The draft Regulation

Chapter I

Subject matter, scope, definitions

• Article 1: Subject matter and scope Sets out what the rules do, who they cover, and how big the citizens' stake is meant to become.
• Article 2: Definitions Defines the key terms: which companies count, what the warrant is, which events turn it into shares, and two new terms that stop a company dodging it by paying itself instead of selling itself.

Chapter II

Designation of covered undertakings

• Article 3: Designation of covered undertakings Sets the designation criteria and protects genuine pay increases.
• 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 Establishes the share claim at designation, with subscription at a statutory trigger.
• Article 6: Independent valuation Puts an independent expert in charge of valuing the company at each trigger event, including early crystallisation for heavy payouts or the seven-year long-stop, 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 adult EU citizens an equal entitlement that cannot be sold, seized or surrendered. Payments depend on distributable income: the backstop counts three years with positive distributable income, not three calendar years regardless of income. Money received is freely usable.
• 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 Makes execution and reporting enforceable, including for bound transferees.
• 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 Requires initial notifications and leaves completed past events outside the warrant.
• Article 18: Entry into force and application Starts preparation early and substantive obligations 18 months after entry into force.

Annexes

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

Memorandum

• The proposal, in the Commission’s format
• Explanatory memorandum, in the Commission’s own structure
• The objections, at full strength
• Severability: what survives trimming

Status of the text

• Versions: what is fixed, and what still moves