EU Aims to Cut Red Tape, Boost Funding to Lure Tech Startups

Officials want to simplify labor and tax laws so startups can launch rapidly in Europe

By Mauro Orru of The WSJ. Excerpts:

"The European Union laid out plans to slash regulation and set up a special fund to attract tech startups as the bloc plays catchup with the U.S. on financing and innovation.

The European Commission, the EU’s executive arm, said regulatory fragmentation across the EU’s 27 countries and inadequate financing were holding back growth for startups. Officials now hope to lower the administrative burden and launch a new fund to make it easier for startups to set up shop in the EU.

Under the plans, the commission will seek to simplify rules, including on labor and tax law, so that startups can launch rapidly in Europe, ideally within 48 hours. Officials also plan to work with private investors to launch a new fund. The so-called Scaleup Europe Fund, privately managed and co-financed, will be part of the existing European Innovation Council Fund."

[they want to] "narrow the financing and innovation gap with the U.S."

"startups in the bloc have roughly seven times less capital available to grow than in the U.S. Speed is another factor holding back growth"

"the EU can be “very slow” in granting approvals."

[the EU plans to] "remove those barriers that hold back entrepreneurs."