EU Commission Advocates Uniform Regulations for Innovative Companies

In Brussels on Jan 21, the European Commission announced plans for a unified set of regulations to encourage innovative companies to remain within the European Union's 27 member states, rather than relocating to the U.S., stated the Commission's head. Speaking at the Davos economic forum in Switzerland, Ursula von der Leyen emphasized that this initiative aims to provide companies access to the EU's 450 million consumers by eliminating the current fragmentation caused by differing national regulations.

Von der Leyen highlighted, "Today, the European Single Market still faces numerous national barriers," noting that companies often navigate through 27 distinct legislations. She outlined the proposal to establish a harmonized regulatory framework, known as the "28th regime," covering aspects such as corporate law, insolvency, labor regulations, and taxation uniformly across the Union.

This strategic step is part of the EU's strategy to encourage innovative enterprises to continue operating within the region, fostering competitiveness in future technologies essential for transitioning the European economy towards carbon neutrality and combating climate change.