Updated Recommendation on Business Transfer is out

On 23 June, the European Commission published a new Recommendation on business transfer, building on the 1994 Recommendation.

The updated Recommendation comes at a pivotal moment. The EU is undergoing a major demographic shift, with a growing number of small business owners approaching retirement without a successor. Combined with challenging economic conditions, this puts up to 150,000 businesses at risk of failed transfers each year. Business transfers, whether within families, to employees or to external buyers, are key to ensuring business continuity and renewal across Europe.

In April 2025, together with six other business organisations, Cooperatives Europe published a joint paper calling for strategic EU action to support business transfers. We are pleased to see that the updated Recommendation reflects many of our key proposals, including a stronger focus on awareness raising, legal measures, tax incentives and easier access to financial support.

We particularly welcome the recognition of business transfers in all their forms, including those carried out through the cooperative model. The updated Recommendation also encourages Member States to provide adequate and accessible procedures to facilitate changes from one legal form to another as part of a business transfer, as is often the case in workers’ buyouts. It also calls on Member States to consider dedicated financial instruments for cooperatives and worker buyouts.

As discussions on the next Multiannual Financial Framework move forward, we urge Member States and the Council of the EU to ensure that support for business transfers is fully integrated into the future European Competitiveness Fund.

Find our previous position on business transfers here

Find the EU Recommendation here