Hundreds of trade union activists gathered outside the EU institutions in Brussels on Thursday to protest against EU Inc, a planned law designed to make it easier and cheaper to set up and run businesses across Europe. The demonstration, organised by the European Trade Union Confederation (ETUC), highlights growing tensions between the bloc's competitiveness agenda and its social commitments.
The ETUC argues that the proposal threatens worker rights by allowing companies seeking a lighter corporate regime to circumvent national labour laws and social standards. In a press release, the confederation stated: "The text contains no binding requirement to adhere to collective labour rights: no effective safeguards protecting collective bargaining, trade union rights, information and consultation rights, or workers’ participation rights."
The union body also warned that the proposal "is a direct threat to board-level employee representation, and it facilitates corporate restructuring strategies that undermine collective rights." Such concerns resonate particularly in countries like Germany and Sweden, where codetermination—workers sitting on supervisory boards—is a cornerstone of industrial relations.
Digital lifecycle and corporate accountability
Another point of contention is the plan for a "fully digital company lifecycle." The ETUC fears this could disconnect corporate governance from the workplace where employees are based, making it harder for workers to engage with management and hold companies accountable. For example, a firm registered in Tallinn but operating in Lyon might find it easier to bypass French consultation requirements.
The EU Inc proposal is intended to boost Europe's global competitiveness by making it easier for companies to establish themselves and expand across borders. Starting a company and operating across state lines is generally simpler in the US than expanding across the EU's fragmented single market, where businesses can face different national rules and additional administrative costs. Brussels argues that these barriers make it harder for European companies to scale up.
In September, European business leaders urged the European Commission not to dilute the legislation, particularly its proposed "free choice of registered office." This would allow founders to choose where to register their company without having to locate all its operations in the same country. Proponents say this would let startups pick the most favourable legal environment, much like Delaware in the US.
However, unions see this as a race to the bottom. They argue that without binding safeguards, companies could shop for jurisdictions with weaker labour protections, undermining collective bargaining and worker participation across the bloc. The ETUC has called for amendments to include explicit references to fundamental workers' rights and to ensure that digital tools do not erode on-the-ground oversight.
The protest comes amid broader debates about the EU's social dimension. Earlier this year, the bloc faced criticism over its handling of sanctions, as seen in the Usmanov delisting controversy, which raised questions about legal consistency. Meanwhile, the EU has been pushing forward on other regulatory fronts, such as the EU Kids Act to protect minors online, showing that Brussels can act decisively when it prioritises protection.
As the EU Inc proposal moves through the legislative process, the clash between business-friendly simplification and labour rights is likely to intensify. The ETUC has vowed to keep up the pressure, urging MEPs and member states to reject any version that fails to embed social safeguards. For now, the fate of EU Inc—and the balance it strikes between competitiveness and worker protection—remains uncertain.
