Vulcan View: The latest EU developments 26 May – 30 May

European Commission unveils new EU Startup and Scaleup Strategy

On Wednesday, 28 May, the European Commission launched an EU Startup and Scaleup Strategy to “make Europe a great place for starting and growing global technology-driven companies.” Startups and scaleups drive competitiveness by sparking innovation and sustainable growth, creating high-quality jobs, attracting investment, and reducing strategic dependencies.

The initiative focuses on the science component, promoted by European Commission President Ursula von der Leyen, to promote a unified European approach to attract and retain talent, thereby enhancing Europe’s competitiveness.

The key needs of startups and scaleups were identified and organised into a set of actions in five main areas:

• Fostering an innovation-friendly environment: The initiative aims to have less fragmentation, fewer administrative burdens, as well as rules that are simpler and more supportive across the Single Market. A European 28th regime will be proposed to simplify rules and reduce the cost of failure by addressing critical aspects in areas like insolvency, labour, and tax law.
• Driving better financing: The Savings and Investments Union initiative will be key to unlocking more financing and investment opportunities in the EU. The strategy aims to expand and simplify the European Innovation Council, deploy a Scaleup Europe Fund to help bridge the financing gap of deep tech scale-up companies, and also develop a voluntary European Innovation Investment Pact.
• Supporting market uptake and expansion: The strategy will introduce a Lab to unicorn initiative which will help connect university ecosystems across the EU.
• Attracting and retaining top talent: The strategy will introduce the Blue Carpet Initiative, notably focusing on entrepreneurial education, tax-related aspects of employee stock options, and cross-border employment.
• Facilitating access to infrastructure, networks, and service: The strategy proposes to simplify and harmonise diverging access and contractual conditions for startups and scaleups to technology and research infrastructure through a Charter of Access for industrial users.

The EU Startup and Scaleup Strategy signals a push to make Europe globally competitive in innovation. By reducing fragmentation, increasing financing, and improving talent retention, this strategy tackles key barriers. Its success will rely on effective implementation and aligning national interests to strengthen Europe’s startups and scaleups.

Ireland faces EU penalties as emissions targets slip further out of reach

Ireland is on track to miss its national emission reduction target of 51 per cent by 2030. According to projections from the Environmental Protection Agency, the country is expected to achieve a 23 per cent reduction, falling short of the state’s ambitious target. This marks a notable deterioration compared to 2024 when a 29 per cent reduction was projected by the end of the decade.

The carbon budgets set by the Government in 2021 to reduce emissions are now unlikely to be achieved. Consequently, Ireland faces an increased risk of incurring non-compliance costs from the EU, likely through the purchase of carbon credits from other Member States.

Total emissions from land use are projected to increase by up to 95 per cent. This can be attributed to challenges in the forestry sector. High rates of harvesting combined with low replanting rates are major contributing factors, resulting in land remaining a significant source of emissions rather than serving as a carbon sink. Furthermore, agriculture alone accounts for more than one-third of national emissions, with limited reductions to date.

Given the risk of substantial fines that would ultimately impact public finances, alongside missed emissions targets across all major sectors, it is crucial that Ireland significantly accelerates renewable energy production. The country continues to face delays in connecting renewable energy projects to the grid, due to planning constraints and regulatory hurdles which in turn affects investment opportunities.

On 27 May, Energy Minister Darragh O’Brien announced €13 billion in funding to enhance grid capacity over the next five years. Speaking at the Wind Energy Ireland conference, Minister O’Brien acknowledged the need to develop strong infrastructure and expand the country’s renewable energy capacity. He accepted that Ireland has “lagged behind Europe”in renewable energy development, pledging to focus on delivery and investment over the next five years.

European Commission presents its ambitous new Single Market Strategy

On 21 May, European Commission Executive Vice-President for Prosperity and Industrial Strategy Stéphane Séjourné unveiled the new Single Market Strategy, a comprehensive plan designed to simplify trade, foster growth for businesses, and strengthen Europe’s economic backbone. This initiative seeks to reinforce the EU’s internal market by simplifying regulatory frameworks, eliminating key trade barriers, and enhancing the competitiveness of European businesses. Moreover, the initiative outlines the Commission’s plans to streamline the rules for establishing companies, reduce inconsistent national regulations for services, and facilitate the posting of workers.

Mr. Séjourné presented the initiative as a two-part strategy: a political roadmap aimed at eliminating major internal market barriers and a legislative package designed to assist mid-sized companies by reducing bureaucratic obstacles. The Commission Vice-President described this package as the EU’s most significant economic initiative in years.

A political Roadmap 

Rather than proposing new legislation, the Commission’s Single Market Strategy presents a roadmap aimed at addressing ten of the most significant barriers hindering European businesses. The identified obstacles include fragmented packaging standards, differing rules on professional qualifications, cumbersome processes for posted workers, and delays in implementing common European standards. The Commission’s goal is to encourage Member States to work together to eliminate these barriers.

Fourth Omnibus package 

Alongside the strategy, the Commission introduced the Fourth Simplification Omnibus, amending eight pieces of EU legislation to reduce compliance burdens. At its heart is the creation of a new “small mid-cap” category, covering firms with between 250 and 750 employees and up to €150 million in turnover or €129 million in assets.

These companies—roughly 38,000 across Europe—will now benefit from partial exemptions under key EU laws, including the General Data Protection Regulation (GDPR), the Markets in Financial Instruments Directive, and the Batteries Regulation. Smaller companies with under 250 staff already enjoy exemptions from these rules, but growing firms previously faced what Séjourné called the “brutality” of sudden compliance thresholds.

Conclusion

The success of the Commission’s new strategy will ultimately depend on Member States’ willingness to follow through. While the roadmap and legislative package offer a clear direction for boosting competitiveness and reducing burdens on businesses, implementation will require coordinated national action. If effectively carried out, the strategy could mark a turning point for the Single Market—transforming it into a more integrated, resilient, and business-friendly space at the heart of the European economy.

Compliments of Vulcan Consulting – a member of the EACCNY