Did you know that venture capital investments in Europe make up only about 5% of all investments globally, while the US accounts for 52% and China 40%? Also the EU’s GDP currently amounts to only about 66% of the US GDP, and productivity is at 75% of the US level.
Mario Draghi, economist and former head of the European Central Bank, presented a widely discussed report on Europe’s competitiveness in 2024. In it, he warned that if nothing changes, Europe will face a “slow agony.”
Among other consequences, we can all probably understand what economic lag means for national security.
That’s why I strongly encourage supporting a small but important step toward change — the EU-Inc and the 28th legal regime, which is currently being developed by the European Commission and the European Parliament.
Long story short: the goal is to create a 28th legal framework for startups that would apply uniformly across the entire EU. This would eliminate the need to worry about 27 different legal systems with millions of nuances when paying taxes, attracting investment, hiring people from any country, offering them stock options, etc.
The discussions are slowly gaining ground, but recently, for example, the European Parliament proposed a solution that would add another legal layer on top of the existing bureaucracy when creating EU-Inc. The legal frameworks would remain fragmented, and only the name would survive. (Good news: the European Commission, not the Parliament, makes decisions on this issue.)
How can you contribute to change?
👉 The European Commission is asking for feedback on this matter: you can fill out a form and explain why a unified legal framework without compromises is important to you (link in comments).
👉 Learn more about the issue and sign the petition on the EU-Inc website.
👉 If you can — write an email to your favorite Member of the European Parliament, asking them to speak out on this matter in Parliament.