EU plan for startup status stalls in parliament over labor rights

The European Union plan to help startups scale up across member states has stalled in the European Parliament, Euronews reported. Political parties and trade unions warn that the proposed system, known as EU Inc, could deregulate workers rights. [1]

The scheme was proposed by the European Commission on March 18 as an optional company format alongside existing national systems, Euronews reported. The proposal offers digital registration within 48 hours for up to 100 euros, with no minimum share capital required. [1]

Disagreements over labor protections led to the cancellation of two votes in the Legal Affairs Committee during October, according to Euronews. Under the proposed rules, companies would follow the employee participation regulations of their chosen country of registration. [1]

Trade unions and center left members of the European Parliament fear that startups could exploit the system by registering in countries with weaker board level protections for workers, Euronews reported. [1]