Eurochambres, the European association of chambers of commerce, has welcomed the European Union’s proposed 28th regulatory framework and the EU Inc. legal structure for businesses, but expressed concerns about potential fragmentation and legal inconsistencies, according to a statement released on June 18, 2026.
What is the EU Inc. framework, and why does it matter?
The EU Inc. (European Company) framework aims to provide a unified legal structure for businesses operating across the EU, streamlining processes for cross-border operations. Eurochambres praised the proposal for extending benefits beyond startups and “innovative” firms, emphasizing its potential to enhance competitiveness. However, the organization warned that the lack of established jurisprudence could lead to “inconsistent national court decisions,” undermining investor confidence, as noted in its official publication.
What are the main concerns about the proposed framework?
The framework allows national laws to govern issues not explicitly addressed by the EU rules, raising fears of 27 divergent legal interpretations. Eurochambres highlighted that this “complexity and over-optimization” could create inefficiencies. The organization also called for the inclusion of in-person procedures in specific cases to ensure market accessibility, while criticizing proposed preventive measures as “excessive.”
What does the EU legal service say about the proposal?
The European Council’s legal service advised that the proposal cannot rely solely on Article 114 of the Treaty on the Functioning of the European Union (TFEU), which governs internal market rules. Instead, it suggested splitting the text into a regulation and a directive to address legal uncertainties. This recommendation, outlined in a June 24, 2026, deadline for member states to review the opinion, could reshape the final legislation.
What’s next for the EU Inc. framework?
Member states are set to deliberate on the legal service’s advice, with Eurochambres urging a balance between innovation and regulatory clarity. The organization emphasized the need for extrajudicial dispute resolution mechanisms to prevent costly legal battles. As the EU moves forward, stakeholders will closely monitor how the framework evolves to address concerns about uniformity and practicality.