Well, we've proven the 27 smaller, competing bureaucracies are creating plenty of their own issues. It's not like the US where 50 states (and yet more territories) actually compete on simplifying corporate law and offering strategic advantages.

Corporate law is inherently somewhat bureaucratic; better simplify it and unify it if proven necessary.

Bureaucracies are not in competition though. They are intended monopolies. For a prospective company they are investment options, larger countries usually have larger bureaucracies but also larger labor markets.