A joint declaration by the European institutions (the European Parliament, the Council of the European Union, and the European Commission) outlines the EU's legislative framework program for 2026, focusing on security, competitiveness and regulatory simplification. For businesses, this means a potential upcoming change in the regulatory environment that will require active legal risk management, but at the same time opens up new opportunities within the single market.
Central to this is the move towards better regulation, including through the “omnibus” legislative packages being prepared to simplify regulatory regimes and reduce the administrative burden in sectors such as digitalization, environment and the automotive industry. Although these measures aim to facilitate implementation and reduce compliance costs, they will require companies to carefully monitor and adapt to new or amended regulatory regimes.
A particularly significant opportunity for innovative companies and the start-up ecosystem is the proposal for the so-called "28th regime for innovative companies". It envisages the creation of a new European company legal form that would allow cross-border activity based on a single set of regulatory rules, without the need for multiple national registrations. The regime aims to address key legal barriers to the development of innovation-driven startups, such as differences in national rules on insolvency, labor relations and tax treatment (i.e., the creation of a "European startup"). If adopted, the 28th regime could significantly influence the choice of legal structure, growth strategy, and access to financing, including venture capital and cross-border investment.
At the same time, progress is expected on other key initiatives of direct relevance to businesses, including the Savings and Investment Union, the Automotive Package, and the Critical Medicines Act, as well as an increased legislative focus on European defense, including joint development and procurement.
In summary, the legislative priorities for 2026 outline a more integrated but also more dynamic legal environment in which timely legal analysis and strategic planning will be key to minimizing regulatory risk and effectively utilizing the opportunities that the EU offers to businesses.
This material has been prepared for and is part of a legal information bulletin prepared by the law firm Penkov, Markov & Partners. The publications in it do not constitute legal advice and are not binding. Penkov, Markov & Partners reserves all rights to this material, and any distribution thereof is subject to the prior written consent of the law firm.
