EU Inc stalls in Parliament as workers' rights split MEPs and founders warn of dilution

EU Inc, the European Commission's plan for a single company form that start-ups could use across the bloc, has stalled in the European Parliament. The Legal Affairs Committee (JURI) has twice failed to agree its position, and its vote on 19 October did not take place.

For founders, the stakes are concrete. EU Inc promises faster, cheaper incorporation and common rules for employee stock options, two of the most common complaints of start-ups trying to grow across Europe.

What EU Inc would offer

Often called the "28th regime", EU Inc would be an optional company form sitting alongside the 27 national systems. The Commission presented it on 18 March and wants a deal by the end of the year.

Under the proposal, a company could register in one member state through a central EU portal within 48 hours, with no meaningful minimum capital and no notary or chamber fees. Formation, filings, share issues and liquidation would all be digital, and existing companies could convert without dissolving. A harmonised European employee stock option would let staff receive options under the same rules wherever they live.

Some things would not change. Employment contracts, working time, dismissal rules, collective bargaining and social security would still follow the country where people work, and companies would still pay tax where they are effectively managed.

Why it has stalled

Workers' rights are the main obstacle. Under the proposal, a company would follow the employee participation rules of the country where it registers. Unions and centre-left MEPs fear firms would register in states with weak board-level representation and operate elsewhere.

The European Trade Union Confederation (ETUC), which protested in Brussels and Strasbourg in September and October, warns of "regime shopping". It also says nothing clearly stops firms from paying workers in shares instead of wages, and that fast-track liquidation could leave unpaid wages and social contributions behind.

The rapporteur, René Repasi of the S&D group, says the Commission's text lacks safeguards against misuse. He backs stock options as a tool to attract staff but said they should never replace fair wages, pensions or social security contributions. If EU Inc becomes a way around labour law, he warned, it will have failed. Business-friendly MEPs reply that applying several national systems would make the regime too complicated to use.

Founders say the core is being lost

From the other side, the EU-INC campaign, which says it has more than 26,000 supporters including people linked to Stripe, Mistral AI, Klarna and Wise, warned on 15 October that months of talks were weakening the plan.

It points to the Council's position, adopted on 23 October, which removes the central EU register and narrows the common rules on stock options. That second cut matters: Stéphane Séjourné, the commissioner in charge, has argued that EU Inc does not work unless option rules are the same everywhere.

What happens next

The committee now hopes to vote on 5 November, with the full Parliament due to take a first vote a week later on 12 November, though neither date is fixed. Repasi said a deal by year-end depends on all sides working constructively, and called on the Commission to act as an honest broker between Parliament and Council.

The plan is not dead. The fight now is over how much survives: a central register, common stock options and a light liquidation regime are the parts founders care most about, and also the parts unions most want to tie down. Whether those features come out of the 5 November vote intact will tell start-ups whether EU Inc is worth waiting for.