Politis

The EU's 28th Regime for Startups

Published January 19, 2026, 08:21
The EU's 28th Regime for Startups

The European Union is considering the creation of a new institutional framework, the "28th regime", to support startups and enhance the competitiveness of the European market. This regime aims to create a more unified and business-friendly environment for startups operating in more than one member state, reducing administrative and regulatory barriers. The key features of the 28th regime include the electronic establishment of companies, the reduction of administrative documents, and the establishment of a single European corporate identity. The goal is also to reduce the cost and time to start a business, improve access to investment capital, and provide greater flexibility for businesses. The legal form of the regime remains under discussion. The adoption of a regulation would ensure immediate and uniform application in all member states, while a directive would leave greater room for national adaptation, with the risk of divergence. There are concerns about tax competition, investor protection, and fair competition, requiring a careful balance between flexibility and regulatory security. Greece and Cyprus are called upon to position themselves strategically, ensuring that the new framework does not lead to a loss of public revenue or a weakening of national supervision, while also taking advantage of the opportunities offered by market integration to strengthen the innovation ecosystem.

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