The implementation of a European Code of Business law (www.codeeuropeendesaffaires.eu) is one of the key recommendations of the report “Much more than a market” authored by Enrico Letta, President of the Jacques Delors Institute and former Italian Prime Minister, to strengthen the European single market.
It is a promising development that the newly re-elected President of the European Commission, Ms. Ursula von der Leyen, has included Mr. Letta‘s report suggestions in her roadmap, in the section called “Facilitating business activity”. She has further expanded on these suggestions by introducing the concept of codification:
“On this basis, we will make proposals to simplify, consolidate and codify legislation to eliminate any overlaps and contradictions while maintaining high standards. We will also address the patchwork of national regulations that makes doing business in different EU countries more complicated. We will make it easier for innovators to succeed by reducing the cost of failure. To support this, I will propose a new EU-wide legal status to help innovative companies grow. This will take the form of a so-called “28th regime” to allow companies to benefit from a simpler, harmonized set of rules in certain areas”.
(Political guidelines | Ursula von der Leyen – Candidate for the European Commission President, p. 7).
With the scientific support of the Henri Capitant Association, and the support of numerous European foundations (in France, the Foundation for Continental Law, the Robert Schuman Foundation, and EuropaNova), the objective of the European Business Code project is to address, whenever feasible, the fragmentation of European commercial legislations. This fragmentation hinders the ability of small and medium-sized enterprises to thrive within the internal European market, thus affecting the economic competitiveness of the Union.
In his report, Enrico Letta demonstrates that it is possible to make useful progress within the framework of a 28th optional regime with the creation of instruments such as a unique status for European SMEs (the Simplified European Company), the euro bond, euro guarantee, euro security, the European loan contract, and the European insurance contract…
These tools are essential for any business willing to take full advantage of the European single market. They will also promote the realization of the Savings and Investments Union (capital markets union), which will enable innovative European companies to secure the necessary financing within Europe, instead of having to relocate to the currently more competitive American market.