Dear Europe, please wake up

There are multiple EU countries that offer that "pro-business legal framework" which speak english and even offer very low taxes (Ireland Estonia Cyprus Malta Bulgaria etc). The problem is, as soon as they become substantially big , politicians will reign them in, and the "single market" suddenly breaks to 26 pieces.

There are many ideas about how to fix things. What is missing is political will . Politicians find it easier to leech off (european and US) entrepreneurship , in order to "give back" trinkets to their audience. Look at how EU subsidies and grants are given, and how little return europe gets from huge research projects like ERC grants. It's mainly a eu-wide jobs creation program for perpetual academics.

Until you change that thinking, all ideas are not usable

> Here is my Question: Why did we stop with “single market” efforts? Why is there no effort to unify legal entity in Europe?

I'm not sure the author understands what he's asking for.

While having California residency, you can start a Delaware company, open offices in California, pay taxes to the State of California. If the State of California sues your company for unpaid taxes, which court do you end up in? California. If the State of California sues your company for civil rights violations, which court do you end up in? California. The US doesn't have some magical system where just because you register in another state, you can resolve all legal disputes in that state, therefore you're not beholden to the laws and governments of the state you operate in, or that Delaware is legally bound to enforce the laws of the other states and localities you operate in. Indeed you are beholden to said laws and localities. And indeed, complying with 50 different states and all their localities can be so damn complicated that there are entire products built to help you figure out how much sales tax to charge when crossing state lines, as well as how to pay it correctly; not to mention how to offer health insurance to remote employees, since every state has its own insurers.

At the end of the day, sure an "EU Inc", as the author puts it, may help make it easier to close deals. But it does not reduce the operational complication of operating across different localities. The rights of different localities to set their own laws and regulations for those who operate within their jurisdictions is unavoidable. You could have a single Brussels sovereign and a single English legal contract language and this would still be true, because it's already true in the US.

The EU has a "single market", not a "single marketplace". The market is the customers, not the companies, not the banks, not the courts.

The EU does not have an equivalent of US commerce clause jurisprudence (which descends from Hamilton's original economic design to prevent exactly the kinds of problems that this author is complaining about). The EU does have an equivalent to the supremacy clause, but due to cultural and political forces it cannot have the same effect that it has in the US.

Another major factor that makes the US more competitive is our different approach to intellectual property law that favors competition in comparison to the EU equivalents. Another big thing is less the Delaware effect that he attributes US simplicity to and more the existence of uniform model laws that transformed state business law through the 20th century. Then you have the fact that almost all (except parts of trademark) of the relevant IP laws to large scale enterprises are exclusively federal laws. This is not the case in the EU despite all the normalizing treaties. The EU does not and cannot perform the same role that the federal government does.

I have a better proposal: incorporate the European states as self-governing US territories under the supervision of the federal government. They could have some carve-outs and immunities using an administrative structure similar to that of Native American law. This would also resolve the NATO controversies by just absorbing all of the individual ex-EU member state country militaries under the DoD. It would also eliminate a lot of the weird Article V ambiguity by just making it all American territory.

No, they won't be successful, because the US company will offer a better product at a cheaper price. They 'll eventually shut down

> may help make it easier to close deals

This is the biggest factor why most European countries suck at innovation - dealflow is utter garbage in most of Western Europe because there are almost no VCs and most "VCs" are just family offices.

As a Western European founder, it's better to shift to the UK, CH, or US in order to simplify fundraising.

Look at Datadog, Databricks, Spotify, and others.