Corporate and legal affairs

At any business decision, EU law plays a critical role that cannot be overlooked. A well-functioning legal framework is vital for creation and scale up of businesses, it fosters business confidence, supports investment, and ensures companies can scale-up and innovate effectively within the Single Market.

It directly impacts important business decision such as mergers and acquisitions or the relocation of a company’s headquarters. At the same time, excessive regulatory complexity can hinder competitiveness, increasing costs and administrative burdens. Striking the right balance is key.

A holistic approach is key

An effective company law and corporate governance framework provides the foundation for business creation (e.g. EU digital company law directives), cross-border expansion (e.g. EU company law package), and responsible corporate governance (e.g. EU due diligence rules). Clear rules on mergers, acquisitions, shareholder rights, and financial reporting (e.g. accounting directive) enable companies to operate efficiently while ensuring transparency for investors and other company stakeholders.

Innovation is a key driver of business growth, and strong intellectual property protection ensures that companies can safeguard their ideas and bring new technologies to the market. A well-functioning intellectual property system encourages investment in research and development, fosters fair competition, and prevents market distortions caused by counterfeiting or unauthorised use of patented products. It also promotes knowledge sharing across the broader economy.

A competitive Single Market benefits from both fair competition and targeted public support. EU competition law should effectively prevent anti-competitive practices that distort markets. At the same time, it should provide a safe framework for cooperation between businesses when justified to create investment. EU’s state aid framework prevents unlawful state interventions, while allowing public funding mechanisms that support key EU objectives such as innovation, green transition, and crisis resilience without distorting market fairness.

Consumer trust is essential for a thriving economy. Well-balanced consumer protection laws help ensure fair business-to-consumer relations while avoiding unnecessary regulatory burdens. Consumer law is one of the most regulated areas of EU law spanning over marketing (e.g. UCPD Directive), contract formation (e.g. UCTD Directive) and dispute resolution (ADR and representative actions directives) among other areas. Simplified and harmonised rules across Member States can reduce market fragmentation and allow businesses to operate seamlessly across the EU.

BusinessEurope actively engages in dialogue with European and international stakeholders through European social and consumer dialogues as well as in global patent discussions. This includes participation in the IP5 and Trilateral frameworks, where it collaborates with the world’s largest patent offices and their business counterparts to shape intellectual property policies and promote innovation.

Practical and effective laws

To strengthen Europe’s competitiveness, EU policymakers must ensure legal and regulatory frameworks are practical, predictable and proportionate and uphold better regulation in principles. A coordinated approach that reduces complexity, supports legal certainty, and fosters innovation will help businesses navigate the Single Market more effectively – allowing them to focus on growth, job creation, and long-term economic resilience.