France, March 19 -- The proposal - dubbed "EU Inc" - was presented by the European Commission on Wednesday as a practical step towards strengthening Europe's economic position at a time when it risks falling further behind the United States and China. By offering companies a single, streamlined set of corporate rules, Brussels hopes to encourage firms to scale up more easily within the single market.

EU justice commissioner Michael McGrath said the scheme had a clear purpose: to reduce fragmentation and allow businesses to operate across borders without navigating a patchwork of national systems. The voluntary regime is primarily aimed at innovative companies, particularly startups looking to expand quickly across Europe.

While the idea...