World

EU Unveils Plan: How a Unified Startup Regime Aims to Rival US Tech Dominance

EU plans unified rules for startups, aiming for easier expansion and talent retention by 2026.

October 3, 2025, 2:57 PM

Ursula von der Leyen at a meeting of EU defense ministers in Brussels

Ursula von der Leyen is pictured attending a meeting of EU defense ministers at the EU headquarters in Brussels, Belgium. By Alexandros Michailidis / Shutterstock.com.

Executive Summary

European Commission President Ursula von der Leyen announced plans for a unified set of rules for startups across the EU, proposing legislation in 2026 to create a “28th regime.”

The initiative aims to simplify expansion and talent retention for EU startups, addressing internal market fragmentation to make scaling within Europe as easy as in the U.S.

This proposal is part of the EU’s broader strategy to bolster its technology ecosystem, which includes a multi-billion euro Scaleup Europe Fund and an “AI first” strategy.

The Story So Far

The European Union currently presents a fragmented regulatory landscape for startups, with 27 different national systems making it challenging for companies to expand across member states, often leading them to scale more easily outside Europe. To address this, the European Commission, as part of its broader strategy to bolster the EU’s technology ecosystem, plans to propose legislation in 2026 to create a unified “28th regime” for startups. This initiative aims to simplify expansion and talent retention within the bloc, fostering a more integrated and competitive environment comparable to that in the United States.

Why This Matters

The European Union’s proposed “28th regime” for startups, set for 2026, aims to significantly simplify cross-border expansion and talent retention within the bloc by replacing 27 disparate national systems with a unified framework. This initiative is expected to foster a more integrated and competitive tech ecosystem, making it easier for European companies to scale internally and bolstering the EU’s global standing in innovation.

Who Thinks What?

European Commission President Ursula von der Leyen believes that a unified “28th regime” for startups, proposed for 2026, is essential to simplify expansion, retain talent, and create a seamless growth path within the EU, comparable to the United States.

The current situation for EU startups is characterized by significant complexity due to 27 disparate national systems, which makes it easier for them to scale operations to other continents than within Europe.

European Commission President Ursula von der Leyen announced plans for a unified set of rules for startups across the European Union, aiming to simplify expansion and talent retention within the bloc. Speaking at the Italian Tech Week in Turin on Friday, von der Leyen stated the Commission would propose legislation in 2026 to establish a “28th regime,” replacing the current 27 disparate national systems that companies must navigate.

Addressing Internal Market Fragmentation

The initiative seeks to address the current complexity faced by EU startups, which often find it easier to scale operations to other continents than within Europe. This new framework is designed to foster a more integrated and competitive environment for innovative companies across the continent.

President von der Leyen emphasized the goal of creating a seamless growth path comparable to that experienced by startups in the United States. She remarked, “I want the same to be true for you as it is for a San Francisco startup scaling across the U.S.”

Broader Tech Strategy

This proposal forms part of the EU’s wider strategy to bolster its technology ecosystem. Other components include a multi-billion euro Scaleup Europe Fund and a new “AI first” strategy, which aims to accelerate the adoption of artificial intelligence across various industries.

Outlook

The planned “28th regime” for startups represents a significant step in the EU’s efforts to streamline regulatory hurdles and enhance its global competitiveness in the tech sector, promoting internal growth and innovation.