14 Million EU Citizens Gain New Job-Seeker Rights as Continent Advances Company Law Overhaul
Published on 07/08/2026 at 04:41 | Redaktion boerse-global.de
The European Parliament approved a sweeping set of labor-mobility measures on July 7, 2026, that will give an estimated 14 million EU citizens more freedom to seek work across borders. Under the new rules, workers will be able to transfer their unemployment benefits to another member state for at least six months, while short business trips of up to three consecutive days will no longer require an A1 certificate—except in the construction sector. For cross-border commuters, the country of the last workplace will now handle benefit payments.
The reforms, which still need formal confirmation by member states, landed the same day the German cabinet passed its own national package. Berlin extended the maximum period for fixed-term contracts without a material reason to 48 months and, starting in early 2027, plans to weaken dismissal protection for employees earning more than €177,450 in gross annual salary.
These changes are unfolding alongside a far more ambitious European project: the creation of a new corporate structure called the EU Inc. Designed as a “28th regime” that runs parallel to national company forms, the EU Inc. would allow businesses to incorporate fully online within 48 hours without a notary, at a maximum cost of €100 and with no minimum capital requirement. Founders could choose any registered seat inside the union, regardless of where they actually operate.
Unions and legal experts have pushed back hard. The German Confederation of Trade Unions (DGB) and the European Trade Union Institute (ETUI) warn that companies could use the EU Inc. to bypass co-determination rights. The Hans Böckler Foundation notes that roughly 400 firms employing about 2.4 million people already sidestep German codetermination using vehicles like the European Company (SE). The German Federal Bar Association (BRAK) flagged a 30-day objection period in insolvency cases as too short, criticized a simplified three-month liquidation process, and argued that identity checks during digital incorporation are insufficient.
Start-ups see the opposite. A Bitkom survey of more than 100 founders found that 62 percent would register their next venture as an EU Inc. The main draws: easier expansion across the bloc without subsidiaries (94 percent cited this), a fully digital setup (91 percent), and the ability to transfer shares without a notary (82 percent).
Parliamentarians are trying to build in safeguards. Amendments proposed by JURI rapporteur René Repasi at the end of June 2026 would tie employee participation rights to the place where most staff actually work, if that jurisdiction offers stronger protections. Lawmakers also recommend excluding the construction, transport, and hospitality sectors from the EU Inc. to curb social fraud, and restricting the use of stock options as a substitute for regular wages.
A committee vote is expected in September 2026, with the new company form slated to take effect in 2027.
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