On 15 July, the European Economic and Social Committee (EESC) adopted its opinion on the European Commission’s EU Inc. initiative during its plenary session. The initiative aims to establish a new European legal framework for innovative companies, start-ups and scale-ups. In its opinion, the EESC stresses that Europe’s competitiveness should be strengthened not only by reducing administrative burdens and creating a more business-friendly environment, but also by promoting responsible corporate governance, transparency and social dialogue.
During the plenary debate, Jurga Subačiūtė-Žemaitienė, an EESC member representing the Lithuanian Trade Union Confederation (LPSK) and Vice-President of the Lithuanian Industrial Trade Union Federation (LPPSF), highlighted that Lithuania is currently one of Europe’s fastest-growing innovation ecosystems. She welcomed initiatives that support the creation and growth of innovative businesses but emphasised that long-term success will depend on more than regulatory simplification alone.
“Competitiveness must be built by investing in people – their skills, lifelong learning, safe working conditions and social dialogue. These investments are the foundation of sustainable productivity growth and Europe’s long-term competitiveness,” stressed Ms Subačiūtė-Žemaitienė.
In its adopted opinion, the EESC supports the objective of creating a more coherent and attractive environment for establishing and expanding businesses across the European Union. The Committee notes that such a framework could strengthen European capital markets, improve access to investment and reduce incentives for promising European companies to seek growth opportunities outside the EU.
At the same time, the opinion underlines that the new framework must be based on a clear legal foundation and include proportionate safeguards to ensure legal certainty, market transparency and trust.
The EESC places particular emphasis on ensuring that the EU Inc. framework cannot be used to circumvent EU or national labour law, including workers’ rights to information, consultation and participation in company governance. The opinion also calls for effective safeguards against shell companies, fraud, money laundering and other forms of abuse.
The Committee also supports the wider use of employee stock options as an additional incentive in innovative companies. However, it clearly states that stock options must never replace wages or social protection guaranteed by law or collective agreements. Employees should also receive clear information about both the opportunities and the risks associated with stock option schemes.
According to Ms Subačiūtė-Žemaitienė, this balanced approach is precisely why she supported the EESC opinion.
“Europe must help innovative companies grow. However, long-term competitiveness can only be achieved if innovation goes hand in hand with quality jobs, social dialogue and a level playing field for all businesses,” she said.
The adopted EESC opinion will contribute to the ongoing discussions within the European Commission and other EU institutions as work continues on the future legal framework for EU Inc.