Opinion of the European Economic and Social Committee on the Proposal for a Decision of the European Parliament and of the Council amending Council Decision 2000/819/EC on a multiannual programme for enterprise and entrepreneurship, and in particular for small and medium-sized enterprises (SMEs) (2001-2005) (COM(2004) 781 final — 2004/0272 (COD))
Date: 2005-03-09
Institutions: European Economic and Social Committee
Subjects: EU financing, EU programme, accession to the European Union, aid to undertakings, competitiveness, entrepreneurship, small and medium-sized enterprises

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Official Journal of the European Union

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Opinion of the European Economic and Social Committee on the Proposal for a Decision of the
European Parliament and of the Council amending Council Decision 2000/819/EC on a multiannual
programme for enterprise and entrepreneurship, and in particular for small and medium-sized
enterprises (SMEs) (2001-2005)

(COM(2004) 781 final — 2004/0272 (COD))

(2005/C 234/03)

On 11 January 2005, the Council decided to consult the European Economic and Social Committee, under
Article 95 of the Treaty establishing the European Community, on the abovementioned proposal.

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 14 February 2005. The rapporteur was Mr
Pezzini.

At its 415th plenary session, held on 9 and 10 March 2005 (meeting of 9 March), the European Economic
and Social Committee adopted the following opinion unanimously.

1. Preface

1.1 Many EESC members from the Member States which
joined the EU in 2004 have not had the opportunity to follow
closely Community
enterprise policy, particularly policy
relating to SMEs, as it has developed over the past decades.
This albeit very simple opinion is important because of the
significance of the Commission's proposals, and it gives a brief
overview of some of the different stages of the policy's develop-
ment.

2. Historical overview

2.1 Within the Commission, from the second half of the
eighties onwards, enterprise policy was addressed essentially by
two directorates-general, DG Industry and DG XXIII, which was
in particular, with the craft sector and SMEs.
concerned,
Throughout
liaising closely with
Member States' trade associations, held dozens of meetings
every year to identify the specific needs of micro- and small
enterprises.

the nineties, DG XXIII,

In 1994, encouraged by DG XXIII,

2.2
the Commission
created the EIF (European Investment Fund), giving it two main
tasks:

1) to finance networks, which were essential to enterprises'

development;

2) to promote access to credit, particularly where SMEs were

concerned, by underwriting loans.

At present,
activity.

the EIF operates solely in the second area of

During that period,

2.4
therefore, enterprise programmes
were proposed either by DG Enterprise or by DG XXIII:
programmes put forward by DG XXIII were concerned particu-
larly with the craft sector and small and medium-sized busi-
nesses.

2.5
In 1997, the third multiannual programme for SMEs
(1997-2000) was approved; it had been discussed initially with
the trade associations and was then launched by DG XXIII.

2.6
On 20-21 November 1997, the Luxembourg Extraor-
dinary European Council, whose agenda contained a single
item — employment — launched three practical initiatives to
help businesses stay competitive in the markets and called
upon the Commission to put forward proposals that would
boost the business sector and promote job creation in that
field. The three initiatives were the ETF-Start Up Facility, the
JEV (Joint European Venture) and the SME Guarantee Facility.

2.7
In 1998, with the direct involvement of the EIB and the
EIF, the Commission launched the Growth and Employment
Initiative (1998-2000), which was based on the measures
decided on in Luxembourg.

2.8
In 1999, taking into account the decisions taken at the
Cardiff European Council in 1998, the Council issued a report
calling for the concept of sustainable development to be incor-
porated into enterprise policy.

2.9
In 2000, when the discussions on the fourth multi-
annual programme had reached an advanced stage, two funda-
mental texts for SMEs were adopted:

2.3
The points raised by the many meetings with the above
DGs were discussed at three European conferences, held in
Avignon (1990), Berlin (1994) and Milan (1997) respectively.
Thousands of entrepreneurs from the Member States were
present at each of these events.

1) The European Charter for Small Enterprises, adopted by the

Feira European Council,

2) The Charter on SME policies, promoted and adopted by

OECD Industry Ministers.

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2.10
Also in 2000, the Lisbon European Council launched
the renowned Lisbon process, based on a knowledge-based
society and economy, which would engage the Commission
and the Member States for a long period of time.

2.11
The fourth multiannual programme for enterprise and
entrepreneurship (2001-2005), which was adopted in 2000,
built both on previous programmes and on the cultural devel-
opment which had taken place during the nineties.

3. Introduction

3.1
The fourth multiannual programme (MAP) for enterprise
and entrepreneurship, and in particular for small and medium-
sized enterprises
adopted on
to run from 1 January 2001 to 31
20 December 2000,
December 2005, with a budget of EUR 450 million.

(2001-2005), was

(SMEs)

The MAP is designed to improve the overall business
3.2
environment in Europe. It is coordinated by DG Enterprise and
its activities are grouped within three pillars:

— business development policies, where the Commission and
Member States study and disseminate policy recommenda-
tions designed to enhance the overall business environment;

— the Euro-Info-Centre (EIC) network, which supports and
information centres all over Europe, giving
assists local
businesses access to Community assistance and support
programmes and networks;

— financial

instruments, which

towards
improving the financial environment for businesses, espe-
cially SMEs.

targeted

are

3.3

The MAP aims to achieve the following objectives:

— to enhance the growth and competitiveness of enterprises

in a knowledge-based and internationalised economy;

— to promote entrepreneurship;

— to simplify and improve the administrative and regulatory

framework for businesses;

— to improve the financial environment for businesses, espe-

cially SMEs;

— to give business easier access

to Community support
services, programmes and networks and to improve the
coordination of these facilities;

3.4

The delivery instruments are as follows:

— the exchange of experience and the identification of good

practices among the Member States;

— the operation of a network of Euro-Info-Centres offering
services and advice about European matters to enterprises
throughout European regions;

— the provision, via the European Investment Fund (EIF), of

Community financial instruments for SMEs.

3.5
In preparation for the new 2006-2010 programme, the
Commission has had regular evaluations carried out, both
internally and by independent experts. In order to take into
it has produced a
account as many suggestions as possible,
document highlighting the points which should underpin the
new programme.

4. Gist of the Commission proposal

4.1
In a single article, it is proposed to amend Council Deci-
sion 2000/819/EC (1), extending the multiannual programme
until 31 December 2006 and thus increasing the financial
reference amount by EUR 81.5 million, from EUR 450 million
to EUR 531.5 million.

5. Reasons for the Commission's proposal

The public consultation and the proposals made in the
5.1
independent experts' report
for a
wider basis for policy analyses, development and coordination
as well as for specific measures to help enterprises to be
competitive and innovative.

indicated strong support

5.2
The current multiannual programme (MAP) did not
incorporate the lines for action provided for by the European
Charter for Small Enterprises clearly into its annual work
programmes until 2003 and 2004, and much remains to be
done to put the Charter's recommendations into practice.

The multiannual programme includes various activities
5.3
to support enterprise policy, but it fails to stimulate innovation
and business cooperation.

5.4
The measures provided for in the MAP were a response
to the needs and requirements of the 15-Member State Europe,
and are not sufficiently flexible to meet the needs of businesses
from the new Member States.

— to support the implementation of the European Charter for

Small Enterprises at Community level.

(1) OJ L 333, 29.12.2000. Decision as last amended by Decision No
593/2004/EC of the European Parliament and of the Council (OJ L
268, 16.8 2004, p. 3).

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7.2
The EESC believes that it would be extremely appro-
priate, during the year in progress and the year-long pause
provided by the extension (i.e. 2005-2006), for DG Enterprise
to hold a series of meetings in the new Member States with
representatives of SME organisations from all Member States,
with the aim of discussing best practice and focusing on the
specific difficulties of the new Member States. This would make
it possible to highlight many of the issues that need to be taken
forward under the new framework programme.

7.3
Using the information yielded by these preparatory
meetings, the EESC believes that a fourth European conference
on micro-, small and medium-sized enterprises could be held
during 2006 in one of the countries which have recently joined
the EU, with the aim of exploring, in a wider context, solutions
to the most pressing issues raised by the new Member States in
the field of enterprise policy.

7.4
The Commission should discuss with the EESC the
results of the external valuation it commissioned as soon as
possible and analyse the results yielded by the current MAP.
Moreover, many of the EESC's members come from the world
of enterprise and the EESC is already in a position to make a
valuable contribution, with its usual pragmatism and commit-
ment.

After these many years of discussion, and thanks, not
7.5
least, to the internal debate which takes place while opinions
are being drawn up, the EESC has come to the following
conclusion: in order to achieve high-quality, practical develop-
ment policies, it is necessary both to step up the debate among
and with those whose lives are directly affected by enterprise
issues (employers and workers), and to acknowledge that the
problems of micro- and small enterprises are different from
those of large enterprises, or, where this is not so, that they
instru-
have different characteristics, because the resources,
ments and support systems used to address them cannot be
compared with those at the disposal of large enterprises. It is
therefore essential that these considerations be taken increas-
ingly into account in the quest for new resources and develop-
ment instruments.

7.6
The EESC is therefore in favour of the proposed exten-
sion but calls upon the Commission to implement the measures
proposed in this opinion and to submit a report on the action
it has taken to the European Parliament and the EESC.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

6. The EESC's views

6.1
The EESC fully endorses the proposal and deems it
appropriate that the Commission, taking into consideration any
suggestions
Social
European
Committee or other stakeholders from organised civil society,
should draw up a proposal for a framework programme which
takes into account:

from the

Economic

and

— the progress made in recent years towards a knowledge-

based economy;

— the new innovation drives businesses need in order to

remain competitive;

— the provisions of the new Financial Perspective 2007-2013;

— the genuine needs expressed by businesses (in particular,
micro-, small and medium-sized enterprises) from the new
EU Member States;

— valuable, necessary synergies with the priorities of the new

Structural Funds and the Cohesion Fund;

— expectations, particularly the expectations of
Member States, regarding the role of the EICs.

the new

6.2
An in-depth debate is currently in progress on the
content of the Sixth Framework Programme for research and
innovation, which expires at the end of 2006. The current
MAP devotes a great deal of attention to research — which is
undoubtedly extremely important for large businesses — but
little attention to innovation or competitiveness, which are
crucial for SMEs. A longer reflection period would enable new,
dynamic synergies to be planned between the next framework
programme for research and innovation and the next frame-
work programme for enterprise and entrepreneurship.

6.3
A number of instruments provided for in the current
MAP have not yielded the results hoped for (2): this may well
be because, although the post-Lisbon initiatives were taken into
account when these instruments were set up, the needs of
micro-, small and medium-sized businesses were not specifi-
cally taken into consideration.

7. Conclusions and proposals

7.1
Unlike the old Member States, the Member States which
joined the European Union in 2004 have not had a chance to
discuss this subject in depth or to contribute to the drawing-up
of an enterprise and entrepreneurship policy with a solid,
widely-supported base.

Brussels, 9 March 2005.

(2) See also the negative outcome of the JEV Programme and the

conclusions of SEC(2004) 1460 of 15.11.2004