While Europe debates regulation, Stockholm funds its digital champions through pension funds thanks to a successful transition to a capitalization retirement system.
And if Sweden was the model to follow in Europe? For over a year, the Commission has been trying to boost European competitiveness by simplifying its rules – known as the “omnibus” series (easing constraints for companies). It has put forward a reform aiming to bring European financial markets closer together and is now presenting the simplified European company – the “EU Inc.” – a unique legal status, flexible, with no minimum capital, inexpensive (less than 100 euros) valid in all member states, meant to free start-ups from the nightmare of the 27 company laws in Europe.
But an essential piece of the puzzle is missing: pension fund money. This is where Sweden’s story is enlightening and inspiring. “Sweden is the only country in Europe where pension funds function like in the United States,” notes Jörg Kukies, co-author with Christian Noyer of a report commissioned by Emmanuel Macron and Friedrich Merz. They presented their conclusions at the German embassy in Paris. Jörg Kukies was the last Finance Minister of the Scholz government after serving as an advisor on economic and European affairs.
Context:
– The article discusses Sweden’s successful transition to a capitalization retirement system and how it funds digital champions through pension funds.
Fact Check:
– The article mentions a reform proposal by the European Commission called the “omnibus” series to simplify rules for businesses in Europe.
