[neximo64]

Can't work legally speaking. There has to be a single sponsoring member state. Just sadly how the EU is designed.

The only way would be to copy it individually so it is the same in each member state which breaks the purpose of it.

[dathinab]

this isn't fully true

yes you company needs to be rooted in a specific country, and sure moving company roots between countries is still not always trivial (anti capital flight laws are a thing). But that isn't really in conflict with a EU INC per-se. I mean they do point out that it will have

> Local taxes & employment

and this isn't in conflict with

- the same business form being available in all EU members

- central EU registry

- Standardized investment documents ( * this is only investment documents, not e.g. tax documents)

- Standardized EU-wide stock options

- For every founder ( * with some limits)

Like there are already some "EU level" business models, e.g. you company can operate as a Societas Europaea (SE). Now a SE is for other use-cases so not really the same at all (it's more like the EU version of a German GmbH), but it shows that things "in that direction" are very much viable.

[vladms]

> - Standardized investment documents

All investments I took part of implied a lot of back and forth on conditions adapted to the specific case, preferences, fears, etc. I have doubts that "standardization" can be reasonable achieved here.

> - Standardized EU-wide stock options

EU does not have attributions on tax, it's the national governments that do (see https://european-union.europa.eu/priorities-and-actions/acti...).

The issue with stock options are that they are taxed, so you will have to consider each country in particular.

Maybe you would like for EU to have tax responsibilities, but I wouldn't jump to that without thinking about the implications. As an example the Euro monetary union without a fiscal union can causes issues already (for some explanations check https://en.wikipedia.org/wiki/Fiscal_union).

[pjc50]

> anti capital flight laws are a thing

Hmm - any examples of this applying intra-EU? That feels like a violation of the free movement of banking services.

[bux93]

Weird. Seems to work for Airbus, Allianz, BASF, E.ON, Fresenius, LVMH Moët Hennessy Louis Vuitton (and its subsidiary Dior), SAP, Schneider Electric, TotalEnergies, Unibail-Rodamco-Westfield and Vonovia.

Of course, that's the existing pan-European SE which is a public company. Needs like a few sentences changed in the existing regulation to extend that to private companies. https://en.wikipedia.org/wiki/Societas_Europaea

[neximo64]

This is very different. In a SE these are incorporated and sponsored by the member state. It is like each country making an equivalent copy of the same thing.

The EU-INC is EU designated without a sponsor, which is not permissible under EU law other than for the EU institutions themselves. This is one of the red lines for the design of the EU legally speaking

[carlosjobim]

And if the authors of the proposal had thought a bit more about their idea, they would have realized that the situation is exactly the same in the USA:

You have to select a state to incorporate in. You can't incorporate "federally". All states have different laws and regulations relating to business. Just like in Europe.

So they're chasing a false idea.

[tiborsaas]

Maybe the task is to make the changes to get this to work legally speaking.

[riffraff]

this proposal exists under the umbrella of the 28th regime[0] idea, as per their FAQ.

Which.. would be a good idea, but I am not holding my breath for it to happen in the next 10 years.

[0] https://en.wikipedia.org/wiki/28th_regime

[dbbk]

They've already said it'll be the 28th state

[causalscience]

If the EU is saying "we'll make it work", replying "can't work because that's how the EU is designed" doesn't seem like an intelligent response.

[neximo64]

Looking at it on vibes is not intelligent either.

The design of the EU is based on a foundation where other than the EU institutions themselves the founding legal entity must sit within a member state. EU law that is one each country must replicate, there is no such way to have EU wide law without each and every member state replicating it entirely. An entity that is supranational cannot exist outside this construct & is a red line of the design of the EU itself.

This is one of the reasons the EU cannot easily raise debt for itself without going through a sponsoring member state.