Amended proposal for a Council Decision on a third multiannual programme for small and medium-sized enterprises (SMEs) in the European Union (1997 to 2000) (1) (97/C 61/04) (Text with EEA relevance) COM(96) 591 final - 96/0087(CNS)

(Submitted by the Commission pursuant to Article 189a (2) of the EC Treaty on 14 November 1996)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 130 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the Economic and Social Committee,

Having regard to the opinion of the Committee of the Regions,

1. Whereas on 14 June 1993 the Council adopted Decision 93/379/EEC on a multiannual programme of Community measures to intensify the priority areas and to ensure the continuity and consolidation of policy for enterprises, in particular small and medium-sized enterprises, in the Community (2);

2. Whereas in line with its White Paper on growth, competitiveness and employment, the Commission has adopted on 3 June 1994 a communication on the implementation of an integrated programme in favour of SMEs and the craft sector (3);

3. Whereas on 29 November 1995 the Commission adopted a report on SMEs: a dynamic source of employment, growth and competitiveness in the European Union in which the Commission called for a more ambitious enterprise policy to unlock the full potential of European enterprises for employment, growth and competitiveness (4);

3a. Whereas SMEs make a major contribution towards entrenching the role of industry in the European Union, thereby counteracting the trend towards the relocation of businesses; whereas the social role played by SMEs, in particular through personal relations with customers and staff and through the scope for personal development offered to many businessmen and businesswomen, and the presence of SMEs in rural areas should not be underestimated;

4. Whereas on 16 December 1995 the Madrid European Council invited the Commission to put the objectives of the Madrid SME report into practice as swiftly as possible;

5. Whereas the Integrated programme in favour of SMEs (5) aims at presenting the overall Community enterprise policy;

6. Whereas this Decision is limited to providing the legal an budgetary basis for specific complementary measures which are not part of other Community policies;

6a. Whereas the principle of subsidiarity must be respected when this multiannual programme is implemented; whereas this should not be an obstacle to assisting SMEs whose activities span borders in overcoming their structural obstacles;

7. Whereas the Commission submitted to the European Parliament, the Council and the Economic and Social Committee and the Committee of the Regions an external evaluation report on the implementation of the current multiannual programme pursuant to Article 5 of Decision 93/379/EEC;

8. Whereas the Commission has submitted to the Council in the past three years a series of communications on measures of relevance to this Decision (e.g. report on the future operation of the information and cooperation networks (6) and report on the craft industry and small enterprises (7));

9. Whereas this Decision is especially directed at SMEs (8), regardless of sector, legal structure and geographical location, and provides for specific actions in favour of the craft sector, and enterprises in commerce and distribution;

10. Whereas the measures set out in this Decision aim at:

- encouraging an environment favourable for the development of SMEs throughout the European Union,

- improving the integration and organization of SMEs, especially small enterprises and crafts, in the single market,

- improving the competitiveness of European SMEs and encouraging their Europeanization and internationalization.

11. Whereas the actions in the area of transnational technological development will be jointly managed with the Community's R & TD programme, respecting the relevant decision-making procedures;

12. Whereas the second programme expires on 31 December 1996, while the reasons for its adoption continue to prevail, at least for the foreseeable future;

13. Whereas it is therefore necessary to adopt a third programme for a four-year period and to endow it with sufficient resources to attain its objectives;

14. Whereas account has been taken of the external evaluation report on the implementation of the current multiannual programme;

14a. Whereas the various SME organizations have been consulted on the multiannual programme and will be consulted again in connection with its implementation;

15. Whereas the Treaty does not provide, for the adoption of this Decision, powers other than those of Article 130.

HAS DECIDED AS FOLLOWS:

Article 1

A programme for a Community policy for small and medium-sized enterprises (SMEs) is hereby adopted for a period of four years from 1 January 1997.

Article 2

The programme referred to in Article 1, incorporating the measures specified in the Annex hereto, shall have the following objectives:

1. Simplify and improve the administrative and regulatory business environment:

- ensure consideration of the interests of SMEs in the various Community initiatives and policies,

- simplify and improve Community legislation,

- increase transparency and the spread of best practices on simplifying and improving the administrative and regulatory environment,

- improve the framework for transnational operations of SMEs.

2. Improve the financial environment for enterprises:

- improve access to loan financing,

- Intensify efforts to reduce late payment problems,

- Facilitate the development of specific financial instruments,

- stimulate the development of capital markets for fast-growing SMEs.

3. Help SMEs to Europeanize and internationalize their strategies, in particular through better information services:

- develop information services and improve their adaptation to the requirements of enterprises, particularly by developing a partnership with the existing recognized professional organizations for aid to SMEs, including those for crafts,

- improve the promotion of SME policy actions,

- promote cooperation through business search networks,

- promote direct contacts through partnership programmes,

- develop subcontracting partnerships,

- stimulate the development of and access to risk capital,

- promote access to new markets and internationalization of SMEs.

4. Enhance SME competitiveness and improve access to research, innovation and training:

- increase the innovative potential of SMEs,

- stimulate managerial training,

- improve advisory aid to SMEs,

- adaptation to environment requirements.

5. Promote entrepreneurship and support special target groups:

- business culture and entrepreneurship,

- craft, small and micro enterprises,

- enterprises in commerce and distributive trades,

- promote the inclusion of entrepreneurship by education institutions in their training courses,

- women and young entrepreneurs; enterprises owned by minorities.

Policy development and improvement of knowledge about SMEs.

In determining the specific measures to implement this programme and in evaluating such measures the target group shall, where necessary, be determined for each measure as a function of the size of enterprise.

Article 3

1. In order to achieve the objectives laid down in Articles 1 and 2, the Commission shall take the necessary measures in so far as they cannot be better achieved by the Member States, taking account of the findings of any specific evaluation reports.

2. The procedure laid down in Article 4 shall be followed for adopting measures relating to:

- the adoption, experimental implementation or extension of the necessary projects devised for the application of this Decision,

- the content and timetable of, and financial assistance for, measures and calls for proposals,

- periodic evaluation of the results of each project in accordance with the timetables laid down in specific programmes.

3. The Committee referred to in Article 4 may examine any other matters concerning the programme.

Article 4

1. The Commission shall be assisted by a committee of an advisory nature composed of the representatives of the Member States and chaired by a representative of the Commission.

2. The representative of the Commission shall submit to the committee a draft of the measures to be taken. The Committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter, if necessary by taking a vote.

3. The opinion shall be recorded in the minutes; in addition, each Member State shall have the right to ask to have its position recorded in the minutes.

4. The Commission shall take the utmost account of the opinion delivered by the committee. It shall inform the committee of the manner in which its opinion has been taken into account.

Article 5

1. The Commission shall submit to the Committee referred to in Article 4 annual reports on the implementation of this Decision.

2. The Commission shall submit to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions a regular report on the development of the inclusion of the SME dimension in all Community policies and programmes.

Article 6

The Commission shall submit to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions, no later than the end of March 2000, an external evaluation report on the implementation of this Decision, including a cost-effectiveness evaluation, and any proposals which it deems necessary in the light of the evaluations effected.

Article 7

1. This programme shall be opened up to the participation of the associated countries of Central and Eastern Europe (CCEE) in accordance with the conditions laid down in the additional protocols to the association agreements on participation in Community programmes to be concluded with those countries.

2. This programme shall be opened up to the participation of Cyprus and Malta on the basis of additional appropriations in accordance with the same rules as those applied to the EFTA countries, in accordance with procedures to be agreed on with those countries.

Article 8

1. This Decision shall enter into force on 1 January 1997 and shall cover the period up to 31 December 2000.

2. The budgetary authority shall determine the appropriations available for each financial year in accordance with the principles of good management referred to in Article 2 of the Financial Regulation applicable to the general budget of the European Communities.

Article 9

On entry into force this Decision shall replace Council Decision 93/379/EEC.

(1) OJ No C 156, 31. 5. 1996, p. 5.

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

(3) COM(94) 207 final, of 3 June 1994.

(4) CSE(95) 2087.

(5) COM(95) 435 final, of 5 December 1995.

(6) COM(95) 502 final, of 26 October 1995.

(7) As defined in the Commission recommendation concerning the definition of SMEs (C 96/261).

ANNEX

MEASURES REFERRED TO IN ARTICLE 2

A. SIMPLIFY AND IMPROVE THE ADMINISTRATIVE AND REGULATORY BUSINESS ENVIRONMENT

A.1. Ensure consideration of the interests of SMEs in the various Community initiatives and policies

Integration of the SME dimension into the conception of Community policies. Promotion of the coordination of Community actions in favour of SMEs which enable SMEs to participate fully in all Community actions and programmes, including the Structural Funds, R& TD, international cooperation and environmental programmes.

A.2. Simplify and improve Community legislation

Action to avoid and reduce unnecessary administrative burdens and compliance costs in Community legislation which hinder the creation and development of enterprises, in particular SMEs, through the implementation of a pragmatic methodology for the evaluation of the impact of legislative proposals (including the use of an improved business impact assessment system and cost/benefit analyses wherever appropriate).

A.3. Increase transparency and the spread of best practices on simplifying and improving the administrative and regulatory environment

Actions to promote the spread of best practices in particular in the field of administrative simplification; promotion of actions on transfer of businesses and retention of title clauses.

A.4. Improve the framework for transnational operations of SMEs

Promotion of the development of alternative dispute resolution for settling transnational disputes between enterprises; stimulation of appropriate legal structures for transnational operations of SMEs, in particular the use of the European economic interest grouping (Regie project).

B. IMPROVE THE FINANCIAL ENVIRONMENT FOR ENTERPRISES

B.1. Improve access to loan financing

Promotion of innovative practices in the field of better access of SMEs to loan financing (including mutual guarantee schemes, Round Table of Bankers and SMEs).

B.2. Intensify efforts to reduce late payment problems

Accelerate follow-up to recommendation on late payment and foresee further proposals; support for actions to improve the financial management capabilities of SMEs, in particular in the field of information, training and the promotion of integrated cash flow management software.

B.3. Facilitate the development of specific financial instruments

Promotion of the development of specific financial instruments of interest to SMEs, in particular factoring and credit insurance.

B.4. Stimulate the development of European capital markets for fast-growing SMEs (including EASDAQ)

B.4.a. Analyse the specific requirements of small enterprises and crafts and the means for meeting them

C. HELP SMEs TO EUROPEANIZE AND INTERNATIONALIZE THEIR STRATEGIES, IN PARTICULAR THROUGH BETTER INFORMATION SERVICES

C.1. Development of information services (Euro-Info Centres as 'first stop shops`)

Better access to Community information for enterprises: development of the Euro-Info Centre network as a 'First-stop-shop`, directing each request to the relevant service provider; improvement of the composition of the network by applying the existing evaluation methods; further professionalization of the information task of the EICs including proactive information activities, in particular in the areas of accessing Community programmes, the internal market, internationalization, environmental issues and the introduction of the single currency; facilitating access of SMEs to market information.

Maximize the efficient use of these networks by all types of SMEs by making use of synergies: strengthen and improve partnership between these information networks and recognized professional organizations which traditionally have the closest contact with SMEs.

C.2. Improve the promotion of SME Policy actions

Generalized and decentralized promotion campaigns in coordination with EIC network; organization of European Business Weeks.

C.3. Promote cooperation, through business search networks

Qualitative improvement and definition of a quality standard for the confidential business-partner-search network (BC-Net) and non-confidential partner-search network (BRK).

C.4. Promote direct contacts through partnership programmes

Continued development of instruments permitting direct contact between entrepreneurs (Europartenariat and Interprise progammes).

C.5. Develop subcontracting partnerships

Further develop actions aimed at promoting transnational subcontracting.

C.6. Promote access to new markets and internationalization of SMEs

Test innovative approaches in particular by facilitating SME's access to new markets and encourage their internationalization.

D. ENHANCE SME COMPETITIVENESS AND IMPROVE THEIR ACCESS TO RESEARCH, INNOVATION AND TRAINING

D.1. Increase the innovative potential of SMEs

Identify best practices and test concrete approaches through pilot actions, in particular in the fields of developing firms with growth potential and new technology based firms (NTBFs). Rapid and widescale dissemination of the results of pilot actions as examples of successful business experience.

D.2. Stimulate managerial training

Helping to identify and test positive approaches in the field of management training and consultancy services tailored to SMEs (mainly through pilot projects).

D.3. Adaptation to environmental requirements

D.3.a. Improve advisory aid to SMEs

E. PROMOTION OF ENTREPRENEURSHIP AND SPECIAL TARGET GROUPS

E.1. Business culture and entrepreneurship

Stimulate the exchange of best practice and support the identification of particularly dynamic entrepreneurs.

E.2. Craft, small and micro enterprises

Launching of pilot-projects, enabling these enterprises in particular to adopt to structural changes, to better integrate in the single market and to benefit from the opportunities offered by this market, including in the field of standardization, certification, environmental and quality management.

E.3. Enterprises in commerce and distributive trades

Facilitating the adjustment process of commercial enterprises to the single market and to structural changes, in particular through new technologies (Commerce 2000), promotion of cooperation between SMEs, dissemination of results of pilot programmes. Follow-up to Green Paper on commerce and distribution.

E.4. Women and young entrepreneurs; enterprises owned by minorities

Identification of the specific problems faced by women and young entrepreneurs, as well as small enterprises owned by minorities and support for innovative solution. Promotion of the position of spouses working in the same enterprise.

POLICY DEVELOPMENT AND IMPROVEMENT OF KNOWLEDGE ABOUT SMEs

Improved statistics on SMEs without increasing the burden on enterprises; European Observatory for SMEs; studies; database concerning SME policy measures; evaluation of existing policy actions and development of proposals for new Community measures in areas affecting enterprises.