EU Inc (the 28th regime) · 2026/0074(COD)
Opposes the proposal as it risks undermining employee rights, social protections, and national labour laws while enabling regulatory circumvention and insufficient capital safeguards.
Clarify applicable law and jurisdiction to uphold employee rights under national labour law and prevent circumvention through the new EU company form.
“Questions of applicable law and jurisdiction must be carefully examined, and the case-law of the Court of Justice of the European Union on choice of law and jurisdiction must be upheld.”
Saco on the 28th regime.docx, page 2
Ensure that posting of workers by an EU Inc is covered by the host Member State's posting regulations, including requirements for physical or local representatives where applicable.
“It is reasonable that an EU Inc that posts workers to Sweden from another EU country should be covered by the posting regulations in Sweden; at the same time, Art. 103 of the proposal states that a Member State may not impose different requirements on an EU Inc than those imposed on a national company. The proposal also states that a Member State may not require a physical representative or local representative for an EU Inc, which is a prerequisite in the Posting of Workers Act.”
Saco on the 28th regime.docx, page 2
Require that the EU Inc have its own share capital to prevent frivolous business ideas and economic crime, ensuring companies have sufficient capital to secure long-term operations and employee compensation.
“We question the proposal that an EU Inc should not need to have its own share capital. Capital requirements constitute a barrier both against attempts to implement unrealistic and frivolous business ideas, as well as against pure economic crime. From the perspective of employees, it is important that companies have sufficient capital to ensure a secure and long-term operation that enables employees to receive wages and other compensation for their work.”
Saco on the 28th regime.docx, page 2
Regulate employee stock options to prevent transferring company risks to employees, avoid social security contribution avoidance, and respect national labour market models and social partner autonomy.
“Employee stock options must not be a way of avoiding social security contributions and other charges, leading to employees losing social security benefits and occupational pensions. Regulations on employee stock options must be compatible with national labour market models and must not restrict the autonomy of the social partners or the right to negotiate and conclude collective agreements on wages and other conditions.”
Feedback, 2026-06-22
Ensure that employee rights, collective agreements, and social security systems of the country where work is performed fully apply and cannot be circumvented or negotiated away by the new company form.
“It is of utmost importance that employee rights, both individual and collective, and employer obligations continue to be governed by collective agreements, labour law and the courts of the Member State where the work is performed, and that such rights and obligations cannot be circumvented or negotiated away.”
Saco on the 28th regime.docx, page 2
Maintain national provisions on employee participation and co-determination to prevent forum shopping and erosion of social protection systems.
“A 28th corporate regime must not lead to employees' rights being circumvented through "forum shopping" or to social protection systems being eroded. National provisions on employee participation must continue to apply.”
Saco on the 28th regime.docx, page 2
Clarify the legal basis for the proposal, questioning whether Article 114(1) TFEU is appropriate and warning of risks exceeding Article 114(2) limits.
“In summary, we question whether it is even possible to regulate what the Commission is proposing on the basis of Article 114(1) TFEU, and that there is a risk of exceeding the limits in Article 114(2).”
Saco on the 28th regime.docx, page 1
Guarantee full employment protection for employees during insolvency or bankruptcy proceedings, respecting both individual and collective rights, and align with Directive 2008/94/EC.
Open source underneath
WhoShapedIt is a thin layer on open-source packages. Star them, fork them, build your own micro.
Open-source context and state for AI: it keeps only what matters for the question.
In WhoShapedIt: Reads every lobby submission and position paper and each official text, cut into passages, and judges each passage against nine questions (who can use EU Inc, workers on the board, tax…), so every ask and every step is read on the passages that address it.
Open-source Svelte components for clean, accessible interfaces.
In WhoShapedIt: The status, the timeline, the theme picker, the camps of lobbies and the organisation pages.
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