EU-Inc pushes for unified ESOP to boost startup talent retention across Europe

In June 2025, the grassroots initiative EU-Inc introduced a proposal calling for the creation of a unified Employee Stock Option Plan (EU-ESOP) as part of its broader effort to establish a pan-European startup framework. The aim is to simplify and harmonise how stock options are granted and taxed across all EU Member States.

Currently, startups face 27 fragmented national rules, making it legally complex and financially burdensome to offer equity to employees. The EU-ESOP seeks to change this by introducing standardised rules and deferring taxation until a liquidity event, creating a more transparent and startup-friendly system.

By reducing red tape and legal uncertainty, the EU-ESOP would make it easier for European startups to attract and retain top talent, a critical component for global competitiveness. The proposal has already gained strong backing from leading tech founders, investors, and startup associations across the EU.

If included in the European Commission’s 2025 Work Programme, the EU-ESOP could mark a major step forward in strengthening Europe’s innovation economy.