The EU Inc. new type of company: Expectations vs. Reality

REALITY CHECK. The new EU Inc. type of company is a great initiative, but you will STILL need to apply all the local, national and regional reporting, taxes and authorisations, including taxes at all levels, employment taxes, GDPR, etc etc etc, and all other regulations that all administrations and the EU will continue to invent and enforce. 

These initiatives are VERY political and sound nice, but the reality is that there are a lot of things yet to be done.

"Today, the European Commission presented its proposal for EU Inc., a new single set of corporate rules, building the cornerstone and starting point for the EU's 28th regime. EU Inc. is an optional, digital-by-default European corporate framework. It will make it easier for businesses to start, operate and grow across the EU – incentivising them to stay in Europe, and encourage those who once looked elsewhere to return." 

The biggest innovation of the EU Inc. initiative is the definition and facilities for innovative startups and scale-ups.

But opening a new company was anyway the easiest thing to do in a lot of countries (with a few exceptions).

Then, the operation of the company remains pretty much the same as today. All the local, regional and national taxes, rules and regulations remain applicable.

AS AN EXAMPLE,

If you are a French citizen, with Romanian fiscal residency, with a personal property in Belgium, and own a company in Bulgaria, with customers in Poland and employees in Greece, you will pay:

* Tax on personal property (and rent) in Belgium.

* Profit tax in Bulgaria (depending on the type of business, also possibly in Poland - depending on local/national regulations and type of service. Most national fiscal authorities tax you depending on where you earned your profit, or effectively operate, not necessarily on the place of incorporation).

* Tax on income from dividends: in Romania.

* VAT in all countries where the company operates, mostly Bulgaria, but maybe also Poland (depending on the delivery location, type of product/service, and type of clients, e.g. if the client is registered for VAT purposes or not)

* Employee and employment taxes in Greece (and most probably also something in Bulgaria).

I am not joking.

EU creates regulations that kill European businesses and innovation, and then makes reports and recommendations to ease the regulations (such as the Draghi report, or all recent declarations of Mme Leyen, or of most politicians).

For instance, one of the biggest barriers for cross-national businesses are the banking and financial regulations, imposed mostly by the EU and ECB. Opening a new bank account for a new business is probably THE MOST DIFFICULT operation in most European countries.

Another barrier to startups is the GDPR. And the AI Act will be hitting us soon.

IN CONCLUSION, these initiatives are VERY political and sound nice, but the reality is that there are a lot of things yet to be done. 

The press release is here.

https://ec.europa.eu/commission/presscorner/detail/en/ip_26_614

Inflation is a proven method to tax the poor and middle-class.

Inflation is an ancient-proven method to tax the poor and middle-class.

Inflation was not invented in 1971, when Richard Nixon formally abandoned the gold standard. The UK had already stopped internal convertibility in 1931, US in 1933.

Gold and silver were theoretically also “convertible” during the hyperinflation of the 3rd-century crisis of the Roman Empire, or in Ptolemaic Egypt. 

The inflation of 16th-century imperial Spain had nothing to do with convertibility. 

Governments have generated inflation both with and without gold and silver.

Of course, it’s remarkable that nobody understands what inflation actually is. 

Inflation is a hidden tax on the entire money supply, including bank deposits.

Plus a reduction of domestic production costs, to increase competitiveness in foreign markets in the short term. 

It’s remarkable what governments do with this. And it’s remarkable that almost no one understands it.

Inflation is a massive, hidden tax.

AI is MAGIC in procurement. Or is it?

AI is MAGIC. Or is it?

At least, that's what everyone seems to believe right now.

✨ I've been building AI into Hermix for years. Using it daily. Testing it across dozens of real procurement scenarios with real companies. And I can tell you: Arthur C. Clarke had it right. Sufficiently advanced technology really is indistinguishable from magic.

The problem is when people stop there.

Because AI is also not magic. And in public procurement, confusing the two is expensive.

✔️ Here's what I've actually seen work. GPT models reading 300-page tender documents and producing structured summaries in minutes. Machine learning cleaning up years of fragmented procurement data across 250,000+ European authorities. AI Chat answering "which experts are required?" or "what's the minimum turnover?" directly from the document, in seconds. GraphRAG and Deep Reasoning handling the complex multi-hop analysis that standard models get wrong. SearchGPT building buyer profiles that would take a junior analyst two days to assemble manually.

This is real. The numbers back it up. 87% reduction in market research time. 75% reduction in tender analysis time. 60% less time writing proposals. Our users at Capgemini, Accenture, Unisys, Fujitsu, and 50+ other companies work this way every day.

❌ But here's what I've also seen fail.

Relying on AI to generating "original" ideas. AI missing cultural, technical or commercial subtext - that changes the entire meaning of evaluation criteria. Non-supervised AI producing output confident enough to submit and wrong enough to lose a bid. These failures are real too. And they happen more often when teams treat AI as a black box rather than a tool that requires judgment and supervision. Then comes disillusionment.

AI in procurement compresses effort dramatically. It does not replace strategic thinking.

The companies winning consistently in public sector are not the ones using the most AI. They are the ones using AI for the right tasks, at the right stages, with human judgment at the decision points that matter.

Finding the right tenders. Understanding buyers before the RFP drops. Qualifying opportunities with real competitive data. Reducing the manual burden of documentation. These are the jobs AI does well.

Deciding whether to bid. Understanding what the buyer actually wants versus what they wrote. Building a differentiated technical approach. These remain human work.

❓ There is also a question worth sitting with. If AI writes the procurement. Writes the proposal. Evaluates the submission. What exactly are we measuring? I don't have a clean answer. But I think it matters that we're asking it.

I've written a longer piece on this. What works, what doesn't, the specific techniques we use at Hermix (GraphRAG, Deep Reasoning, SearchGPT, citation support), and the adoption barriers nobody talks about honestly.

https://hermix.com/ai-is-magic-or-is-it/

AI is magic?

BUBBLE 1. AI is magic, everybody is replaced by AI, software engineers disappear, people don't need to work anymore, we are all gonna have fun, everything is great.

BUBBLE 2. AI is magic, everybody is replaced by AI, creativity is killed by GPT, software engineers disappear, everybody loses their jobs, the stock market crashes, AI will take over the world, the world is doomed. 

MIDDLE GROUND: AI replaces only people who do repetitive boring tasks, and cannot adapt. AI cannot replace human creativity. AI doesn't replace software architects and engineers. Vibe coding is still a myth. We will benefit from AI to improve our lives, society and economy. 

Negativity and opportunities: again

Most people have a negative attitude.

We see problems and risks, rather than opportunities.

And negativity increases with age.

As we get older, our appetite for risk decreases. We become more conservative. We are afraid of change. We see fewer opportunities, as we have more to lose. Loss aversion bias appears. Potential losses seem more important than gains.

And we tend to see only problems, only the negative side of things. “The world is doomed, nothing works, education collapses, things were better in the past, today’s immoral youth, technology is dangerous, AI will destroy humanity.”

Of course, looking for problems is also a pragmatic, engineering mindset. You need to see problems - to start looking for solutions. In fact, every opportunity starts with a problem. Solutions rarely appear before problems (although it happens, and occasionally even disruptive).

I pushed myself for so long to think in terms of opportunities rather than risks, that it became a reflex.

I am conservative by nature, and I had to train my sense of opportunity.

Now I have an allergic reaction when I see fear of technology, fear of new, risk reports that block opportunities.