EU Plans Unified Startup Rules to Boost Growth

• The European Commission will propose a single legal framework for startups to simplify cross-border operations and support innovation.

The European Union is preparing legislation aimed at streamlining the regulatory environment for startups across its member states. European Commission President Ursula von der Leyen announced the initiative during Italian Tech Week in Turin, emphasizing the need for a more cohesive framework. Currently, startups must navigate 27 different national systems, which often makes expansion within Europe more difficult than scaling globally. The proposed “28th regime” would offer a unified set of rules to help innovative companies grow and retain talent more effectively.

Aiming for Seamless Expansion Across the EU

Von der Leyen highlighted the challenge many European startups face when trying to expand beyond their home country. She noted that it is often easier for a company to enter markets outside Europe than to operate across EU borders. The new regime is intended to mirror the ease with which U.S. startups scale across states, offering similar flexibility within the European bloc. By reducing administrative complexity, the Commission hopes to foster a more dynamic and competitive tech sector.

The legislation is expected to be introduced in 2026 and will serve as an optional framework for startups seeking cross-border consistency. It will not replace national laws but offer an alternative path for companies that wish to operate under a single set of rules. This approach could simplify legal compliance, reduce costs, and encourage more startups to expand regionally. The initiative reflects growing concern that fragmented regulations are holding back Europe’s digital economy.

Supporting Innovation Through Broader Initiatives

The startup framework is part of a wider strategy to strengthen Europe’s position in global technology markets. Alongside the legal proposal, the Commission is backing a multi-billion euro Scaleup Europe Fund to support high-growth companies. A new “AI first” strategy is also in development, aimed at accelerating the adoption of artificial intelligence across industries. These efforts signal a shift toward more proactive support for digital transformation within the EU.

By aligning financial and regulatory tools, the Commission seeks to create a more favorable environment for innovation. Startups often struggle with access to capital and talent, especially when competing with U.S. or Asian tech giants. The combined initiatives are designed to address these gaps and promote long-term growth. Von der Leyen’s remarks suggest a commitment to making Europe a more attractive base for emerging technologies.