Opinion of the Economic and Social Committee on the "European Charter for Small Enterprises"
Date: 2001-11-28
Institutions: European Economic and Social Committee
Subjects: EU programme, European charter, draft budget, small business

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3.4.3.
The ESC is in favour of simplifying the rules on the
publication of contract notices and adapting them to electronic
systems developed in connection with the SIMAP (public
procurement
launched by the Com-
mission working together with the Member States. In this
connection, the use of standard forms and a common vocabu-
lary will facilitate access to information and help to make
tender procedures more transparent.

information system)

3.5.
already exist or are in development. For this reason,

Internationally, various private classification systems
it is

important that there is a single classification system for public
contracts (the CPV) in use in the European Union, and it is
conceivable that its use in third countries might be proposed
in the framework of the WTO negotiations on the grounds
that its adoption would lead to simplification and transparency
of information.

3.6.
A particular virtue of the revision procedure proposed
is that it could be based on the suggestions and comments of
future direct users of the CPV.

Brussels, 28 November 2001.

The President

of the Economic and Social Committee

Göke FRERICHS

Opinion of the Economic and Social Committee on the ‘European Charter for Small Enterprises’

(2002/C 48/04)

On 13 September 2001 the Economic and Social Committee, acting under Rule 23 (2) of its Rules of
Procedure, decided to draw up an additional opinion on the European Charter for Small Enterprises.

The Section for the Single Market, Production and Consumption, which was responsible for preparing
the Committee’s work on the subject, adopted its opinion on 21 November 2001. The rapporteur was
Mr Giron.

At its 386th plenary session of 28 and 29 November 2001 (meeting of 28 November), the Economic and
Social Committee adopted the following opinion with 111 votes in favour and three abstentions.

1.

Introduction

The European Parliament strongly endorsed the
1.1.1.
in its report on the Multiannual Programme
Charter and,
for Enterprise and Entrepreneurship,
it stressed that small
enterprises, micro-enterprises and craft firms make a signifi-
cant contribution to competitiveness, research and innovation
and have a crucial role to play in strengthening social cohesion
and spatial planning, particularly in rural and urban areas and
urban conurbations.

1.1.
In its opinions of 24 May 2000 and 31 May 2001, the
Committee set out its views on the relevance and merits of the
European Charter for Small Enterprises (the ‘Charter’), adopted
by the Feira European Council in June 2000 at the conclusion
of the Portuguese Council presidency. On that occasion, the
Council acknowledged that small businesses are the backbone
of the European economy and European employment. Among
other things, the Council underlined the need for specific
policies that are less general than those lumped together under
a generic definition of SMEs.

However, more than a year after the Charter was
1.2.
adopted, most of its recommendations appear to be a dead
letter. The Charter, which is specifically intended for small

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enterprises with fewer than 50 employees (1) (ESC opinion of
24 May 2000), remains a political declaration with limited
practical follow-up and visibility, both as regards information
on progress achieved in Member States and action taken by
the Commission.

2.2.
To address this situation, the Belgian presidency of the
Council undertook, in its economic programme submitted to
to focus on
the European Parliament on 4 July 2001,
implementation of the Charter.

1.2.1. With more than 19 million businesses accounting
for 53 % of the Community workforce in the non-agricultural
private sector, small enterprises, in their various forms, play a
key role in economic and social cohesion in Europe. In spite
of this, Community programmes and policies concerning
small businesses pay inadequate attention to their specific
character, rather including them under the general heading of
SMEs. The Committee notes that, in practice, little has been
done to support small enterprises and the action taken has
often been limited to uncoordinated, piecemeal measures.

The Committee nevertheless recognises that

the
1.2.2.
Commission has given increased consideration to small busi-
nesses in its actions and measures, particularly in connection
with the follow-up to the three European conferences on the
craft sector and small enterprises held in Avignon (1990),
Berlin (1994) and Milan (1997). The measures taken within
the context of the structural funds, social and employment
policy and promoting entrepreneurship and competitiveness
are valuable and must be continued.

1.2.3.
But the Committee is surprised that the momentum
given to efforts to promote small enterprises and craft firms
by the three European conferences on the craft sector and the
wealth of experience gained from the activities of the old
DG XXIII, which was responsible for SMEs, have unfortunately
been lost following the restructuring of the Commission.

2. The purpose of this opinion

2.1.
The implementation of the Charter is not solely the
responsibility of the signatory Member States, but of all the
European institutions, and particularly the Commission, which
is mentioned specifically in the Charter. In addition to drawing
up the annual report on the implementation of the Charter
prior to each Spring European Summit, the Commission could
initiate a genuine multiannual operational plan of action at
Community level and within the Member States with a view
to ensuring the effective and efficient implementation of the
Charter.

(1) Commission recommendation, OJ L 107, 30.4.1996.

This opinion sets out the main measures to be taken
2.3.
over the coming years as a first step towards the practical
implementation of the Charter.

3.

Implementation of the Charter in Member States

3.1.
in the
In accordance with the guidelines set out
Charter and requests from the European Parliament, the Spring
European Council has to monitor annually the progress
made by Member States in implementing the Charter. The
Committee calls on the Council and the Commission to ensure
that the report deals properly with the specific circumstances
of the various types of small enterprises and not just SMEs in
general. Furthermore, the report must be separate from other
publications, such as the report on the implementation of the
Best Procedure for administrative simplification or the Action
Plan to Promote Entrepreneurship and Competitiveness.

3.1.1.
On this subject, the Committee is somewhat dissatis-
fied with the short report on the implementation of the Charter
presented by the Commission on 7 March 2001 in preparation
for the Stockholm Summit. The report is only interested in
SMEs in the general sense and says nothing about the real
impact of the 11 projects mentioned in the report on small
and micro-enterprises or about the results of the measures
pursued under Community programmes managed by Com-
mission departments other than DG Enterprises.

3.2.
The Committee recommends that the report be fol-
lowed up by real measures and proposes lines of action for
small enterprises. The Committee proposes that,
like the
recommendations proposed for Member States in connection
with the employment guidelines, the report on the implemen-
tation of
the Charter be followed up by recommended
guidelines for Member States on promoting the economic
development of small enterprises and strengthening their role
in the strategy for employment.

3.2.1.
As the Charter itself states and as reiterated by the
European Parliament, the Committee considers the Charter to
be fully consistent with the Luxembourg, Cardiff and Cologne
processes. Whilst not wishing to refer to the Charter as the
‘Feira process’, it is nevertheless an integral part of the overall
process and one of its cornerstones. Therefore the Committee
feels that such recommendations would be useful for Member
States.

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4.

Implementation of the Charter at Community level

4.2. Action needed at European level in pursuance of the lines for

action set out in the Charter

4.1.

Preliminary remarks

Although many policy areas aimed at promoting
4.1.1.
small enterprises remain the responsibility of Member States,
the European level and Community involvement are becoming
increasingly important in the areas of education and training,
qualifications and taxation and even in the pursuit of some
professional activities, such as those related to general safety
or food safety. In the future, small enterprises will play a
crucial role for each Union objective, in such key areas as
enlargement, governance and economic and social cohesion.
The interests, expectations and real needs of small enterprises
must be taken into account.

4.1.1.1.
The Committee nevertheless notes that knowledge
of small enterprises’ needs is partial and incomplete at
European level. To date, the scientific and economic world has
shown no interest in in-depth studies of small enterprises in
their various forms. The Committee calls for this shortcoming
to be quickly remedied.

4.1.2.
It must be remembered that the Charter applies to all
Community polices and measures that have an impact on
small enterprises. The responsibility for implementation does
not rest with one Commission department alone and coordi-
nation will be necessary. With a view to achieving a genuine
open coordination policy for small enterprises, the Committee
suggests that cooperation between the relevant Commission
departments and coordination with the European organis-
ations representing small enterprises be stepped up.

4.1.3.
In addition, the EU must do its utmost to smooth the
way for the introduction of the Charter in the applicant
countries. For these countries, the Charter is a political basis of
the first importance, making it possible to structure public and
private efforts to promote small enterprises and craft firms
and to pursue effective economic and social policies.

4.1.3.1. Mindful of this, the Committee calls on the Com-
mission, the Council and the European Parliament to establish
and strengthen measures for exchange between representative
organisations, and to promote the setting-up of intermediary
organisations for enterprises and to reinforce such organis-
ations.

4.2.1.

E d u c a t i o n a n d t r a i n i n g f o r e n t r e p r e -
n e u r s h i p

— analysis and dissemination of business organisation prac-
tices, particularly on-site local operations of organisations
that are closest to the people concerned;

— organisation of technical exchange meetings between the
coordinators of such action, at Community level and
between Member States, and flanking financial measures
designed to promote exchanges;

— establishment of a specific programme and financial
resources for applicant countries,
including twinning
or cooperation with organisations representing small
businesses in the EU;

— incorporation in training courses of activities designed to
bring schools and small enterprises closer together.

4.2.2. C h e a p e r

s t a r t - u p a n d

f a s t e r

r e g i s -

t r a t i o n

— disseminate results of ongoing studies, paying attention
to the particular circumstances of each category of small
businesses;

— study the legal, administrative and tax problems encoun-
tered both by existing enterprises intending to engage in
a temporary activity in another Member State, especially
border regions, and by entrepreneurs intending to set up
business in another Member State.

4.2.3. B e t t e r l e g i s l a t i o n a n d r e g u l a t i o n

— systematically involve European representative organis-
ations for small businesses in the Community legislative
process from the beginning and deploy financial resources
to enable meetings and visits by experts;

— systematise assessment of the impact of Community

legislation on small and micro-enterprises;

— make it easier for small businesses to apply Community
legislation through the compilation and distribution by
the relevant intermediary organisations of operational
guides to good practice adapted to the actual circum-
stances of each category of enterprise or occupation
and through the exchange of such guides between
organisations in different Member States;

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— analysis of the legal and tax position of enterprises not in
corporate form compared with incorporated businesses,
and a proposal for appropriate measures;

— study on a European Private Company Statute (see
forthcoming ESC opinion; rapporteur: Mr Malosse);

— study on arrangements for protecting the assets of small

entrepreneurs’ families;

— the lack of a European patent system represents a
in view of their low

handicap for small enterprises,
turnovers; it is imperative to remedy this situation.

4.2.4.

S k i l l s , a v a i l a b i l i t y a n d e q u i v a l e n c e o f
v o c a t i o n a l q u a l i f i c a t i o n s

— strengthen programmes for the exchange of apprentices
and adopt a European Erasmus programme for appren-
ticeships corresponding to the programmes for university
students, which have proved to be effective and of great
value for thousands of students;

— establish a European Statute for Apprentices, designed
to simplify procedures for exchanges and visits by
apprentices, for social protection and for cooperation
between those responsible for vocational training and
apprenticeships;

4.2.6.1.

Information on small enterprises and their needs

— recognition of the specific needs of small manufacturing
enterprises or suppliers of services when revising the
definition of SMEs, as regards the criterion ‘turnover’;

— launch of a programme of statistical and economic
studies, and a best practice analysis, by the scientific and
academic community and in the context of the European
Observatory for SMEs on craft industries, micro-enter-
prises and small firms providing professional services;

— statistical and economic analyses of small and micro-

enterprises in the applicant countries;

— specific analyses and studies on the future of small
enterprises and craft firms against the background of the
broad policy guidelines for the future of Europe: cohesion
and enlargement, governance, globalisation;

— the drawing up by the Commission and the European
Academy for Craft Industries of a work and research
programme focusing on knowledge of small enterprises,
the implementation of the Charter and the pursuit of the
measures set out in the ESC opinion of 30 May 2001 on
the craft sector and SMEs in Europe.

4.2.6.2. Competition rules

— develop consultation and cooperation between vocational
training and apprenticeship establishments with a view
to supporting high-quality training;

— establishment of a system for observing distortions in
competition faced by small enterprises, particularly in
border and island regions, and development of a method
for the speedy resolution of disputes.

— analysis of problems encountered by small enterprises
confronted with shortages of skilled labour, and proposed
solutions;

4.2.6.3. Cooperation between organisations and between

enterprises

— draw up a table on the equivalence of vocational training
qualifications in Europe to simplify procedures for the
registration of would-be company founders in other
Member States.

— reactivate, in a new form that is more flexible and suitable
to the purpose at hand, of the Interprise programmes for
trans-border competition.

4.2.5.

I m p r o v i n g o n l i n e a c c e s s

4.2.6.4.

Participation of enterprises in Community pro-
grammes and action

— help business organisations to structure supply so that it
is suited to online services, especially as regards initial
and lifelong training, advice, setting up and taking over a
business.

— simplify the application and assessment procedures for
small businesses and systematise recourse to intermediary
organisations providing consultancy and back-up ser-
vices;

4.2.6. G e t t i n g m o r e o u t o f t h e S i n g l e M a r k e t

The measures that need to be undertaken in this area fall into
several categories:

— make the procedures for calls for proposals more flexible
and reactivate,
the possibility of
in modified form,
obtaining direct financing over the counter for transna-
tional pilot and experimental measures aimed at a very
large number of enterprises on the basis of proposals by
national and European intermediary organisations.

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4.2.6.5.

Standardisation

— ensure the participation of small and micro-enterprises in
European standardisation work and establish a financing
scheme for the experts who represent them. The Com-
mittee feels that NORMAPME,
in particular, must be
supported and strengthened;

— create specific tools and technical manuals, tailored to

different sectors and sizes of business;

— establish and support a network of expert advisers
within the intermediary and trade organisations for small
businesses, with the task of providing information and
advice on the adoption of standards and the EC mark.

financing linked to investment, new technologies and new
information and communications technologies (ITC),
adherence to technical and environmental standards, and
intangible investment related to training; to this end,
analyse the utilisation of these facilities by small enter-
prises and propose new access measures;

— create a fully-fledged European strategy for supporting

development of a mutual guarantee scheme;

— ensure that the banking reform proposed by the Basel
Committee (Basel 2), which the Commission must take
on board in a forthcoming directive, does not lead to a
rise in the final cost of small loans and a deterioration of
credit terms for small businesses.

4.2.6.6. The environment

— ensure that the ‘small enterprise dimension’ is included
systematically in all Community texts and that the specific
needs of small enterprises are recognised from the outset;

— simplify procedures in line with the new EMAS Regu-
lation on eco-audits, which introduces greatly simplified
procedures for small enterprises and makes it possible
for craft chambers and intermediary and professional
organisations to carry out audits that are suitable for
small enterprises;

— set up and maintain within intermediary organisations a
network of environmental mediators, with the task of
providing information, training and guidance to small
enterprises;

— introduce tax incentives and financial support for invest-
ment and compliance with environmental standards.

4.2.8.

S t r e n g t h e n i n g
t e c h n o l o g i c a l
e n t e r p r i s e s

u p g r a d i n g

a n d
c a p a c i t y

o f

t h e
s m a l l

— support the establishment within the intermediary organ-
isations for small businesses of posts for technological
consultants/mediators and encourage network cooper-
ation;

— see to it that small enterprises,

including traditional
businesses, are taken into account in the 6th framework
programme for research and technological development;

— promote collective research activity by the intermediary

organisations in concert with the scientific community.

4.2.9. M a k i n g u s e o f

m o d e l s
a n d
s m a l l b u s i n e s s s u p p o r t

s u c c e s s f u l e - b u s i n e s s
t o p - c l a s s
d e v e l o p i n g

4.2.7. T a x a t i o n a n d f i n a n c i a l m a t t e r s

4.2.9.1.

e-business

4.2.7.1. Adapt taxation

— strengthen the experimental measures taken to reduce
VAT by applying the reduction to all labour-intensive
activities.

4.2.7.2.

Ease access to credit and promote a mutual guaran-
tee scheme

— provide small enterprises with real opportunities for
better access to existing financial facilities provided by
the European institutions (EIB, EIF, Commission), or
facilities yet to be created, in order to facilitate access to

— give support

to business intermediary organisations’
action to provide information on, raise awareness of and
encourage trials with the new ICT and to provide
consultancy services;

— support investment in hardware, software and training

by small and micro-enterprises.

4.2.9.2.

Promoting quality in small businesses

— develop a real policy at European level for networking
between organisations providing support services;

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— introduce European specifications for support services
which set out the minimum conditions to be met for
developing these services in Europe;

— compile a compendium of good practice relating to social
responsibility within small businesses and support its
dissemination to decision-makers;

— establish training for business consultants at European

level that complies with these specifications;

— help small enterprises that adopt a proactive approach to
social responsibility to better inform their partners about
their activities.

— help prospective Member States to develop a support
service network in accordance with the European specifi-
cations.

5. Conclusions

4.2.10. D e v e l o p i n g s t r o n g e r , m o r e e f f e c t i v e
r e p r e s e n t a t i o n o f s m a l l e n t e r p r i s e s ’
i n t e r e s t s a t U n i o n a n d n a t i o n a l l e v e l

The Committee feels that

the Charter affords an
5.1.
excellent opportunity for all political
levels in the EU to
demonstrate to 19 million small enterprises and their
employees that they are aware of and responsive to the
problems of small and micro-enterprises;

4.2.10.1. Representation of small enterprises’ interests

— strengthen and systematise direct cooperation with
national and European representative organisations for
small businesses in all fields of Community activity;

— promote and support cooperation between chambers,
intermediary, trade and sectoral organisations for small
and micro-enterprises and craft businesses and establish-
ment of structures for these organisations at Community
level so as to ensure better recognition of the priorities
of small businesses in general and sectoral legislation
concerning them;

— promote the establishment and operation of intermediary
and sectoral organisations for these enterprises in the
applicant countries and support action by them that is
focused on businesses and the partnership with sister
organisations in the present Member States.

4.2.10.2.

Small enterprises in the social dialogue

— guarantee direct and automatic participation by represen-
tative bodies of small enterprises and craft businesses
in all consultation and decision-making processes at
European level and in high-level political meetings of
relevance to them;

— ensure better monitoring of the implementation of agree-
ments negotiated between the social partners by encour-
aging better representation of bodies representing the
craft trades and small businesses in the social dialogue at
all levels (European, national, sectoral, branch, firm);

5.2.
The Committee notes its serious concern and fear
that millions of entrepreneurs, self-employed workers and
employees will become estranged from the EU if their specific
needs and circumstances are not taken into account at different
political levels. This lack of understanding and estrangement
could have adverse consequences for the construction, consoli-
dation and enlargement of the EU at a time when European
cohesion is even more important in the face of international
developments.

5.2.1.
The present opinion gives voice to the concerns of
small enterprises and craft firms. The European Commission
should see in this evidence of the necessity of launching highly
visible measures aimed at supporting, in accordance with the
Lisbon principles, the role and importance of small enterprises
in the context of increasingly intense international compe-
tition.

5.3.
There is now a need for a comprehensive range of
effective and visible policies that will establish, at European
level, the legal, tax and social framework necessary for the
development of small enterprises. All the separate Community
measures, both existing and forthcoming, pursued by the
Commission’s various departments must be brought together
and coordinated within a multiannual operational plan of
action for small enterprises. The Committee hopes that the
introduce interdepartmental cooperation
Commission will
to coordinate its measures aimed at small enterprises and
harmonise its procedures. Like the Commission group working
on equal opportunities, European policy for small enterprises
would benefit greatly in terms of political and operational
effectiveness, if such a procedure were adopted at the highest
levels within the Commission.

5.4.
Accordingly, the Committee calls on the Commission
and the Member States to implement the Charter by means of

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such a multiannual plan of action as soon as possible, in
concert with the European Parliament, the Economic and
Social Committee and the organisations that are truly represen-
tative of craft
firms and small enterprises. The effective
implementation of the plan and the success of European policy
for small enterprises can only really be guaranteed by a
genuine, direct dialogue, by strengthening cooperation with
the intermediary organisations representing the craft sector
and small enterprises and with the social partners, who enjoy
the advantage of links with all levels and very long experience,
and by the direct involvement of these parties in the entire
decision-making and operational process.

5.5.
The Committee asks the Council to adopt, at one of its
forthcoming meetings, a decision on the implementation of
the Charter by means of this multiannual plan of action that
embraces all the initiatives of relevance to small enterprises
and the measures proposed in the present opinion and at the
same time to establish budgets for the programmes concerned.
To this end,
the European
the Committee suggests that
Parliament and the Council approve the proposal for a special
budget formulated last year in connection with the discussion
of the Multiannual Programme for Enterprise and Entrepre-
neurship. These funds would be used to support the innovative
measures in the Charter that are not covered by other
programmes.

Brussels, 28 November 2001.

The President

of the Economic and Social Committee

Göke FRERICHS

Opinion of the Economic and Social Committee on the ‘Communication from the Commission
to the Council and the European Parliament — An Internal Market Strategy for Services’

(2002/C 48/05)

On 28 February 2001 the Economic and Social Committee decided, under Rule 23(2) of its Rules of
Procedure, to draw up an opinion on the above-mentioned communication.

The Section for the Single Market, Production and Consumption, which was responsible for preparing
the Committee’s work on the subject, adopted its opinion on 21 November 2001. The rapporteur was
Mr Vever.

At its 386th plenary session (meeting of 28 November 2001) the Economic and Social Committee
adopted the following opinion by 106 votes in favour, with one abstention.

1. Summary of the Committee’s comments

The Committee is pleased that the Commission, in its
1.2.
communication of December 2000, stressed the urgent need
to relaunch the internal market in services by deciding to
intensify work on current questions, update analysis of barriers
and introduce an overall, innovatory approach in 2002.

1.1.
The Committee is concerned about the continuing
delays in completing the internal market, at a time when
activities in these fields have taken on a dominant role in
economic development and employment in Europe. In the
current environment, characterised by the pressure of glo-
balisation, the resumption of the WTO negotiations, the arrival
of the information society, the transition to the euro, the
commitments on competitiveness undertaken in Lisbon and
the preparations for enlargement, these delays should be
remedied immediately.

1.3.
The Committee is aware of the complexity of the task
of completing the single market in services in the face of
differences which are deeply rooted in the laws and cultures of
the Member States. However, the survey and hearing which it