For decades, startups have complained about the varying sets of rules governing incorporation, hiring and taxation in each EU country. They claim this hinders their growth and puts them at a disadvantage compared with their U.S. or Chinese counterparts.
The idea of having one set of harmonized rules across all EU member countries, rather than being subjected to 27 different national systems, was appealing to many. However, startups are now freaking out as they claim the promise is at risk of being fragmented into 27 different pieces.
Simon Schaefer, cofounder of the EU Inc initiative, branded one of the options on the table as “insane.”
Flexibility
Startups scored a big win last year when von der Leyen name-checked their key demand of more streamlined rules in her five-year program.
She promised to “address the patchwork of national regulations” in the form of a “28th regime to allow companies to benefit from a simpler, harmonized set of rules.” Areas marked as in scope were corporate law, insolvency procedures, labor law and taxation.
However, startups are irked by the initial steps to put meat on the bones.