The draft Regulation

Chapter I

Subject matter, scope, definitions

• Article 1: Subject matter and scope Sets out what the rules do and who they cover: highly automated companies selling in the EU, wherever they are based.
• Article 2: Definitions Defines the key terms: which companies count, what the warrant is and which events turn it into shares.

Chapter II

Designation of covered undertakings

• Article 3: Designation of covered undertakings Defines which companies are covered: very large, very automated, for at least two years.
• Article 4: Market investigation and review of designation Lets the Commission investigate borderline companies, recheck the list regularly and remove companies that no longer qualify.

Chapter III

The citizens’ capital warrant

• Article 5: The citizens' capital warrant Requires each covered company to give the Reserve the right to buy 3 % of its shares cheaply when it is first sold or listed.
• Article 6: Independent valuation Puts an independent expert in charge of valuing the company at each trigger event, with errors corrected either way.
• Article 7: Safeguards and judicial review Guarantees court review of the valuation and that shareholders never lose more than the fixed 3 %.

Chapter IV

The European Citizens’ Capital Reserve

• Article 8: The European Citizens' Capital Reserve Creates the Reserve: a fund holding the shares only for citizens, never as government money, paying out what it can spare.
• Article 9: Prohibited holdings and conduct of the Reserve Forbids the Reserve from voting its shares, steering companies, borrowing, lending or speculating.

Chapter V

The citizens’ entitlement

• Article 10: The citizens' entitlement Gives every adult EU citizen an equal automatic share of the payouts, which cannot be sold, seized or signed away.
• Article 11: National vehicles Makes every EU country run personal accounts that receive the payouts, with charges capped at 0,3 % a year.

Chapter VI

Protection of the Reserve and of entitlements

• Article 12: Protection of the Reserve and of entitlements Creates legal barriers against the EU or governments raiding the fund or your share, with a court remedy if anyone tries.

Chapter VII

Penalties, monitoring, delegation, committee

• Article 13: Penalties Lets the Commission fine companies up to 10 % of worldwide turnover and, as a last resort, bar them from the EU market.
• Article 14: Monitoring and evaluation Makes the Commission track the evidence and propose amendment or repeal if the rules' own premise proves wrong.
• Article 15: Exercise of the delegation Standard machinery: controls how the Commission may update two technical annexes, under Parliament and Council oversight.
• Article 16: Committee procedure Standard machinery: a committee of national representatives oversees the Commission's implementing decisions.

Chapter VIII

Transitional and final provisions

• Article 17: Transitional provisions Startup rules: past deals stay untouched and a listing that already happened does not trigger the share purchase.
• Article 18: Entry into force and application Standard machinery: the rules become law 20 days after publication and apply in full 18 months later.

Annexes

• Annex I: Methodology for turnover, employment and value
• Annex II: Methodology for the retention preserving real capital

Memorandum

• The objections, at full strength
• Severability: what survives trimming