BRUSSELS, Oct 24: EU countries on Friday backed plans for a new scheme to create pan-European firms that Brussels says will make it easier for innovative start-ups to grow, adding boosted protections against any criminal activity.
Dubbed "EU Inc.", the proposal is billed as a key plank in efforts to ramp up the bloc's competitiveness and keep up with the United States and China.
The new system would allow for entrepreneurs to set up a firm within two days fully online from anywhere in the European Union -- doing away with many cross-border bureaucratic headaches.
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EU Inc. companies will require less than 100 euros ($112) to get started and work across the entire EU single market.
EU nations added controls, seeking to give the authorities the right "to refuse to register a company on grounds related to anti-money laundering and countering the financing of terrorism or other criminal activity" in line with national law, Ireland, which holds the rotating EU presidency, said.
The new scheme, known more broadly as the "28th regime", will become law only after member states and the European Parliament negotiate and approve a final text -- something the EU executive hopes to be done by the end of 2026.
The EU parliament is expected next month to agree its position on the proposal.
The EU lawmaker pushing the text through parliament, Rene Repasi, of the socialists and democrats grouping, wants to add more protections for workers.
Repasi has said the new law should strengthen employee participation in company decisions and ensure employees' place of work determines the labour law applied.