European Central Bank Executive Board member Isabel Schnabel reiterated support for the proposed EU Inc. corporate regime in a speech at the Bank of Lithuania’s Economics Conference in Vilnius. Revisiting her February case for a voluntary European company framework, she argued that fragmented national rules prevent firms from reaching the scale needed to adopt technology and raise productivity. She warned that allowing additional national requirements or limiting insolvency harmonisation could undermine the proposal now under discussion. Legal fragmentation and scarce financing during growth and exit encourage European firms to incorporate and seek capital in the United States.
The proposed “28th regime” would complement national company systems and be open to businesses of all sizes and sectors. It would offer quick, inexpensive and fully digital incorporation, with common rules covering core company law, governance, shareholder rights and employee financial compensation. A directly applicable European Union regulation, as envisaged in the current proposal, would help avoid divergent national versions. Labour law, social security systems and corporate taxation would remain national responsibilities. The common framework would reduce legal uncertainty for investors and make it easier for firms to raise capital, attract talent and expand across the Single Market.