A 28th Regime to support businesses: Three design choices that will make or break it

The European Union’s proposed 28th Regime seeks to address one of the most persistent obstacles to the development of the internal market: the fragmentation of national legal systems governing business activity. While the initiative has gained significant political momentum through the reports of Enrico Letta and Mario Draghi and the subsequent proposals of the European Commission and the European Parliament, its success will ultimately depend on a number of fundamental design choices. This article argues that the effectiveness of the 28th Regime requires, first, the creation of a genuinely autonomous and uniform European legal framework rather than a mere label attached to national company laws. Secondly, access to the regime should not be confined to a narrowly defined category of “innovative companies”, as restrictive eligibility criteria would risk generating additional regulatory burdens and limiting its practical impact. Thirdly, the new framework must deliver tangible benefits in terms of financing, governance flexibility, cross-border scalability, and reduction of transaction costs. Building on the broader debate on European business law harmonisation and codification, the article contends that the 28th Regime will succeed only if it offers businesses a simple, efficient, and truly European legal environment capable of fostering innovation, competitiveness, and growth across the Union.