As the EU moves closer to its own version of Delaware’s corporate model, supporters of the EU Inc. campaign are warning lawmakers not to weaken the proposal.

An open letter released Thursday calls on EU institutions to preserve the core design of the proposed company statute. Backed by the EU Inc. campaign, the initiative would create a harmonized legal framework allowing companies to incorporate once and operate across the bloc with less administrative friction.

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Supporters Warn Against A Weakened Compromise

Senior European officials have already backed the initiative, but negotiations between the European Parliament and Council remain underway. Supporters fear national interests could remove features that would make the framework useful to founders and investors.

With about 100 days remaining before the EU institutions’ winter recess, signatories say the proposal could reduce fragmentation, unlock investment and support entrepreneurship if its core provisions remain intact.

Details Could Determine Whether EU Inc. Works

National interests are already shaping the negotiations. Germany’s notaries have criticized parts of the European Commission’s proposal, highlighting the competing priorities involved in EU lawmaking.

The campaign is particularly focused on creating a single central registry and taxing employees on stock options only when they sell their shares. Supporters argue that such provisions could determine whether founders actually choose to use the new legal structure.

Last year, Martin Mignot, a partner at Index Ventures and EU Inc. supporter, warned that “the devil is in the details” and said advocates would closely monitor the final legislation.

Investors And Founders Back The Campaign

The latest letter includes investors such as Sonali De Rycker of Accel, Michael Moritz of Sequoia and Niklas Zennström, founder of Atomico.

Entrepreneurs from companies including Alan, ElevenLabs, Lovable, Mistral and Synthesia have also signed. Some of those businesses are headquartered in the US, reinforcing the campaign’s argument that Europe needs a corporate framework capable of supporting fast-growing companies on the continent.