The European Economic and Social Committee (EESC) adopted its opinion on the EU Inc. proposal on 15 July 2026, supporting the initiative in principle but insisting on significant safeguards before the Regulation can proceed. The opinion, published as a cover note by the Council on 23 July 2026, recommends amendments to prevent abuse, protect workers' rights, and ensure legal certainty.
The EU Inc. proposal aims to create a 28th regime for innovative businesses, harmonising rules across Member States to make the EU more attractive for starting, scaling and retaining companies. The EESC notes that venture investment in the EU is around 0.2% of GDP, three times lower than in the US, underscoring the need for reform. However, the Committee questions whether Article 114 TFEU is the appropriate legal basis for creating a new legal form rather than approximating existing laws.
The EESC raises concerns that the registered office and principal place of business may be in different Member States, requiring safeguards against abuse, fraud, money laundering and circumvention of workers' participation rights. It recommends amending Article 4 to clarify which laws apply beyond company law, preventing legal uncertainty and 'forum shopping'. The opinion also stresses that stock option schemes, while welcomed, must not replace contractual remuneration or social security contributions.
On market access, the EESC recommends limiting EU Inc. listing to multilateral trading facilities only, not regulated stock markets. It also calls for a harmonised accounting framework for startups and scaleups. Crucially, the proposal must explicitly state that it does not affect existing EU and national workers' and labour rights.
The opinion balances support for innovation with protections for workers and legal clarity. For startups and scaleups, the proposal could reduce compliance costs and facilitate cross-border scaling, but the recommended safeguards may add administrative burdens. Workers and trade unions gain explicit protections against misuse of the new legal form. National authorities would face new coordination requirements to prevent abuse. EU institutions must now consider the EESC's recommendations as the legislative process moves forward, with the European Parliament and Council expected to debate the proposal in the coming months.