COUNCIL RESOLUTION of 10 October 1994 on giving full scope to the dynamism and innovatory potential of small and medium-sized enterprises, including the craft sector and micro-enterprises, in a competitive economy (94/C 294/04)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Decision 93/379/EEC of 14 June 1993 on a multiannual programme of Community measures to intensify the priority areas and to ensure the continuity and consolidation of policy for enterprise, in particular small and medium-sized enterprises, in the Community (1),

Having regard to the Council resolution of 22 November 1993 on strengthening the competitiveness of enterprises, in particular of small and medium-sized enterprises and craft enterprises, and developing employment (2),

Having regard to the plan of action approved by the European Council in Brussels on 11 and 12 December 1993 on the basis of the Commission's White Paper on growth, competitiveness and employment,

Having regard to the Commission communication on an integrated programme in favour of small and medium-sized enterprises and the craft sector,

Considering that, further to its conclusions of 22 June 1994 on the integrated Community programme in favour of small and medium-sized enterprises (SMEs) and the craft sector, examination of that programme should be continued and completed so that the appropriate operational conclusions can be drawn before the end of 1994;

Recalling the conclusions of the European Council in Corfu on 24 and 25 June 1994;

Emphasizing the need, in the interests of SMEs, to continue to ensure proper compliance with the rules on competition and the monitoring of State aid;

Taking into account the outcome of the European Conference on craft businesses held in Berlin on 26 and 27 September 1994;

Recognizing that:

- the development of SMEs is of great importance for the competitiveness of the European economy, regional development and economic cohesion in the European Union,

- SMEs, including the various service activities, make an important contribution to growth and the creation of jobs,

- the strengths of SMEs lie in particular in their flexibility and adaptability to changing circumstances,

- this adaptability and flexibility is hampered by both internal (particularly financial and managerial) and external (particularly legal and administrative) hurdles,

- a simple, logical and coherent legal framework would accordingly be essential to such SMEs;

Considering that local development initiatives offer considerable potential for strengthening the economic and social fabric of the European Union and for creating employment;

Aware that both measures to create a legislative and administrative environment favourable to the development of enterprise and effective, high-profile support measures are essentially the responsibility of the Member States, in accordance with the principle of subsidiarity set out in Article 3b of the Treaty establishing the European Community;

I

EMPHASIZES that it is a priority concern of enterprise policy in the Community, as mentioned in the multiannual programme, to improve the legislative and administrative environment for enterprises, to intensify and improve the Community's provision of information to enterprises, to promote cooperation and partnership between SMEs and to ensure the promotion and coordination of Community instruments;

IS ACCORDINGLY CONVINCED that the Community's policy in favour of SMEs should be put into practice and made more effective through a new and extended partnership between the Member States and the Community, and through efficient and regular consultation of the bodies concerned with the development of SMEs and the craft sector as well as professional associations and organizations representing SMEs at European level;

EMPHASIZES the need to ensure consistency between domestic and Community regulations;

II

RECALLS that, in view of the specific institutional, legislative and contractual characteristics of each Member State, Community action should concentrate on setting objectives, leaving it to the Member States to choose the means most appropriate to their situation, within a commonly defined general framework;

CONSIDERS it necessary to step up action in favour of SMEs to improve and simplify the legislative and administrative environment, and is therefore in favour of consultation between Member States on the basis of continual exchange of experience, with the assistance of the Commission and organized within the framework of a Committee consisting in particular of representatives of the Member States;

Particularly WELCOMES the Commission's continued efforts to simplify current Community legislation and its intention to set up a group of independent experts charged with examining the effects of existing Community and national legislation on employment and competitiveness with the aim of reducing legal and administrative constraints on enterprises;

CONSIDERS also that it is necessary to extend cooperation between the Member States and the Community to include exchange of experience and best practice regarding enterprise-support measures in a competitive economy for SMEs, including micro-enterprises and the craft sector and concerted action to stimulate demand for services offered to enterprises;

CONSIDERS it appropriate to concentrate on the three key moments in the life of an enterprise, i.e. creation, growth and transfer;

CONSIDERS that policies should take account of the difficulties of the craft sector and micro-enterprises in particular, having regard to the major contribution they make to employment generation;

III

CALLS UPON THE MEMBER STATES and the Commission to examine, in mutual consultation, to what extent the legal provisions of the Member States and of the Community could place a specific extra burden on SMEs, by:

- pinpointing existing legal provisions hindering the creation, growth and transfer of businesses,

- analyzing the problem of excessive additional burdens caused by differences of approach between the legal systems of the Member States and the Community,

- taking stock of the situation regarding the various burdens placed in particular on SMEs developing transfrontier activities,

- examining the possibilities for cooperation between SMEs (for example, cooperation in networks for joint purchases and sales) in the framework of Community competition law,

- examining the possibility of establishing national contact points to help enterprises, in particular SMEs, to deal with possible intra-Community trade barriers;

To that end, CALLS ON the Commission to take the necessary measures to set up a Committee for improving and simplifying the environment for enterprises and in particular SMEs, consisting of expert representatives from each Member State, and charged with carrying out consultations on legislative and administrative provisions which hamper the creation, growth and transfer of enterprises (e.g. in the following fields, as regards SMEs: financial instruments, capital markets, increased responsibility of enterprises, internationalization of activities, statistical reporting obligations). In addition to representatives of the competent public authorities, professional associations and organizations representing SMEs at European level may be admitted;

CALLS ON the Commission to organize intensive exchanges of experience between the Member States, by means of a series of forums, concerning the objectives, structure and efficiency of national measures at every level, particularly with regard to the creation, growth and transfer of enterprises, including means of encouraging concerted measures to stimulate demand for services offered to enterprises;

EXPRESSES its keen interest in the Community contributions announced in the integrated programme in favour of SMEs and the craft sector, and calls on the Commission to propose measures for their implementation, to be examined by the Council according to the appropriate procedures for each measure;

CALLS ON the Commission to analyse the conclusions of the second conference on craft businesses and small enterprises and to report to the Council by the end of 1995 on how it intends to follow up those conclusions and on the initiatives to be recommended at Member-State level.

On the basis of this resolution the Commission should in due course, and by the end of 1996 at the latest, submit a report to the Council on the results of the consultations and exchanges of information and on concerted action to stimulate demand for services offered to enterprises;

IV

Furthermore, CALLS ON the Commission, in accordance with the intention stated in the integrated programme, to:

- ensure that SMEs gain better access to the specific research programmes under the fourth framework programme,

- ensure, in particular, that the specific programmes for disseminating and exploiting the results of research and promoting transfers of technology and innovation are formulated in a manner helpful to SMEs,

- provide for simplified procedures to facilitate access by SMEs to Community programmes in the field of vocational training and further training,

- ensure that barriers to international payments are removed,

- provide better access for SMEs to European public contract procedures;

NOTES the Commission's intention to draw up a detailed inventory of the various Community measures designed to encourage local development initiatives and local initiatives to promote employment, in particular those directed at micro-enterprises and craft enterprises. The inventory will be accompanied by any proposals deemed necessary to increase the consistency and efficiency of such measures;

ENCOURAGES the Commission, when making new legislative proposals and in appropriate cases, to carry out thorough consultations and a cost/benefit analysis.

(1) OJ No L 161, 2. 7. 1993, p. 68.

(2) OJ No C 326, 3. 12. 1993, p. 1.