EU Commission announces determined fight against bureaucracy
At the World Economic Forum in Davos, European Commission President Ursula von der Leyen reiterated her commitment to making scaling opportunities easier for startups across the EU. The EU Inc. petition has not only gained more than 13,000 supporters within six months but has also made it onto the EU Commission’s agenda in no time.
EU-Inc project reaffirmed in Davos
At the European Council meeting in Budapest in November 2024, von der Leyen called for the introduction of a uniform set of rules for startups. It is important to create a more attractive environment for small and medium-sized enterprises (SMEs) so that they can grow, produce in Europe and promote innovative ideas.
The problem: More and more startups are moving abroad, along with their jobs, to the USA, for example, because it is easier to generate capital there, among other advantages. In Davos, von der Leyen announced the first steps towards implementation.
The startups leaving Europe
The Handelsblatt reported on a study that analyzed 11,000 European startups from 17 countries. It shows that 6 percent of the startups that received their first funding between 2000 and 2014 moved their headquarters abroad. Most of them went to the USA.
Although six percent does not seem like an excessive amount, these startups are extremely successful: they contribute 17 percent to the total company value created by startups in Europe, based on the valuations of IPOs or company sales. According to the study, startups with foreign investors in particular are likely to relocate their headquarters – usually to the country of the investor.
Equal conditions for all EU countries
To ensure that startups no longer have to look for easier routes abroad in the future, von der Leyen’s European Commission wants to set up a project team that focuses on startups and companies and their long-term scaling. A framework is to be developed that is based on the guidelines of European policy. It was also mentioned that European startups should work according to the same rules in all EU countries. This is intended to create equal opportunities for all.
Von der Leyen wants a uniform and simple system
Von der Leyen sees the greatest challenge in removing the bureaucratic hurdles that currently exist at the national level.
“We call this the 28th regime. Company law, labor law, taxes – a single, uniform, and simple system. This will help to remove the barriers that typically pose a challenge for companies scaling up within the EU. Because the continental dimension is our greatest asset in this world of giants,” said the EU Commission President in Davos.
EU plans “unprecedented efforts” to reduce bureaucracy
In line with this, the EU Commission plans to present a strategy paper for greater competitiveness in Brussels this week. It is about “unprecedented efforts to reduce bureaucracy”.
The first step in this direction is planned for February and includes, among other things, simplifications in reporting on sustainable finance and due diligence obligations. A revision of the supply chain law is also planned, the entry into force of which in June 2026 is still being discussed. Faster approval procedures and a relaxation of EU competition rules are also to be part of the concept.
