Setting the Stage for the 28th Regime On January 26, 2026, EU Commissioner Michael McGrath delivered remarks at the European Parliament plenary debate on the 28th regime for companies. McGrath positioned the upcoming Commission legislative proposal as a critical element for enhancing EU competitiveness and simplifying cross-border business within the Single Market. He warmly welcomed the Parliament’s initiative report and emphasized ongoing consultations with stakeholders and MEPs to shape a fit-for-purpose and ambitious framework.
Policy Orientation and Proposals McGrath signaled the Commission’s intent to propose a comprehensive legal framework primarily addressing corporate law but also tackling ancillary areas like taxation and insolvency. The goal is to establish a single, simplified, digitally-enabled regime that applies uniformly across the EU, supporting startups and SMEs by lowering barriers to establishment, scaling, and operations. The framework will leverage digital tools, including the “once-only” principle and the forthcoming European Business Wallet to streamline procedures.
The framework aims for regulatory harmonization, countering national fragmentation—the so-called risk of “27 versions” of the regime—while ensuring it does not weaken existing EU rules and standards. The choice of legal instrument (regulation vs. directive) remains open, but the Commission acknowledges stakeholder preference for a regulation that enforces uniformity.
Stakeholder Implications The proposal’s digital-first, streamlined approach promises benefits for innovative companies and startups by reducing administrative burdens and enhancing access to investment across the Single Market. EU producers, particularly SMEs, may see accelerated scaling opportunities and cross-border expansion ease. Regulatory bodies will face increased harmonization duties, potentially reducing administrative complexity but increasing coordination demands. National authorities may need to align insolvency and taxation rules with the common framework, raising adaptation costs. Civil society and consumer groups are indirectly impacted by the Commission’s assurance that the regime will uphold existing standards, aiming to balance market dynamism with regulatory safeguards.
Conclusion Commissioner McGrath’s speech outlines a forward-leaning and technically detailed vision for the 28th regime, blending corporate law modernization with digital innovation and a harmonized single rulebook ambition. The policy direction leans towards increased EU integration and added regulatory uniformity in corporate governance, with particular attention to supporting new and growing enterprises. The final proposal, expected in March 2026, will clarify details, including the legal instrument and the scope of ancillary elements, shaping the future operational landscape for companies across the EU Single Market.
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