The question of EU Inc’s legal form has been central to the single-market-boosting project from the beginning. The Commission chose an ambitious but risky pathway for delivering the reform – but Council’s legal experts have advised capitals to take a different route.

Pointing out he only had a month to write the report, Repasi – who’s not only an MEP but a professor of law too – said: “To rewrite the whole thing into a directive within one month is not possible even with my education.”

But the S&D group’s Repasi also stressed that he was ready to work with capitals if they decided to change course and opt for a directive, arguing that the current proposal was “near certain” to face significant legal issues if it were challenged in court.

If in doubt, better laws apply

Separately, on ensuring the project does not negatively impact workers’ rights, Repasi said he’s sticking closely to the ideas Parliament pitched before the Commission put out its official proposal.

A key question for the reform is which countries’ rules apply to co-determination, meaning workers getting a say in running companies above a certain number of employees: Those of the country where an EU Inc is registered or those where an employee works?

Repasi wants EU Inc entities to give their workers a say once they cross the national thresholds of employee numbers in any EU country. If they cross the thresholds in several countries, they would have to give the amount of representation that’d be more favourable to the workers.

In case of problems with deciding exactly which laws apply, Repasi foresees a negotiation procedure that couldn’t result in any lowering of employees’ say.

Repasi also said a German proposal currently being discussed in the Council – requiring EU Inc entities to set up national subsidiaries if they take on enough staff locally to meet the threshold where workers should get a say in companies – is “in principle also good”, though he preferred his own approach.

More soon

Overall, the rapporteur struck an optimistic note about the reform, suggesting all “realistic” issues that might crop up in talks are solvable.

Parliament’s rapporteurs now need to agree a common position on the file, helped by the MEPs having previously worked together on the institution’s own-initiative report.

On the Council side, Ireland is expected to present a first compromise text soon after taking over the rotating presidency on Wednesday.

(nl, aw)