Objection Exclusive: We Need a New European Legal Framework for Start-ups
Many young growth companies in the EU fail not due to lack of ideas or capital, but because of an unfavorable legal framework; a proposed solution is the establishment of a European Uniform Corporation (EUC).
The article discusses the challenges faced by young growth companies in the EU, specifically highlighting that failures are often attributed to a problematic legal framework rather than a shortage of ideas or financial resources. It references Mario Draghi's report on the future of European competitiveness, which identifies the critical period in transitioning from start-ups to scale-ups as a structural deficit. This period, where companies require substantial investment to grow into globally competitive entities, is hindered by inadequacies in the European capital markets and the legal apparatus governing business operations.
The need for a new legal form, proposed as the European Uniform Corporation (EUC), is underscored as a potential solution to facilitate the growth and financing of start-ups. This new legal structure could standardize operational practices across the EU, thereby simplifying legal complexities and encouraging investment. The proposal calls for an alignment of interests between the various member states to create a more cohesive and supportive environment for innovative companies.
The article articulates that without addressing these structural deficiencies, Europe risks falling behind in nurturing its potential talent pools into successful business ventures. By advocating for a more suitable legal infrastructure through the EUC, the article emphasizes the urgency for policymakers to act in favor of fostering a robust ecosystem for entrepreneurial success throughout the continent.