The European Parliament's Employment and Social Affairs (EMPL) committee on 23 June 2026 debated two legislative files: a reform of vocational education and training (VET) and the proposed 28th regime corporate framework for startups, known as 'EU Inc.' The discussions revealed divergent views on the scope and safeguards of both initiatives, with centre-right and centre-left groups pulling in different directions on worker protections and fraud prevention.

On VET, rapporteur Brigitte Van Den Berg (Renew) stressed the need for equal recognition of vocational qualifications across member states, improved mobility, and increased funding. She noted that Erasmus+ currently covers only half of eligible applications, according to Commission representative Anna Bansik. Romana Tomc (EPP), also speaking for the European Conservatives and Reformists (ECR), backed dual vocational training systems and proposed a European VET diploma to enhance cross-border recognition. Romana Jerković (Socialists and Democrats, S&D) and Li Andersson (The Left) linked VET to decent work, social inclusion, and lifelong learning, emphasising that training must lead to quality employment. Margarita De La Pisa Carrión (Patriots for Europe, PfE) highlighted under-prioritised sectors such as care and construction, calling for targeted investment.

On EU Inc., rapporteur Johan Danielsson (S&D) warned of risks including fraud, letterbox companies, and weakened worker participation. He proposed limiting the framework to genuine startups and excluding high-risk sectors such as finance and real estate. Romana Tomc (EPP, also for ECR) supported optional simplification for startups but insisted on robust labour-law safeguards to protect employee rights. Anna Strolenberg (Greens/EFA) and Özlem Demirel (The Left) pushed for longer registration times and stronger anti-abuse measures, including mandatory substance requirements. João Oliveira (The Left) outright rejected the proposal, arguing it would undermine national corporate governance standards. Commission official Dan Dionisi defended the framework as startup-friendly and within national legal orders, stressing that it would reduce administrative burdens without overriding member state labour laws.

Danielsson signalled willingness to negotiate but warned of possible rejection if safeguards are insufficient. The next steps include continued discussions among EMPL coordinators, with a committee vote planned for 10 September 2026. The outcomes will affect VET learners, SMEs, startups, workers, and national authorities, balancing innovation support with worker protection and fraud prevention.

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