Regime 0 (Bruegel):
Europe-wide incorporation for startups


Regime 0 is a proposal for an optional EU corporate regime designed for innovative, high-growth-potential startups that need to scale across borders early.

Bruegel calls it “Regime 0” (instead of “28th regime”) to avoid the label becoming confusing as the EU expands.

The core idea (in plain language)

If you qualify, you could:

  • incorporate swiftly under a standardised framework,

  • get cross-border recognition across the EU,

  • use a one-stop digital registry concept (“Hub0”) for incorporation + templates,

  • reduce friction for fundraising, equity incentives, and early scaling decisions.

Importantly, Regime 0 does not aim to harmonise general labour and tax rules across member states.

What’s strong (why it’s compelling)

  • Speed + clarity: standard documents and a digital one-stop workflow reduce startup admin drag.

  • Cross-border credibility: a single recognisable regime could reduce investor/legal friction.

  • Equity incentives: pushes for a principle many founders want — avoid “tax at grant/exercise” dynamics and make equity usable.

  • Realistic politics (arguable): tries to limit harmonisation to avoid dead-on-arrival scope fights.


What’s contested (where debate will concentrate)

  • Who gets in: any “innovation/growth” gate can become bureaucratic or biased (false negatives vs false positives).

  • Labour/co-determination concerns: critics worry about regulatory arbitrage; proponents argue the regime can be designed to avoid it.

  • Tax complexity remains: keeping tax national preserves sovereignty, but startups still face patchwork compliance.

  • Courts & enforcement: specialised fast-track structures sound good; implementation details are hard.

  • Acquisition/competition handling: some design choices may trigger strong stakeholder reactions.


Who wrote it

  • Authors: Fiona M. Scott Morton & Reinhilde Veugelers (Bruegel)

  • Published: 10 December 2025


Next step: If you want the broader landscape, go to the comparison.


Bruegel Regime 0 page:
https://www.bruegel.org/policy-brief/regime-0-europe-wide-in...

Bruegel Regime 0 PDF:
https://www.bruegel.org/sites/default/files/2025-12/PB%2033%...

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