WRITTEN QUESTION E-2795/96 by Cristiana Muscardini (NI) to the Commission (21 October 1996)

Subject: Small and medium-sized firms strangled in red tape

Small and medium-sized firms are the backbone of the Italian economy, as in other countries of the European Union, but in Italy at least they are in danger of being crushed beneath the weight of bureaucratic procedures.

A study by the Confartigianato (Italian General Confederation of Craft Trades) reported in the Italian press illustrates the problems encountered by a small firm wishing to take part in a public invitation to tender. The small contractor needs to submit to the public authority in question 25 documents, 23 of which are subject to stamp duty, and a certificate indicating that he is a member of the national association representing the relevant sector. Obtaining these documents can cost over a million lire and often involves an even more costly waste of time.

The simple fact that the contractor is registered with the relevant national association, which has at its disposal all the documents which he is required to produce, should be enough to guarantee that the firm is eligible to take part in the competition. XXXWould the Commission, therefore, if a similar situation obtains in the other Member States, propose a Community directive aimed at speeding up the bureaucratic formalities or, at least, take appropriate steps to ensure that the situation is harmonized in whatever way is most favourable for the firms involved?

Answer given by Mr Papoutsis on behalf of the Commission (27 November 1996)

The Commission fully shares the concern of the Honourable Member regarding the administrative burden imposed on business. In fact, this burden is higher for small businesses than for larger enterprises because they do not have the human and financial resources to cope with their administrative obligations.

Improving and simplifying the regulatory and administrative business environment is therefore one of the priority objectives as set up in the Commission's report on small and medium sized enterprises (SMEs) to the European Council of Madrid ((CSE (95) 2087. )) and in the third multiannual programme for SMEs ((OJ C 156, 31.3.1996. )).

Because the application of legislation and the administrative procedures that stem from it are primarily the responsibility of national and local public administrations, the Commission's actions in this field relate mainly to the exchange of information and best practice between Member States. This enables each of the Member States to assess its own performance with respect to improving their administrative systems and the way they conduct their relationship with business. A first action was launched by the Commission on measures developed in the Member States with a view to simplifying the start-up phase of a business. A number of concrete measures were identified such as the setting-up of a single contact point and a single application form for business registration. The Commission is considering the most appropriate means to follow-up this work.

As regards the registration of contractors and eligibility to take part in competitions for the award of public contracts, it should be noted that the public procurement Directives covering public works, supplies and services provide as follows;

a) that certified registration on official lists by the competent body should, for the purposes of the contracting authorities of other Member States, constitute a presumption of suitability corresponding to the contractor's classification as regards certain requirements for participation in public procurement, which include enrolment in a professional register, and

b) information that can be deduced from registration on official lists cannot be questioned. However, contracting authorities have the right to ask for further documentation on matters not covered by the presumption or which cannot be deduced from the registration.

If the Honourable Member has information indicating infringement of these provisions, she is welcome to submit it to the Commission, which will take the appropriate action.

The Commission is generally concerned about how the participation of small and medium-sized firms in public procurement can be made more effective, and the remaining barriers to the opening up of public procurement removed. The Commission is preparing a green paper on public procurement, which could be issued shortly and which should allow the Commission to obtain valuable contributions as to possible solutions to some of the problems raised by the Honourable Member.