EU Proposes New Corporate Model '28th Regime' to Become Tech Giant
The European Union has taken a revolutionary step to strengthen its technology ecosystem, which lags behind the US and China. The new pan-European corporate structure called '28th Regime' aims to create technology giants on the continent by significantly simplifying cross-border establishment processes.
Europe's Tech Move: What is the 28th Regime?
The European Union has launched a strategic initiative to reverse its lag behind the US and China in the global technology race. The new corporate model called '28th Regime' is defined as a pan-European company structure and significantly simplifies cross-border business establishment among member states. This model particularly aims to enable technology startups to scale across Europe without bureaucratic barriers.
Strategy to Close the Gap in Technology Ecosystem
EU officials state that under the current system, companies having to go through separate legal processes in each member country to operate across borders creates a significant obstacle, especially for technology companies that need rapid growth. The 28th Regime will create a company structure recognized throughout the Union under a single legal framework. This will eliminate confusion regarding file formats and legal documents. For example, the requirement to use different file system configurations in different countries (specific formats like .AB backup files on Android systems) will be simplified with a standard European company structure.
Digital Infrastructure and Standardization
The new system will also encourage standardization in technology companies' data management and digital infrastructure. Instead of different backup formats (like .AB files) or data storage methods across countries, the development of compatible systems across Europe is planned. This will reduce companies' operational costs while increasing data portability.
Impact on Entrepreneurship and Investment Environment
One of the most important promises of the 28th Regime is to revitalize Europe's entrepreneurship ecosystem. Under the current system, a startup's expansion to another EU country requires processes lasting from 6 months to 1 year on average. In the new model, this timeframe will be reduced to weeks. Additionally, standardization in company establishment processes will make Europe more attractive to international investors. Venture capital funds and angel investors will be able to invest in European technology companies with greater confidence, knowing they operate under a unified legal system.
Global Competition and Future Projections
The 28th Regime represents Europe's most comprehensive response yet to the dominance of American and Chinese technology giants. By eliminating legal fragmentation, the EU aims to create an environment where European technology companies can compete globally. Experts predict that this model could particularly benefit artificial intelligence, fintech, and green technology sectors. The success of this initiative could determine whether Europe can produce its own equivalents of Google, Amazon, or Alibaba in the coming decade.
