Building Businesses and Firms that Build “Made in Europe” Brands

Key Takeaways

• Internal EU barriers equal 96% service tariffs.
• 28th regime would unify corporate rules across Europe.
• Scale shortage hampers AI adoption and productivity.
• Start‑ups often choose Delaware over European incorporation.
• Harmonised market could boost EU’s global brand.

Pulse Analysis

Europe’s Single Market has long promised frictionless trade, yet regulatory patchworks still impose de‑facto tariffs that dwarf external duties. Studies cited by Schnabel estimate internal barriers equivalent to 96% tariffs on services and 67% on goods, stifling cross‑border expansion especially for mid‑size firms. This fragmentation forces companies to duplicate legal and compliance work, inflating costs and discouraging scale—an essential ingredient for turning research breakthroughs into market‑ready products.

The proposed "28th regime" seeks to replace the 27‑nation corporate mosaic with a single, EU‑wide legal framework. By standardising incorporation, reporting, and governance rules, firms could operate across borders without re‑registering in each member state. Such uniformity would lower fixed costs, enable larger customer bases, and accelerate AI adoption in sectors like manufacturing and healthcare. Moreover, a unified capital‑markets infrastructure would deepen financing channels, allowing European start‑ups to stay home rather than seeking Delaware incorporation for speed and investor familiarity.

If implemented, the regime could reshape Europe’s competitive landscape. A true "Made‑in‑Europe" brand would signal to global buyers that products and services benefit from continent‑wide scale, robust institutions, and high social standards. This would enhance the EU’s bargaining power against the United States and China, attract foreign direct investment, and help close the productivity gap that has widened since the early 2000s. Policymakers, investors, and corporate leaders therefore have a shared incentive to push the 28th regime forward, turning the Single Market from a collection of national silos into a single economic engine.