WRITTEN QUESTION E-2253/97 by Amedeo Amadeo (NI) to the Commission (2 July 1997)

Subject: SMU and craft industries

With reference to the question of craft industries and SMU (Doc. CES 328/97), the results of the European conference of craft industries in Berlin (26 and 27 September 1994) and the fora of small and medium-sized undertakings in Paris (19 and 20 June 1995) and Madrid (16 and 17 November 1995) should be given close scrutiny by the Committee. The Commission has also drawn up a new action programme for SMU, submitted to the Madrid European Council in December 1995, which asked it to continue its work in this field.

Will the Commission make special efforts to simplify the administrative formalities under this programme?

Answer given by Mr Papoutsis on behalf of the Commission (4 September 1997)

Following on from the various reports mentioned by the Honourable Member, there was widespread political consensus that small and medium-sized enterprises (SMEs) have a crucial role to play in creating growth and employment opportunities in the Community. Subsequently, following on from the Madrid European Council SME policy paper ((CSE(95) 2087. )) the Commission announced its proposals for a third multiannual programme for SMEs in the European Union from 1997 to 2000 ((COM(96) 98 final. )). This multiannual programme, adopted by the Council on 9 December 1996 ((OJ L 6, 10.1.1997. )), provides the legal and budgetary basis for the Commission's specific SME policy actions. It fits within the framework of the wider integrated programme for SMEs ((COM(96) 329 final. )) which aims at better co-ordination of all measures which impact on SMEs and more effective co-ordination of the various contributions which are made at European level in favour of SMEs, as well as the improved co-ordination of Member States' actions affecting SMEs.

One of the priority objectives of the Community's enterprise policy, set out in the multiannual programme, is the continuing commitment towards improving and simplifying the business environment. The total annual cost of administrative burdens on all enterprises in Europe has been estimated at between 150 000 to 250 000 MECU. The Commission therefore remains committed towards improving its own contribution towards reducing red tape and improving Community legislation which may impact on enterprises, in particular on SMEs. Commission action in particular to address this problem will involve more rigorous assessment of the impact on business of European legislation, including the greater involvement of SMEs at the drafting stage of legislative proposals, more use of cost-effectiveness or cost-benefit analysis as appropriate,- continuation of the work of the group on improving and simplifying the business environment to promote the exchange of best practice in relation to administrative and regulatory simplification both within the Community and in Member States and greater co-ordination of Community actions to allow SMEs to participate fully in programmes targeted at them e.g. in respect of Community research and technological development (RTD).

In April 1997, the Commission addressed Recommendation 97/344/EC ((Commission Recommendation on improving and simplifying the business environment for business start-ups of 22.4.1997 -OJ L 145, 5.6.1997. )) to the Member States which identifies best practice in the field of improving and simplifying the business environment for newly created enterprises and sets out measures relating to the start-up phase involving national authorities. In particular the Recommendation focuses on the need to reduce administrative burdens imposed on business start-ups, and to make public administrations more business friendly. This includes establishing a single contact point for the registration of new enterprises, using single registration forms, and adopting single business identification numbers. The Recommendation also deals with the stimulation of businesses in their first years of development by suggesting the need to improve administrative procedures in respect of tax, social security and statistical collection.

Most recently, the Amsterdam European Council confirmed strong commitment towards the simplification of legislative and administrative regulations to both improve the quality of Community legislation, and reduce the administrative burden on European business, particularly SMEs. The Commission was invited to set up a task force for this purpose and is currently considering how it can positively respond to the Council's invitation. The idea of a task force would fit in very well and help focus the work that is already being undertaken within the Commission on improving the business environment, especially for SMEs and the craft sector.