28th Regime – Why are alarm bells ringing?

This article is brought to you in association with the European Economic and Social Committee.

On 21^st of April, the EESC Workers’ Group brought together experts from the ETUC, S&D MEPs, the Spanish government and the European Commission to examine the current push for competitiveness, the Commission’s proposals on the 28^th Regime, also known as EU Inc. proposal and the Quality Jobs Act. 

On the 28^th Regime, participants recognised Europe’s competitiveness challenges, including declining investment and the outflow of talent and start‑ups. However, EESC Workers’ group members expressed concerns on the proposal’s legal basis, limited scope, separation of registered and operational seats and lack of minimum safeguards. They warned that this could enable regulatory arbitrage, letterbox companies and the erosion of workers’ rights. They also cautioned that the proposal sidelines the EU’s social market foundations, weakens checks and balances and risks undermining worker protection without delivering its intended benefits. Completing the single market cannot mean lowering standards but reinforcing the rights and protections at the core of the European social market economy.

Lucie Studničná, Workers’ Group President, said:

“EU Inc. has the potential to allow companies to evade national co-determination rules. Workers’ participation rights would follow the registered seat, not the location where management decisions are taken or where workers are employed. This creates a clear risk of evasion of existing legal protection and obligation.”

On the Quality Jobs Act, speakers highlighted the urgent need for concrete and binding EU legislation to address gaps in worker protection, including psychosocial risks, algorithmic management, subcontracting abuses and the rise of precarious work affecting young people, women and third‑country migrant workers. With geopolitical uncertainty fuelling distrust and populism, they argued that Europe must reaffirm its social model through enforceable standards and meaningful social dialogue.

Participants emphasised that Europe’s investment and innovation deficit will not be solved through deregulation but through tackling structural issues such as volatile energy prices, Chinese competition and demographic decline. A renewed social contract requires stronger investment, fair technological transitions, robust collective bargaining and inclusive labour‑market strategies.