European Investment Bank (EIB) President Nadia Calviño has called on the European Commission to adopt an ambitious version of the so-called “28th regime” to make it easier for startups to raise capital and operate across the European Union.
Speaking on the sidelines of the IMF and World Bank meetings in Washington on 16 October, she said the Commission’s forthcoming proposal should simplify financial, legal and tax rules so innovative companies can scale within the bloc rather than look elsewhere.
The 28th regime is conceived as an optional EU-wide framework that firms could choose alongside national systems. By providing a single set of company-law and related rules, it aims to reduce friction for cross-border fundraising, hiring and expansion. Commission officials are expected to table the plan in January. Calviño said she hoped the proposal would be “bold,” framing the reform as part of a broader push to improve Europe’s investment environment and narrow the performance gap with the United States.
Calviño placed capital-market integration at the top of the policy agenda, arguing that Europe needs a genuinely integrated market to channel savings into high-growth sectors. The EIB president also voiced support for establishing a single EU-level financial supervisor—long discussed but never realised—saying it would be an “important step” to reduce fragmentation and improve oversight.
The 28th regime has gained traction since former Italian prime minister Enrico Letta proposed it in his 2024 review of the Single Market, which argued for a European code of business law as a voluntary, harmonised framework. Subsequent analyses by think-tanks and the European Parliament have explored how a common regime could coexist with national systems while tackling obstacles that deter cross-border activity. Backers contend that an optional EU regime could advance integration without requiring immediate, full harmonisation across 27 legal orders.
Political hurdles remain considerable. Any legislative proposal will need the approval of member states and the European Parliament. Several governments have historically resisted ceding powers in insolvency, labour or tax-related areas, and progress on capital markets union has been uneven since its launch in 2015. Letta has warned that persistent fragmentation leaves Europe at a competitive disadvantage in global finance and technology.
Calviño linked the startup agenda to the EIB’s evolving lending priorities. Following EU governments’ decision this year to lift the bank’s annual lending capacity to €100 billion, the EIB has increased support for sectors seen as strategically significant, including defence-related supply chains where direct weapons financing remains excluded under its policies. In 2025, the EIB allocated 3.5% of its €100 billion lending volume to defence and security—triple the previous year—with the share expected to rise further in 2026. The bank has also streamlined approvals for security and defence projects to shorten decision times.
EIB management argues that stronger capital markets are necessary to keep high-growth firms in Europe, complementing public-bank financing and EU programmes. Calviño said Europe needs “successful innovators to grow and stay in Europe” and to finance investments that maintain leadership in key technologies. The EIB Group, which includes the European Investment Fund, continues to back venture capital and growth-equity vehicles alongside infrastructure and climate projects.
The Commission has trailed the 28th regime as part of a broader effort to simplify the business environment and improve listings, insolvency coordination and access to risk capital. President Ursula von der Leyen signalled earlier this month that a single set of rules for startups would be brought forward next year to reduce barriers created by 27 different national frameworks. Industry groups have urged complementary measures, including modernised public procurement, lighter reporting burdens and simplified cross-border employment rules.
For proponents, the test will be whether an EU-level regime can meaningfully cut time and cost for company formation, fundraising and expansion while protecting investors and workers. A credible supervisory architecture, potentially centred on a single EU supervisor, would be central to building trust across jurisdictions. For sceptics, the risk is creating a parallel system that adds complexity or erodes national prerogatives without delivering the hoped-for scale effects. The negotiations now expected to begin after the Commission’s January proposal will indicate how far member states and lawmakers are prepared to move.
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