President Ursula von der Leyen Proposes '28th Regime' for Scale-Up Companies to Boost EU Single Market Competitiveness

Urgency and Renewal in Europe's Economic Strategy During her 2025 Berlin Global Dialogue speech, European Commission President Ursula von der Leyen emphasized the imperative of speeding up Europe’s Single Market completion and simplifying regulatory frameworks with concrete proposals including the introduction of a "28th regime"—a unified regulatory framework to enable innovative startups to scale across all 27 EU member states without facing fragmented regulations. Alongside this, she announced plans for a new Scaleup Europe Fund aimed at attracting private capital to retain investment within Europe. These initiatives reflect a clear policy orientation towards increasing EU integration and regulatory harmonization specifically in the innovation and scaleup sector, shifting towards centralized regulation to enhance competitiveness.

Geoeconomic Challenges and Strategic Sovereignty Von der Leyen outlined Europe's challenges amid a fractured global economy marked by increased geopolitical and economic rivalry, highlighting China's tightened export controls on rare earths—a vital input for European industries from automotive to defence. She announced the forthcoming RESourceEU plan, modeled on the earlier REPowerEU energy initiative, targeting diversification of critical raw materials sources via circular economy practices, strategic stockpiling, joint purchasing, and international partnerships. The plan explicitly aims at reducing dependence on China through increased domestic processing and global cooperation.

Policy Impacts and Stakeholder Perspectives For European innovative companies and startups, the 28th regime and investment funds promise reduced bureaucratic barriers and easier access to capital, potentially accelerating growth and innovation scaling. Conversely, national authorities may face adjustments to sovereignty in regulatory matters, balancing national interests with EU-wide integration. Meanwhile, European industries reliant on critical raw materials—including automotive, aerospace, and defence sectors—may benefit from reduced supply chain vulnerabilities but could encounter increased costs linked to strategic stockpiling and investments in processing capacity.

Finally, EU taxpayers face commitments to fund an estimated EUR 800 billion in defense and RESourceEU investment initiatives, reflecting a trade-off between enhanced strategic independence and fiscal expenditures.

Von der Leyen’s address presents a shift towards deeper EU integration in regulatory and industrial policy, emphasizing speed, scale, and strategic autonomy in response to evolving global economic complexities.