considers that the EU Inc. should remain accessible to companies other than startups and high-growth scaleups where its use contributes to cross-border activity, innovation, investment, growth and job creation;

• underlines that alternative ownership structures including steward ownership, cooperatives and foundations can be a potential source of innovation and long-term orientation;

• encourages the European Commission to work on a harmonised accounting framework applicable to startups and scaleups that would establish a single set of EU-level rules for financial reporting;

• emphasises that the proposal should be without prejudice to the principles enshrined in the Rome I Regulation on the law applicable to contractual obligations, specifically individual labour rights.

For more information please contact the INT Section Secretariat.