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COM (84) 263 
 
 
 
Vol. 1984/0 122 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Economic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation. 
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 1983 über die Freigabe der historischen Archive der Europäischen 
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983, 
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003 
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit 
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5 
der genannten Verordnung freigegeben. 
COMMISSION OF THE EUROPEAN COMMUNITIES
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL
COMMUNITY POLICY WITH REGARD TO SMALL AND 
MEDIUM-SIZED ENTERPRISES AND CRAFT INDUSTRY
The follow-up to "1983 :  European Year of 
Small and Medium-sized Enterprises and Craft Industry"COM(84) 263 final
Brussels, 22 May 1984
COM(84) 263 final

EXPLANATORY NOTE
COMMUNITY POLICY WITH REGARD TO SMALL AND MEDIUM-SIZED 
ENTERPRISES AND CRAFT INDUSTRY
The follow-up to "1983 :  European Year of Small and Medium-sized 
Enterprises and Craft Industry"
This Report sets out the results of the activities organized 
in the framework of 1983 :  European Year of Small and Medium­
sized Enterprises and Craft Industry (SMEs) .
On the basis of the Action Programme adopted in Strasbourg 
at the Closing Conference, it sets out guidelines for priority 
action with regard to the Community approach to the problems of 
the SMEs.

CONTENTS
Page
I. INTRODUCTION ...................................  1
II
. 1983 - EUROPEAN YEAR OF SMEs AND CRAFT INDUSTRY ........ 1
III. THE SITUATION OF SMEs IN EUROPE; COMMUNITY MEASURES .... 5
Th
e Legal, Economic and Administrative Environment ...... 5
a)
 Strengthening the Internal Market ...............  6
b)
 Competition .................................  9
cà
 Taxation ...................................  10
d)
 Inter-firm Cooperation ........................  11
Fi
nancing .....................................  12
In
novation ..................................... 14
a) European Innovation Loans ......................  14
b)
 European Venture Capital Association .............  14
c)
 Participation of SMEs in Research Programmes ........  15
Tr
aining ......................................  15
In
formation and Business Consultancy Services ..........  16
Re
lations with Non-member countries .................  17
IV
. EUROPEAN CENTRE FOR SMEs AND CRAFT INDUSTRY ...........  19
V.
 CONCLUSIONS ....................................  20

-  1 -
I.  INTRODUCTION
1. Small and medium-sized enterprises (SMEs) are an essential part 
of the Community's economic fabric. Although definitions vary 
from one Member State to another, it may be estimated that SMEs 
represent approximately 90% of all the firms in the Community 
and nearly 60% of the working population. They also play an 
important role in the spreading of innovation and in job creation.
In fact, even in today's economic circumstances, the trend which 
began to emerge in the early 1970s towards a reduction in employment in 
large firms and an increase in employment in SMEshas continued, with 
the result that despite the overall increase in unemployment SMEshave 
remained net job creators in many areas of the Community.
2. In recognizing the important role of SMEs, we should not forget, 
however, that they have specific problems, often as a result of 
thei r size, which demand specific measures concerning their environ­
ment. In this connection, in a Resolution adopted in February 1982 
the European Parliament declared 1983 the "European Year of Small 
and Medium-sized Enterprises and Craft Industry." The Commission 
and the Economic and Social Committee warmly welcomed this 
initiative which was designed to promote a greater awareness of the 
problems of small and medium-sized enterprises.
II.  1983 ~ EUROPEAN YEAR OF SMALL AND MEDIUM-SIZED ENTERPRISES AND
CRAFT INDUSTRY
3. The European Parliament's Resolution focused attention on the 
difficulties encountered by SMEswith regard to financing, the 
training of managers and their staff, access to information and, 
in general,their legal, tax, administrative, economic and social 
envi ronment.

-  2 -
4. Committees were set up in each Member State to coordinate the 
activities organized in the context of the Year of SMEs.  Two 
committees were set up to coordinate these activities at Community 
level. The Sponsorship Committee, chaired by Mr Deleay, Member 
of the European Parliament, consisting of representatives of the 
parliamentary groups, the Chairmen of the national committees 
and representatives of the trade organizations, the Economic 
and Social Committee and the Commission, had the job of overseeing 
events within the framework of the European Year of SMEs. A 
smaller committee, the Steering Committee, chaired by a Commission 
official and comprising representatives of the national committees, 
the European trade organizations representing SMEs,the Economic 
and Social Committee and the Commission, was responsible for 
coordinating the various events at Community level.
5. The first event was a Conference, organized jointly by the
Economic and Social Committee, the European Parliament and the 
Commission, held in Brussels on 20 and 21 January. Stock was 
taken of the difficulties encourntered by SMEs in the present 
economic context. The main problems raised at this Conference 
were discussed in greater detail at the events organized by the 
national committees and cofinanced by the Commission :
- The Financing of Innovation in SMEs (Milan, Italy), 27 and 28 
May;
- Access by SMEs to National and Community Sources of Financing 
(Nice, France), 1  and 2 September;
- Improvement of the Environment of SMEs in Peripheral Areas 
in Europe (Galway, Ireland), 29 and 30 September,
- Subcontracting (Athens, Greece), 6 and 7 October;
- Vocational Training (Luxembourg, Grand Duchy), 10-12 October,

- 3 -
SMEsand the New Technologies (Copenhagen, Denmark), 28 October 
SMEsand the European Patents System (Munich, Germany), 3 and 4 
November;
SMEsand their Relationship with the Local Environment (Tilburg, 
Netherlands), 9 and 10 November;
~ SMEsand their Relationship with Large Firms (Edinburgh, United 
Kingdom), 17 and 18 November;
~ The Financing of Firms (capital needed to start up and expand 
businesses) (Brussels, Belgium), 20 November.
6. These initiatives also gave rise to numerous meetings organized in 
the Member States by the trade organizations under the patronage of 
the national committees.
7. The Commission sponsored several of these meetings in view of 
their scale and the importance of the subjects covered :
- the Conference opening the events for 1983 in the United Kingdom 
(London, Lancaster House), 27 January 1983;
- European Craft Apprenticeship Day (Versailles) 26 September 1983;
- EUROTECH (Galway) 29 September 1983;
- The setting-up of firms (  Strasbourg), 11 November 1983;
- Interregional Seminar on Small Traders (Aachen), 9 and 
10 November;
- Taxation and SMEs (London), 25 November 1983;
- Technological Innovation and Venture Capital (  Brussels),
30 November 1983.
8. Other meetings more specifically of regional interest were 
organized in the Member States, e.g. nine regional events in the 
United Kingdom, thirty seminars in the various Belgian regions, 
forty seminars in Italy, a considerable number of which covered 
the problems of the craft industries, and several dozen events in 
the Federal Republic of Germany, mostly at regional level.

4
9. On the basis of the results of the various proceedings, an Action 
Programme was adopted at the Closing Conference jointly held by 
the European Parliament, the Economic and Social Committee and the 
Commission on 8 and 9 December in Strasbourg. This Programme, which 
is addressed to the Community institutions and the Member States, 
calls for specific action in order to ensure that the environment 
of SMEs is more in line with their needs.and envisages that the 
Community may be able to play a role in the development of SME in 
the Third World, especially in the ACP countries.
10. The measures carried out within the framework of the Year of SMEs 
have resulted in a greater awareness of the problems facing SME 
and of their Community dimension. In view of the finding that the 
problems are much the same in all Member States, the search for 
appropriate solutions should constitute one of the national and 
Community priorities.
11. The Year of SME has therefore been a success and has enabled a 
consensus to emerge as to the vital importance of SMEs in the 
Community's economic fabric, the magnitude of their problems in 
today's economic climate and the urgent need to find appropriate 
solutions. To this end, it is essential that there should be 
favourable economic and social framework conditions; these are 
prerequisites for the restoration of a climate of confidence, the 
stimulation of job-creating investment and the promotion of 
innovation.
12. Entrepreneurs are aware that measures to improve the administrative, 
tax, legal and financial environment of SMEs are an effective way 
of furthering the requisite restructuring of the European economy. 
Measures taken to this end at Community level would therefore be 
assured of a very large measure of support from entrepreneurs who 
are awaiting practical action on the basis of the analyses arising 
from the various national and Community studies and events.

- 5 -
12. The development of activities for SME in third countries, particularly 
bisin the Third World could provide a new impetus to EEC firms in a 
sector opportunities for cooperation can be specially advantageous 
for both parties. This extension should be supported in cases 
where SME often possess neither an adequate structure, nor the 
means nor the knowledge to establish cooperation with their 
counterparts in third countries.
Ill.  THE SITUATION OF SMEs IN EUROPE; COMMUNITY MEASURES
The Legal, Economic and Administrative Environment
13. SMEs are particularly sensitive to their general environment 
precisely because of their size. It is therefore necessary to 
take action in respect of the various aspects of their environment 
to ensure that the specific constraints on SMEs, in particular 
administrative and bureaucratic formalities which are especially 
burdensome for them, do not hinder the development of their potential. 
In fact, the dynamism and flexibility of SMEs constitute 
considerable advantages in terms of increasing the ability of the 
Community's economic fabric to react.
14. The European Parliament's Resolution and the Action Programme 
adopted by the Closing Conference of the European Year of SMEs 
sets out precise guidelines with regard to the areas in which 
action is needed :
a) Strengthening the Internal Market
b) Competition
c) Taxation
d) Inter-firm Cooperation.

-  6 -
a) Strengthening the Internal Market
15. The strengthening of the Community's internal market is particularly 
important where SMEsare concerned, because the progress with 
communication media and the development of commercial structures 
have resulted in even small firms increasingly buying and selling 
beyond the confines of regional and national frontiers ;  however,
the non-tariff barriers which still remain at the present
stage of integration cause greater inconvenience for SMEs for which
they are often insurmountable, than for large firms which are better
equipped to keep abreast of ten different sets of legislation and to
- · 1comply with the legislation and still make a profit .  Moreover, 
the approximation of legislation and the removal of border procedures 
should help to reduce and simplify the administrative formalities 
about which SMEsrightly complain. SMEswould also benefit from the 
opening-up of the procedures for the awarding of public contracts.
16. The Year 1983 marked a reinvigoration of the internal market. The 
European Council meeting in Copenhagen called upon the Council of 
Ministers to make progress in a series of priority areas defined by 
the Commission, and as a result several important directives were 
adopted at special Council meetings devoted to the internal market.
17. On 28 March, for example, it adopted a Directive laying down a 
procedure for the provision of information concerning technical 
standards and regulations in order to prevent the emergence of 
new barriers to the free movement of goods. This procedure, which 
entails a standstill obligation, covers not only public authority
1See "Assessment of the Functioning
of the Internal Market (COM (83) 80 of 18 February 1983, p. 12).

7
acts but also rules drawn up by industrial standards  
2institutions .  In addition, the Council has resumed work on
directives designed to remove technical barriers to trade.
18. In 1983 the Council adopted :
- a Directive on the simplification of inspections and formalities  
in respect of the carriage of goods between Member States3,  
which provides for - by 1 January 1985 - the discontinuation of  
systematic inspections, the establishment of express lanes, and  
the opening of the major frontier posts 24 hours a day for  
vehicles travelling unladen or in transit and during an  
ininterrupted period of at least 10 hours a day from Monday to  
Friday and 6 hours a day on Saturdays for other vehicles;
- a Directive on exemption from value added tax on the final
4importation of certain goods ;
- a Directive on the temporary importation of certain means of  
transport'’;
- a Regulation establishing simplified arrangements for the  
movement within the Community of goods dispatched from one  
Member State with a view to temporary use in one or more other  
Member States^*; these arrangements cover in particular goods for  
exhibitions and professional equipment used by craftsmen and  
self-employed people in the course of their work. On 8 March
2 0J no C 109 of
3 OJ no L 359 of
4 OJ no L 105 of
5 OJ L 105 of 23  
^ OJ no L 2 of 426 April 1983
22 December 1983.
23 April 1983.  
April 1983.  
January 1984.

-  8 -
1984, the Council agreed in principle to a list of commercial  
samples to be included in the simplified arrangements and  
confirmed its desire to extend them to include artists' works.
19. In addition, the Council made progress in 1983 on :
- the Commission's proposals concerning the introduction of a  
single administrative document for intra-Comunity trade^ to  
replace all the various administrative documents currently  
required to accompany goods. On 25 November 1983 the Council  
adopted a short list of the data which may be required. A final  
decision is expected before July 1984;
“ the coordinated development of computerized administrative  
procedures with a view to strengthening customs cooperation.  
Broad agreement has been reached within the Council as regards  
the objective and the general conditions concerning the use of  
information technology.
20. Early adoption of the proposal for a 14th Council Directive on the 
harmonization of the laws of the Member States relating to
g
turnover taxes would simplify considerably the formalities at  
frontiers within the Community. This Directive would enable the  
importer himself to calculate the tax due and deduct it  
immediately in his periodic return, with the result that no tax  
would be paid to any customs office.
7 OJ no C 203 of
0J no C 71 of
OJ no C 21 of
8 OJ no C 203 of6 August 1982  
16 March 1983  
26 January 1983  
6 August 1982

- 9 -
21. With regard to veterinary and plant-health inspections, the
Council is urged to take a decision on 32 proposals for directives9before it .  Where standardization is concerned, the Commission  
will give fresh inpetus with a view to the adoption of technical  
standards by bodies operating at European level.
The Commission will endeavour to make it easier for SMEs to gain  
access to the procedures for the awarding of public contracts.
b) Competition
22. The European Community's competition policy, which seeks to  
maintain or restore a genuine competitive structure, enables SMEs  
to compete as effectively as possible with Large firms. Also, as  
the problems specific to SMEs are taken into account when  
competition policy is defined, it strengthens the competitive  
situation of SMEs. Be that as it may, the Commission does not  
consider that SMEs can be exempted from the rules in force, but  
that, within the existing legal framework, adjustments can be made  
in order to take into account the special features of SMEs.
1023. This policy, which was outlined in a Notice concerning  
cooperation agreements in the fields of production and sales  
between firms whose market share is less than 5% and whose  
turnover does not exceed 50 million ECU, is also reflected in the  
following exemption rules :
11- in the Commission Regulation concerning specialization  
agreements between firms with a market share, in a substantial
9 COM(83) 673 of 17 November 1983.
10OJ no C 313 of 29 December 1977  
11 OJ no L 376 of 31.12.82

-  10  -
part of the c o m m o n  market, with regard to the products covered  
by the agreement in question of less than 1 5 %  and w hose total  
turnover does not exceed 300 million E C O ;
- in the two Commission Regulations concerning exclusive
distribution agreements and exclusive purchasing agreements in
which provision is m a d e  for the possibility of non-reciprocal
exclusive agreements if at least one of the firms concerned has
12an  annual turnover not exceeding 100 million E C U
1324. Early adoption by the Council of the proposal for a  Regulation  
exempting cooperation agreements relating to research, development  
and production would be an important step in the direction of  
strengthening the competitive position of S M E s.
25. In addition, the Comm ission has published a  practical guide to the  
competition rules specially devised for S M E s  in order to enable  
entrepreneurs to determine whether or not their behaviour and that  
of their competitors is in accordance with the rules in force.
26. Also in connection with the efforts to achieve better balance a s  
between S M E  and large firms, measures to harmonize contractual  
relations with regard to subcontracting should be initiated by the  
competent national bodies under the supervision of the Business  
Cooperation Centre which has for several years fu lfille d  a  
coordinating role at European level in this area.
c) Taxation
27. In its Communication o n  Tax and Financial Measures in favour of
14Investment , the Commission emphasized that specific structural  
measures designed to improve tax systems would m ake it possible to
12 0J n o  L  173 of 30.6.83
13 0J n o  C  16 of 21.1.84
14 C 0M C 83) 218 final

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increase the resources available for investment in firms,  
particularly in small ones. In this connection, the Com m ission  
w ill endeavour to m ake the national authorities aware of the tax  
problems specific to S M E s  by m ean s of measures coordinated at  
Com m unity level. This does not preclude C om m unity action at a  
later date.
d) Inter-firm Cooperation
28. The Council should adopt without further delay the Regulation o n  
the setting up of a  European Cooperation Grouping which, as a  
result of its flexible structure, could effectively help S M E s  
wishing to cooperate with firms based in other M em b e r States. In  
proposing the European Cooperation Grouping concept, the  
Comm ission w a s  concerned to provide firms with a  basis for  
cooperation in accordance with the dimensions of the European  
market and separate from the national legal systems, since, w h e n  
any given national legal system is chosen, one of the partners is  
always at a  disadvantage, especially where the firms involved are  
of different sizes, and even if the legal system in question is  
particularly suitable. Consequently, the creation of such a  legal  
structure would have particularly favourable implications for  
S M E s, since in the s a m e  circumstances larger firms d o  not  
experience the s a m e  difficulties as they have at their disposal  
expertise concerning markets and the various legal provisions.
29. The Council should also adopt as soon as possible the Commission's  
proposals concerning the tax aspects of inter-firm cooperation  
(mergers, parent companies and subsidiary companies, arbitration  
procedure).
1 5  O J  n o  C  103 of 18 April 1978, p. 4

-  12  -
Financing
30. S M E s  are often confronted with specific financial problems which  
reduce their competitiveness and their ability to innovate, since  
they have had to cope with the readjustments necessitated b y the  
crisis in a  situation of undercapitalization, with gross self­
financing margins considerably reduced and access to traditional  
sources of finance rendered d iffic u lt by credit containment, the  
level of real interest rates and the absence of appropriate  
guarantees.
31. In view of this situation, increasing emphasis is being placed o n  
S M E s  in a ll the Community's structural policies.
32. The Community's lending instruments (global loans) m ake a
considerable contribution to the financing of S M Es. Under
NCI 2 ^ , for example, 368 million E C U  were allocated to S M E s  and  
17under N C I 3 loans totalling 358 million E C U  have been signed and  
there are also a  n um m b er of loans which have been approved but not  
yet signed. These figures are indicative of the greater priority  
assigned to S M E s.
33. The European Investment B ank provided finance for S M E s  totalling  
592.9 million E C U  in 1982 and 707.7 million E C U  in 1983.  
Approximately one-third of all the global loans granted by the EIB  
in 1983 were for the financing of investment by firms with fewer  
than 20 employees and 6 0 %  of the total were granted to firms with  
fewer than 50 employees.
34. In addition, E C S C  global loans have been granted to facilitate
investment by S M E s  with a  view to increasing consumption of  
18Com m unity coal and for conversion investment entailing the
^  A s  at 24 January 1984  
17A s  at 24 January 1984  
^  O J  n o  C  343 of 3 1  Decem ber 1982

-  13 -
creation of jobs for which ex-ECSC workers have p rio rity  . B y  
31 December 1983 a to ta l of 3.5 m illion E C U  had been paid over in  
the form of global loans under A rticle 54 of the E C S C  Treaty  
(consumption of coal) and a to ta l of 237.1 m illion E C U  had been  
paid over by way of global loans under A rticle 56 of the E C S C  
Treaty (conversion).
35. The non-quota section of the European Regional Development Fund  
finances specific development measures focusing mainly on the  
promotion of S M E s in a number of regions and areas to the extent  
o f,930 m illion ECU.
36. In addition, the proposal for a Regulation^ amending the E R D F
Regulation submitted by the Commission on 18 November 1983,
provides for extending to a ll the less-favoured areas in the
Community measures sim ilar to those adopted for non-quota
assistance. It  also provides for at least 5 %  of the ERDF's
overall allocation to be earmarked for assistance granted in the
form of interest rebates on Community loans for SMEs. In the
proposal for a  Regulation concerning integrated Mediterranean  
21programmes , over 1  000 m illion E C U  are earmarked for the  
promotion of S M E s in the Mediterranean regions. I t  is therefore  
important that these two proposals should be adopted by the  
Council as soon as possible.
37. In addition, the Commission w ill ensure that the resources of the  
Community's financial instruments are used in a coherent fashion,  
taking into account in particular the d iffic u ltie s  of S M E s in the  
less-favoured regions, and especially in the peripheral regions.
19 O J  no C  191 of 16 July 1983
20 C O M (83) 649 fin a l
2^  O J  no C  251 of 19 September 1983

-  14 -
3 8 . The Comm ission w ill also encourage the development of "unofficial  
markets" which could represent considerable sources of finance for  
S M E s.
Innovation
39. S M Es, which are both a  source of and a  vehicle for innovation,  
encounter special difficulties because of their intrinsic features  
:  undercapitalization, difficulties in obtaining access to the  
capital markets, and the absence or inadequacy of traditional  
guarantees.
•j. W here innovation and the financing of innovation are concerned,  
the Comm ission has focused its attention o n  three areas :
a) European Innovation Loans
41. Following o n  from the plan for the transnational development of
22the supporting infrastructure for innovation , which the Council
has already adopted, the Commission has submitted to the Council a
draft Decision concerning European innovation loans to finance  
. . .  .  23innovative activities in S M E s  . These loans, the early adoption  
of which would be particularly beneficial, would be financed by a  
combination of borrowed capital - a  tranche of N C I 3 - and budget  
resources, and would seem  to be just what innovating S M E s  need.
b) European Venture Capital Association
42. Having seen that in the United States venture capital has played  
an essential role in the financing of innovation in small and  
medium-sized enterprises, the Commission, after financing a  pilot  
project aimed at developing cooperation between venture capital  
companies in different M em ber States, has sponsored the
22O J  n o  L  353 of 15 Decem ber 1983, p. 1 5  
23 C O M (83) 241 final

- 15 -
establishment of the European Venture Capital Association in order  
to encourage the spread of this type of financing a m o n g  S M E s  in  
the Community.
c) Participation of S M E s  in Research Program m es
43. Specific measures to reduce European industry's dependence o n
countries outside Europe where the n e w  technologies are concerned
have been launched or envisaged, particularly in the sphere of
24 2 5information technologies , telecommunications and  
26biotechnology . They are of considerable benefit to small and  
medium-sized enterprises directly and indirectly :  directly  
because they w ill be involved in the Com m unity program m es right  
from the outset, and indirectly because the results of these  
initiatives w ill be assured of the widest possible circulation.
44. The Comm ission also hopes that the M em ber States will ratify the  
Luxem bourg Patents Convention as soon as possible. The large  
reduction in expenses which would result, would have particularly  
favourable repercussions for S M E s.
Training
45. C hanges in industry and the application of the n e w  technologies in
S M E s  necessitate ongoing training both for entrepreneurs and for
their staff. In this connection, the m ain thrust of the
Commission's endeavours is via the European Social Fund, the
priority guidelines for which were set out in the Communication
27from the Com m ission to the Council of 22 Decem ber 1983 pursuant
24C O M  (83) 258 final (The ESPRIT program m e w a s  adopted b y the Council o n  
28 February 1984)
25 C0M(83) 573 final
26 C
27 C O M (83) 711 final

- 16 -
to Article 6 of Decision 83/516/EEC . These guidelines include
vocational training schem es in S M E s  with a  view to the  
introduction of n e w  technologies and schem es for the training of  
staff to be employed in S M E s  in specific sectors.
46. The Com m ission w ill also take stock of existing vocational  
training and further training possibilities. In this context, the  
European Centre for the Development of Vocational Training will  
attach particular importance to the problems facing S M E s  and their  
managerial and other staff. It w ill also examine in particular  
the tasks, structure and functioning of development agencies and  
the training of the staff of such agencies. It w ill m ake a  
contribution towards the exchange and comparison of national and  
regional experience; it w ill endeavour to facilitate the coming-  
together of coordinating bodies operating o n  a  level sufficiently  
close to businesses.
Information and Business Consultancy Services
47. O n e  of the major difficulties facing S M E s  arises from the  
inadequacy of the information available to them o n  the state of  
the markets and o n  business and financial opportunities. In this  
connection, the Comm ission w ill continue to facilitate the access  
of S M E s  to information through data banks, the n e w  information 
technologies and traditional means. In particular, it w ill  
continue to expand the Euronet-Diane network, which gives access  
to the data banks set up by the European institutions :
- C R O N O S  for macroeconomic data;
-  C E L E X  for Com m unity legislation;
- C O M E S  for external trade;
- T E D  for public procurement tenders.
28O J  L  289 of 22 October 1983, p. 38

-  17 -
48. In addition, in the context of the specific regional development
measures implemented under the non-quota section since 1980 , the
E R D F  grants aids to S M E s to encourage the creation of an  
environment favourable to th eir development (management and  
organization consultancy services, market analyses, jo in t  
services, fe a s ib ility  studies, gathering and dissemination of  
information concerning innovation, e tc). Also, in the context of  
the second batch of specific regional development measures adopted  
by the Council on 18 January 1984 , a new  form of Community aid
has been introduced for setting up and developing economic  
promotion agencies responsible for opening up p o ssibilities fo r,  
and contributing to the success o f, productive, job-creating  
ventures. In addition, the Commission w ill examine how  exchanges  
of experience and information between consultancy services at  
European level might be organized.
49. The Commission w ill also keep up to date the practical handbook  
en titled  "Operations of the European Community concerning S M E s and  
c ra ft industry" which is at present being revised.
Relations with Non-member Countries
50. The Commission considers that closer relations between S M E s in the  
Community and those in other countries should be sought. In the  
case of Third World countries and A C P  countries in particular.  
Community aid should (as) contribute, as a matter of p rio rity , to  
the development of S M E s locally and (b) promote cooperation  
between small and medium-sized enterprises in Europe and those in  
the Third World. The Commission already has several instruments  
at its  disposal for this purpose :
29 Regulations N os 2615/80 to 2619/80 C O J  N o  L  271 of 15 October 1980)  
^  0J N o  L  27 of 31 January 1984

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- the Business Cooperation Centre whose job i t  is  to  f a c ilit a t e  
cooperation between firm s in the Community; i t  has extended 
it s  a c t iv it ie s  to  include Spain, Portugal and ce rta in  other 
non-member co u n trie s;
-  the EEC-Canada Agreement which enables there to  be exchanges of 
experience concerning p o lic y  w ith regard to  SMEs;
- the Centre fo r In d u s tria l Development set up under the f i r s t  
Lome Convention which endeavours to  promote in d u s tria l 
cooperation between the European Community countries and
t he A C P  count rie s .
51. T h e  Commission w ill take steps to  ensure th a t optimum use
is  made of these instrum ents in order to  give S M E s news prospects 
fo r cooperation w orldw ide. In th is  co n te xt, i t  w ill study, 
w ith in  the lim it of budgetary c o n s tra in ts , the p o s s ib ilit y  of 
widening the f ie ld  of operations of the B C C  in t h ir d  c o u n trie s , 
p a r tic u la r ly  those th a t are developing.
This a c t iv it y  should should in p a rtic u la r proceed w ith those 
developing countries which have concluded agreements with the 
EEC  on economic cooperation.

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52. in a d d itio n , closer re la tio n s  between the Commission and the Small 
Business A dm inistration in the United States and with the 
competent a u th o ritie s  in the EFTA countries would also increase 
the o p p o rtu n itie s available to  SMEs.
IV . E U R O P E A N  C E N T R E  F O R  S M E s A N D  C R A F T  INDUSTRY
53. The idea of s e ttin g  up a  European Centre for S M E s was advanced
by the European Parliament in it s  Resolution of 19 February 19823 
and was examined in the course of 1983.
54. The European Parliament has included a  100 000 E C U  appropriation 
in the Community Budget for 1984.
55. In ird e r to  f u l f i l l  a  useful function fo r S M E s and the Community 
bodies, th is  Centre should express the needs of S M E s in the 
Community, since the Community's ta s k , which consists of taking 
account of the s itu a tio n  of and the s p e c ific  constraints on SMEs, 
is  so much easier i f  entrepreneurs manage to  give concerted 
answers when the Commission consults them concerning its  
in it ia t iv e s  a ffe c tin g  S M E s d ire c tly  or in d ir e c tly , e x p lic it ly  
or p o te n tia lly .
56. The Centre should therefore s a tis fy  two fundamental conditions :  
(a) i t  must have the support of a l l  the European organizations 
representing small and medium-sized e n te rp ris e s ,
and (b) i t  requires an adequate research and documentation 
capacity enabling i t  to  gather basic data and inform ation which 
a l l  too often are s till  dispersed in the Member States.
31 O J  No 66, 15 March 1982, p. 97
See also Oral Question no H-212/79 by M r Deleau (OJ no C 4  of 7.1.80 
p. 3) and W ritten Question no 346/81 by M r Notenboom O J  no C  333 
of 21 December 1984, p. 2).

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V. C O N C L U S IO N S
57. The European Year of Small and Medium-Sized Enterprises has m a d e  
it possitle to analyse in detail the problems facing S M E s  in the  
present process of structural renovation. It has resulted in a  
m u c h  better awareness of the potential of and the specific  
constraints o n  S M E s. The events organized have demonstrated the  
european dimension of the problems with which S M E s  are confronted  
in the various regions. Consequently, the problems of S M E s  merit  
a  Com m unity approach even if the solutions have to be adapted to  
the local situations.
58. Consequently, and in the light of the European Parliament's  
Resolution and the Action Program m e adopted b y the Strasbourg  
Conference, it is important that the Council should rapidly adopt  
the Commission's proposals concerning :
-  the reform of the European Regional Development Fund,
-  the creation of European innovation loans for SM Es,
- the integrated Mediterranean programmes,
- the removal of technical barriers,
- the simplification of formalities and inspections at frontiers  
within the Community,
- the establishment of a  European Cooperation Grouping, and
-  the tax aspects of inter-firm cooperation.
The Luxem bourg Patents Convention should also be ratified as soon  
as possible.
59. For its part, the Comm ission w ill take steps to ensure that  
Com m unity measures in all areas take greater account of the  
interests of S M E s. Consequently, the Comm ission w ill in  
particular maintain those contacts with the organizations of S M E s  
and craft industry which it developed during the course of 1983.

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In a d d itio n , i t  w ill continue with it s  e ffo rts  to  consolidate 
and strengthen the in te rn a l market. In th is  context, the 
Commission w ill also make sure that the s p e c ific  problems of 
small and medium-sized enterprises in border regions are taken 
in to  consideration and that the s itu a tio n  of these firm s is improved.
In a d d itio n , the Commission has the in te n tio n  of a ssistin g  
implementation of cooperation between S M E  of the E E C  and those 
of the T hird World, p a rtic u la rly  those which have concluded 
economic cooperation agreements with the Community.
60. L a s tly , the Commission w ill in te n s ify  exchanges of views
and inform ation with the natio n a l a u th o ritie s  on the basis of 
the e x is tin g , proven s tru c tu re s , in order to  a rriv e  at a  more 
coordinated approach to  a  number of measures taken or envisaged 
by the Member States. The objectives in question are in p a rtic u la r 
the easing of the burden of ta xa tio n  and employers' social insurance 
c o n trib u tio n s , the promotion of exports and the development of 
consultancy services for small businesses.