Netherlands and allies propose loosening 'undertaking in difficulty' rules
Thursday 28th May, 2026
The proposal seeks to change the EU definition of an 'undertaking in difficulty' because current rules block funding for viable start‑ups and scale‑ups by not recognising instruments like subordinated loans as equity or by limiting growth exemptions; Netherlands and seven other EU countries have sent a joint non‑paper to the European Commission and the matter will be discussed by EU economy ministers on 28 May in Brussels, so this is a proposed change, not approved. This matters to Wise because it could affect access to financing for European fintechs and cross‑border investment flows that support growth and international expansion.
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Why have we flagged this?
The proposed EU changes to redefine 'undertaking in difficulty' could improve funding access for Wise and other start-ups by recognizing new financial instruments and extending growth exceptions, potentially easing capital constraints for scaling businesses.