EU Social Affairs ministers reach political agreement on the legislation for the European Company Statute
The EU's Social Affairs ministers reached a political agreement on the long-awaited legislation on the European Company Statute. Since 1970, the Union had been trying to reach a compromise on two proposals for a regulation and directive concerning the creation of a European Company Statute.
The proposed legislation enables companies possessing a European dimension, to be set up as one European company in order to facilitate their activities at the European level, while guaranteeing the safeguarding of workers rights. The legal name of these companies will be 'Societas Europaea' or SE. The move is expected to save EU businesses around 30 billion euros per year.
Ministers also agreed on the Directive concerning worker involvement in these European Companies. The European Parliament will be consulted in a second reading on the two proposals. The legislation is due to be formally adopted early 2001 and enter into force in 2004.