The European Commission has presented a new strategy aimed at strengthening tech startups and scaleups, and positioning the European Union as a global hub for innovation-driven companies. The strategy, titled “Choose Europe to Start and Scale,” outlines a comprehensive framework to make Europe more attractive for founding and growing technology companies.

Key components of the plan include the creation of a single regulatory regime for startups, reducing administrative burdens, unlocking more private-sector funding, supporting market integration, and linking academic ecosystems with entrepreneurial activity. The European Commission will monitor implementation and publish a progress report by the end of 2027.

The strategy builds on the EU's ongoing efforts to attract and retain tech talent, drive innovation, foster sustainable growth, create quality jobs, and reduce strategic dependencies. It identifies five key action areas:

1. Creating an Innovation-Friendly Environment

   • Proposes a streamlined "28th regime" for startups, beyond the existing 27 national systems.

   • Introduces the European Business Wallet to simplify digital interaction with public administrations across the EU.

2. Improving Access to Funding

   • Calls for a more integrated EU venture capital market and greater participation by institutional investors.

   • Plans to expand and simplify the European Innovation Council, launch a Scaleup Europe Fund, and establish a voluntary EU Innovation Investment Pact to mobilize institutional capital.

3. Strengthening Market Integration

   • Launches the Lab to Unicorn initiative to link European Startup and Scaleup Hubs with university ecosystems.

   • Establishes shared frameworks for licensing, IP rights, revenue sharing, and equity participation for academic institutions and researchers.

4. Attracting and Retaining Top Talent

   • Introduces the Blue Carpet initiative, focusing on entrepreneurial education, stock option taxation, and cross-border employment.

   • Promotes the Blue Card directive and encourages fast-track procedures for talent mobility across member states.

5. Improving Infrastructure Access

   • Aims to simplify and harmonize access to research and tech infrastructures, as well as unify contracting terms for startups and scaleups across the EU.

The Commission stresses that despite Europe's innovation potential, many startups still struggle to scale or commercialize their ideas across EU markets. The new strategy seeks to address these bottlenecks and enhance Europe's competitiveness in the global tech ecosystem.