Europe, Tech and War

On 29 January 2025, the European Commission adopted its Competitiveness Compass. Following our recommendations, it proposes to address the cost of failure stemming from labor laws.

"Closing the innovation gap: [...] A dedicated EU Start-up and Scale-up Strategy will address the obstacles that are preventing new companies from emerging and scaling up. A proposal for a 28th legal regime will simplify applicable rules, including relevant aspects of corporate law, insolvency, labour and tax law, and reduce the costs of failure."

(https://ec.europa.eu/commission/presscorner/detail/en/ip_25_339)

"These two factors reinforce each other: lower growth prospects for EU start-ups and higher costs of failure weaken their attractiveness in the eyes of investors. [...]

The Commission will thus propose a 28th legal regime, which will simplify applicable rules and reduce the cost of failure, including any relevant aspects of corporate law, insolvency, labour and tax law."

(https://commission.europa.eu/document/download/10017eb1-4722-4333-add2-e0ed18105a34_en, page 4)