Henna Virkkunen, Ekaterina Zaharieva and Michael McGrath, Commissioner during a press conference on EU Inc. and the 28th Regime. Brussels, March 2026. (Photo: CE – Service audiovisuel / Bogdan Hoyaux / European Union)
The Commission of the Bishops’ Conferences of the European Union (COMECE) has published today, Wednesday, 22 July 2026, a Position Paper on the proposed “EU Inc.” and the 28th Regime for a European corporate legal framework, currently under discussion in the Council of the European Union. COMECE welcomes efforts to strengthen the European Single Market while calling for robust social and governance safeguards. Download the Position Paper
The proposal for a 28th Regime for a European corporate legal framework has gained growing attention in the EU policy debate following the publication of the Enrico Letta Report on the future of the Single Market and the Mario Draghi Report on the future of European competitiveness. Both reports, published in 2024, highlighted the need to reduce fragmentation within the Single Market and create a more supportive environment for businesses operating across borders.
Through its Position Paper, COMECE supports efforts to remove unnecessary barriers for businesses operating across borders and to promote innovation, entrepreneurship and long-term investment. At the same time, the COMECE Secretariat underlines that simplification must not weaken the European social model or undermine the protection of workers, responsible corporate governance or the common good.
Drawing on Catholic social teaching, COMECE recalls that a company is a community of persons, not merely a collection of capital. It therefore supports an optional 28th Regime “if accompanied by effective social, governance and anti-abuse safeguards.” The Position Paper also highlights steward ownership as “an important additional option for founders seeking to protect the long-term mission and independence of their companies.”
The Position Paper contains a number of recommendations, including:
• Protect existing labour and social rights.
• Recognise steward ownership with strong legal safeguards.
• Prevent regime shopping and regulatory arbitrage.
• Preserve employee participation rights.
• Support employee ownership without replacing fair pay or social protection.
• Strengthen measures against fraud, tax avoidance and letterbox companies.
• Ensure transparency and accountability for stewards.
• Recognise diverse responsible business models.
• Respect subsidiarity and national social traditions.
• Regularly assess the regime’s social and economic impact.
The COMECE Secretariat concludes that the proposed 28th Regime should be judged not only by its ability to facilitate the establishment of new business and their investment, but also by the quality of the jobs it supports, its contribution to society and its respect for the European social model.
According to COMECE, “Europe’s competitiveness and Europe’s social model should not be regarded as competing objectives. A truly competitive European economy is one in which innovation, entrepreneurship and investment are placed at the service of human dignity, dignified work and the common good.”
