The long-awaited EU legislation on the European Company Statute was finally agreed by the Council on 8 October. The Commission considers that this legislation could lead to savings of 30 billion euro for European business.
The European Company Statute (ECS) is one of the key elements in completing the internal market. It will make it possible for a company to be set up within the territory of the EU in the form of a public limited-liability company, with the Latin name “Societas Europaea” (SE).
Under the European Company Statute, a European Company can be set up by the creation of a holding company or a joint subsidiary or by the merger of companies located in at least two Member States or by the conversion of an existing company set up under national law.
To come to their compromise, Member States gave up plans for a common taxation for companies as part of the statute. Decisions on company taxation therefore remain at the Member State level.