For years, the European ecosystem has been asking the same question from different angles: why is Europe able to create good startups but not great tech companies? The answer is clear. It is not a problem of talent, or ideas, or capital; This is a unique legal issue.
past 20 eurosat the Economic Forum in Davos, the President of the European Commission, Ursula von der Leyenverbalized this diagnosis without rodeo. The fragmentation of the internal market continues to be one of the main obstacles to European economic growth and the competitiveness of its innovative companies. As other regions expand into the market, Europe continues to push its startups to expand country to country.
This recognition comes from EU Inc.name “Mode 28”: express intention to provide Europe with a Marco Comun and functional to create, turn around and scale startups in the single market.
I will discuss some key points to understand why this initiative can be a turning point in the European business and investment ecosystem.
In the first place, what could you understand as “Administrative Labyrinth as a Burden to Growth”. For many entrepreneurs, growing up in Europe is synonymous with completion. For example, expanding from Spain to France or Germany involves dealing with different company marks, separate registries, duplicative administrative processes and legal requirements that differ from country to country.
What should be a natural step in a single real market is becoming a slow and costly process. This fricción is not just bureaucracy: It is a direct attack against growth. Penalize speed, enforce operational performance and condition strategic decisions from very early stages. EU Inc. is a solution to a structural problem.
On the other handwhy EU Inc – Régimen 28 is different: EU Inc. is established as a optional mark of a European companysupplementary national legislation. It does not pretend to replace it, but offers a clear path for startups and scale-ups with a pan-European appeal.
In practice it is stated Digital setup within 48 hoursde homogeneous capital regimede regulation of the municipal administration y de a clearer point for the relationship with investors and employees. This includes more coherent and competitive treatment “stock options”.
For tech startups, “stock options” are not a fringe benefit, but rather a key tool for attracting and retaining talent in a global market. A more homogeneous European brand in this area can reduce fiscal and legal frictions, facilitate cross-border negotiations and better align the interests of investors, employees and investors.
Everything is designed for capital and knowledge intensive companies where agility and legal certainty are critical factors. I say simply: enable the European startup Don’t worry about changing legal language or incentive rules every time you enter a country.
Another crucial question is what you can assume less friction for better reversing.
From a private equity perspective, the potential impact is obvious. However, legal fragmentation makes cross-border collaboration difficult, expands circular processes, and obligates us to devote time and resources to resolving legal complexities in order to evaluate the product, the market, and the team.
A common corporate brand can reduce costs, times and information asymmetries. For business angels and early-stage funds, this is not a marginal improvement. A necessary condition is to reverse with greater agility, insight and conviction.
As the fourth wake-up point, configure a enough, with a decisive condition and a clear calendar.
The cornerstone of the European business and investor ecosystem at EU Inc. has a majority side. There is consensus that the initiative is going in the right direction solve the problem. First, the debate is accompanied by a defined time horizon.
The European Commission defined it as a goal submit a formal legislative proposal at the end of March 2026which decides the next few months. Not only will the content of the new brand be debated, but also the real ambitions and ability to generate a broad impact.
In this context, the contribution of the ecosystem is accompanied by a proposal: EU Inc will only fulfill the goal it has set itself. as a European regulation and not as a directive. The regulation guarantees a homogeneous and direct application in all my states. The directive with national transpositions will remedy the possibility of re-creating the fragmentation that is supposed to be removed.
Finally, it implies a vision that has an impact on enlargement, capital and defines a coherent European strategy. EU Inc. cannot be purchased from the air. It forms part of a wider agenda to close one of the main disruptions to the European ecosystem: growth stage financing.
Europe is relatively strong in small capital, but there are difficulties in supporting its startups in its regions B, C and D. This failure is explained by premature events, timely purchases and transfers from headquarters outside the Union.
In this context, special emphasis is placed on additional initiatives: el European Scaleup Fundintended to strengthen the financial capacity of scale-ups, a European Pact for Inversion and Innovationoriented to the mobilization of institutional capital from pension funds and securing the European technological ecosystem.
Without this capital in the big square, even the best legal stamp falls short. Marco common, sufficient finance and talent They are an integral part of my competition puzzle.
In conclusion: It is now or never for European innovation. EU as represents an opportunity to correct one of the main deficits of the European innovation ecosystem. Europe has enough talent, startups and technological capacity to lead the next decade. What has now been broken is a a common and solid brand, able to serve a real foundation for boosting the growth of startups in Europe.
*** JRivera orders I am a member of the board of BIGBAN Investors Spain.
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