News 2026

On 18 March, the European Commission presented its proposal for a regulation creating a new European legal form, referred to as “EU Inc.”, as part as what is known as the "28th regime". This initiative aims to facilitate the establishment and development of companies in the Single Market through a more harmonised and digitalised framework.

For construction companies, particularly those operating across several Member States, the objective of simplification addresses concrete challenges linked to the fragmentation of national frameworks. The fact that the regime would be open to all companies, and not limited to start-ups, is also noteworthy.

At this stage, several aspects of the proposal remain to be clarified during the legislative discussions. The envisaged regime primarily covers certain elements of company law (including incorporation, governance and financing), while key areas for businesses — notably taxation, social security and labour law — remain governed by existing national or EU frameworks.

In this context, some provisions raise points of attention. In particular, linking the rules on employee participation to the Member State of the registered office could, according to some stakeholders, raise questions regarding the consistency of social frameworks and level playing field conditions. Similarly, ongoing discussions on share-based remuneration mechanisms (stock options) call for further clarification, notably as regards their implications for remuneration models.

At this stage, the "28th regime" represents an important development in the European framework, the concrete effects of which will largely depend on the outcome of the legislative negotiations. The construction sector will continue to closely monitor developments in order to assess the extent to which this new instrument can deliver effective simplification, while ensuring a balanced and predictable framework.

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