EU Inc - Regime 28: The Plan for Europe to Catch Up with the US in Startups

Europe has long been a global leader in research, education, and academic innovation. However, when it comes to turning ideas into global billion-euro companies, the continent has lagged behind the United States and increasingly behind China. In 2026, the European Union is trying to change this reality with an ambitious initiative: Regime 28, also informally known as "EU Inc". It is a proposal that could rewrite the rules of the game for European startups. Why is it called "Regime 28"? The name comes from a simple logic: the European Union currently has 27 member states, each with its own legal system and rules regarding the establishment and operation of companies. Regime 28 would represent the 28th legal framework, a supranational, optional one, that would be added to the existing 27. It does not replace them but operates in parallel with them. Startups could choose to operate under this new unified regime, valid throughout the European Union. In essence, it is an attempt to create a "European Delaware" - a unique and predictable legal framework for innovative companies that want to scale quickly in the single market. What is Regime 28 (EU Inc)? Regime 28 is an optional legal framework that would operate in parallel with the 27 existing national systems. Practically, a company could choose to operate under a single set of rules valid throughout the European Union, instead of navigating through different legislations in each member state. The goal is simple: reducing legal and administrative fragmentation that hinders the rapid expansion of startups in Europe. Main proposed features: Digital-by-default: online establishment in 48 hours. Unique legal form: harmonized rules at the European level. Portability: the ability to operate in all member states without re-establishment. Simplified scaling: reducing legal and administrative costs. The European Commission, under the leadership of Ursula von der Leyen, is working on the technical details, and a legislative proposal is expected at the beginning of 2026. Why is such a regime necessary? 1. Fragmented market Although the EU is a single market economically, in practice startups face 27 different legal regimes regarding taxation, labor law, corporate governance, or administrative reporting. For a tech company that wants to scale quickly, these differences can mean months of bureaucracy and significant legal costs. 2. Venture capital deficit Venture capital investments in the US are considerably higher than in the EU. Investors prefer clear, predictable, and uniform jurisdictions. European fragmentation reduces attractiveness for large international funds. 3. "Delaware Flip" phenomenon More and more European startups choose to move their headquarters to the US, especially in the state of Delaware, where the legal framework is simplified and investor-friendly. This phenomenon, known as the "Delaware Flip", leads to the loss of economic and fiscal value for Europe. Regime 28 tries to offer a competitive European alternative. What impact could Regime 28 have? Potential benefits Reducing legal costs for startups. Simpler access to cross-border financing. Easier hiring at the European level. Increasing the attractiveness of the EU for global investment funds. If implemented effectively, Europe could become a much more competitive space for companies in technology, artificial intelligence, fintech, or biotech. Major challenges The initiative is not without obstacles: Fiscal sovereignty - member states are reluctant to cede control over regulations. Employee co-determination - differences between European social models can complicate harmonization. Fears of "regime shopping" - unions warn that some companies might use the new regime to avoid stricter national standards. It's not a magic wand Regime 28 is essentially an attempt to transform the European Union into a "European Delaware" for startups. It is not a magic wand, but it is a strategic step towards a real single market for digital companies. If there is political consensus and effective implementation, EU Inc could mark the beginning of a new stage for European innovation.