Brussels Edition: EU Inc.

As the EU grapples with its competitiveness problem, it's hoping a new proposal can help.

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Welcome to the Brussels Edition. I'm Suzanne Lynch, Bloomberg's Brussels bureau chief, bringing you the latest from the EU each weekday. Make sure you're signed up. As Europe grapples with its competitiveness problem, it's hoping a new proposal can help businesses navigate the single market. Next week the European Commission, the European Union's executive arm, will unveil an EU-wide regulatory regime for companies. Dubbed "EU Inc.," the plan will offer companies the opportunity to benefit from standard EU-wide rules, reducing the burden of duplication often cited by businesses that work across the bloc's 27 countries. According to the latest draft seen by Bloomberg, the proposal will suggest a "harmonized set of corporate rules, including a new harmonized national legal form covering the lifecycle of a company including liquidation and insolvency." An "EU Inc." company could be set up in any country across the union, and would be subject to the laws of that country when it comes to issues like tax and labor regulations. However, limited liability companies formed under the new regulation will be recognized in all EU member states. Among its main features: companies can be incorporated within 48 hours, articles of association can be filed digitally, and there are no capital requirements. EU Justice Commissioner Michael McGrath with Christine Lagarde, president of the European Central Bank, in 2024. Photographer: Simon Wohlfahrt/Bloomberg The proposal, known as the 28th regime, will be unveiled by the EU's Justice commissioner, Michael McGrath, and will need to be agreed by both EU member states and the European Parliament, with the bloc's leaders set to give their first verdict at next week's EU summit. With the proposal touching on tricky issues like tax sovereignty, it remains to be seen how keen countries will be. Currently, the commission is proposing an EU regulation that would use a specific article in the EU treaties necessitating a qualified majority of countries to support the proposal – avoiding the possibility of one or more member nations blocking it. The 28th regime will be optional, begging the question as to how many companies will actually sign up, though one of the objectives is to make it easier for investors in non-EU countries to do business in Europe. "This is not the single bullet to solve every problem in the single market, but it can play a big part in the solution," says Pedro Oliveira of Business Europe, the continent's largest business organization. "We need to see this 28th regime in combination with other reforms, whether on simplification, measures around reducing energy prices, around trade." The Latest NATO intercepted an Iranian missile that entered Turkish airspace earlier today, Turkey's Defense Ministry said in a statement. Moscow is currently providing Iran with various forms of intelligence, including satellite imagery and drone targeting tactics, in an effort to help Iran hit back at US forces in the region, according to people familiar with US and Western intelligence.  Polish Prime Minister Donald Tusk insisted today that the government still planned to use €43.7 billion ($50.2 billion) from the EU's loans-for-weapons program despite a presidential veto. The US dialed up pressure on the Czech Republic after billionaire Prime Minister Andrej Babis's government pushed through a budget that fell short of NATO defense-spending targets. Elon Musk's X, the social network formerly known as Twitter, has agreed to change its verification mechanism in the EU following a fine of €120 million. Seen and Heard on Bloomberg Daimler Truck Holding AG has all the tools to benefit from rising defense spending in Europe, according to CFO Eva Scherer. "We are well positioned for defense growth," Scherer told Bloomberg TV. "We know how to scale production quickly because we know how to manage a cyclical business. Chart of the Day Stellantis is exploring deals with Chinese carmakers to invest in its struggling European operations, with discussions including acquiring stakes in Maserati or other brands, we reported. Stellantis has been trying to stabilize its operations under CEO Antonio Filosa, who was installed last year after drastic cost cuts affected vehicle quality and put off buyers. Coming up Press Conference by Ukrainian President Volodymyr Zelenskiy at Sciences-Po in Paris this afternoon First round of French municipal elections this weekend US-China trade talks in Paris this weekend Final Thought Tikehau Capital Private Debt Head Cecile Mayer-Lévi Bloomberg The private credit industry has been shaken in recent weeks as several big funds capped withdrawals due to a surge in redemption requests. Tikehau Capital private debt head Cécile Mayer-Lévi compared the current turmoil to getting stuck at an event you want to leave but can't. "The party has become a bit too noisy, and then the door when you want to exit is a bit too narrow," Mayer-Lévi said at Bloomberg's Future of Finance event yesterday. "And so you can't exit all at the same time." Like the Brussels Edition? Don't keep it to yourself. Colleagues and friends can sign up here. How are we doing? We want to hear what you think about this newsletter. Let our Brussels bureau chief know. We're improving your newsletter experience and we'd love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow us You received this message because you are subscribed to Bloomberg's Brussels Edition newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue New York, NY 10022 |