The Senate of Romania has formally objected to the proposed EU INC. regulation, concluding that it violates the principles of subsidiarity and proportionality. In a cover note sent to the President of the Council of the European Union on 13 July 2026, the Romanian Senate stated its incompatibility with the proposed 28th Regime Corporate Legal Framework (EU INC.), referenced as documents 7498/26, ADDs 1-6, and COM(2026) 321.
The opinion marks the first formal parliamentary objection to the EU INC. proposal from a member state since the European Commission tabled the regulation. The EU INC. would create a supranational corporate legal form, allowing companies to operate under a single EU-wide set of rules rather than incorporating separately in each member state. Proponents argue it would reduce administrative burdens and foster cross-border business, but critics contend it encroaches on national company law and regulatory autonomy.
Romania's Senate specifically argued that the proposal goes beyond what is necessary to achieve its objectives, infringing on areas better regulated at national level. The subsidiarity principle requires the EU to act only when member states cannot sufficiently achieve the goals themselves, while proportionality demands that EU action not exceed what is needed. The Romanian objection could signal broader resistance among member states, potentially complicating the legislative process in the Council, where unanimity or qualified majority may be required depending on the legal basis.
The EU INC. proposal is currently under examination by the European Parliament and the Council. The Romanian Senate's opinion will be forwarded to the European Commission, which must respond to subsidiarity concerns under the Early Warning System. If one-third of national parliaments issue reasoned opinions, the Commission must review the proposal. The Romanian objection adds to the growing debate over the balance between EU integration and national sovereignty in corporate law.