If you want start-ups, then help them: Minister Herbert puts demands on the table in Brussels

Dutch Minister of Economic Affairs Heleen Herbert is advocating for a significant overhaul of European Union state aid regulations during meetings in Brussels. Currently, strict EU rules classify many promising start-ups as struggling enterprises because they rely on external funding rather than traditional equity. This classification prevents governments from providing essential subsidies to these emerging companies. Herbert argues that these restrictive measures hinder innovation and weaken Europe's competitive position compared to global rivals from the United States and China.

Support for this initiative is growing, with ten other member states, including Germany, France, and Italy, joining the Netherlands in calling for change. The group is urging the European Commission to modernize definitions of equity to include subordinated loans, which are common financial tools for start-ups. Although previous attempts to reform these rules were proposed, Herbert believes they were insufficient. She is now engaging directly with EU Commissioner Ribera to push for meaningful adjustments that would allow member states to better support local innovation and foster future European corporate leaders.