A recurring concern in the EU Inc. debate: could the new form be used to escape German codetermination?

One Market, One Law considers that it should not, and that the regulation can prevent it. Employee participation should remain governed by national law and be linked to actual employment rather than to the registered office. An EU Inc. employing more than 500 people in Germany would therefore be subject to German participation rules for its activity there, regardless of its Member State of registration.

Below those thresholds, the EU Inc. confers no advantage: German companies of comparable size are not subject to board-level codetermination either.

This approach preserves codetermination where employees work, while maintaining the mobility the EU Inc. is designed to offer.

Tags: Codetermination EU Inc