The 28th regime

Although it is a long-standing concept, the 28th regime was emphasised by Enrico Letta's report in 2024 as a major recommendation to reinforce the single market and remove internal barriers. The International Monetary Fund estimates that the persistent barriers to the EU single market still represented the equivalent of a 110 % tariff on services. The 28th regime, which has yet to be defined, would possibly be a specific legal framework that would govern various aspects of businesses that opt into the scheme from 'birth to death', such as establishment, organisation, operations, and disputes. The Commission made the 28th regime a key element of its competitiveness compass, under the 'necessity' of closing the innovation gap; the legislative proposal is scheduled for the first quarter of 2026. The start-up and scale-up strategy published in June 2025 will encompass the 28th regime, which will be aimed at young and small innovative companies. The scope would thus be narrowed substantially compared with Letta's recommendations. The European Parliament is currently engaged in preparatory work on the 28th regime.