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Good morning. EU capitals have voiced alarm about Donald Trump’s plan to meet Vladimir Putin in Budapest, which would put Hungary in breach of its international obligations as Putin is wanted for war crimes by the International Criminal Court. “We’re all grinning through our teeth whilst saying this is fine,” said one EU diplomat.
Today, our economy correspondent reports on the EU’s upcoming efforts to make life easier for businesses operating across the bloc. And our climate correspondent hears about Dutch proposals to boost recycling.
One regime to rule them all
Brussels is planning to launch a “28th regime” next year to let companies operate and raise funds across EU member states by complying with one set of rules rather than 27 different ones. But the question is how ambitious will it be, writes Paola Tamma.
Context: The European Commission will today unveil its work programme for next year. One of the most awaited initiatives is the regime, which would “simplify rules” and tackle “critical aspects in areas like insolvency, labour and tax law,” according to the commission.
A proposal on the 28th regime is expected at the beginning of the year, according to a draft of the work programme seen by the Financial Times.
EU Inc, a grassroots campaign, has already been lobbying the commission for “one standard legal entity for all of Europe”, said Andreas Klinger, one of its initiators.
Klinger said that it was “extremely hard” to fundraise in Europe due to fragmented legal systems. As a result, only 18 per cent of early-stage investment is pan-European. “You need continental scale . . . otherwise Dutch founders compete alone against China, Lithuanian founders compete against the USA,” said Klinger.
A common legal entity could also help businesses expand across the EU and cut back bureaucracy. “If set up properly, EU Inc could be a platform for that,” Klinger said.
The key debate is whether to go narrow but deep, or broad but shallow.
The narrow option would offer a full legal regime across the EU, including tax, labour and governance rules — but only for specific firms Brussels deems “innovative”.
The other, broader option would be open to all companies, but limited to EU-wide incorporation, keeping the other rules national.
Trade unions oppose the narrow option, arguing that it would erode labour rights.
Klinger also backs the broader option, arguing that innovation is difficult to categorise. “Who is Brussels to judge what’s a good business?” he said.
EU leaders seem to indicate that’s their preferred option too. Earlier this year, they called on Brussels to “propose an optional 28th company law regime.”
But the real challenge isn’t political compromise — “it’s building something the market will actually use,” said Klinger.
Chart du jour: Sick man
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Since taking office German Chancellor Friedrich Merz has projected a newfound German assertiveness. But with the economy still mired in its longest period of stagnation since the second world war, he is facing an impatient and sceptical nation.
Reduce, reuse, recycle
Ahead of a meeting of EU environment ministers today, the Dutch government has laid out ideas for cutting the prices of materials in the EU by promoting more circular use, writes Alice Hancock.
Context: The EU relies on its trading partners for much of its natural resources and energy. The European Commission is due to present a circular economy act early next year in an effort to promote recycling and reuse of materials.
The Netherlands has some ideas on how to lower prices of raw materials by making better use of what’s already in the EU. In a document seen by the FT, it asked the commission to lay out rules to force companies to be as efficient as possible when making products, set targets for recycled or bio-based materials and restrict landfill.
It also said Brussels should focus on making sure that electronic waste was put to better use, with member states all adhering to the same rules.
“Everyone has old phones or batteries at home, so let’s make use of the materials they contain. This will make our economy cleaner and stronger while reducing our dependence on other countries,” said Thierry Aartsen, Dutch state secretary of transport and the environment.
The EU should also reduce the incentive for customers to buy new by “restricting advertising that encourages consumption, limiting the number of collections per year, and reducing the number of sales periods,” the paper said.
What to watch today
European Commission presents its 2026 working programme to the European parliament in Strasbourg.
EU environment ministers meet in Luxembourg.
EU general affairs ministers meet in Luxembourg.
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