On 30 September 2025, ETAF responded to the public consultation of the European Commission on the potential "28th regime for innovative companies," welcoming the aim of the European Commission to provide a coherent and attractive EU corporate legal framework that reduces compliance burdens and facilitates cross-border activity.
However, ETAF expresses serious concerns about the lack of clarity surrounding the design of the new regime, warning that the initiative risks generating parallel complexities, legal uncertainty, which would ultimately undermine the objectives of the Single Market.
ETAF stresses that the regime must be optional and open to all limited liability companies to ensure fairness and avoid a two-tier Single Market, noting that "innovative" is an unworkable and vague eligibility criterion.
ETAF urges the Commission to prioritize simplification and coherence with existing initiatives, particularly on taxation.
As a more desirable and realistic approach, ETAF strongly encourages the gradual development of a European Business Code to consolidate, codify, and harmonise existing company law, which would support businesses of all sizes without creating duplication or distortion.
