AB Proposed a New Corporate Model on the Path to Becoming a Technology Giant
The European Union announced the '28th Regime,' a pan-European company structure that facilitates cross-border organization to revitalize the entrepreneurship ecosystem, which has fallen behind the United States and China.
Europe's New Move in the Technology Race
European Commission President Ursula von der Leyen introduced a new pan-European company structure called 'AB-INC' or the '28th Regime'. This proposal aims to unite the fragmented European entrepreneurial ecosystem, which struggles to grow due to 27 different corporate law systems, under a single umbrella.
Single Market, Single Company Structure
In the current system, a startup established in one member country faces re-registration, bureaucracy, and tax delays when it wants to operate in another EU country. This situation slows down scaling, discourages investment, and makes it difficult to attract talented employees. The AB-INC model envisions a single European company status that will operate alongside national systems. These companies, which can be established within 48 hours through a single online portal, will have the right to operate across the entire Union.
As the adoption of AI-based strategies accelerates among technology startups and investors (JPMorgan: Family Offices Are Turning to AI in Investment Strategies), increasing Europe's competitiveness in this field is also gaining importance.
Support from the Tech Community, Anticipated Reaction from Member States
Although the proposal is still in its early stages, it has received positive feedback from the technology startup community. A signature campaign launched in 2024 reached over 23,000 supporters from 15,000 signatures. However, it is noted that member states have not yet shared their views on the matter. Analysts predict that the model may face resistance from some countries on the grounds that it will affect national authorities.
Goal: Producing a Global Technology Giant
The US and China lead the global entrepreneurship scene, accounting for approximately 70% of high-value venture capital deals worldwide. Despite its strong research infrastructure and talent, Europe struggles to convert these into global companies. The AB-INC proposal is seen as a concrete step to close this gap and build Europe's own 'Silicon Valley'. More details on the subject are being shared via Euronews' AI chatbot.
