European Family Businesses Newsletter #30
President von der Leyen released many projects during the first 100 days of her second Commission mandate. We have been busy with many proposals such as Omnibus I on simplification of the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD) and Carbon Border Adjustment Mechanism (CBAM), Omnibus IV on (Small mid-caps), the Single Market Strategy for 2025 and more. Below we summarise our work during the first six/seven months of the year.
French senate rejects wealth tax
On 16th July, the French senate rejected the proposal to bring back wealth tax. The draft law Bill No. 768: Proposal to Establish a Minimum Wealth Tax (IPF – Impôt Plancher sur la Fortune) of 2% on the wealth of ultra-rich individuals in France whose net assets exceed €100 million. Only about 4,000 people (0.01% of taxpayers) would be affected, while individuals who are not fiscally domiciled in France are taxed solely on their assets located within France. The aim was to address growing social and ecological needs, respond to fiscal deficits, and reintroduce fiscal justice by making the wealthiest contribute more significantly to public finances.
The tax would bring an estimated annual revenue of €15 – €25 billion, according to economist Gabriel Zucman, who inspired the proposal.
According to Article 885 L of the proposed bill the tax calculation would be as follows:
Tax Due = (2% of Net Wealth) – (Sum of other taxes paid)
→ Only payable if the total of income, property, and social taxes is less than 2% of wealth.
The proposed bill was rejected in the Upper House was clear: 188 votes against, 129 in favor. The Senate’s rejection, supported by President Emmanuel Macron’s government, was definitive.
France continues the European trend of turning down the wealth tax idea as a means of funding the government budgets.
The following EU countries abolished wealth taxes:
– Austria (1994)
– Denmark (1997)
– Germany (1997)
– Netherlands (2001)
– Finland and Luxembourg (2006)
– Sweden (2007)
– France (2017)
All in all, we can conclude that the rejection of the re-introduction of a wealth tax in France means that there is support against, what some label as a, double taxation of wealthy individuals. EFB will continue to follow the developments as they occur across the EU regarding this topic.
Business Transfers: 10 Suggestions to Support Business Transfers in the EU
For family businesses, business transfers are an emotional and natural part of the lifecycle of the business. As such, we needed to ensure that the topic was considered a priority for the new European Commission’s agenda from the beginning of the mandate.
Thus, through a coordinated effort with Eurochambres, Transeo, CECOP, Cooperatives Europe, SMEUnited and AECM, we called on the European Commission to consider the significance of the topic of business transfers and called for a new updated Communication on Business transfers to replace that of 1994.
You can find our full and collective 10 Suggestions to support Business transfers in the EU along with our analysis as to why the topic is of particular importance here.
EFB event and policy-related meetings
Third Next Gen event: The EU from the Inside: Navigating Strasbourg
Our third next-generation event took place in Strasbourg from the 6th to the 7th of May where we and a small group of next-generation participants from nine EU countries got together for a two-day event.
Our event encouraged networking between participants and fostered an environment where the attendees had the opportunity to share their perspectives on family business topics. We also had a meeting at the European Parliament with our sponsor MEP Pierfrancesco Maran of the S&D group, who spoke of the importance of having an economy that works for people and to ensure that those who want to stay in the regions they were born in can access employment there.
This meeting enabled participants from across sectors, generations and countries to ask questions on the topics that impact their family businesses: such as the definitions of mid-caps, the importance of reducing administrative burden in a way that is felt by companies during the day-to-day running of their businesses, the shortage of skilled workers, the uncertainties resulting from the fragmentation of the Single Market and more. EFB’s Secretary General, Mr Jesús Casado, gave MEP Maran the 10 Suggestions to Support Business Transfers in the EU that we along with six other business associations developed on the matter.
We thank MEP Maran and his team for their time and meeting with our Next Gens. We also thank Ms Giovanna Spadoni for connecting us with MEP Maran. This year, since we held the event during a plenary week, we watched part of a live plenary session at the Parliament’s Hemicycle, allowing participants to see a debate in action. Day one ended with a fun sightseeing tour and a networking dinner.
For the full summary, head over to our website here.
Meetings with EU representatives
Meeting with Ms Valentina Schaumburger, Member of Cabinet of Executive Vice-President Stéphane Séjourné.
During our meeting with Ms Schaumburger, Mr Jesús Casado EFB’s Secretary General, Mr Darius Movaghar, EFB’s Senior Policy Advisor and Mrs Joana Peixinho, EFB’s Junior Policy Advisor discuss the pressing challenges facing family businesses in Europe. Mr Casado pointed out that there were very important topics that present challenges for family businesses that we did not find in the Commission’s Competitiveness Compass or its work plan. Thus, during the meeting, Mr Casado secured the importance of business transfers and asked that the issue was considered for either the Single Market Strategy or the EU Startup and Scaleup strategy.
Moreover, the importance of the small mid-cap definition, which at the time had not been released was discussed and assessed.
Meeting with Mr Miguel Garcia Jones, Member of Cabinet of Commissioner Wopke Hoekstra. During this meeting we discussed the topic of Debt-Equity Bias Reduction Allowance (DEBRA) and the extent to which the Commissioner’s cabinet would focus on the issue in the future.
SME Envoy meeting
Between the 20th and 21st of May, Mrs Joana Peixinho – Junior Policy Advisor at EFB- represented European Family Businesses, at the SME Envoy Network meeting in Warsaw where several important topics such as business transfers, the single market strategy and small mid-caps were discussed.
Here, she highlighted EFB’s concern that in several EU member states — including the Netherlands, Belgium, Germany, France, Finland, and Spain — the long-standing exemptions provided under the 1994 Commission Recommendation are being questioned. She echoed EFB’s call for a new Recommendation on Business Transfers, to modernise and reinforce the 1994 framework to reflect today’s reality.
On Omnibus IV on Small Mid-Caps (SMC), the importance of the SMC definition to existing companies as they seek to scale up in the single market and to go for growth was highlighted as was EFB’s suggestion for the development of a large mid-cap definition at the European level in the future.
EFB publications & policy work
Business transfers tax regime before and after 1994
In this paper, we sought to analyse the state of play before and after the 1994 Commission Recommendation on business transfers in some EU Member States (Germany, Belgium, the Netherlands, Spain and Finland where these exemptions are currently being called into question). It also gave insights into the system in Italy, Portugal and Sweden, which have taken a different approach to the inheritance taxation and business transfers topic.
You can read our paper here.
Single Market Strategy
In January 2025, the EU Commission released a call for evidence asking for the main barriers that companies face when operating in the Single Market.
EFB asked business owners which challenges they face when operating within the single market. We quickly realised that there was a pattern with the majority mentioning: increased administrative burden and related costs, legal uncertainty pertaining gold-plating setting different standards for companies across EU member states when seeking to comply with the same policy, obstacles in attracting skilled workforce, qualification recognition and incomplete application of directives that impact cross border workers.
With the combined input from several family businesses’ we submitted our feedback to the call for evidence for the 2025 Single market strategy.
You can find our full submission here.
On 21st May, the European Commission published its Communication for The Single Market Strategy where they highlighted the top 10 most harmful Single Market barriers. Among which business transfers was mentioned.
This was a huge success for EFB.
Moreover, through our efforts with the other European business associations and communications with the European Commission, we managed to get a revision of the 1994 Business Transfer Recommendation included as a priority.
What’s next?
The European Commission aims to have a new Communication on Business Transfers by the end of 2025. EFB will be contributing to any request for feedback that occurs.
Small Mid-Caps (SMCs)
After years of calling for the importance of Mid-Caps to be recognised at EU level, we are pleased that the European Commission took the momentum brought on by the request for Simplification from the business community and the call to increase the EU’s competitiveness and put forward the Fourth Omnibus for Small Mid-Caps. This is was another success for EFB.
In the Single Market Strategy, one of the issues highlighted was the need to support SMEs and Small Mid-Caps (SMCs).
The European Commission proposed the following definition of SMCs:
- Companies with fewer than 750 employees and either an annual turnover not exceeding EUR 150 million or an annual balance sheet total not exceeding EUR 129 million.
What’s next?
At the moment, the European Commission has a call for evidence for the proposed regulation amendments and directives for SMCs open. The legislative procedure for the adoption of the SMC definition is still underway.
EU Startups and Scaleups strategy
EFB thanked the European Commission in their call for evidence on the EU startup and scaleup strategy and called for the strategy to be extended beyond its current aim of technology and deep tech startups and scaleups.
We also highlighted that family businesses are a perfect example of scale ups. Over the course of generations, family businesses develop, adjust and adopt their growth strategy allowing them to scale up. Thus, we focused primarily on scale ups rather than startups in our contribution.
You can read our full submission here.
Upcoming Event
Registrations are now open for our 11th Family Business Summit
Join us in Lisbon from the 13th-14th of October for our 11th Family Business Summit.
This year’s theme is Unleashing the Power of Family Businesses for A Stronger Europe.
In cooperation with Associação das Empresa Familiares; we look forward to welcoming you to our upcoming event. Join us for networking opportunities, interesting discussions and more.
Head over to our summit website to find out more about the confirmed speakers and sessions.
EFB’s New Executive Committee
During our General Assembly in June, we thanked our previous executive committee members and welcomed new members on board. We also said goodbye to two long standing board members Ms Marjo Miettinen of Perheyritysten liitto and Mr Stefan Gugushev of FBN Bulgaria who’s terms on the executive committee had come to an end.
EFB thanked its previous President, Mr Udo J. Vetter, Vetter Pharma and member Die Familienunternehmer, Germany for his outstanding contribution to our executive committee for his two mandates. We welcomed back on board Mr Vetter, Ms Anca Vlad, Fildas-Catena Group and member of FBN Romania, Mr Julian von Moeller, Moeller Group, Les Henokiens and Mr Arnaud Vaissié, International SOS and member of METI, France. We look forward to their on-going participation.
The new members of EFB’s Executive Committee include:
Mr Ramón Alejandro Saica Group, 3rd Generation and member of the Instituto de la Empresa Familiar, Spain.
Mr Johannes Gullichsen, Ahlström Invest B.V, 5th Generation and member of Perheyritysten liitto, Finland.
Ms Margherita Marchi, Banca Finint Group, 2nd Generation and member of AIDAF, Italy.
Mr Urban Svanberg, Alovus AB, 1st Generation and member of FBN Sweden.
Ms Delphine Hanton, Thuasne Group, 6th Generation and member of METI/FBN France.
Mr Jan Kornelis van Oord, was unanimously elected as President of EFB.
Sponsors
Our Sponsor For Talents has released a new article. Read it in full below.
WITHOUT THE WILL TO TRANSMIT, THERE CAN BE NO SUCCESSFUL SUCCESSION
To whom should I pass on the business? Is he or she ready? Is now the right time? What will happen after I leave?
Every family business leader or founder faces these questions, and there is always a good reason to postpone the decision: a successor not perceived as fully ready yet an uncertain market, a major project coming up, or complex family dynamics.
To pass the torch is to confront uncomfortable questions, where rationality and emotion are deeply intertwined.
One thing is clear: until the leader decides to transmit, nothing truly moves forward.
Succession does not happen by accident. It requires a clear will and deliberate choices such as identifying the successor, setting the right timing, putting in place the proper tools, and above all, deciding to let go because transmission is not just a financial or legal arrangement — it’s the decision that the company’s future will unfold without you. That decision cannot be made in haste or under pressure.
Decide to transmit — don’t let time decide for you
“To decide is to find the strength to move forward in uncertainty, to act despite the doubt.” — Charles Pépin
The benefits of a planned succession are obvious: preparing the successor, optimizing tax matters, involving key stakeholders and envisioning a new chapter for the exiting leader. Yet, 70% of current family business leaders do not have a succession plan in place (STEP 2019 Family Business Survey).
Why? Because no one enjoys thinking about their own “disappearance”. Making difficult choices between children. Letting go of a prestigious and secure role for an uncertain future. For many leaders, succession feels like the riskiest decision they will ever have to make — even more daunting than all the risks they have already taken to build the business.
This resistance is often shared collectively by those around the leader. Few dare to bring it up. This is what Ivan Lansberg called in 1988 the “succession conspiracy”. However, avoiding the topic will not stop succession from happening.
If the leader does not initiate the process, it will be dictated by circumstance — usually under unfavourable conditions.
- A leader who stays too long may unintentionally block the transformation the company needs.
- Uncertainty fuels tension and rivalry within the family.
- Sudden illness or death exposes the business to instability or a rushed sale under poor terms.
It is up to the current leader to take ownership of the process with clarity and commitment. Only they have the legitimacy, experience, and strategic vision to guide this transition well (John L. Ward).
Transmission requires complex choices
“This is the business leader’s responsibility to initiate and oversee the succession process.”
— Family Business Succession The Final Test of Greatness John L. Ward
Succession is a journey marked by critical decision points. Anticipating those choices is essential to avoid being subjected to them.
- To make a deliberate and mindful choice to pursue intra-family succession
The leader must evaluate the options considering personal values, family dynamics, and business imperatives:
- Management buyout: requires strong financial and managerial skills from the team but allows for continuity with experienced insiders.
- External acquisition: emotionally difficult for some, but sometimes the best solution for long-term growth.
- Intra-family succession: the most emotionally charged option, but it preserves governance and values. It requires a dual commitment — from both the leader and the successor — and often a carefully staged transition, sometimes via a non-family interim leader.
2. Choosing the right successor who is visionary and capable of driving the company’s future growth
Appointing a successor means identifying “The Source” (Peter Koenig) — someone who naturally embodies the business’s energy and already shows deep commitment without being forced into the role.
This choice goes beyond skills or family position. It must reflect a deep alignment with the company’s essence and values. Most founders know intuitively who this person is.
3. Choosing a date
Without a firm deadline, succession risks being endlessly postponed by economic uncertainty or emotional resistance.
There is no “perfect” moment, but there is a right window — ideally before the leader’s 65th birthday, when energy is still high and a new personal chapter is possible.
“In a race, if a baton is passed too late, all is lost – including the race.”— John L. Ward
Succession is not just about passing the baton, but also about doing so at the right time.
The Leader’s Final Act: Letting Go
“The final test of greatness in a CEO is how well he chooses a successor and whether he can step aside and let the successor run the company.” — Peter Drucker
Letting go means relinquishing ownership not only in legal terms, but emotionally as well. It requires courage and preparation.
It also means accepting that the business may be reinvented. That a new leadership style may emerge. Psychologically, itis about learning to exist outside the company you have built or led for decades — and embracing the uncertainty of a new phase of life that may prove equally fulfilling.
The leader must also shift their role in relation to the successor — becoming a supportive sponsor, only when invited, and avoiding interference.
This transitional phase, if anticipated, can be a springboard to a new personal, philanthropic, or entrepreneurial project. The key to peace of mind lies in planning it well — especially by ensuring one’s financial security.
Best Practices
- Get external support to explore transmission options – family succession, external sale, management buyout).
- Identify and name the “Source Person” – not necessarily the eldest child, but the one who feels truly engaged and capable of carrying the project forward.
- Make a decision and commit to it in spite of uncertainty – set a name and a date and stick to them.
- Let go and adopt a new posture – ensure your financial independence and build a motivating future project. This will allow the successor to lead with clarity and confidence.
Perrine Julien
Manager Accompagnement Transmission
Discover all articles and tools from For Talents OpenLab.
References
- Aronoff, C. E., & Ward, J. L. (2010). Family business succession: The final test of greatness (2nd ed.). Palgrave Macmillan.
- Merckelbach, S. (2020). A Little Red Book about the Source. Éditions Aquilae.
- Drucker, P. F. (1973). Management: Tasks, Responsibilities, Practices. Harper & Row.