Proposal for a Council Decision on a multiannual programme (1994 to 1997) of Community measures to ensure the continuity of policy for enterprise, in particular SMEs, inthe Community
Date: 1993-01-13
Institutions: European Commission
Subjects: EU programme, aid to undertakings, business policy, reflation, small and medium-sized enterprises

COMMISSION  OF  THE  EUROPEAN  CŒfYlUNITIES 

COM(92) 470 final 

Brussels, 13  January  1993 

THE ENTERPRISE DIMENSION 

ESSENTIAL TO COMMUNITY GROWTH 

Community measures to intensify and to ensure the 
continuity of a policy for enterprise, in particular SMEs, in 
the Community 

PROPOSAL FOR A 

COUNCIL DECISION 

on a multiannual programme (1993-96) of Community measures to intensify 
the priority areas of policy for enterprise, in particular SMEs, in the 
Community 

(presented.by the Commission) 

PROPOSAL FOR A 
COUNCIL DECISION 

on a multiannual programme (1994-97) of Community measures to ensure the 
continuity of  policy for enterprise, in particular SMEs, in the Community 

(presented by the Commission) 

94 

t 

AH 

THE ENTERPRISE DIMENSION  ESSENTIAL TO 
COMMUNITY GROWTH 

EXPLORATORY  MEMORANDUM 

INTENSIFICATION  OF PRIORITY ENTERPRISE 
POLICY MEASURES IN ORDER TO  STIMULATE 
GROWTH  IN THE COMMUNITY 

I.  OBTECTIVES 

II.  PRIORITY AREAS FOR  INTENSIFICATION 

A) 

B) 

C) 

DEVELOPMENT  OF  EURO-INFO-CENTRES  TO 
FACILITATE 
COMMUNITY 
INFORMATION 

ACCESS 

TO 

DEVELOPMENT  OF  NON-CONFIDENTIAL  AND 
CONFIDENTIAL  PARTNER-SEARCH  NETWORKS  -
BRE and  BC-NET 

STEPPING  UP ACTIVITIES TO  PUT  BUSINESSMEN 
IN  DIRECT  CONTACT  WITH  ONE  ANOTHER 
AND 
UNDER 
INTERPRISE  PROGRAMME  AND  PROMOTING 
CROSS-BORDER  SUBCONTRACTING 

EUROPARTENARIAT 

THE 

D) 

IMPROVING  THE  ADMINISTRATIVE  AND  LEGAL 
ENVIRONMENT OF  ENTERPRISES 

E) 

PROMOTING  COMMUNITY INSTRUMENTS 

III.  CONCLUSION 

ENSURING  THE CONTINUITY OF A POLICY FOR 
ENTERPRISE, IN  PARTICULAR SMEs, IN THE 
COMMUNITY 

I.  OBJECTIVES 

II.  MEASURES  TO  ENSURE  THE  CONTINUITY  OF 

ENTERPRISE  POLICY 

A) 

MEASURES  AIMED  MORE  PARTICULARLY  AT 
AREAS UNDER  DEVELOPMENT 

Small  firms  and  craft  businesses 
The  distributive  sector 
Cooperatives,  mutual 
associations  and  foundations 

societies, 

non-profit 

B) 

C) 

ENCOURAGING  AN 
ENVIRONMENT 

IMPROVED 

FINANCIAL 

OBSERVATION  AND  EVALUATION  OF  THE 
POLICY 

European  SME  observatory 
Improving  statistics  on  SMEs 
Evaluation  of existing policy and  measures 

III.  CONCLUSION 

PROPOSALS  FOR  DECISIONS 

1.  Proposal  for  a  Council  Decision  on  a  multiannual 
to 
programme 
intensify  the  priority  areas  of  policy  for  enterprise,  in 
particular  SMEs, in the  Community 

(1993-96)  of  Community  measures 

2.  Proposal  for  a  Council  Decision  on  a  multiannual 
to 
in 

(1994-97)  of  Community  measures 
the  continuity  of  policy  for  enterprise, 

programme 
ensure 
particular  SMEs, in the  Community 

EXPLANATORY MEMORANDUM 

In Edinburgh  on  11-12 December  1992, the European Council, endorsing the 
guidelines  put forward  by the  Commission,  agreed  action  on  a wide  scale  to 
support growth in the Community. 

The  Declaration  on  Promoting  Economic  Recovery  in  Europe  (1)  states that: 
"Recognizing the importance of SMEs for creating employment and stimulating 
growth, the European Council called upon the Council and the Commission to 
ensure  that the  burdens  from  Community  legislation  on  small  and  medium-
sized  enterprises  are  reduced  (including  through  the  use  of  simplified 
schemes  and  exemption  limits  in  the  field  of  indirect  taxation)  and  that  full 
information  about  Community  support  is  provided  to  SMEs.  It  asked  the 
Commission  to  accelerate  the  actions  in  favour  of  SMEs which  have  proven 
their worth at the Community level". 

SMEs  account  for  a  major  share  of  GDP,  employment  and  regional 
development in the Community, and thus make a significant contribution to its 
economy (2). 

The  current  crisis  of  confidence  and  the  economic  difficulties  now  afflicting 
Community  action  (3)  nevertheless  underline  the  soundness  of  the  analysis 
underlying the launch of an enterprise policy,  and also of the measures taken 
since. The need to intensify  and continue the policy has now been  recognized 
and a priority part of it has been  made  central to the recovery and expansion 
of the Community economy. 

In this context,  in  order to  restore the  confidence  of businessmen  and  hence 
stimulate their involvement in the economic process, it is essential to maintain 
the indivisibility of the enterprise policy framework. The objective  of reviving 
growth justifies  anticipating and increasing the Community's effort with regard 
to priority measures capable of mobilizing enterprises to achieve the recovery 
objective. 

(1)  European  Council,  Edinburgh,  11-12  December  1992,  Conclusions  of  the  Presidency, 

Annex 4 to part A, point  8 

(2)  According  to  the  second  Commission  report  "Enterprises  in  Europe",  of  the  11.6 million 
enterprises  surveyed  in  1988, 96.3% had  less than  20 employees,  3.4% between  20 and  200 
employees  and  less than  0.2% had  between  200  and  500 employees, accounting overall  for 
70.2% of employment  in  the  EEC;  the  proportion  varies  across  the  different  regions  of  the 
Community.  ISBN-92826-4609-2. 

(3)  There  has  been  a marked  deterioration  in short-term  economic  prospects.  The  lowering  of 
growth  forecasts  in  relation  to  those  made  in  spring  1992  (1% growth  now  probable  in 
1993 as  against  1.7%  previously)  is an  indication  of a  worsening  in  the  economic  situation 
even  greater  than  expected  (the  threshold  of  10% unemployment  will probably  be  passed), 
with  a  longer  timescale  for  recovery.  This  latter  may  be  due  to  a  number  of  factors,  in 
particular  the  loss  of  competitiveness  of  some  products  on  external  markets  due  to  the 
appreciation  of  certain  currencies  and  especially,  according  to  periodic  surveys,  a  marked 
crisis in consumer  and  business  confidence. 

- 2-

To mobilize businessmen  in the  short term, it is essential  to hold up the  long 
term  prospects  which  the  Community  intends  to  provide  in  support  of  the 
steady  expansion  of  enterprises,  and  in  particular  of  SMEs.  The  need  for 
longer-term  action  is the  reason why  a proposal  for  a decision  has been  put 
forward  which  identifies  the  instruments  and  areas  which  will  ensure  the 
continuity of enterprise policy. 

The  co-existence  within  the  unitary  framework  of  enterprise  policy  of  two 
proposals  for  decisions,  each  with  its  own  value  added,  should  make  it 
possible to optimize the  macro- and micro economic  effects  of the  enterprise 
dimension. 

A degree of balance between these two aspects of enterprise policy is necessary 
to ensure  that action to  restore  business  confidence  in a depressed  economy 
does not jeopardize the credibility of Community action by neglecting the need 
to tackle long-term structural change. 

This  programme  in  favour  of  enterprises  therefore  seeks  to  reinforce 
immediately those areas for priority action which could provide an immediate 
response to the needs for enterprises to adapt in a period of uncertainty. It will 
also  have  to  ensure  the  continuity  of  supporting  measures,  whether  of  a 
general  nature  or  in  favour  of  specific  categories  of  enterprises,  in  order  to 
avoid  merely  shifting  in  time  or  from  one  business  category  to  another  the 
tendency 
towards  negative  expectations  whose  effect  on  economic 
development is clearly seen today. 

The general  economic situation calls for a special  effort where enterprises are 
concerned, which must supplement the substantial  activity carried out in their 
regard  for  several  years,  designed  to  ensure  the  thorough  involvement  of 
enterprises,  especially  small  and  medium-sized  ones,  in  a  Community 
economy and society in full evolution. 

- 3-

INTENSIFICATION  OF PRIORITY ENTERPRISE POLICY MEASURES  IN 
ORDER TO STIMULATE GROWTH  IN THE COMMUNITY 
(1993-1996) 

INTENSIFICATION  OF PRIORITY ENTERPRISE POLICY MEASURES  IN 
ORDER TO STIMULATE GROWTH  IN THE COMMUNITY 

I.  OBJECTIVES 

In  order  to  ensure  that  Community  enterprise  policy  involves  a  significant 
value  added  element  and  enables  it  to  contribute  to  economic  revival,  the 
actions  most  closely  geared  to  the  situation  of  enterprises  must  be  greatly 
developed  and the interaction  of instruments  intensified. 

A  major  objective  is  to  allow  enterprises - beyond  the  necessary  structural 
changes  and  greater  competition  - to  seize  the  opportunities  provided  by  the 
new dimension  of the internal  market. 

In  the  context  of  the  Europeanisation  of  enterprises,  the  direct  effect  of 
strengthening  instruments  is  therefore  a  crucial  factor  for  growth.  It must  be 
based  both  on  the  information  and  cooperation  networks  set  up  and  on  the 
promotion  of  existing  Community  instruments,  particularly  the  strengthening 
of  technological  potential,  and  must  also  promote  the  adaptation  of  the 
administrative  and legal  environment to the development  of business  initiative. 

As part of increasing internationalization,  as regards both business strategy and 
the growing importance  of partnership in industrial  and technical  cooperation, 
full  account  should  be  taken  of the  importance  of  external  relations with  non-
Community countries as markets are rapidly opening up. 

Networks  and  instruments  should  thus  continue  to  be  expanded  to  non-
Community  countries,  in  line  with  the  priorities  of  external  affairs  and 
development  policy.  The  aim  is  the  mutual  one  of  creating  the  best  possible 
conditions  for  contact  between  Community  and  third-country  businesses,  on 
the basis  of know-how  already tested  at Community  level,  provided the  proper 
functioning  of instruments  is not thereby  jeopardized. 

Against  this  background,  the  instruments  and  measures  developed  to  help 
SMEs  should  be  directed,  by way  of  priority,  at the  new  European  Economic 
Area,  bringing  in  the  EFTA countries,  and  also  the  countries  of  eastern  and 
central  Europe.  Measures  should  be  developed  in  complementarity with  those 
provided  for  in  the  Community's  various  trade  and  development  agreements, 
and in other assistance  and cooperation  programmes. 

The  selection  of the  priority  areas  of  enterprise  policy to  be  reinforced  with  a 
view  to  economic  recovery  takes  into  consideration  the  results  of  the 
evaluation  of  the  1990-93  programme  being  carried  out  pursuant  to  Decision 
91/319/EEC  (4).  The  evaluation  recognized  the  soundness  of  the  measures 
and their  capacity to  fulfil  the  tasks set for them,  especially their relay effect  in 
getting  Community  objectives  across  to  firms.  This  why  it  has  been  decided 
that the priority areas advanced  are those  best able, once  the resources  at their 
disposal  are increased, to sustain a process of reviving enterprises' activity. 

(4)  Comments by the Commission  on  the  Deloitte  & Touche  Report  on  the  evaluation  of  the 

Community's enterprise policy, SEC(92) 1999 of 11 november 1992. 

- 5-

II.  PRIORITY AREAS FOR  INTENSIFICATION 

A) 

DEVELOPMENT  OF  EURO-INFO-CENTRES  TO  FACILITATE  ACCESS 
TO COMMUNITY INFORMATION 

Information  is  one  of  the  main  factors  contributing  to  the  development 
1. 
and  EuropeanLzation  of  businesses,  and  the  Commission  will  endeavour  to 
achieve  maximum  synergy  between  all 
intermediaries 
available to  businesses. 

information 

the 

The  main  priority  is  therefore  given  to  reinforcing  and  developing 
Euro Info  Centres  (EIC)  network. 

the 

Tailored  to  the  needs  of  businesses,  the  Euro  Info  Centres  network  plays  a 
dual  role, both  upstream  and  downstream  of the  Commission  administration: 

downstream,  by  disseminating 
affairs 
extremely  widely  through  the  many  relay  points  branching  out  from  the 
210 EICs; 

information  on  Community 

upstream,  by  stimulating  highly  valuable  feedback  on 
economic  climate in which businesses  are  operating. 

the 

regional 

This  information  is  available  to  all  members  of  the  network  and  will  become 
increasingly important  as the  different  regions  take  a greater  share  of the  trade 
generated  by completion  of the  internal  market. 

Certain  specializations,  duly  identified  and  encouraged  by  the  networks's 
central  unit,  help  to  increase  the  added  value  of  the  network  as  a  whole 
through  the  dissemination  of  increasingly  operational  information  and  the 
preparation  of integrated  information  packages. 

The  EICs  also  provide  practical  information  and  assistance  for  firms  wishing 
directly  to  exploit  the  opportunities  offered  by  Community  programmes  and 
increasingly open  public  procurement. 

The  EIC network  thus  emerges  as  a highly  effective  diversified,  multifunctional 
Community  instrument-  with  a  high  added  value - providing  enterprises  with 
small-business  organizations,  whose 
information 
European  activities it helps to  stimulate. 

through  decentralized 

In view of the  foregoing,  both  the  structure  of  the  network  and  the  nature 
2. 
of the  information  provided  need  to be  adjusted  in  a climate  of broad  dialogue 
which  must  enable  businessmen  to  establish  strategies  quickly  in  connection 
with the effective  functioning  of the  large  single  market. 

With this in mind, the following matters will be proposed: 

adjusting the  composition  of the network  so  as to take greater account of 
existing  specialized  networks  (specializing  by  size  of  business  -craft 
industry - or by sector)  and granting further  requests to join the  network 
from decentralized relays currently operating as subnetworks; 

setting  up  new  correspondence  centres  outside  the  Community,  to  take 
into  account  the  needs  of  firms  wishing  to  internationalize  their 
operations; 

speeding up the process  of making available reliable  information  targeted 
to  their  real  needs  of  businesses  in  the  context  of  the  single  market,  in 
particular in the form  of integrated  information  products,  of the database 
type; 

as  part  of  the  financing  of  EICs,  partial  Commission  funding  of 
decentralized promotion work and database consultation to boost network 
effectiveness;  the  latter financing formula  would  replace  the  arrangement 
whereby  free  access  is  granted  to  Community  databases  only,  a  system 
which  is  to  be  phased  out.  The  Commission's  contribution  would  be 
conditional  on  the  EICs  achieving  precise  objectives,  especially  in 
penetration local business life. 

B) 

DEVELOPMENT  OF  NON-CONFIDENTIAL  AND  CONFIDENTIAL 
PARTNER-SEARCH NETWORKS - BRE and BC-NET 

3.  The  strategy  of  joint  development  of  the  two  partner-search  instruments 
(BRE and  BC-NET)  will  take  account  of  the  different  aspects  of  the  quality-
improving  approach  supported  by  the  Council  from  1991,  when  it  revised 
Decision  89/490/EEC,  and of  more  recent factors  resulting from the  internal 
and external evaluation of the measures in this  field: 

awareness  measures  and  training  for  the  business  advisers  belonging  to 
these  two  networks  will  reflect  the  observed  evolution  towards  greater 
interest in technological, financial and marketing cooperation; 

cooperation  between  the  partner-search  instruments  (BRE  and  BC-NET) 
and other decentralized networks will be encouraged making it possible to 
provide  a  service  closer  to  enterprises'needs:  e.g.the  BRE  and  BC-NET 
networks  could  flank  initiatives  of  the  Interprise  type  upstream  and 
downstream; the networks will also seek appropriate forms of cooperation 
with  business  organizations,  chambers  of  commerce  and  industry  and 
chambers of trade so  as to  increase  the  network  effect  of the  instruments 
and make them more  effective. 

- 7-

4.  The  BUSINESS  COOPERATION  CENTRE 
in  non-confidential 
searches  for  business  partners  and  enables  firms  to  be  approached  direct  via 
the  network  of  local  correspondents  in  all  Member  States  and  in  certain  third 
countries. 

(BRE)  specializes 

The  development  of  the  BRE  will  be  continued  in  accordance  with  the 
approach of recent years, in particular: 

BRE's scope will  be  extended  by increasing the  number  of  correspondents 
inside and outside the  Community; 

the quality of service will be  improved by increasing the professionalism  of 
the network  correspondents; 

the intensification  of cooperation  between  members  of the network will  be 
supported. 

The BRE network should  also remain  a simple  and  flexible  system to use,  since 
these  are  extremely  important  factors  in  making  it  accessible  to  the  greatest 
number and in winning the esteem  of correspondents  and businesses  alike. 

Thus, a number of operational  improvements will be made: 

to  identify  more  clearly  the  types  of  cooperation  sought  and  the  aims 
pursued,  such  as the gradual  merger of EIC Conferences with the BRE 

to  improve  the  instrument  itself,  notably  by  shortening  file  processing 
times in the central unit for managing the  network. 

5.  BUSINESS  COOPERATION  NETWORK  (BC-NET),  a  large  network  specializing  in 
confidential  searches  for  business  partners,  will  step  up  the  drive  for  quality 
and productivity by focusing  on the following  points: 

providing stronger  support for  network  members,  in terms  of training  and 
computerization  in  particular,  so  that  business  advisers  are  able  to  give 
priority  to  the  preliminary  information-gathering  phase  and  facilitate 
contacts between  potential  partners  by  giving  businessmen  an  insight  into 
new market opportunities; 

stepping  up  monitoring  activities  on  the  basis  of  regular  reporting  so  that 
results  can  be  assessed  more  closely  in  terms  of  agreements  concluded 
and  the  necessary  adjustments  can  be  made  to  the  nomenclatures,  the 
computer system and the management  of subnetworks; 

introducing  and  gradually  adjusting  charges  for  the  service  to  help  not 
only to  reduce  public  expenditure,  but  also to  help  raise the  quality of the 
service  by  making  the  network  more  homogeneous 
in  terms  of  its 
preparation and follow-up  capacity; after  an initial phase  in which  a charge 
would  be  made  for  each  cooperation  profile,  the  possibility  will  be 
discussed with the advisers  of changing  over to a system  of flat-rate annual 
charges, in the light of market conditions; 

in 
the  development  of  synergies  with  other  Community  measures, 
improvement  of 
those  already  begun  on 
particular  following 
cooperation 
field  of  human  resources  and  research  and 
the 
development  -  especially  the  better  use  of  research  results,  and  in  close 
connection  with  other  Community  programmes,  such  as  those  for  the 
financing  of SMEs and public  procurement. 

the 

in 

-8 

C) 

STEPPING  UP  ACTIVITIES  TO  PUT  BUSINESSMEN  IN  DIRECT 
CONTACT WITH  ONE ANOTHER  UNDER  THE EUROPARTENARIAT 
AND INTERPRISE PROGRAMME AND PROMOTING  CROSS-BORDER 
SUBCONTRACTING 

6.  The  EURQPARTENARIAT  programme  will  continue  to  pursue  the  twin 
objectives of business  expansion  and regional  development. 

On  the  basis  of  the  results  of  the  internal  evaluation  currently  being  carried 
out,  the  Commission  will  endeavour  to  promote  better  preparation  of 
enterprises and better follow-up  of results  in cooperation with national  bodies. 
An  effort  will  be  made  to  ensure  the  balanced  participation  of  firms  in  the 
Community,  in  neighbouring  European  countries  and  in  the  Mediterranean 
countries. 

The  structural  impact  of  the  events  will  be  stepped  up  and  special  attention 
paid to the  existence  in the region  concerned  of organizations  that can  provide 
follow-up. 

Europartenariats  have  so  far  chiefly  concerned  Objective  1  regions  and  this 
priority will  be  maintained.  It will,  however,  be  necessary  to  see  that they  are 
extended to the Objective  2 and  5(b)  regions. 

INTERPRISE  programme  has  also  attracted  strong  support 

7.  The 
from 
businesses,  public  bodies,  trade  associations  and  chambers  of  commerce, 
trade, etc. 

Support  should  continue  to  be  given  to  sectoral  or  intersectoral  meetings  of 
this  type  and  in  particular  to  schemes  promoting  cooperation  within  and 
beyond  the  Community  on  priority topics  such  as the process  of  privatization, 
in which the position  and role  of SMEs should be  strengthened. 

Furthermore,  to  ensure  interaction  between  programmes,  Interprise  meetings 
could  follow  Europartenariats  reasonably  closely,  in  order  to  benefit  from  all 
the  contacts  initiated  during  the  main  event,  in  close  coordination  with  other 
existing instruments  (technology transfer  days and investment forums - Sprint). 

8.  Efforts to build up  PARTNERSHIP WITH BUSINESSES OUTSIDE THE COMMUNITY follow a 
similar approach to the one  for those within it. 

Since the aim is to encourage  businesses  in  Member States and third  countries 
to  cooperate,  the  necessary  finance  will  be  drawn  mainly  from  programmes 
developed  as part of the Community's  external  relations policy. 

An initial  project of this type  has been  run with Tunisia  and has confirmed  the 
soundness  of  the  approach.  On  this  basis,  a  multiannual  pilot  programme 
(Med Invest) is being prepared for the Mediterranean  countries. 

Against  such  a background,  the  Interprise  programme  should  continue  to  be 
opened  up 
its 
Europeanization  and internationalization  objectives. 

in  conjunction  with 

third countries 

to  businesses 

in 

- 9-

9.  In  CROSS-BORDER  SUBCONTRACTING,  account  has  to  be  taken  of  the  rapid  and 
far-reaching changes that are affecting the sectors  concerned. 

The  "total  quality"  approach  is  now  a  key  factor  in  competitiveness,  which 
depends  not  only  on  product  quality  but  also  on  management  principles 
designed  to  reduce  malfunctions  in  the  production  process.  Clearly,  the 
requisite standard of quality must be achieved by all the links in the chain. 

Consequently,  many  main  contractors  are  now 
cooperation 
agreements  with  subcontractors  in  order  to  bring  them  up  to  the  same 
standard  of  quality.  Stocks  having  been  reduced  through  just-in-time  delivery, 
management  is  now  being  taken  into  account  as  a  factor  contributing  to 
competitiveness. 

signing 

These  trends  call  for  action  to  stimulate  partnership  on  a  longer-term  basis 
between  large  firms  and  SMEs  in  order  to  guarantee  product  and  service 
quality over time. 

In this  context,  Community  action  should  continue  to  facilitate  the  emergence 
of a European market in subcontracting by: 

improving  knowledge  of  the  legal  situation  and  economic  importance  of 
subcontracting,  even in sectors that are still fairly effectively walled  off; 

promoting the  harmonization  of auditing and certification  procedures  with 
a  view  to  arriving  at  comparable  quality  standards  enabling  mutual 
recognition  agreements  to  be  concluded;  in  general,  such  action  should 
give  preference  to  mutual  recognition  agreements  entered  into  on  a 
voluntary basis; 

creating  a  genuine  Europe-wide  subcontracting  network  will  facilitate 
cross-border  contacts  and  exchanges  of  experience  between 
trade 
associations;  this  is  especially  important  for  the  competitiveness  of  the 
European  economy,  particularly in  such  key sectors  as  motor vehicles  and 
electronics,  for  which  pilot  projects  will  be  proposed  to  speed  up  the 
adjustment process. 

10.  Measures  to  stimulate  and  back  up  cooperation  between  businesses  will 
also  be  maintained.  This  is  because,  although  a  large  number  of  Community 
firms  already  generate  a  proportion  of  their  turnover  outside  their  home 
country,  notable  differences  do  exist  between  sectors  and  regions  in  the 
Community.  It  is  therefore  essential  to  bear  these  sectoral  and  geographical 
factors  in  mind when  adapting  and  diversifying  the  action to  be  taken,  so  as to 
stimulate  the  sectors  in  greatest  need  and  thus  contribute  to  efforts  to  boost 
activity. 

Likewise, there  is no  doubt that a firm's size  is  a factor  in determining  whether 
it  is  able  to  engage  in  cross-border  cooperation  and  whether  it  stands  to 
benefit.  Special  attention  should  therefore  be  devoted  to  the  difficult  situation 
of small  firms  and  craft businesses  as part of the single  approach  to  enterprise 
policy. 

- 10 

D) 

IMPROVING THE ADMINISTRATIVE AND  LEGAL ENVIRONMENT OF 
ENTERPRISES 

11.  Given  the  likely  acceleration  in  the  completion  of  the  internal  market,  a 
favourable  business  environment  is  increasingly  important,  especially  for 
SMEs, and will require  increased  Community  action. 

The  new  business  environment  will 
impose  new  responsibilities  on 
Community  institutions  and  national  authorities  as  regards  transparency, 
supervision and partnership.  In March  1992 the Commission  set up a group  to 
look at these problems  and make proposals to the  Commission. 

The  group's  report  (5)  was  received  on  27 October  and  the  Commission  has 
formulated  an  initial  response 
in 
Edinburgh.  This will  form  the  background  for  the  Commission's  proposals  to 
make the Community business  environment simpler  and more  transparent. 

(6)  ahead  of  the  European  Council 

12.  With this  in  mind,  the  Commission  has  already  published  two  reports  on 
administrative  simplification  to  help  businesses,  and  especially  SMEs,  in  the 
Community  (7). In view  of the  conclusions  of  the  second  report,  it intends,  in 
collaboration  with  the  Member States,  to  increase  the  future  impact  of  this 
work  by  wider  circulation  of  the  information  gathered  and  by  encouraging 
follow-up  measures  in  the  Member  States. Joint  studies  bringing  together  the 
Member  States  and  the  Commission  should  enable  progress  to  be  made  in 
perfecting  existing  simplification  techniques,  e.g.  in  terms  of  cost-benefit 
analysis. 

It is  also  important  to  ensure  that  all  decision-makers  are  more  aware  of  the 
objectives  and  techniques  of  simplification.  The  Member  States  should 
therefore  be  working towards  the  same  goal  as the  Commission,  as  suggested 
by Council Resolution of 24 November  1992 (8). 

13.  The  incorporation  into  the  Community's  decision-making  process  of  a 
phase  of  assessment  of the  impact  on  enterprises  of  proposed  measures  must 
remain  a  key  element  of  the  Community  mechanism  for  improving  the 
business  environment.  Impact assessment,  based  on  the  assessment  form,  will 
require  improvement  along  the  lines  indicated  in  the  second  report  on 
administrative simplification  recently adopted by the  Commission. 

The impact assessment system  is still  relatively new and a considerable  amount 
of  Community  legislation  predates  it.  The  Commission  has  stated  that,  in  the 
preamble  to  future  proposals  for  legislation,  it will  set  out  the  reasons  for  the 
legislation  it  is  putting  forward  in  the  light  of  the  principle  of  subsidiarity.  It 
will  also  be  re-examining  some  Community  rules  so  as to  bring them  into  line 
with  that  principle.  The  Member States  too  might  undertake  action  along  the 
same lines at national,  regional  and local  level. 

(5)  The  Internal Market After  1992: Meeting the  Challenge, SEC(92)  2044, 29 October  1992. 
(6)  SEC(92)  2277, 26 November  1992. 
(7)  SEC(89)  726,  19 June  1989 and  SEC(92)  1867, 27 October  1992. 
(8)  Council  Resolution  on  administrative  simplification,  yet  to  be  published  in  the  Official 

Journal. 

- 1 1-

This exercise  should  cover  not only Community legislation  proper,  but also a 
number  of  procedures  associated  with  Community  measures,  such  as 
formalities  to be complied with. The task will  be to collect information  on the 
impact  on  enterprises  of  existing  Community  legislation  in  the  light  of  the 
experience  gained  when  it was  implemented  and, where  necessary,  to  make 
proposals for reducing the administrative burden (9). 

14.  Finally, greater efforts  will  have to be  made to  coordinate  activities under 
the  Community's  enterprise  policy  and the  various  Community  programmes 
which  could  benefit  SMEs, without jeopardizing the  objectives  of  each  of the 
policies concerned. 

This  should  be  accompanied  by  a  strengthening  of  cooperation  with  the 
Member  States  as  regards  all  the  initiatives  pursued  in  addition  to  those 
existing in some Member States or which are likely to be taken up by public or 
private intermediaries. 

Priority  should  also  be  given  to  intensifying  and  improving  the  quality  of 
consultations  organized  with  the  trade  bodies  concerned.  Regular  meetings 
will  be  organized  in  future  and  will,  as  far  as  possible,  involve  other 
Commission  departments; this  forum  should  put  greater weight  on  dialogue 
and  conciliation  so  that,  on  the  one  hand,  die  measures  envisaged  by  the 
Commission  can  be  made  known  and,  on  the  other,  information  can  be 
obtained  in  return  concerning  the  entrepreneurial  sensibilities  which  should 
be taken into account at Community level. 

To this end, certain initiatives already in progress  could  be  maintained with a 
view to the increased  Europeanization  of businesses.  Support could be given, 
for  example,  to  improving  the  representation  of  SMEs  at  European  level  to 
facilitate relations with European standardization bodies. 

15.  In future, increasing attention will have to be paid to the practical obstacles 
SMEs still have to cope with, if they are to make the most of the single internal 
market. For example, the increase in cross-border trade will inevitably lead to 
a proliferation  of litigation between nationals of different Member States. Here 
it might be useful,  in line with the report on  "The internal  market after  1992: 
meeting the  challenge" (10), to  think  in  depth  about  how to  help  simplify  the 
formalities  governing  the  reciprocal  recognition  and  enforcement  of 
arbitration awards. 

E) 

PROMOTING COMMUNITY INSTRUMENTS 

16.  Businesses  are  faced  with  a  new  rules  stemming  in  particular  from  the 
change  in  the  regulatory  environment  alongside  the  creation  of  the  single 
market. 

(9)  SEC(92)1867,  27 October  1992. 
(10)  see note  5 

- 12 

To encourage  their development  in this new  environment,  the Community  has 
already  implemented  a  series  of  appropriate  Community  programmes  and 
instruments. 

It  is  now  up  to  businesses  to  take  initiatives  enabling  them  to  seize  these 
opportunities, thus  contributing to  efforts  to boost the  economy.  However,  the 
availability  of  Community  programmes 
instruments  must  be 
complemented  by  an  increased  communication  and  promotion  effort  and  by 
specific business-stimulation  measures. 

and 

The  Community's  communication  measures  will  be  maintained  and  enhanced 
on  the  basis  of  experience  with  the  promotion  campaign  carried  out  in  1992 
and the  mobilization  brought  about  by the  European  business  week  in  March 
1992. 

for 

this 

increased  effort  will  be 

the 
17.  One  priority 
technological  potential  of  SMEs.  This  will  involve  widening  SME  participation 
in  Community  research  programmes  and 
improving  access  by  such 
enterprises  to  the  results  of  Community  research.  With  this  in  view,  the 
Commission  will  see  that  initiatives  are  properly  coordinated,  in  compliance 
with  the  objectives  for  each  programmes,  wether  these  have  a  horizontal 
purpose  or are intended for  specific  fields. 

to  strengthen 

Independent  SMEs  must take  a greater  part  in  the  Community's  research  and 
technological  development  programmes  if  they  are  to  have  a  fair  chance 
alongside  large  firms  in the  race to  improve  international  competitiveness  and 
if they  are to  be  better  able  to  integrate  the  results  of  research  and  innovation 
into their growth  strategies. 

Close  coordination  will  be  ensured  with  measures  to  be  taken  under,  for 
example,  the  fourth  framework  programme  for  research  and  technological 
development (11). 

A considerable  portion  of  the  funds  allocated to the  promotion  of  Community 
instruments  will  be  dedicated  to  the  extension  to  other  specific  R&D 
programmes  of the  feasibility premiums  successfully  tried out in the  context  of 
Brite/Euram  (1987-91). 

Also  financed  will  be  the  extension  of  the  Craft  pilot  project,  currently  being 
carried out, to new research topics  and new fields  of  technology. 

Existing  measures  under  Value  and  Sprint  should  be  continued  and 
encouraged.  Specifically,  Value  relay  centres  could  be  set up  alongside  certain 
Euro Info  Centres to provide  additional  synergy. The potential  of BC-Net could 
also be exploited for the  purpose. 

Considerable  efforts  must  also  continue  to  enable  firms,  and  particularly 
SMEs,  to  make  full  use  of  the  results  of  research  and  technological 
development  work  in  the  different  fields  covered.  The  seed  capital  pilot 
scheme  has  indeed  contributed  to  the  exploitation  of  technological  potential, 
given  that  nearly  three  quarters  of  investments  already  implemented  have 
related  to  innovation  and  technological  development  and the  trend  is  towards 
an increase  in this proportion.  This measure will be  strengthened in the  period 
1993-96. 

(11) COM(92) 406, 9 October 1992. 

- 13 

In  addition  to  the  measures  provides  for  under  the  3rd  and  4th  framework 
programmes  in  the  field  of  R&DT,  and  in  coordination  with  them,  the 
following  lines of action will be  developed: 

informing SMEs more  effectively; 
simplifying procedures  for submitting research projects; 
evaluating the results of research  activities involving SMEs; 
accompanying  measures  to the  setting-up of research projects  by means  of 
appropriate  financial  mechanisms 

18.  The  method  applied  by  EURQMANAGEMENT,  which  is  to  select  a  number  of 
specialist  consultants  throughout  the  Community  who  then  carry  out  an  audit 
and  advise  businesses,  has  been  used  for  the first time  in the  area  of  research 
and  technological  development.  An  evaluation  is  currently  being  made.  If  it 
turns out to be positive, the  Community will work towards this approach  being 
incorporated  into  the  Member  States'  own  programmes,  if  necessary  by 
making an initial  financial  contribution. 

The  same  method  might in  future  be  adopted  in  other  areas, to  the  extent that 
it is a sound  instrument for spreading and supporting the  use by enterprises  of 
Community programmes  and instruments. 

III.  CONCLUSION 

In  view  of  the  deterioration  in  short-term  economic  prospects,  and  of  the 
increasingly  complex  mechanisms  which  make  up  the  business  environment, 
the  Commission  must  attach  particular  importance  to  supporting,  and  indeed 
restoring,  the  confidence  of  enterprises,  a vital  effort  in generating  the  growth 
needed for the successful  implementation  of the internal  market programme. 

It  is  desirable,  therefore,  that  any  measure  which  is  capable  of  curbing  or 
reversing  negative  expectations  on  the  part  of  businessmen  should  be 
highlighted and implemented  as quickly as possible. 

The  measures  identified  in this  document  have proved  their value  with  regard 
to informing  and supporting  enterprises  in their  attempts  to gain  access to  the 
internal  market,  and  on  expanded  markets.  The  intensification  proposed  here 
makes  it  possible,  therefore,  not  only  to  boost  support  for  growth  but  to 
provide those elements  of permanence  which  enterprise policy needs. 

1 4-

ENSURING  THE CONTINUITY OF A POLICY FOR ENTERPRISE,  IN 
PARTICULAR SMEs, IN THE COMMUNITY 
(1994-1997) 

- 1 5-

ENSURING  THE CONTINUITY OF A POLICY FOR ENTERPRISE,  IN 
PARTICULAR SMEs, IN THE COMMUNITY 

I.  OBJECTIVES 

Enterprise  policy,  particularly that in  favour  of SMEs, which,  as  underlined  by 
the  Council  resolution  of  17  June  1992  (12),  is  an  established  part  of 
Community action, could be  a key element  of the strategy of restoring both the 
credibility of Community policy and business  confidence. 

The  continued  existence  of  these  needs  is  explained  by  the  fact  that  many 
enterprises,  particularly  SMEs,  are  still  not  able  to  participate  fully  in  an 
integrated  market  and  to  take  advantage  of  the  opportunities  that  the 
completion  of  the  internal  market  offers  at  this  stage,  thus  heightening  the 
uncertainty and  negative  expectations  of  enterprises.  A great deal  more  has  to 
be done therefore to restore business  confidence. 

Of  enterprises  wishing  to,  or  with  the  potential 
to,  Europeanize  or 
internationalize  their  operations,  there  are  still  too  few  SMEs  which  have 
anticipated  the  completion  of  the  internal  market  and  have  thus  implemented 
strategies to deal with the progressive globalization of markets (13). 

Participating  in  a process  of  globalization  of  markets  represents  an  alternative 
strategy,  requiring  different  analytical  instruments  and  forms  bf  action,  the 
availability of which  depends  on  the  enterprise's  size,  sector  and  location  and 
on the existence of associated  services. 

The  Community  therefore  has  a  major  role  to  play  in  providing  enterprises 
with instruments  for  understanding  and  analysing the  changing  economic  and 
social  realities  in  Europe  and  in the world,  as well  as  specific  and  direct back 
up to help enterprises  achieve their full  potential. 

By  providing  added  value  to  instruments  already  existing  at  national  or 
regional  level,  the  Community  can  make  a  significant  contribution  to  the 
Europeanization  and  internationalization  of  enterprises,  as  shown  by  the 
evaluation  report  on  enterprise  policy  (14).  In  so  doing,  the  Community  may 
act to improve  competitiveness  by providing  administrations  and businesses  in 
Member States  with  the  capacity  to  analyse  and  understand  situations  at 
Community  or  indeed  European  level,  with  support  for  coordination  of 
policies  and  with  a  capability  for  experimenting  with  specific  tools  and 
instruments, in particular to assist sectors  undergoing  development  such  as the 
craft  industry,  the  distributive  sector,  cooperatives,  mutual  societies  and  non 
profit-making  associations and  foundations. 

(12)OJn°L178ofl5.792 
(13) European economy and social Europe, Special number  1990 ISBN 92-826-1819-6. 
(14) Comments by the Commission  on the Deloitte and Touche report on the evaluation of the 

Community's enterprise policy, SEC(92)1999 of 11 November 1992. 

- 1 6-

II.  MEASURES TO  ENSURE THE  CONTINUITY OF ENTERPRISE POLICY 

A) 

MEASURES  AIMED  MORE  PARTICULARLY  AT  AREAS  UNDER 
DEVELOPMENT 

1.  The  horizontal  nature  of  enterprise  policy  means  that  all  types  of  small, 
medium-sized  and  large  enterprise,  whether  in  manufacturing  or  in  services, 
are  concerned.  The  1990-93  action  programme 
included 
cooperatives,  mutual  societies  and  non-profit-making  associations;  it  also 
enabled  a pilot scheme  to be  funded  for  SMEs in the  distributive  sector. 

specifically 

The  Community  will  ensure  the  continuity  of  these  specific  measures  flanking 
its enterprise  policy. 

SMALL FIRMS AND  CRAFT  BUSINESSES 

2.  Small  businesses,  craft  businesses  and  artistic  enterprises  are  nearly  five 
million  in  number  and  account  for  some  twenty  million  people.  They  should 
be  able  to  benefit,  in  the  same  way  as  larger  enterprises,  from  the  positive 
impact  of  completion  of  the  internal  market  both  in  terms  of  developing  their 
working methods  and  skills and  in marketing their  products. 

However,  a  number  of  enterprises  of  this  type  are  still  at  a  disadvantage  faced 
with  the  reality  of  the  internal  market  and  the  internationalization  of  the 
economy.  They therefore  tend  to approach  the necessary  adjustments  from  the 
viewpoint  of  resistance  to  increased  competition  rather  than  by  implementing 
a  strategy  of  global  response  to  the  challenges  and  opportunities  which  the 
single market  presents. 

In  the  light  of  the  outcome  of  the  Avignon  conference  (15)  and  after  wide-
ranging  discussions  with  the  parties  concerned,  the  gradual  implementation  of 
a  number  of  measures  has  been  embarked  upon  aimed  at  slowly  bringing 
these  enterprises  closer  to  all  of  the  activities  pursued  by the  Community  as  a 
preliminary to their  involvement  in the  Community's  mechanisms. 

The  suitability  of this  approach  was  acknowledged  by the  Economic  and  Social 
Committee,  which,  in  the  recently  adopted  own  initiative  report  (16), makes  a 
large  number  of  additional  requests.  The  Commission  proposes  that  the 
following,  inter  alia,  be taken  up: 

developing  mutual  awareness  among  small  firms  and  craft  enterprises, 
particularly  by  improving  the  access  to  information  and  cooperation 
between  the bodies  representing  them; 

improving  access  to  new  technologies  through  greater  participation  in 
R&D programmes  and  support  for  innovation  transfer; 

(15) Record of the first European craft industry coinference, CEC-DGXXIII 
(16) OJ  [pending]; the  Deloitte  & Touche  evaluation  report  referred  to  above  (see  note  14) 

also stressed the importance of specific measures in this  field. 

- 1 7-

improving  support  for  crossborder  cooperation  by taking account  of the 
specific  situations  of  the  craft  industry  in frontier regions  in  policies  on 
subcontracting, the environment and financial markets; 

These new developments  in Community action to assist the  craft industry will 
also  enable  specific  measures  to  be  taken  as  a  follow-up  to  the  Avignon 
conference  and  to  the  direction  outlined  by  the  Council  in  Decision 
91/319/EEC of 18 June 1991. 

THE DISTRIBUTIVE SECTOR 

3.  For enterprises  in the  distributive  sector,  the  effects  of the  internal  market 
are  felt  mainly  at the  supply  level,  thus  reinforcing  the  strong  concentration 
trends  which  already  exist.  The  SMEs  in  this  sector  are  seeking  to  obtain 
comparable  advantages  so  that  they  can  defend  themselves  against  these 
trends,  and  horizontal  grouping]»  are  therefore  being  formed,  increasingly 
across frontiers. One of the bases for this approach, and one of the conditions 
for  its  success,  is  the  integration  of  new  technologies  in  the  organization  of 
distributive  activities.  The  ability  of  an  enterprise  in  the  distributive  sector  to 
meet consumer demand will depend on its adaptation to advanced information 
and communication systems. 

Owing  to  the  heterogeneous  nature  of  the  management  culture  in  the 
distributive  sector,  the  SMEs operating  in  that sector  are  experiencing  major 
difficulties in making equivalent use of information technologies. 

The  Community  has  sought  to  respond  to  this  phenomenon  by  means  of  a 
limited  pilot  project,  which  is  currently  being  assessed.  Depending  on  the 
results of that assessment,  a fresh set of stimulation measures might have to be 
envisaged designed to create cross-border links between distributive firms and 
between them and their suppliers through the introduction of new technology. 

These measures would be in addition to the  horizontal  measures  listed in the 
Commission's  work  programme,  which  has  been  welcomed  by  the  Council 
(17). 

THE  COOPERATIVE,  MUTUAL  SOCIETIES,  NON-PROFIT  MAKING  ASSOCIATIONS  AND 
FOUNDATIONS 

4.  In the cooperatives,  mutual  societies,  associations  and foundations  sector, 
entities  of  widely  differing  size  coexist,  many  of  which  are  SMEs.  They  are 
distinguished  by their  aims  and  organizational  modes,  which  call  for  special 
treatment. 

The Commission  accordingly  adopted  on  18 December  r991 three  proposals 
for  Regulations  on  the  statutes  for  a  European  association,  for  a  European 
cooperative society and for a European mutual society (18). 

(17) Towards  a  single  market  in  distribution,  COM(91) 41,  11.3-1991,  and  the  Council's 

conclusions of 26 June 1992. 

(18) COM(91) 273, 53-1992. 

18-

As already announced  (19), a work programme  to support the  efforts  of these 
businesses  as  they  face  the  changes  brought  about  by the  completion  of  the 
frontier-free  economic  area will  be  implemented  with  a view to  creating  an 
environment  conducive  to  cross-border  cooperation  and  seeking  out  new 
activities between partners grouped together in the single market. 

B) 

ENCOURAGING AN IMPROVED FINANCIAL ENVIRONMENT 

5.  The  general  effort  to  improve  the  business  environment  is  intended  to 
facilitate  business  start-ups,  continued  operation  and  growth.  Thus,  the 
Community has already been able to play an important role as a catalyst in the 
area  of  business  start-ups,  a  role  which  it  intends  to  intensify  in  close 
collaboration with all parties concerned at national and Community level. 

Likewise, the conditions governing cross-border business transfers might lead 
to appropriate initiatives being taken in the light of the results of a forthcoming 
European conference  currently being organized. 

6.  At all  stages  of  its  development,  the  enterprise  is  affected  by  its  financial 
environment  which in the Community is currently characterized by a decline 
in  cash  flow  together  with  under-capitalization  (especially  as  compared  with 
enterprises in the United States), in particular in SMEs. 

SME  organizations  all  stress  that  this  should  be  looked  at  under  the 
Community's  enterprise  policy,  and  the  Council  Resolution  of  17 June  1992 
called on the Commission  to  examine  the  general  aspects  of  financing  in the 
proposals  it  considered  it  should  put  to  the  Council  in  order  to  guarantee 
continuity in enterprise policy. 

As part  of  its  growth  initiative,  the  Community  has  launched  the  idea  of  an 
investment fund which will  comprise  a section  specifically  for SMEs. The task 
of  enterprise  policy  in  this  context  is  essentially  to  examine  the  general 
conditions of finance for SMEs. 

7.  Access to finance by borrowing  is  difficult  for  many enterprises which are 
not in a position to give traditional financial organizations sufficient  guarantees 
to obtain a loan (fixed assets, personal wealth, reputation, etc.). 

One  solution  to  these  difficulties  which  are  peculiar  to  SMEs  may  lie  with 
mutual  guarantee  companies  (20), for which  a  European  association  has just 
been  formed  to  promote  such  companies  in  the  Community  by  means  of 
direct relations between businesses. 

(19)  SEC(89)  2187,  18.12.1989. 
(20)  SEC(91)  1550, 5.9.1991. 

- 1 9-

In  order  to  overcome  this  guarantee  problem  in  the  area  of  technology,  the 
"Technology  Performance  Financing"  scheme,  which  is  part  of  the  Sprint 
programme,  aims  to  make  it  easier  for  SMEs,  particularly  those  in  traditional 
industries, to acquire new  technology. 

In  conjunction  with  the  European  Investment  Bank  (EIB),  the  conditions  for 
granting  assistance  in  providing  guarantees  to  financial  intermediaries  and 
shares  in  risk  capital  for  SMEs  in  assisted  regions  are  also  currently  being 
studied. 

8.  The  difficulties  which  SMEs  have  in  gaining  access  to  external  sources  of 
finance  lead  them  to  rely  heavily  on  self-financing  to  secure  growth.  It  is 
therefore  important  to  examine  the  measures  which  may  increase  SMEs' 
capacity for  self-financing. 

Taxation  can  play  an  important  role  here.  For  example,  the  idea  of  allowing 
one-man  businesses  to  opt  to  be  taxed  as  companies,  as  suggested  by  the 
Ruding  Committee  and  taken  up  in  the  Commission  Communication  to  the 
Council  and  to  Parliament  (21),  might  help  businesses  not  constituted  as 
companies  to  become  self-financing,  corporation  tax  being  lower  in  most 
Member States than the marginal  rate of personal  income tax. 

9.  The  difficulties  SMEs have  in  increasing  their  own  capital  is  also  one  of  the 
clearly identified  shortcomings  in SME  financing. 

in  particular  at  cross-border 

In  certain  cases,  venture  capital  can  provide  a  solution  to  this  problem.  Its 
important 
development, 
Community objective  and there are a number  of programmes to that end,  such 
as  Venture  Consort  and  Eurotech  Capital,  or  the  cross-border  investment 
forums  organized by Sprint, where the  Council  has mandated the  Commission 
to  take  action  to  strengthen  innovation-financing  infrastructure  and  activities 
(22). 

level,  remains  an 

As  regards  seed  capital,  it  should  be  examined  whether  the  legal  and  tax 
provisions  applicable  to  venture  capital  companies  are  appropriate  for 
promoting cross-border growth in this  field. 

But one  of the  major problems  in venture  capital  operations,  and all the  more 
so  in  seed  capital  operations,  is  resale  by  funds  of  their  own  shareholdings, 
which  can prove  difficult  due  to  lack  of  a sufficiently  well-developed  securities 
market. In most Member States, SMEs still find it difficult to gain access to  stock 
markets because  of the difficulty  and the cost of the procedures  involved. 

Secondary  markets  in  the  Community  remain  under-developed.  That  is  why 
consideration  should  be  given  to  the  advisability  and  feasibility  of  promoting 
the development in Europe of a network  of specialist operators in this  field. 

(21) Commission  Communication  to  the  Council  and  to  Parliament  subsequent  to  the 
conclusions of the Ruding Committee indicating guidelines on  company taxation linked  to 
the further  development of the internal market, SEC(92) 1118, 26.6.1992. 
(22) Council Decision 89/286/EEC of 17 April 1989, OJ No L 112, 25.4.1989. 

20-

10.  Practices  concerning  payment  periods  in  commercial  transactions  and 
public  procurement  are  an  important  factor  both  in  the  operation  of  the 
internal  market  and  in  improving  the  short-term financing capacity  of SMEs, 
which  in  general  are  creditors  in  the  inter-industrial  debt  market.  This 
naturally has an adverse impact on their financial situation. 

That is why the Commission is undertaking extensive consultation of interested 
parties to determine the extent to which this difficulty  could be alleviated (23). 
Any action under the new programme will  have to take account of the results 
of this consultation. 

11.  In addition, the Community is making a direct contribution to solving the 
problems of SME finance in eligible areas via the structural Funds. 

Public authorities will have to ensure the greatest possible involvment of both 
side  of  industry,  including  SME representatives,  in  the  preparation  of,  and 
follow-up  to, the  projects  and  programmes  jointly financed by the  structural 
Funds. 

12.  It  should  be  remembered  that,  as  far  as  state  aid  in  concerned,  the 
Commission  has  always  regarded  aid  to  SMEs  more  favourably  than  aid  in 
general  (24),  and  will  continue  to  ensure  that  aid  granted  to  SMEs does  not 
distort competition. 

The Commission  will  also  continue  to take a viewpoint which  is decidedly in 
favour  of  cooperation  between  small  and  medium-sized  businesses  in  the 
context of competition policy.  Many firms do not know what they are allowed 
to do under competition rules. It is therefore  important to stress the aspects of 
that policy  which  protect  the  development  of  cooperation,  R&D, patent  and 
know-how licensing, franchising and specialization  agreements,  provided that 
they do not restrict competition on the market. 

In this context,  all available resources will be used to improve information  on 
competition policy. 

13.  The  new  discussions  as  part  of  the  Community's  action  to  stimulate  an 
improved  environment  respond  to  the  wish  espressed  by  the  Council  in  its 
resolution of 17 June 1992 that Commission proposals designed to ensure the 
continuity  of  the  enterprise  policy  should  include  consideration  of  general 
financing  aspects. 

(23) SEC(92) 2214, 18.11.1992. 
(24) OJ No C 213, 19.8.1992. 

- 2 1-

C) 

OBSERVATION AND EVALUATION OF THE POLICY 

EUROPEAN SME OBSERVATORY 

14.  A European network of research centres specializing in the observation of 
SMEs was set up in mid-1992 with Community support. 

A need has emerged for the Community and enterprises to be given the means 
of observing the development of SMEs in an environment which is undergoing 
complete  change  as  a  result  of  the  enlargement  of  markets.  Anticipation  of 
changes  in  vital  if  enterprises  are  to  adapt  and  thus  improve  their 
competitiveness. This must be accompanied by an analysis and by the means to 
understand the situation of enterprises, including the very smallest, in the face 
of  these  changes.  It will  thus  be  possible  regularly  to  adjust policies  to  help 
them  at  both  Community  and  national 
level,  thereby  maintaining  the 
confidence of these enterprises. 

On the basis of annual reports drawn up by this network,  it will be possible to 
conduct  a  regular  debate  with  representatives  of  enterprises  and  the 
enterprises  themselves  on  the  situation  of  SMEs and the  means  they have  or 
need to adapt. 

This innovative scheme, which is a follow-up to Decision 91/319/EEC, has just 
been  launched,  and  the  debate  generated  by  it  will  provide  a  consolidated 
basis for the development of enterprise policy. 

15.  In the context of improving information to businesses, the Community will 
continue to provide direct information in the form of publications and support 
for the organization of seminars or conferences,  either of a general  nature or 
relating to specific aspects of Community enterprise policy. 

IMPPRROVING STATITICS ON SMES 

16.  The development of statistical  tools will  continue to be part and parcel  of 
most of the planned measures. 

The  aim  will  be,  among  other  things,  to  make  the  market  more  transparent 
through  a  fuller  understanding  of  the  parameters  defining  the  structure, 
operations  and  performance  of  enterprises,  and  particularly  small  and 
medium-sized ones. 

The work will also endeavour to provide a more accurate picture of the range 
of products both in services to industry and in related areas. 

An  effort  will  be  made  to  improve  the  quality  of  statistics  on  individual 
businesses through greater synergy between public and private registers. 

Lastly,  administrations  will  be  encouraged  to  make  their  files  available  for 
statistical processing, in order to alleviate some of the burden on businesses. 

-22 

EVALUATION OF EXISTING POLICY 

17.  As  regards  programmes  under  way,  continuous  internal  assessment,  and 
occasionally  external  assessment,  should  continue  to  keep  objectives  in  line 
with changing situations and the relative effectiveness  of the resources in play. 

We must also  continue to carry out,  or have  carried out,  accompanying  studies 
to identify  and take account  of the  priority needs  of  SMEs so  that they can take 
advantage of Community policies  and the new dimension  of the  market. 

III.  CONCLUSION 

The enterprise  dimension  now has a sound  Community basis, thereby  justified 
by  the  need  to  ensure  the  continuity  of  the  policy  to  assist  business,  in 
particular SMEs. This is all the  more  important since business  is a  fundamental 
element of European  society. 

Given  this  situation,  the  Community  must  work  to  make  economic  support 
measures  more  convergent  and  devise  appropriate 
lines  of  action  and 
corresponding measures at Community level. 

This  policy  must  rest  on  active  partnership  between  the  different  parties 
involved: bodies  representing the business  interests  concerned,  Member States 
and  Community  institutions.  Such  synergy  is  essential  if  the  Europeanization 
and internationalization  process  is to be given its full  force  and  effectiveness. 

Thus,  an  environment  conducive  to  the  strategic  development  of  enterprises 
will  help  to  boost  positive  developments  in  European  competitiveness  and 
support efforts to achieve growth. 

- 2 3-

PROPOSALS  FOR  DECISIONS 

24 

PROPOSAL FOR A 

COUNCIL DECISION 

on a multiannual  programme  (1993-96)  of Community measures to  intensify 

the priority areas of policy for enterprise,  in particular SMEs, in the 

Community 

(.../.../EEC) 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having  regard  to  the  Treaty establishing  the  European  Economic  Community, 

and in particular Article 235  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,-* 

1.  Whereas  on  28 July  1989 the  Council  adopted  Decision  89/490/EEC  on  the 

improvement  of  the  business  environment  and  the  promotion  of  the 

development  of  enterprises,  and 

in  particular  small  and  medium-sized 

enterprises,  in  the  Community,  as  revised  by  Council  Decision  91/319/EEC 
o f l 8 J u n e l 9 9 1 ;5 

1 
O J N oC  of 
2  O J N oC  of 
3  O J N oC  of 
4 
5 

, p. 
, p. 
, p. 
OJ No L 239,  16.8.1989,  p.  33-
O J N o L 1 7 5,  4.7.1991,  p. 32. 

. 
. 
. 

2 5-

2.  Whereas  in  its resolution  of  17 June  1992  on  Community  action  to  support 

enterprises,  in  particular  small  and  medium-sized  enterprises,  including  craft 

industry  enterprises, 

the  Council  confirmed  its  undertaking  to  support  the 

consolidation  of the action taken to help  enterprises; 

3.  Whereas  the  evolution  of  the  economic  situation  calls  for  an  initiative  to 

relaunch  growth,  to  whose  success  SMEs  have  an  essential  contribution  to 

make; 

4.  Whereas  this  situation  involves  proposing  the  adoption  of  a programme  of 

Community  measures  to  assist  SMEs  which  takes  full  account  of  this  new 

priority; 

5.  Whereas  the  Commission  has  put  before  the  Council  a  communication  on 

enterprise  policy  for  the  Community,  entitled  "The  enterprise  dimension 

essential to Community growth";' 

6.  Whereas this  Decision  applies  to  all  forms  of  enterprise,  in particular  small 

and  medium-sized  enterprises, 

including  those 

in  commerce  and  the 

distributive  trades  and  craft  enterprises,  cooperatives,  mutual  societies, 

associations  and  foundations; 

7.  Whereas  this  policy  involves,  in  particular,  the  intensification  and  wider 

distribution  of information  for  enterprises,  the  stimulation  of  cooperation  and 

partnership  between  enterprises,  the  improvement  of  the  administrative  and 

legal  environment  of  enterprises  and 

the  promotion  of  Community 

instruments to assist enterprises; 

8.  Whereas,  however,  many  measures  to  assist  enterprises  are  carried  out  at 

Member State level  and Community measures will  have to complement these; 

6 
7 

OJ No C 178,  15.7.1992, p. 8. 
yet  to be  published  on  the  OJ 

26 

9.  Whereas  it is  therefore  necessary  to  adopt  immediately  a programme  for  a 

four-year  period  and  to  endow  it  with  sufficient  resources  to  attain  its 

objectives; 

10.  Whereas,  the  Treaty  does  not  provide,  for  the  adoption  of  this  Decision, 

powers  other than those  of Article 235, 

HAS DECIDED AS FOLLOWS: 

Article  1 

A  programme  to  intensify  the  priority  measures  for  enterprise  policy,  in 

particular  for  small  and  medium-sized  enterprises  (SMEs),  is  hereby  adopted 

for a period of four years from  1 January  1993. 

Article  2 

The  programme  referred  to  in  Article  1  is  intended  to  intensify  growth-

oriented priority measures  for enterprise  policy. 

The principal  objectives  are as follows: 

A. 

to  develop  the  Euro  Info  Centres  to  facilitate  access  by  enterprises  to 

Community  information 

B.  to develop the partner-search  networks  BRE and BC-NET 

C.  to step  up  activities to put businessmen  in  direct  contact with  one  another 
the  EUROPARTENARIAT  and  INTERPRISE  programmes  and 

under 
promoting cross-border  SUBCONTRACTING 

27 

D.  to improve the administrative  and legal  environment of  enterprises 

E. 

to promote Community  instruments 

Article  3 

1.  The  Commission  shall 

implement  the  measures  necessary  for  the 

achievement of the objectives laid down in Article 2. 

2.  The  procedure  laid  down  in  Article 4  shall  be  followed  for  adopting 

measures  relating to: 

the  adoption,  experimental  implementation  or  extension  of  any  project 

devised for application  of this  Decision, 

the content and  timetable  of and  financial  assistance  for measures  and calls 

for proposals, 

the periodical  evaluation  of  the  results  of  each  project  in  accordance  with 

the  timetables  laid down. 

3.  The  committee  referred  to  in  Article 4  may  examine  other  measures 
provided for by the  programme. 

Article  4 

The  Commission  shall  be  assisted  by  a  committee  composed  of  the 

representatives  of  the  Member States  and  chaired  by  a  representative  of  the 

Commission. 

- 2 8-

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.  The  opinion  shall  be  delivered  by  the  majority  laid  down  in 

Article  148(2)  of  the  Treaty  in  the  case  of  decisions  which  the  Council  is 

required  to  adopt  on  a  proposal  from  the  Commission.  The  votes  of  the 

representatives  of the Member States within the  committee  shall  be weighted  in 

the manner set out in that Article. The chairman shall  not vote. 

The  Commission  shall  adopt  measures  which  shall  apply 

immediately. 

However,  if  these  measures  are  not  in  accordance  with  the  opinion  of  the 

committee,  they  shall  be  communicated  by  the  Commission  to  the  Council 

forthwith.  In that event the Commission  shall  defer  application  of the  measures 

which 

it  has  decided  for  a  period  of  two  months  from  the  date  of 

communication. 

The  Council,  acting  by  a  qualified  majority,  may  take  a  different  decision 

within the time-limit referred to in the previous  paragraph. 

Article  5 

The  Commission  shall  present  an  evaluation  report  on  the  implementation  of 

this  Decision  to  the  European  Parliament,  the  Council  and  the  Economic  and 

Social  Committee  at the latest by mid-1996. 

Article  6 

The amount of the  appropriations  allocated  annually to the measures  provided 
for  by  this  Decision  shall  be  determined  under  the  annual  budgetary 

procedure. 

Article  7 

This  Decision  replaces  Council  Decision  89/490/EEC,  as  revised  by 
Decision  91/319/EEC. 

Done  at Brussels, 

For the  Council 

2 9-

PROPOSALFORA 

COUNCIL DECISION 

on  a multiannual programme  (1994-97)  of Community measures to ensure  the 

continuity of  policy for enterprise, in particular SMEs, in the  Community 

(.../.../EEC) 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having  regard  to the  Treaty establishing  the  European  Economic  Community, 

and in particular Article 235  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,^ 

1.  Whereas  on  28 July 1989 the  Council  adopted  Decision  89/490/EEC  on  the 

improvement  of  the  business  environment  and  the  promotion  of  the 

development  of  enterprises,  and  in  particular  small  and  medium-sized 

enterprises,  in  the  Community,  as  revised  by  Council  Decision  91/319/EEC 
o f l 8 J u n e l 9 9 1 ;5 

1  OJNoC  of 
2  OJNoC  of 
3  OJNoC  of 
4  OJ No L 239, 16.8.1989, p. 33-
5  OJNoL175, 4.7.1991, p. 32. 

,p.  . 
,p.  . 
, p.  . 

30-

2.  Whereas in its resolution  of  17 June 1992 on Community action to support 
enterprises,  in particular  small  and  medium-sized  enterprises,  including  craft 
the  Council  confirmed  its  undertaking  to  support  the 
industry  enterprises, 
consolidation of the action taken to help enterprises; 

3.  Whereas the Council recommended in that resolution that the Commission 
should  press  ahead,  having  regard  to  the  principle  of  subsidiarity,  with  the 
action necessary to create an environment favourable to the competitiveness of 
enterprises, in particular SMEs, and to back up their integration into the single 
market after 1992; 

4.  Whereas the  Council  also  requested  the  Commission  to  submit before  the 
end  of  1992,  in  the  light  of  the  evaluations  made,  any  proposals  it  deems 
necessary to ensure continuity of the policy towards enterprises; 

5.  Whereas  independent  experts  have  carried  out,  pursuant  to  Article  3  of 
Council  Decision  91/319/EEC,  an  evaluation  of the  results  achieved  from  all 
aspects of the existing programme; whereas the Commission has submitted the 
report, together with its comments, to Parliament and the Council/ 

8.  Whereas the  report confirms  the  appositeness  of the  enterprise  policy the 
Community  has  carried  out  thus  far,  but  makes  proposals  concerning  the 
direction of certain measures; 

7.  Whereas the Commission  has put before  the Council  a communication  on 
enterprise  policy  for  the  Community,  entitled  "The  enterprise  dimension 
essential to Community growth";8 

8.  Whereas this Decision  applies to all forms of enterprise,  in particular small 
and  medium-sized  enterprises, 
in  commerce  and  the 
distributive  trades  and  craft  enterprises,  cooperatives,  mutual  societies,  non 
profit associations and foundations; 

including  those 

6  OJ No C 178, 15.7.1992, p. 8. 
7 
8 

SEC(92) 1999 of 11 november  1992 
yet to be published in the OJ 

- 3 1-

9.  Whereas  small  and  medium-sized  enterprises  play  an  important  role  in 
economic  activity in general  and in regional  development,  and a fundamental 
role as regards dynamism, productivity, adaptability and innovation; 

10.  Whereas the development of a Community enterprise policy based on real 
competition assumes particular importance as regards making the Community 
economy more competitive and as regards employment growth, economic and 
social cohesion in the Community and the continuation of the widening of the 
market after 1993; 

11.  Whereas, however,  many measures to assist enterprises are carried out at 
Member State level and Community measures will have to complement these; 

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

13-  Whereas, the  Treaty does  not provide,  for  the  adoption of this Decision, 
powers other than those of Article 235, 

HAS DECIDED AS FOLLOWS: 

Article 1 

A programme to ensure the continuity of an enterprise policy, in particular for 
small and medium-sized enterprises  (SMEs), is hereby adopted for a period of 
four years from 1 January 1994. 

- 3 2-

Article 2 

The programme referred to in Article 1 has the following objectives: 

to  encourage  the  adjustment  to  structural  change  of  sectors  under 
development  such  as  craft  industry,  the  distributive  sector,  cooperatives, 
mutual societies, non-profit associations and foundations; 

to encourage an improved financial environment for enterprises; 

to promote better observation of the economic development of enterprises 
as part of the dynamic of effective implementation of the internal market. 

Articled 

1.  The  Commission  shall  implement  the  measures  necessary  to  achieve  the 
objectives laid down in Article 2. 

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

the  adoption,  experimental  implementation  or  extension  of  any  project 
devised for application of this Decision, 

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

-«:  the periodical  evaluation of the results of each project in accordance with 

the timetables laid down. 

3-  The  committee  referred  to  in  Article 4  may  examine  other  measures 
provided for by the programme. 

33-

Article  4 

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

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.  The  opinion  shall  be  delivered  by  the  majority  laid  down  in 
Article 148(2)  of  the  Treaty  in  the  case  of  decisions  which  the  Council  is 
required  to  adopt  on  a  proposal  from  the  Commission.  The  votes  of  the 
representatives of the Member States within the committee shall be weighted in 
the manner set out in that Article. The chairman shall not vote. 

The  Commission  shall  adopt  measures  which  shall  apply  immediately. 
However,  if  these  measures  are  not  in  accordance  with  the  opinion  of  the 
committee,  they  shall  be  communicated  by  the  Commission  to  the  Council 
forthwith. In that event the Commission shall defer application of the measures 
which  it  has  decided  for  a  period  of  two  months  from  the  date  of 
communication. 

The  Council,  acting  by  a  qualified  majority,  may  take  a  different  decision 
within the time-limit referred to in the previous paragraph. 

Article 5 

The Commission  shall present an evaluation  report on the implementation  of 
this Decision  to the European Parliament,  the Council  and the  Economic  and 
Social Committee at the latest by mid-1997. 

It shall also present to the Council, the European Parliament and the Economic 
and Social Committee a report on coordination between the initiatives taken in 
pursuance  of  this  Decision  and  the  various  programmes  manifestly  in  the 
interests of SMEs and craft industries but not covered by this Decision. 

- 3 4-

Article  6 

The amount of the appropriations allocated annually to the measures provided 
for  by  this  Decision  shall  be  determined  under  the  annual  budgetary 
procedure. 

Article 7 

This  Decision  replaces  Council  Decision 89/490/EEC,  as  revised  by 
Decision 91/319/EEC. 

Done at Brussels, 

For the Council 

35-

FINANCIAL STATEMENTS 

1.  TITLE OF  OPERATION 

FINANCIAL  STATEMENT 

"The enterprise  dimension  essential  to Community  growth". 
To  intensify  the  priority  measures  for  enterprise  policy  so  as  to  stimulate 

growth  in the  Community. 

2.  BUDGET HEADING  INVOLVED 

Article B5-320. 

3.  LEGAL  BASIS 

Council  Decision  of 28 July  1989  (OJ No L 239, p. 33) 
Council  resolution  of  14 November  1989  (OJ No C 297, p. 2) 
Council  Decision  of  18 June  1991  (OJ No L  175, p. 32) 
Council  resolution  of  17 June  1992  (OJ No C  178, p. 8 ). 

4.  DESCRIPTION OF  OPERATION 

The  proposal  for  a  Council  Decision  to  which  this  financial  statement 
relates  follows on  from the Council  resolution  of 17 June  1992, in which the 
Council  recommended  that  the  Commission  should  press  ahead,  in  accordance 
with  the principle  of  subsidiarity,  with  developing  the  action  necessary  to 
create  an  environment  favourable  to  the  competitiveness  of  enterprises,  in 
particular  SMEs,  and  to  back  up  their  integration  into  the  single  market 
after  1992.  In  framing  this  proposal,  the  Commission  has  drawn  the 
necessary  conclusions  from the  first  programme,  covering  the period  1990-93, 
and  from an evaluation  report which  it has transmitted  to Parliament  and the 
Council.  The  report  confirms  the  overall  appropriateness  of  the  enterprise 
policy  which  the  Community  has  carried  out  so  far  but  makes  proposals 
concerning  the direction  of  certain  measures. 

In  Edinburgh  on  11-12 December  1992,  the  European  Council,  endorsing  the 
guidelines  put  forward  by  the  Commission,  agreed  action  on  a wide  scale  to 
support growth  in the  Community. 

The  Declaration  on  Promoting  Economic  Recovery  in  Europe*  states  that: 
"Recognizing  the  importance  of  SMEs  for  creating  employment  and  stimulating 
growth,  the  European  Council  called  upon  the  Council  and  the  Commission  to 
ensure that the burdens  from Community  legislation  on  small  and  medium-sized 
enterprises  are reduced  (including  through  the use of  simplified  schemes and 
exemption  limits  in  the  field  of  indirect  taxation)  and  that  full 
information  about  Community  support  is  provided  to  SMEs.  It  asked  the 
Commission  to  accelerate  the  actions  in  favour  of  SMEs  which  have  proven 
their worth  at the Community  level". 

European  Council,  Edinburgh,  11-12 December  1992,  Conclusions  of  the 
Presidency,  Annex  4 to Part A,  point  8. 

-  2  -

The  operation  is  therefore  a  continuation  of  the  measures  developed  under 
the  first  programme,  to  which  the  necessary  adjustments  and  improvements 
have  been  made  in  order  to  comply  with  the  acceleration  of  this  part  of 
enterprise policy  for the period  1993-96. 

4.1 

Specific 

objectives 

of 

operation 

To  develop  the  Euro-Info-Centres  to  so  as  facilitate  access  by 
enterprises to Community  information; 

To  develop  the  partner-search  networks  by  expanding  the  activities  of 
the  Business  Cooperation  Centre  (BRE)  in  the  case  of  non-confidential 
cooperation,  and  of  the  Business  Cooperation  Network  (BC-Net)  in  the 
case of  confidential  cooperation; 

To  step  up  activities  to  put  businessmen  in  direct  contact  with  one 
another  under  the  Europartenariat,  Interprise  and  Promotion  of 
Cross-Border  Subcontracting  programmes; 

To improve the administrative  and  legal environment of enterprises;2 

To  promote  Community  instruments  and,  in  this  context,  to  strengthen 
the technological  potential of  SMEs. 

4.2 

Duration 

1993-96. 

4.3 

Target 

population 

In  theory,  the  above-mentioned  measures  could  affect  all  SMEs  in  the 
Community.  In  practice,  however,  the  number  of  SMEs  concerned  by 
cross-border measures will  necessarily  be smaller, reflecting  the  categories 
of enterprise. 

The  measures  are  also  targeted  at  all  trade  associations  and  other 
intermediaries  (for  example,  chambers  of  commerce  and  craft)  and  the 
wholesale  and  retail  trades.  As  many  of  the  measures  are  implemented  via 
networks  of  intermediaries,  the  number  of  enterprises  actually  affected 
cannot be precisely  quantified. 

5.  CLASSIFICATION  OF EXPENDITURE OR  REVENUE 

Non-compulsory expenditure;  differentiated  appropriations. 

Includes  consultation  of  Member  States  and  trade  associations  (ex-item 
B5-324). 

6.  TYPE OF EXPENDITURE OR REVENUE 

- 3 -

Grants  for  joint  financing  with  other  sources  in  the  public  and/or 
private sector. 

Partial  reimbursement  through  re-use  of  revenue  for  certain  measures 
(e.g. in the case of BC-Net, charging  from 1 January  1993  for the use 
of  the  network  by  non-Community  industrialized  countries  and  by 
advisers throughout the Community). 

7.  FINANCIAL IMPACT 

7.1  Method  of  calculating 

total 

cost  of 

operation 

Experience in current and previous financial years shows that the demands on 
the policy  for S ME s have risen steeply.  For a lack of appropriations, the 
Commission has had  to reject many of the projects  submitted  in response to 
various  calls  for  proposals.  Although  in  certain  cases  the  Community 
contribution can be modulated according to the arrangements for implementing 
the  measure  in  order  to  finance  as  many  projects  as  possible,  the  fact 
remains  that  the  Commission  may  well  no  longer  be  able  to  get  essential 
schemes off the ground if its financial contribution is no longer sufficient 
to attract  investments by  its partners  (businesses or intermediaries);  the 
Commission also has to aim to achieve a critical financial mass in the areas 
concerned in order to avoid spreading funds too thinly. 

This  situation  is  reflected  in  all the  calls  for tender  organized  on the 
basis  of  this  budget  heading.  Consequently,  the  rates  of  commitment  and 
utilization under this heading have always been extremely high. 

The volume of funding requested has to be seen in the context of the merger 
of headings B5-320, B5-322 and B5-324 which the Commission has proposed in 
the preliminary  draft budget  for  1993.  Until such time as the 1993 budget 
is  definitively  adopted,  the  figures  for  that  year  will  remain  purely 
indicative. 

PRIORITY AREAS  FOR  INTENSIFICATION 

1993 

1994 

1995 

1996 

70ÏAL 
1993/1996 

Single heading,  indicative  amounts 

DEVELOPMENT OF EURO-INFO-CENTRES 

to facilitate access  to Community  information 

DEVELOPMENT OF PARTNER-SEARCH NETWORKS 

BRE and BC-Net 

STEPPINO UP DIRECT CONTACTS BETWEEN  BUSINESSMEN 

UNDER THE EUROPARTENARIAT, 

INTERPRISE AND  PROMOTION  OF  CROSS-BORDER 

SUBCONTRACTING  PROGRAMMES 

IMPROVEMENT OF THE ADMINISTRATIVE  AND  LEGAL 
ENVIRONMENT  OF ENTERPRISES1 

PROMOTION OF COMMUNITY  INSTRUMENTS 

7.00 

0.80 

(.70 

0.90 

8.00 

0.90 

7.50 

1.20 

9.00 

1.00 

10.00 I 
I 
1.30  I 

34.0C 

4.0G 

8.00 

1.50 

30.00 ! 
! 
5.00 | 
I 

i 

I 
l 
i > 

12.CO ! 

• STRENGTHENING THE TECHNOLOGICAL  POTENTIAL OF SMEs 

2.90 

2.50 

3.10 

3.50 

1  Includes consultation  of Member  States  and  trade  associations  (ex-item  B5-324). 

18.30 

20.10 

22.30 

24.30 

85.00 

1.3 

Indicative 

schedule 

of  commitment  appropriations 

(without 

mini-budget) 

- 5 -

Preliminary 
draft  budget 
for  1993 

Indicative  planning 

1994 

1995 

1996 

1993-96 

18.30 

20.10 

22.30 

24.30 

85 000 

• 

• 

• 

8.  ANTI-FRAUD MEASURES PLANNED IN THE PROPOSAL FOR THE OPERATION 

Measures to be  funded  and  services or  studies performed  are checked  by the 
Commission  before  payment,  with  due  regard  to  contractual  obligations  and 
the  principles  of  economy  and  sound  financial  or  general  management. 
Anti-fraud measures (checks, reporting, etc.) are included  in all agreements 
or contracts between the Commission and recipients of funds. 

9.  ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 

9.1  Assessment 

and  analysis 

of 

objectives 

Quantification 

The reader  is referred  to the table set out  in point 7.2, which gives the 
figures for the different types of measure  (under both the old programme and 
the proposed new one). 

speeding  up  the  adjustment  of  SMEs  to  structural  change  (information 
for businesses, promotion, advertising, grants): 50% 

cooperation and partnership: 19.33% 

administrative,  legal  and  financial  environment  which  will  benefit 
enterprises: 3.72% 

evaluation and development of enterprise policy: 6.78%. 

9.2  Grounds  for 

the 

operation 

- 6 -

As  far  as  subsidiarity  is  concerned,  all  the  action  taken  here  by  the 
Community  is such  that  it produces  decisive  added  value,  in particular  as a 
result of the  size of  networks  and  the  scale of  the measures  developed,  the 
impartiality  of  decisions  taken  at  the  centre  and  the  attention  devoted  to 
regional balance. 

This  emerges  clearly  from  the  independent  evaluation  report  and  is  stressed 
in the explanatory  memorandum. 

Although  Member  States  can  themselves  take  a  large  proportion  of  the 
measures  to  assist  enterprises,  it  is  for  the  Community  to  take  the 
cross-border  measures,  set  up  networks  extending  across  the  Community  or 
beyond  and  organize  schemes  for  the  exchange  of  experience  or  know-how 
between  financial  institutions,  chambers  of  commerce  and  craft  and  other 
intermediaries,  as  well  as  actual  businesses  looking  for  cross-border 
cooperation opportunities.  Making  such action a national  preserve would  not 
only  be  impracticable  and  less  effective, but  would  also  create  distortions 
of  competition  since  the  level  of  support  provided  by  each  Member  State 
would vary widely  (a number  of host  structures have, for example, decided  to 
close  down  their  Euro-Info-Centre  on  the  grounds  that  the  burden  on  their 
finances was too heavy  in comparison  with the Commission's  contribution). 

i 

The  Commission  ensures  that  all  intermediaries  and  all  businesses  can 
benefit  from  Community  measures  on  an  equal  footing  and  in  fair  and 
transparent  conditions  (as  witnessed  by  the  large  number  of  calls  for 
proposals  published  in  the  Official  Journal).  It  also  sees  to  it  that  the 
added  value  deriving  from  the  network  effect  and  the  know-how  built  up  at 
Community  level  are  redistributed  and  made  available  to  all  interested 
parties, including  in the Community's  less-favoured  or outlying regions. 

9.2.1  Cost 

The Council decided  on  18 June  1991 to revise the programme, adding  an extra 
budget of ECU 25 million to the ECU  110 million  already deemed  necessary  for 
the period  1990-93. 

The  European  Council,  meeting  in  Edinburgh  on  11-12 December  1992,  "asked 
the Commission to accelerate  the actions  in favour of SMEs which  have  proven 
their worth at the Community  level". 

Consequently,  the  strengthening  of  the  priority  measures  for  enterprise 
policy so as to  stimulate growth  in the Community  is proposed  for the  period 
1993-96  and  is  based  on  the  experience  acquired  during  the  previous 
programme.  These  assessment  aspects  are  also  raised  in  the  evaluation 
report and  in the Commission's  comments on it. 

-  7 -

The  following  details  can  be  given  on  the various  measures  (the  figures  for 
each old  and  new measure  are given  in the table  in point 7.2): 

- 

information  for businesses: 
1. development  of  the  EICs  to  facilitate  access  to  Community 

information  (stimulation,  training,  grants,  databases); 

- 

development  of partner-search  networks: 

BRE  and  BC-Net:  development  of  both  networks  within  the  Community 
and beyond;  for BC-Net,  implementation  of  a policy  of  specialization 
(particularly  in  innovation  and  technical  cooperation)  and  a  drive 
to raise the calibre  of  advisers  (training) ahead of  the  generalized 
introduction  of charges  on  1 January  1993; 

- 

up 

direct 

contacts 

stepping 
Europartenariat, 
Subcontracting  programmes: 
1. partnership:  intensification  of  the  efforts  to  put  businesses  in 
direct  contact  with  one  another  through  Europartenariat,  Interprise 
and  similar  international  events; 

the 
Cross-Border 

businessmen 

Interprise 

Promotion 

between 

under 

and 

of 

2. subcontracting:  the programme, which was updated  in the  Commission's 
communication  to the Council  of January  1992, is aimed  in particular 
at ensuring  a business  approach to the market  and covers measures  on 
communication  between  businesses,  certification  and  sectoral 
measures (electronics); 

- 

improvement  of the administrative  and  legal environment  of enterprises: 
administrative  simplification  and trade  associations. 
Consultation of trade  associations  and  support  for stimulation  measures 
and  the  dissemination  of  their  information  among  the  8 million 
businesses they  represent; 

- 

promotion  of  Community  instruments  and  strengthening  the  technological 
potential  of SMEs. 

9.2.2  Spin-off  effects 

Action  under  the  above-(mentioned  instruments  and  measures  relates  in 
particular  both  to  improving  the  business  environment  and  the  supply  of 
business  information  and to the  search  for and bringing  together  of  partners 
with the specific aim of developing  cross-border  cooperation  agreements. 

This  is vital to the effective  functioning  of the  single market,  with  regard 
to  which  enterprises  must  base  their  development  strategy  on  goals  that 
extend  beyond  the confines of  their  home  country. 

The main spin-off effect will thus be to make enterprises more competitive, 
in particular through: 

- 8 -

- 
- 
- 
- 

for 

businesses 

greater 
opportunities 
internationalize their operations; 
development of the network effect; 
lower costs, particularly  for pilot schemes; 
positive effects on growth and the economy  in general; 
positive  effects  on  employment  and  the  entire  package  of  measures 
enabling  SMEs to grasp the new opportunities  offered  by completion of 
the internal market and relations with third countries. 

Europeanize 

and 

to 

9.2.3 Multiplier effects 

The  planned  measures  graft  a  European  dimension  onto  existing  services 
provided  by  national  partners.  Planned  expenditure  from  the  Community 
budget  will  consequently  generate  considerable  investment  by  public  and 
private partners, thus exerting a significant catalytic effect and bringing 
about lasting structural change. 

For  example,  Euro  Info  Centres  are  set  up  in  conjunction  with  host 
structures  such  as  chambers  of  commerce  offering  information  and  advisory 
services, to which the EICs add a European dimension. 

Similarly,  Europartenariat  events  are  specifically  aimed  at  developing 
cooperation  between  businesses  in  Objective 1,  2  and  5(b)  regions  and 
enterprises in other regions of the Community.  Given that the Member State 
concerned  contributes  one  third  of  the  budget  for  each  event  and  the 
participating  firms  meet  their  own  travel  and  subsistence  expenses,  the 
multiplier effect can be estimated at 300%. 

Although  it  is desirable  for the Commission  to aim  for a  large multiplier 
effect, this  should  not  be  the  only  deciding  factor  in the  choice  of  its 
action.  The  limitations of  such an  approach  are amply demonstrated  by the 
Commission's low level of financial support for the EIC network: a number of 
host  structures  have  decided  to  close  down  their  Euro-Info-Centre  on  the 
grounds that their share of the costs was too large and the Commission's too 
small. 

9.3 

Evaluation 

- Performance indicators selected: 

_ 9 -

Evaluation  reports  based  on  quantitative  criteria  (e.g.  number  of  queries 
answered,  number  of  cooperation  profiles  generated)  and  matching  the 
instrument  to the needs  (e.g. level of detail of nomenclatures, quality of 
documentation, targeting). 

Results will be evaluated by regular monitoring based on in-house checks and 
expert assessments by outside specialists where necessary. 

The cost of many of the measures taken  is very moderate in relation to the 
market, as noted at certain points in the evaluation report. 

Development  of  measures  targeted  to  the  different  markets  for  business 
information, cooperation and support. 

- 

Details and frequency of planned evaluation: 

Annual evaluation  on an  institutional  basis  (annual  report  provided  for by 
Article 6  of  the  proposed  Decision).  This  proposal  is  based  on  the 
evaluation  report  submitted  by  outside  experts  and  transmitted  by  the 
Commission  to  the  European  Parliament  and  the  Council  in  accordance  with 
Article 3 of the Council Decision of 18 June 1991. 

1.  TITLE OF OPERATION 

FINANCIAL STATEMENT 

"The enterprise dimension - essential to Community growth". 
A  programme  of  measures  designed  to  ensure  the  continuity  of  policy  for 

enterprise, and in particular SMEs, in the Community. 

2.  BUDGET HEADING 

Article B5-320. 

3.  LEGAL BASIS 

Council Decision of 28 July 1989  (OJ No L 239, 16.8.1989, p. 33) 
Council resolution of 14 November 1989 (OJ No C 297, 25.11.1989, p. 2) 
Council Decision of 18 June 1991 (OJ No L 175, 4.7.1991, p. 32) 
Council resolution of 17 June 1992 (OJ No C 178, 15.7.1992, p. 8). 

4.  DESCRIPTION OF OPERATION 

The  proposal  for  a  Council  Decision  to  which  this  financial  statement 
relates follows on from the Council resolution of 17 June 1992, in which the 
Council  recommended  that  the  Commission  should  press  ahead,  in accordance 
with the principle of  subsidiarity, with developing the measures necessary 
to create an environment  favourable to the competitiveness of enterprises, 
in particular SMEs, and to support their integration into the single market 
after  1992.  In  framing  this  proposal,  the  Commission  has  drawn  the 
necessary conclusions from the first programme, covering the period 1990-93, 
and from an evaluation report which it has transmitted to Parliament and the 
Council.  The report confirms the overall appropriateness of the enterprise 
policy  which  the  Community  has  carried  out  so  far  but  makes  proposals 
concerning the direction of certain measures. 

This measure therefore incorporates most of those developed under the first 
programme,  to  which  the  necessary  adjustments  and  improvements  have  been 
made  in  order  to  ensure  the  continuity  of  policy  for  enterprise,  and  in 
particular SMEs, in the Community. 

4.1  Specific 

objectives 

of 

operation 

to improve the business environment, remove administrative, legal, tax 
and  financial  barriers, 
improve  the 
productivity, competitiveness and adaptability of businesses, including 
distributive  enterprises  and  SMEs,  and  facilitate  the  transfer  of 
businesses; 

- 2 -

- 

- 

- 

- 

to help SMEs adjust to structural change in the wake of completion of 
the internal market, for example through measures aimed, in particular, 
at growth sectors.  These comprise measures relating to small firms and 
the  craft  industry,  distributive  enterprises,  cooperatives,  mutual 
societies and non-profit-making associations and foundations; 

to promote a more favourable financial environment; 

to monitor  and  evaluate  enterprise  policy,  in particular  through  the 
European observatory for SMEs, which links together bodies specializing 
in  research  on  SMEs  into  a  network  with  access  to  statistical 
background, studies, publications and information given at seminars and 
conferences; 

to carry out, before the end of the programme, an external evaluation 
additional to the ongoing  internal evaluation which  forms part of the 
programme. 

4.2 

Duration 

1994-97. 

4.3 

Target 

population 

In  theory,  the  above-mentioned  measures  could  affect  all  SMEs  in  the 
Community.  In  practice,  however,  the  number  of  SMEs  concerned  by 
cross-border measures will necessarily be smaller, reflecting the categories 
of enterprises described in the explanatory memorandum. 

The  measures  are  also  targeted  at  all  those  representing  intermediaries 
analogous  to  chambers  of  craft  and  those  representing  the  wholesale  and 
retail  trades,  cooperatives,  mutual  societies  and  non-profit-making 
associations  and  foundations.  As many of the measures are  implemented via 
networks  of  intermediaries,  the  number  of  enterprises  actually  affected 
cannot be precisely quantified. 

5.  CLASSIFICATION OF EXPENDITURE OR REVENUE 

Non-compulsory expenditure;  differentiated appropriations. 

6.  TYPE OF EXPENDITURE OR REVENUE 

- 3 -

- 

- 

Grants  for  joint  financing  with  other  sources  in  the  public  and/or 
private sector. 

The funding of symposia, seminars and the like is to be granted up to a 
certain proportion of costs, determined in the light of the organizers' 
needs  and  the  importance  of  the  event  for  the  sector  in  question 
(attainment of the above-mentioned objectives). 

- 

Preparatory or feasibility studies, evaluation reports, consultants. 

7.  FINANCIAL IMPACT 

7.1  Method  of  calculating 

total 

cost  of  the 

operation 

Experience in current and previous financial years shows that the demands on 
the policy  for SMEs have risen  steeply.  The Commission  has had  to reject 
many of the projects submitted  in response to various calls for proposals. 
Although  some of the projects were eliminated  because they did not develop 
the cross-border dimension sufficiently, a large number of highly promising 
projects had  to be rejected  for want  of  funds.  Although  in certain cases 
the Community contribution can be reduced according to the arrangements for 
implementing  the measure  in order to finance as many projects as possible, 
the  fact  remains  that  the  Commission  may  well  no  longer  be  able  to  get 
essential schemes off the ground if its financial contribution is no longer 
sufficient  to  attract  investments  by  its  partners  (businesses  or 
intermediaries). 

The volume of funding requested has to be seen in the context of the merger 
of headings B5-320, B5-322 and B5-324 which the Commission has proposed in 
the preliminary draft budget for 1993.  Until such time as the 1993 budget 
is  definitively  adopted,  the  figures  for  that  year  will  remain  purely 
indicative. 

4  • 

7 .2 

1 
| 

| 

Measures  designed  to ensure  the continuity  of policy 

•• 

- 

-  ' 

for enterprises  1994-97 

1 

•  -

1993 

1994 

1995 

1996 

1 

• 

1997 

j 

TOTAL 
1994-1997 

|A. MEASURES SPECIFICALLY  TARGETED AT GROWTH AREAS: 

| 

| 

| 

| 

- craft  industry and  small  firms 

- distributive  enterprises 

• cooperatives, mutual  societies  and 

non-profit-making  associations  and  foundations 

IB. PROMOTING  A MORE FAVOURABLE  FINANCIAL  ENVIRONMENT 

|C.  MONITORING AND EVALUATION  OF  POLICY 

| 

| 

| 

| 

- European observatory  for SMEs 

- improving  statistics  on SMEs 

- studies, publications,  seminars  and  conferences 

• evaluation of policy  and existing  schemes 

1.50 
2.00 

0.00 

1.20 
0.20 
1.60 
0.00 

1.30 
2.00 

0.20 

0.20 

1.30 
0.20 
1.50 
0.00 

1.30 
2.00 

0.20 

0.20 

1.40 
0,20 
1.60 
0.00 

1.40 
2.10 

0.20 

0.20 

1,40 
0.00 
1.30 
0,50 

1.40 
2.10 

0.30 

0.30 

1.50 
0.30 
1.40 
0.00 

5.40 
8.20 

0.90 

0.90 

5.60 
0.70 
5.80 
0.50 

... 

. 

• . - .. 

6,50 

6.70 ' 

6,90 

7.10 

| 

, ,, 

I 
1_ 

28.00 
-

7.3 
mini-budget) 

Indicative 

schedule 

of 

commitment 

appropriations 

(excluding 

-  5 -

Token entry 
Preliminary 
draft  budget 
for 1993 

Indicative  planning 

T O T AL 

1994 

1995 

1996 

1 9 97 

6.50 

6.70 

6.90 

7.10  !' 

7-30 

28.00 

8. 

ANTI-FRAUD MEASURES  PLANNED  IN THE PROPOSAL  FOR THE  OPERATION 

Measures  to  be  funded  and  services  or  studies  performed  are  checked  by  the 
Commission  before  payment,  with  due  regard  to  contractual  obligations  and 
the  principles  of  economy  and  sound  financial  or  general  management. 
Anti-fraud measures  (checks, reporting, etc.) are included  in all  agreements 
or contracts between the Commission  and recipients of funds. 

9. 

COST-EFFECTIVENESS  ANALYSIS 

9.1  Assessment 

and  analysis 

of 

objectives 

Quantification 

The  reader  is  referred  to  the  table  set  out  in  point  7.2, which  gives  the 
figures  for the different types of measure  (under both the old programme and 
the proposed  new  one). 

For  guidance,  some  of  the  appropriations  for  1992  were  broken  down  as 
follows: 

- 

promoting a  financial  environment which will benefit enterprises; trade 
associations:  1.9% 

- 

evaluation  and development  of enterprise policy:  6.78%. 

In addition to the above, there are the developments  in the extensive  fields 
of  the  craft  industry  and  small  enterprises  [5 million  firms]  and  the 
distributive  trades  [4 million  firms] which  are  factors  for  the  continuity 
of policy  for enterprise. 

9.2  Grounds  for 

the 

operation 

- 6 -

As  far  as  subsidiarity  is  concerned,  all  the  action  taken  here  by  the 
Community is such that it produces decisive added value, in particular as a 
result of the size of networks and the scale of the measures developed, the 
impartiality of decisions taken at the centre and the attention devoted to 
regional balance. 

This emerges clearly from the independent evaluation report. 

Although  Member States  can  themselves  take  a  large  proportion  of  the 
measures  to  assist  enterprises,  it  is  for  the  Community  to  take  the 
cross-border  measures,  set  up  networks  extending  across  the  Community  or 
beyond  and  organize  schemes  for  the  exchange  of  experience  or  know-how 
between  financial  institutions,  chambers  of  commerce  and  craft  and  other 
intermediaries,  as  well  as  actual  businesses  looking  for  cross-border 
cooperation opportunities.  Making such action a national preserve would not 
only be impracticable and less effective, but would also create distortions 
of  competition  since  the  level  of  support  provided  by  each  Member State 
would vary widely. 

The  Commission  ensures  that  all  intermediaries  and  all  businesses  can 
benefit  from  Community  measures  on  an  equal  footing  and  in  fair  and 
transparent  conditions  (as  witnessed  by  the  large  number  of  calls  for 
proposals published  in the Official Journal).  It also sees to it that the 
added value deriving  from the network effect  and the know-how built up at 
Community  level  are  redistributed  and  made  available  to  all  interested 
parties, including in the Community's less-favoured or outlying regions. 

9.2.1  Cost 

Acting  on  a  proposal  from  the  Commission,  the  Council  adopted  on 
28 July 1989 the multiannual programme to support the development of SMEs. 

The Council decided on 18 June 1991 to revise the programme, adding an extra 
budget of ECU 25 million to the ECU 110 million already deemed necessary for 
the period 1990-93. 

The  new  programme  designed  to  ensure  the  continuity  of  policy  for 
enterprise, and  in particular  SMEs,  in the  Community  is proposed  for the 
period  1994-97 and benefits  from the experience gained during the previous 
programme.  These  assessments  are  also  mentioned  in the  evaluation  report 
and covered by the Commission's comments thereon. 

The following details can be given on the various measures  (the figures to 
each old and new measure are given in the table in point 7.2): 

- 7 -

-  measures specifically targeted at growth areas: 

1.  craft industry and small firms: 

- support  for  the  craft  industry  -  implementation  of  measures  in 

accordance with the Council guidelines of 18 June 1991; 

2.  distributive enterprises: 

- Europeanization of  distribution  structures  and  promotion  of the> 
introduction  of  new  technologies  which  will  benefit  SMEs  and 
distributive enterprises; 

3.  cooperatives, mutual  societies  and  non-profit-making  associations 

and foundations; 

-  promoting a more favourable financial environment; 

-  monitoring and evaluation of policy: 

1.  European  observatory  for  SMEs  based  on  the  networking  of  bodies 
specializing  in the  SME  field  and  supported  by  statistical  tools 
developed by the Statistical Office of the European Communities to 
supply the quantitative and qualitative data which firms need.  The 
network  will  draw  on  a  basis  composed  of  studies, publications, 
seminars and conferences; 

2.  evaluation of policy and existing schemes. 

9.2.2 Spin-off effects 

The main spin-off effect, in addition to continuity of policy, will be to 
make enterprises more competitive, in particular through: 

-  greater 

opportunities 
internationalize their operations; 
development of the network effect; 
lower costs, particularly for pilot schemes; 

businesses 

for 

to 

Europeanize 

and 

-  positive effects on growth and the economy in general; 

positive  effects  on  employment  and  the  entire  package  of  measures 
enabling SMEs to grasp the new opportunities offered by completion of 
the internal market and relations with non-member countries. 

9.2.3 Multiplier effects 

- 8 -

The  planned  measures  graft  a  European  dimension  onto  existing  services 
provided  by  national  partners.  Planned  expenditure  from  the  Community 
budget  will  consequently  generate  considerable  investment  by  public  and 
private partners, thus exerting a significant catalytic effect and bringing 
about lasting structural change. 

As  far  as  measures  relating  to  the  distributive  trades  are  concerned, 
experience  in  1991  has  shown  that  a  contribution  of  some  25%  by  the 
Commission  suffices  to prompt  the  sector  to  put  up  the  remainder  of the 
necessary  finance.  The  multiplier  effect  can  thus  easily  be  as  high  as 
400%. 

Although it is desirable  for the Commission to aim  for a large multiplier 
effect, this should  not be the only deciding  factor  in the choice of its 
action.  The limitations of such an approach are amply demonstrated by the 
Commission's  low level of  financial  support  for the EIC network: a number 
of host structures have decided to close down their Euro-Info-Centre on the 
grounds that  their  share of the  costs was too  large and the Commission's 
too small. 

9.3 

Evaluation 

- Performance indicators selected: 

Results will be  evaluated  by  regular  monitoring  based  on  in-house  checks 
and expert assessments by outside specialists where necessary. 

The cost of many of the measures taken is very moderate in relation to the 
market, as noted at certain points in the evaluation report. 

-  Details and frequency of planned evaluation: 

Annual evaluation on an institutional basis  (annual report provided  for by 
Article 6  of  the  proposed  Decision).  This  proposal  is  based  on  the 
evaluation  report  submitted  by  outside  experts  and  transmitted  by  the 
Commission  to the European  Parliament  and the  Council  in  accordance with 
Article 3 of the Council Decision of 18 June 1991. 

ISSN 0254-1475 

COM (92) 470 final 

DOCUMENTS 

EN 

10 

Catalogue number : CB-CO-92-585-EN-C 

ISBN 92-77-50844-2 

Office  for Official Publications of the European Communities 

L-2985 Luxembourg