Enterprise & industry. 1, July 2008.
Date: 2009-08-20
Institutions: Directorate-General for Enterprise and Industry
Subjects: business policy, industrial policy, serial publication

&ENTERPRISE

INDUSTRY
magazine

Small Business Act: 
making life easier 
for SMEs 
REACH: pre-register your chemicals 
by 1 December 2008 

Protecting your 
Intellectual Property Rights in China 

European Commission
DIRECTORATE-GENERAL FOR ENTERPRISE AND INDUSTRY

1July 2008

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Enterprise & Industry | July 2008 

Contents

Editorial 

Enterprise & Industry | July 2008

3

CONTENTS

   Small Business Act: making life easier for European enterprises  4
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   The Commission’s SME Envoy  

   Boost to Internal Market for goods 

   Access to fi nance for SMEs 

   Softening the stigma of insolvency 

   Protecting your Intellectual Property Rights in China 

   Cosmetics safety rules to be rejuvenated 

   Six-month window for REACH pre-registrations 

   Space for European innovation 

   News in brief & upcoming events 

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12

14

15

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ENTERPRISE & INDUSTRY
The Enterprise & Industry magazine is published three times a year, in English, 

LEGAL NOTICE
Neither the European Commission nor any person acting on its behalf may be 

French and German, complementing the on-line magazine of the European 

held responsible for the use to which information contained in this publication 

Commission’s Directorate-General for Enterprise and Industry.

may be put, nor for any errors which may appear despite careful preparation 

The magazine is financed under the Competitiveness and 

Innovation Framework Programme which aims to encourage 

the competitiveness of European enterprises.

and checking. This publication does not necessarily reflect the view or the 

position of the European Commission.

Luxembourg: Office for Official Publications of the European Communities, 2008

Published by

Communication and Information Unit

Directorate-General for Enterprise and Industry

European Commission

B-1049 Brussels

entr-communication-information@ec.europa.eu

www.ec.europa.eu/enterprise/e_i/index_en.htm

ISSN 1831-1237

© European Communities, 2008

Reproduction is authorised, provided the source is acknowledged, save where 

otherwise stated. 

For use/reproduction of third-party copyright material specified as such 

permission must be obtained from the copyright holder(s).

Front cover image © Tobias Kaltenbach

Printed in Belgium

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ENTERPRISE & 
INDUSTRY MAGAZINE: 
A NEW ROUTE TO NEWS

The new Enterprise & Industry on-line and print magazine brings readers 

timely  and  up-to-date  information  on  the  activities  of  the  European 

Commission’s Directorate-General for Enterprise and Industry. 

This is the first edition of the new 

Enterprise & Industry magazine, 

which will keep you informed 

on the work the European Commission 

which daily discourage entrepreneurs and 

business are closer to home than Brussels, 

public authorities at all levels across the 

Union need to take parallel measures in 

is doing to make the European 

support of SMEs. With the Small Business 

Union a better place for business and 

Act, the European Commission will continue 

entrepreneurs to operate.

to press for coherent, coordinated actions 

In this issue: the contribution small and 

medium-sized enterprises (SMEs) make 

across Europe to enable enterprises 

to flourish.

to economic growth, and to the creation 

In this edition, we also look at research in 

of new, good-quality jobs is now more 

the space field, at simplified rules for the 

widely appreciated than ever. Whilst the 

cosmetics sector, at new legislation to 

European Commission and EU Member 

improve the European Single Market for 

States have done much to improve the 

goods, at a new initiative to raise awareness 

business environment, by reducing red 

of EU financial instruments available for 

tape, encouraging entrepreneurship 

SMEs, and at a service to inform businesses 

and fostering opportunities within the 

trading with China about managing their 

EU’s Single Market, there is still more 

Intellectual Property Rights. 

to be done.

If you like what you read in our new 

The Small Business Act (SBA), just adopted 

magazine, why not subscribe? It costs you 

by the European Commission, comprises a 

nothing; simply turn to the back cover for 

range of measures at EU level to make life 

details of how to subscribe. And visit our 

better for enterprises. Just as importantly, 

since the majority of the hindrances 

regularly updated on-line magazine, too 
(www.ec.europa.eu/enterprise/e_i). ■

 
 
 
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Enterprise & Industry | July 2008 

SMEs and Entrepreneurship 

SMEs and Entrepreneurship 

Enterprise & Industry | July 2008

5

SMALL BUSINESS ACT: 
MAKING LIFE EASIER 
FOR EUROPEAN SMES

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Small and medium-sized enterprises (SMEs) are at the heart of Europe’s economy. Creating more new firms 

and nurturing them is essential if Europe is to maintain its competitive position in the global economy, 

and continue to make sure that its citizens benefit from an ever-improving quality of life. The European 

Commission has adopted the Small Business Act, with the aim of ensuring that public authorities – from 

the Union down to regional and local government across Europe – redouble their efforts to build a society 

in which small enterprises can thrive.

More than 75 million Europeans work in small and 

medium-sized enterprises (SMEs), accounting for 

some three-fifths of industrial jobs in the European 

Union. The 23 million SMEs in the EU – in comparison there 

willing to create and grow small enterprises. Continually launching 

new firms, and bringing new blood to boost existing firms, 

is essential to ensure that we have sufficient good-quality jobs for 

those who want them and that the standard of living continues to 

are just 41 000 large firms – are of great importance for the 

improve across society.

economy and society, but even more significant today is their 

role in creating new jobs: two in three new jobs are in SMEs. 

Growing impact

As Europe’s economy continues to shift towards one based 

on the knowledge and skills of its people, SMEs are the main 

source of high-quality jobs, in which such skills are best used. 

The importance of SMEs has long been recognised by the European 

Commission, and a wide range of policies and support instruments 

have been developed and implemented over many years. 

In any organism, the facility for renewal is vital, and SMEs play that 

With the “modern SME policy”, in 2005, the Commission underlined 

role in the economy. At whatever level we look – from Europe as a 

the need to coordinate efforts across all policy-making fields better. 

whole to small towns and villages – flourishing societies in which 

SME policy could no longer be seen as a distinct area, but should 

people are happy to live require a steady supply of entrepreneurs 

be integral to all policies, from transport and environment to 

employment or health. Introducing the “think small first” principle, 

legislation. One example would be to exempt micro-enterprises 

the Commission sought to encourage all policy-makers to consider 

from the need to follow EU accounting rules, drawn up largely for 

the impact of their activities on SMEs from the outset. 

bigger firms which trade extensively in the Single Market.

But more needs to be done to deliver a business environment in 

Legislation affecting SMEs needs not only to be framed taking 

which SMEs can flourish. The Small Business Act (SBA), adopted 

account of their needs, but should also be easily understood and 

in June by the European Commission, after a wide-ranging public 

applied. The principle of common commencement dates, already 

consultation, has two elements: a package of legislative proposals 

used in some Member States, would enable SMEs to organise 

and initiatives at EU level, several of which are set out in more detail 

themselves better to respect changes in regulation, knowing that 

on the following pages; and a set of principles which need also to 

such changes would only be applied from a couple of fixed dates 

form the basis of action by policy-makers at national, regional and 

each year. Governments need also to stop different arms of public 

local level across Europe.

administrations making repeated requests for the same information 

“With the Small Business Act, we are taking SME policy several 

steps forward,” says Mechthild Woersdoerfer, head of the SME Policy 

from enterprises.

Development Unit in the Commission’s Directorate-General for 

People business

Enterprise and Industry. “It is certainly the case that there is greater 

political attention on SME policy than ever before, with the March 

2008 European Council calling for swift adoption of the SBA, and we 

want to use that political support to make real improvements in the 

business environment for SMEs.”

Propitious environment

The burden of administration and regulation – dealing with red tape 

– is the biggest complaint of SMEs when it comes to hindrances to 

their business. Many believe that policy-makers should differentiate 

Any successful enterprise is only so because of the efforts of the 

people within it. For many small firms, particularly start-ups, 

the founders literally are the enterprise, but too often they receive 

scant recognition for their efforts. Europeans are less likely to 

consider setting up their own businesses than are, for example, 

Americans. More widely, much of European society – including 

the politicians and media whose opinions are heard most loudly – 

currently seems reluctant to recognise the contribution business, 

and entrepreneurs in particular, makes to the economy and thus to 

quality of life in general.

between large and small enterprises in their initiatives and 

“We need to find ways to improve the image of entrepreneurs 

legislation. They could, for example, ensure that SMEs need only 

and business in Europe,” underlines Woersdoerfer. “Through 

fulfil a simpler set of procedures and requirements than their larger 

education and the media, we can encourage more people to start 

counterparts. The Commission favours the use of specific measures 

up businesses. In particular, we want to encourage more women, as 

for small and micro-enterprises, which make it easier for them to 

well as people from ethnic minorities and migrant groups – currently 

fulfil statutory requirements without compromising the aims of 

under-represented in business – to consider self-employment.” 

More effective tools to get clients to pay on time

For many small firms, delays by their clients in paying for work that has already been done, or for goods already supplied, cause massive 

cash-flow problems. When customers do not pay on time, SMEs find it impossible to pay staff and suppliers, as well as overheads like rent or 

electricity.

Surveys show that a majority of late payments to small firms are either deliberate or the result of administrative failings. Moreover, late 

payers are more likely to be large firms or public authorities, rather than fellow SMEs. This means, in effect, that small firms are providing 

their customers with interest-free credit worth more than €20 billion in aggregate. Difficulty in recovering debts outside their home country 

is cited by many small firms as a disincentive to trade in the Single Market.

In force since 2002, EU legislation means that penalty interest should automatically be imposed whenever payments are delayed beyond 

30 days (unless both parties agreed to different terms). However, the rules have not been as effective as desired in reducing late payments, 

and so the Commission is currently consulting the public on possible revisions to this legislation. Amongst ideas being considered are whether 

a higher rate of punitive interest would encourage prompter payment, what mechanisms are needed to enforce the rules and ensure interest 

due is paid, and whether specific mechanisms are needed to help micro-enterprises get paid on time.

 
 
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Enterprise & Industry | July 2008 

SMEs and Entrepreneurship 

SMEs and Entrepreneurship 

Enterprise & Industry | July 2008

7

Finding business in India and China 

China and India are rapidly growing in importance as trading partners, but for smaller firms from Europe, they are difficult places to find 

Erasmus for entrepreneurs, 
fostering new ideas

partners  or  to  launch  products  on  the  market.  The  EU  and  the  Indian  and  Chinese  governments  are  working  to  encourage  trade  and 

Time spent in another country, adding an additional dimension 

partnerships  between  enterprises  in  their  respective  territories.  As  part  of  this,  the  European  Commission  is  supporting  new  European 

to  their  education  and  experiencing  different  cultures,  is  now 

Business and Technology Centres; the first will be set up by the end of this year in the Delhi area, with the remit to cover the whole country, 

a  valued  part  of  undergraduate  study  for  more  than  150 000 

and the second in Beijing shortly after.

Each Centre will be run by a partnership of business and research support organisations from several EU Member States with experiences 

of dealing with Indian or Chinese partners. Small firms in Europe will be able to approach the Centres for help in accessing  markets and in 

understanding regulatory requirements. By building up networks of business and research actors, the Centres aim to identify and promote 

students every year. The success of the EU’s Erasmus programme 

for  students  over  20  years  makes  it  one  of  the  Union’s  most 

popular initiatives, and the Commission is now launching a pilot 

“Erasmus for entrepreneurs”.

a wide range of opportunities for partnerships, exchanges, trade and joint ventures. Initially, the Centres will focus on sectors such as the 

Budding  entrepreneurs  have  the  ideas  and  enthusiasm  for 

environment, climate change, transport, energy and biotechnology. These have been identified as having significant potential for developing 

business,  but  they  could  generally  benefit  from  experienced 

business, but are also sectors in which European firms experience particular barriers to trading.

Not all enterprises are run for profit, and the SBA takes full account 

This development will enable small firms, whose shares are not 

of the wide range of so-called social economy enterprises active 

publicly traded, to do business in different Member States more 

across the Union.

Contribution to Europe

simply. In particular, it will enable such firms to set up subsidiaries in 

different Member States, without having to follow differing national 

rules on corporate structure. Moreover, the minimum capital 

required to set up an SPE will be just one euro, making it cheaper for 

Several of the specific initiatives planned at EU level are set out in 

entrepreneurs to start up new firms. It will also be simple to transfer 

these pages, but there are many more to be implemented in the 

an SPE’s headquarters from one country to another.

coming years. Each will help SMEs derive greater benefits from 

Europe’s Single Market, reducing the barriers and costs which 

hinder trade and partnership amongst smaller firms in separate 

Member States.

In addition to these specific initiatives and proposals, the SBA also 

includes a set of principles to which the Commission wants to see 

governments at all levels commit. Moreover, Member States need to 

take complementary actions, based on these principles, to improve 

The Commission proposes to create a new corporate form, the 

the business environment for smaller enterprises. The European 

European Private Company (or Societas Privata Europaea, SPE). 

Council, meeting in December 2008, is expected to endorse the 

Finance for SMEs

For any entrepreneur, finding the funds needed to get a business going and to grow is one of the hardest tasks to be faced. Recognising the 

difficulties small businesses face in finding funds, the European Commission, working with the European Investment Fund (EIF), has sought 

to encourage both public and private-sector investors to do more business with small firms.

It has developed instruments targeting equity investment, through taking founding stakes in venture capital funds, for example, and debt 

finance, such as providing guarantees for loan portfolios to encourage banks to lend to SMEs. Moreover, the Commission has sought to 

ensure that EU grant-funding programmes, in particular the Structural Funds, complement the efforts of investors more effectively. 

The  EIF  will  extend  the  range  of  instruments  it  offers  in  this  field,  committing  additional  funds  to  investment  in  SMEs,  and  simplifying 

its procedures so that small firms can access funding more easily. New instruments providing mezzanine finance – loans which provide 

the investor with a higher return if the company is successful in return for lower security – will be developed to provide a wider range of 

opportunities for firms seeking investment. Similarly, the EU plans to launch new micro-credit instruments which will target entrepreneurs 

working on smaller-scale projects, in particular the EIF’s MicroFund which will provide capital for banks and other micro-credit providers.

mentors  who  can  help  them  negotiate  the  obstacles  which 

make  it  such  a  challenge  to  get  an  enterprise  up  and  running 

successfully.  The  pilot  scheme  will  enable  almost  900  young 

entrepreneurs  to  spend  time  with  experienced  entrepreneurs 

from  another  country,  learning  how  they  run  their  businesses, 

how  they  take  decisions,  and  so  on,  but  also  making  contacts 

with  potential  trading  partners  which  will  help  them  develop 

their own businesses.

Erasmus  for  entrepreneurs  will  create  a  network  of  support 

organisations to match up hosts and nascent entrepreneurs, who 

must  demonstrate  their  interest  and  motivation  to  participate, 

having,  for  example,  put  together  a  draft  business  plan.  The 

scheme may also be suitable for young entrepreneurs who have 

just started their own firm. The first entrepreneurs are expected to 

start their visits by the end of 2008.

principles. In subsequent years, once these are incorporated into 

each Member State’s “Lisbon national programme”, against which 

progress towards the Union’s growth and jobs targets are measured, 
the Commission plans to review success in meeting them.    ■

❯❯❯❯  Contact

SME Policy Development Unit

Directorate-General for Enterprise and Industry

entr-sba@ec.europa.eu

www.ec.europa.eu/enterprise/entrepreneurship/sba_en.htm

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Enterprise & Industry | July 2008 

SMEs and Entrepreneurship 

SMEs and Entrepreneurship 

Enterprise & Industry | July 2008

9

THE EUROPEAN 
COMMISSION’S SME ENVOY

Ms. Le Bail, what is the role of the SME 

ing with colleagues in other Commission de-

be   implemented.  The  ten  principles  which 

Envoy?

partments  in  order  to  implement  the  com-

should guide the conception and implemen-

The Envoy acts as a conduit to enable SME 

views to be heard promptly across the Com-

mission and other institutions, ensuring our 

efforts  to  support  SMEs  are  as  effective  as 

possible. My role is to ensure that EU legis-

lation  takes  account  of  SMEs’  specificities 

and  that  policies  are  adapted  accordingly. 

For  doing  so,  the  SME  Envoy  must  have  a 

permanent  dialogue  with  SME  organisa-

tions to identify their concerns and ensure 

that they are better informed of EU policies 

and activities.

What specific measures will you lead to 

promote the SBA within and beyond the 

European Commission?

mitments  the  Commission  endorsed  when 

tation  of  policies  at  EU  and  Member  State 

adopting  the  SBA.  But  the  SBA  is  based  on 

level in the future range from fostering entre-

a  close  partnership  with  Member  States.  It 

preneurial mindsets to helping entrepreneurs 

needs  the  full  support  of  national  govern-

startup or start again, helping them get fund-

ments,  business  organisations  and  all  other 

ing  and  access  to  public  procurement,  and 

stakeholders.  With  our  counterparts  in  na-

cutting red tape. On top of that, the European 

tional, regional and local administrations, we 

Commission  is  bringing  forward  proposals 

tions  to  improve  the  business  environment 

tance for small business, such as the General 

for  smaller  enterprises  can  secure  concrete 

Block Exemption regulation on state aids, the 

results in the implementation of the Growth 

new statute for a European Private Company 

and Jobs strategy. In May 2009, we will hold 

and  a  new  directive  on VAT  that  will  enable 

the  European  SME  Week,  featuring  promo-

Member  States  to  apply  reduced  VAT  rates 

tional  events  across  Europe  targeting  SMEs 

for locally supplied services. An amendment 

directly. 

to the directive on late payments is planned 

for 2009. But it also includes many concrete 

measures  to  promote  entrepreneurship,  to 

make sure that legislation is suited for SMEs, 

Promoting  the  SBA  and  ensuring  the  com-

What are the main elements of the SBA?

mitments set out are properly implemented 

The  European  Small  Business  Act  is  a  mix 

to  facilitate  access  to  finance  and  innova-

will  be  my  number  one  priority.  Since  the 

of  principles,  concrete  actions  and  a  moni-

tion as well as helping them to get into third 

SBA’s  scope  is  very  broad,  we  will  be  work-

toring  scheme  to  make  sure  that  they  will 

countries markets.

Making more of public markets

Françoise Le Bail, Deputy 

Director-General in the 

Enterprise and Industry DG, 

is the European Commission’s 

SME Envoy. The Small Business 

Act adds a new dimension to 

the Envoy’s work.

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Retargeting public money to support SMEs

A basic principle in the Single Market is that governments and public authorities should not use public funds to give enterprises an unfair 

advantage over their competitors. EU rules therefore make state aid illegal unless it fulfils precise conditions, in particular where the impact 

In  2006,  state  aid  to  industry  in  the  EU  amounted  to  some  €48  billion.  SMEs,  however,  received  just  over  one-tenth  of  that  total.  Whilst 

there  is  a  general  trend  across  the  Union  to  shift  aid  away  from  individual  sectors  or  companies  towards  horizontal  objectives,  such  as 

environmental protection, regional development, training and research and development, the final beneficiaries are still overwhelmingly 

large enterprises. 

The new Block Exemption Regulation adopted by the European Commission makes it simpler for governments to support SMEs rather than 

larger firms. This includes a general exemption to the requirement to give prior notification to the Commission (and then wait for approval) 

for all public aid to SMEs. The revised rules will also seek to encourage Member States to channel state aid to support innovation by SMEs. 

A new edition of the Vademecum on State Aid provides detailed information on the rules, available on the website of the Competition DG.

How will “think small first” be extended with 

Innovation is fundamental to growth and 

What are the next steps for the SBA?

the SBA? How do you aim to ensure all levels 

jobs, and SMEs are the main source of 

of government treat it as a given?

innovation. What specific initiatives within 

We will anchor the “think small first” principle 

in policy-making across the public services. 

the SBA will encourage more innovation in 

Europe?

The  European  Council  is  expected  to  adopt 

the  SBA  in  December  2008,  at  the  highest 

political  level.  Since  it  is  integrated  into  the 

Lisbon  Partnership  for  Growth  and  Jobs,  its 

A new “SME test” will be used in drawing up 

The  SBA  will  encourage  innovation  in 

progress  will  be  monitored  regularly,  both 

will therefore seek to underline how their ac-

for new legislation that is of particular impor-

on competition would be minimal.

Governments and public bodies in Europe purchase goods and services amounting to more than €1 800 billion each year (2006 figure), or 

any  legislative  proposal  affecting  business 

three  ways.  First,  by  helping  more  SMEs 

at  EU  and  national  level. This  regular  moni-

around one-sixth of the Union’s total gross domestic product. In fact, SMEs do relatively well in this market: in 2005, some 42% by value of 

at  EU  level,  to  assess  its  likely  effects  on 

 access  funds  for  research  and  develop-

toring will moreover enable us to adjust the 

larger public-procurement contracts went to SMEs. Their share varies greatly from country to country, however, ranging from 31% to 78%.

SMEs,  and  to  identify  the  best  methods  to 

ment  provided in the Seventh RTD Frame-

SME policy, if necessary. I am delighted to see 

On the other hand, studies show that barely 2% of these contracts went to companies from a different state than the purchasing authority. 

Even if this figure is understated, it suggests there is considerable scope for greater cross-border competition in public-procurement markets. 

Not  only  does  this  represent  largely  untapped  markets  for  smaller  businesses,  but  there  is  also  potential  to  make  significant  savings  of 

public funds.

SMEs regularly complain of difficulties in identifying opportunities to bid for public procurement contracts, of identifying them in good time 

to bid, and of the complexity of administrative procedures required and hence the high costs of bidding for such contracts. The Commission 

is  seeking  ways  to  promote  public  procurement  opportunities  more  widely,  and  to  simplify  procedures  to  benefit  SMEs.  A  new  code  of 

conduct will ensure public authorities take into account the interests of SME bidders to a greater extent, even through means as simple as 

systematically publishing information in advance of calls for tender, giving SMEs more time to prepare their bids.

achieve the desired aims with least admin-

work  Programme.  Secondly,  by  allowing 

that  small  businesses  are  now  a  top  prior-

istrative burden on SMEs. With the SBA, the 

more  aid  for  innov ation  under  the  new 

“think small first” principle is firmly embed-

state aid rules (General Block Exemption). 

ity for policy-makers in Europe and I remain 
■

committed to keeping it this way. 

ded  in  the  policy-making  guidelines,  both 

For  instance,  young  innov ative  enterpris-

at  national  and  at  European  level,  we  will 

es can receive aid for innov ation advisory 

see  much  more  SME-friendly  policy  than 

and support services under the new state 

currently. Moreover, we will continue to fa-

aid rules. Thirdly, the SBA will support the 

cilitate the exchange of experience among 

development  of  clusters  which  are  cata-

public  authorities  so  as  to  spread  informa-

lysts for innovation in small firms, speed-

tion about concrete good practices, as this 

ing the transfer of research results to the 

has proven to be very successful.

market place. 

 
 
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Enterprise & Industry | July 2008 

Single Market 

Single Market 

Enterprise & Industry | July 2008

11

A package of reforms will 
remove a host of barriers 
hindering manufacturers and 
traders of goods in the EU’s 
Internal Market. The Council’s 
approval on 23 June completed 
the legislative process, but the 
Commission has already been 
working to ensure the regulatory 
changes will effectively deliver the 
desired improvements: increased 
product safety for consumers and 
reduced administrative burdens 
for traders.

BOOST TO 
INTERNAL 
MARKET 
FOR GOODS

Are sufficient remedies available to 

obstacles to the access of their products to 

How do you envisage the network of 

discourage those who deliberately try 

another Member State. 

product contact points operating? 

to bypass the rules?

Moreover,  the  regulation  offers  legal  cer-

The product contact points will have a very 

The package introduces clear articles on the 

tainty  to  enterprises  and  national  authori-

important role to play. They will act as a help-

issue  of  sanctions  (including  criminal  sanc-

ties so that they know what they can reason-

desk for enterprises and also for national au-

tions  in  certain  cases)  for  non-compliance 

ably expect and understand their rights and 

thorities,  by  providing  all  relevant  informa-

and  continued  non-compliance,  as  well  as 

obligations  when  mutual  recognition  is,  or 

tion and for guiding businesses through the 

for  abuses.  It  also  imposes  obligations  on 

ought to be, applied. In addition, the risk for 

variety  of  different  national  rules  on  prod-

Member  States  to  take  restrictive  measures 

enterprises  that  their  products  will  not  get 

ucts.  The  main  task  of  the  product  contact 

against  the  manufacturer  of  a  dangerous 

access to, or will have to be withdrawn from, 

points  is  to  fill  the “legal  knowledge  gap”  if 

product.  Moreover,  it  should  be  underlined 

the market of the Member State of destina-

that  by  clarifying  obligations  for  manufac-

tion will be very much reduced.

there is one, upon request from enterprises 
■

or national authorities. 

turers and importers, for example (importers 

are now forbidden to import non-compliant 

or dangerous products), sanctions can be ap-

plied more easily, quickly and systematically.

Problems in accessing markets

ments.  Again,  this  results  in  an  uneven  situ-

The package introduces an EU accreditation 

The new package seeks to do away with the technical barriers companies face in accessing 

ation and confusion for companies.

scheme for the “notified bodies”. 

Will the requirement for national authorities 

markets outside their home country, which too often discourage them from trying to break 

Can you quantify the costs of these problems 

manufacturers/importers that use their 

to enterprises, and to consumers? How much 

services?

What differences will this bring to the 

to justify to enterprises why products are 

not accepted on to their market make a 

substantial difference to enterprises?

into such markets. Examples in which firms have faced additional costs and procedures – 

which they should not have under Single Market rules – include: 

•  A  scaffolding  manufacturer  who  was  required  to  submit  the  product  for  additional 

testing, to a specific testing institute, incurring additional costs. A second manufacturer, 

Jacques  McMillan,  Head  of  the  Regulatory 

will be saved with this package?

approach  for  the  free  movement  of  goods 

Unit,  and  Liliana  Brykman,  Head  of  the  In-

ternal Market and simplification Unit in the 

Enterprise  and  Industry  DG,  describe  the 

main points of the package. 

Most  of  these  costs  are  very  difficult  to 

tification  of  conformity  assessment  bodies 

thorities  which  face  a  technical  rule  that 

faced with the same requirement gave up.

quantify since they are part of a more glo-

in  the  Member  States.  It  is  a  formal  system 

hinders, or could hinder, the marketing of a 

bal  commercial  cost  calculation  within 

which provides an independent and authori-

product lawfully marketed in another Mem-

•  A  bicycle  manufacturer  who  had  to  adapt  their  design  to  incorporate  dynamo  lights, 

rather than battery lights, and a second brake, before their product could be sold in a 

enterprises.  Nevertheless,  it  is  estimated 

tative attestation of the competence, impar-

ber  State  will  now  understand  that  such 

particular Member State.

that, depending on the product, the differ-

tiality and integrity of conformity assessment 

rules  are  not  necessarily  insurmountable 

Accreditation  is  used  in  support  of  the  no-

Certainly!  Enterprises  and  also  national  au-

What are the major problems for trade in 

goods that this package addresses? 

ences  between  technical  rules  in  different 

bodies.  Thereby  accreditation  supports  the 

national markets, combined with the need 

value  and  credibility  of  the  work  done  and 

for  multiple  testing  and  certification,  may 

certificates  issued  by  these  conformity  as-

It addresses three main problems:

constitute between 2% and 10% of overall 

sessment bodies. Manufacturers will benefit 

•  The  diversity  of  national  technical  rules 

still constitutes an important barrier to free 

trade of products within the EU, especially 

for  products  for  which  there  are  no  Euro-

pean rules. These barriers result in extra ad-

ministrative controls and tests. 

•  There  is  a  lack  of  consistency  in  the  ap-

proach  to  market  surveillance  in  Member 

States  and  different  levels  of  enforcement; 

which  has  resulted  in  an  uneven  playing 

field for manufacturers. 

production costs. 

because  their  products  will  become  more 

accepted as a consequence of confidence in 

The package will lead to more efficient 

the supporting certificates.

market surveillance. How is the Commission 

planning to encourage greater co-operation 

between the relevant national bodies?

Member States now have a clear obligation 

to  establish,  implement  and  periodically 

update  market  surveillance. The  Regulation 

A tribute to Michel Ayral

also provides clear obligations on the Com-

The Directorate-General for Enterprise 

mission to ensure coordination and co-oper-

and Industry wishes to pay tribute to 

ation  between  national  authorities.  Various 

Michel  Ayral,  Director  of  Regulatory 

•  Many  EU  rules  are  inconsistent  or  burden-

initiatives  are  envisaged,  including  the  es-

some. For example, different definitions apply 

tablishment  of  new  administrative  co-oper-

to the same product while other fundamental 

ation groups for market surveillance author-

notions are not defined at all. Different con-

ities and the strengthening of those groups 

formity  assessment  procedures  overlap  and 

which  already  exist  for  market  surveillance 

Policy, who died just before Parliament 

and  Council  reached  agreement  on 

the proposals. Mr. Ayral was the main 

architect  of  the  Internal  Market  for 

Goods  package,  and  an  outstanding 

conformity  assessment  bodies  are  confront-

internally within the Community and linking 

European civil servant.

ed with legal obstacles and different require-

with customs controls.

❯❯❯❯  Contact

 Regulatory Policy Directorate

Directorate-General for Enterprise and Industry

entr-legal-aspects-intern-markt@ec.europa.eu

entr-internal-market-simplif@ec.europa.eu

www.ec.europa.eu/enterprise/regulation/internal_market_package

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Enterprise & Industry | July 2008 

SMEs and Entrepreneurship 

SMEs and Entrepreneurship 

Enterprise & Industry | July 2008

13

ACCESS TO 
FINANCE FOR SMES

The European Commission has launched a series of one-day events aimed at spreading 

the  word  about  the  new  EU  financial  instruments  for  small  and  medium-

sized  enterprises.  Funding  for  SMEs  is  available,  in  particular  within 

the  Competitiveness  and  Innovation  Framework  Programme 

(CIP),  the  Seventh  Research  and  Development  Framework 

Programme  (FP7)  and  the  Structural  Funds  (including 

the Jeremie facility). The kick-off event was hosted in 

March by Slovenia, which then held the Presidency 

of the Council of the European Union.

and growing a business. First, it is estimated that about 4% of new 

firms will generate half of all additional employment and sales. 

It is therefore vital that these high-growth ‘gazelles’ are not held 

back by a lack of early-stage capital. Second, entrepreneurs need 

to be more investment-ready and growth-seeking to become truly 

global. In addition, they must be aware of the concerns and goals of 

investors in order to attract finance.

Further, Europe needs to build an EU-wide venture capital market to 

overcome fragmentation and ensure that investments are not 

limited by borders, Durvy emphasised. He also 

highlighted the significant role that 

business and innovation 

support networks are 

playing.

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Given the significant role that over 20 million 

significant social role as the largest source of 

SMEs play in Europe’s economy, and their equally 

employment in the EU, it is crucial to provide support to SMEs 

and entrepreneurs where this is needed. Over recent years, 

the European Commission has developed a wide range of 

initiatives and actions to support SMEs, including improving 

their access to finance.

Local events

As part of the CIP, €1.1 billion has been earmarked to help SMEs 

grow and develop their businesses. These new financial instruments 

(see box) are managed by the European Investment Fund (EIF) 

in co-operation with financial intermediaries, including banks, 

credit guarantors and venture capital funds. It is expected that 

A Ljubljana launch pad

close to 475 000 SMEs will benefit from these financial instruments 

The Slovenian Presidency hosted the first of these events in Ljubljana 

up to 2013.

In order to ensure that both SMEs and finance providers are aware 

of the support available under the CIP and FP7, the European 

on 28 March 2008, where Andrej Vizjak, the Slovenian Minister of 

Economy, welcomed over 100 participants, representing mainly SME 

support organisations and financial intermediaries.  

Commission is organising a series of ‘EU Finance Days for SMEs’, 

In his opening address, the European Commission’s Director of 

which will be held in the capitals of Union Member States over the 

Innovation Policy, Jean-Noël Durvy, identified several issues which 

2008-09 period.

need attention if proper finance is to be made available for starting 

The CIP financial instruments

With a budget of over 1 billion euros, the CIP financial instruments help to considerably increase new finance for SMEs. They are managed 

through the European Investment Fund (EIF). They comprise: 

•  The High Growth and Innovative SME Facility, providing venture capital for innovative SMEs both in their seed and early stages and in their 

expansion phase; 

•  The SME Guarantee Facility, providing guarantees to banks and other financial intermediaries in order to reduce their exposure to risk. In 

this way, more debt finance can be made available to SMEs, including not only loans but also microcredits, equity and mezzanine finance; 

•  The Capacity Building Scheme, helping to reinforce the capacity of seed funds to hire new fund managers. 

❯❯    Planned events

Berlin, 18 September
Stockholm, 25 September

A rolling road show

“A key aim of the ‘EU Finance Day for SMEs’ events is their local 

nature and the involvement of national and regional financial 

institutions,” explains a Commission official . “This means that rather 

than Brussels-centred events, we go local to explain to stakeholders 

how they can actually access the money earmarked for SMEs 

through the EU financial instruments. We also go to the Member 

States to exchange information on experiences, needs and good 

practices.” 

For this reason, the events devote a lot of time to panel discussions 

with local stakeholders. “This is why the target audiences we 

are seeking for these Finance Days include multipliers, such as 

incubators and financial intermediaries, who can pass tailored 

messages to SMEs. For example on the benefits of venture capital 

funding in Member States where a VC culture is emerging.” 

All details, including the programme and presentations given for 

the ‘EU Finance Day for SMEs’ in the Member States, are regularly 

updated on website. A video clip on success stories is also 
available on-line.    ■

❯❯❯❯  Contact

 Financing Innovation and SMEs Unit

Directorate-General for Enterprise and Industry 

entr-finance-sme@ec.europa.eu

www.sme-finance-day.eu

 
 
 
14

Enterprise & Industry | July 2008 

SMEs and Entrepreneurship 

Industrial policy 

Enterprise & Industry | July 2008

15

SOFTENING 
THE 
STIGMA OF 
INSOLVENCY

It is divided into numerous sub-sites, including a general section 

explaining the rationale for allowing entrepreneurs who ran 

businesses that went under to make a fresh start. The ‘Businesses 

in distress’ section provides advice and tips for entrepreneurs in 

financial difficulty. The ‘Start-ups’ sub-site helps people who have 

just started out in the business world to avoid financial trouble, as 

well as to spot and deal with its early signs. There is also a sub-site 

containing teaching materials, and a policy section.

Prevention is better than cure

One eye-catching feature is the ‘Vaccinate your business against 

bad times’ self-assessment tool. Requiring an investment of only 

15 minutes, this application enables SME managers to conduct a 

preventive screening of their business’s financial health, which could 

In the European business world, ‘bankruptcy’ is 

well save them a lot of grief later on. 

often synonymous with ‘failure’. This attitude makes 

The assessment covers planning and controlling the business; 

Europeans rather risk averse. As many of the best 

and most profitable business ideas failed on the 

managing relations with customers and suppliers; human resources; 

company finances and money management; and acquiring advice 

and support. So far, more than 1 400 entrepreneurs have used this 

first attempt, it makes sense, if good entrepreneurs 

versatile tool.

do not at first succeed, to let them try again. A new 

European Commission website is helping raise 

Other people’s experience is always a good teacher, and the website 

helps users tap into that valuable insight. The Re-starters Hall of 

Fame contains numerous real-life case studies of entrepreneurs who 

PROTECTING YOUR 
INTELLECTUAL PROPERTY 
RIGHTS IN CHINA

China is a major trading partner for the EU and its biggest source of imports. More and more 

European companies are thus naturally finding themselves operating on the Chinese market – but 

many are worried about Intellectual Property Rights (IPR) issues. The new China IPR SME Helpdesk 

aims to help Europe’s SMEs be better prepared for business with their Chinese partners.

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China itself is making determined efforts to tighten up 

provisions for intellectual property protection in the 

country. Europe is supporting those efforts, including 

through the EU-China Project on the Protection of Intellectual 

Property Rights (IPR2).

particular situation so that they can decide what they should 

protect and at what cost.”

The Helpdesk is intended as a first port of call and, where necessary, 

companies will be directed to the most appropriate source of 

further information/advice. The service will also provide useful tips 

went bankrupt and managed to pick themselves up again. This can 

A major new initiative in this area is the China IPR SME Helpdesk 

on how to manage each step of the process: dealing with law firms, 

help entrepreneurs in financial difficulties to realise that they are not 
alone and inspire insolvent ones to try again.     ■

launched by the European Commission on 23 May 2008. 

working with the relevant parts of the Chinese administration, 

Its objective is to provide support to Europe’s small and medium-

and so on.

sized enterprises, in particular with regard to the protection and 

awareness of this issue.

Around 45% of Europeans – and over half of young people – 

would like to start their own business, according to a recent 

Eurobarometer survey, the EU’s public opinion gauge. 

However, this proportion is still significantly below the US figure of 

around 60%.

“Here, in Europe, there is more stigma attached to business failure 

than in the United States,” observes an official in the European 

Commission. “However, many of the most successful businesses 

today failed first time round.”

In October 2007, the Commission released a Communication which 

sought to remove the stigma associated with business failure. 

In it, the Commission proposed a set of actions to help prevent 

insolvency and assist non-fraudulent bankrupts in getting 

a fresh start. 

Second-chance saloon

As part of these efforts, the Enterprise and Industry DG 

has also launched a ‘second chance’ website. This website 

provides a wealth of information and tools to help 

entrepreneurs steer clear of financial dire straits, to advise 

those who hit the rocks on how to start over, and to 

explain to the general public how a certain amount of 

financial failure is part of the business landscape. 

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❯❯❯❯  Contact

Entrepreneurship Unit

 Directorate-General for Enterprise and Industry

entr-entrepreneurship@ec.europa.eu

www.ec.europa.eu/enterprise/entrepreneurship/sme2chance

enforcement of their IPR in China.

Know before you go

The best protection is prevention

“As with so many other things in life, prevention is definitely 

better than cure when it comes to protecting IPR. Some European 

The problems faced by SMEs operating in China are, to a certain 

companies have learnt this at great cost.” A recent example is that 

extent, due to lack of preparation, points out a Commission official.

of a Scandinavian company which had goods it had produced in 

“There is a certain perception that China is a sort of ‘Wild West’ 

with regard to IPR and that either there is nothing to be done, or it 

would be too difficult, or too expensive. This is not always the case. 

There are things which can be done and not necessarily at great 

cost. The situation may not be perfect, but China does have a legal 

system and administrative structure in place to deal with IPR issues. 

It is a matter of knowing how to go about it.”

China seized by customs on their way out of China on the grounds 

that their product breached Chinese trademark law. It turned out 

that their former Chinese supplier had registered their trademark 

himself in China. This was not illegal as the Scandinavian company 

had not thought to protect their rights outside Europe. “Instead of 
the €1 000 it would have cost to register the trademark themselves, 
the company ended up having to spend almost €2 million 
rectifying the situation.”   ■

Information, training, advice

This is where the Helpdesk will come in, providing first-

line information for SMEs, training in the protection of IPR 

in China, and offering advice aimed both at preventing 

problems and at helping companies deal with situations that 

arise. A panel of 15-16 experts, with extensive experience in 

the protection of IPR in China, will be available to advise SMEs 

on how to make the necessary provisions for the protection 

of their business. “They will help companies analyse their 

❯❯❯❯  Contact

China IPR SME Helpdesk

enquiries@china-IPRhelpdesk.eu 

www.china-iprhelpdesk.eu

 
 
 
 
 
 
 
16

Enterprise & Industry | July 2008 

Better regulation

Better regulation 

Enterprise & Industry | July 2008

17

COSMETICS 
SAFETY RULES 
TO BE REJUVENATED

EU legislation, in place for three decades, 

ensures that consumers throughout the 

Union can use cosmetic products safely. 

Although the system works well, the European 

Commission, in view of the innovative nature 

of the sector, has proposed rules to increase 

safety, while cutting unnecessary burdens 

for Member States and industry. In addition, 

a new database has been launched to 

facilitate stakeholders’ access to information 

on cosmetic ingredients.

Giving priority to safety means the number of incidents 

reactions to cosmetic products is tiny. For more than 

in Europe in which consumers suffer serious adverse 

three decades, EU regulation in the sector has been directly 

responsible for high uniform safety requirements across all 

Member States. Thanks to this harmonisation, cosmetics 

manufacturers have been able to offer their products 

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to follow technical developments. Keeping up with the resulting 

tangle of legislation, with as many as three or four amendments 

in some years, represents a major cost for business in the sector. 

EU firms are reckoned to spend as much as 1% of their turnover on 

ensuring they are on top of the rules. Moreover, because the original 

rules were enacted as a Directive – which has to be transposed into 

national law, as does each amendment to it – there may be slight 

differences in their application between Member States. 

In February 2008, the Commission launched a proposal which 

essentially pursues two aims: ensuring a high level of safety of 

cosmetic products by strengthening manufacturer responsibility 

and in-market control aspects, while cutting unnecessary 

administrative burdens. “We are not proposing to change 

the approach to cosmetic products safety, but to make the 

rules easier to understand and comply with.” The Commission 

proposes to replace the existing set of Directives with a single 

Regulation which will apply directly throughout the Union. 

To make it easier for stakeholders to understand, a set of 

definitions – missing from the Directive – will be added. Another 

More than 15 000 cosmetics ingredients with one click of the mouse 

The European Commission has recently launched ‘CosIng’, an on-line database of the ingredients used in cosmetic products. Companies will 

more easily find up-to-date information on substances needed to develop new cosmetics or to improve existing ones. The new database 

replaces the old pdf format list which was one of the most consulted documents on the Enterprise and Industry DG website. Using CosIng, 

businesses and authorities can now check if and how a substance is regulated at EU level, since when and how it has been regulated through 

the years, and read the opinions of the Scientific Committee on Consumer Products (SCCP) which form the basis of this legislation. Companies 

will no longer have to search through various documents to get the full picture.

The Cosmetics Directive requires that any substance used in cosmetic products needs to be listed under an international nomenclature for 

ingredients. The new CosIng database contains more than 15 000 cosmetics ingredients, accessible in a user-friendly manner. In addition:

•  It links to opinions of the SCCP and to the authorisation in force for substances used as colourants, preservatives and UV filters and to 

restrictions regarding the use of certain substances.

•  It provides more information on ingredients, such as their chemical name and their internationally recognised name which must be labelled 

on cosmetic products. 

improvement will simplify the process of updating the list of 

The new CosIng database facilitates access to information by Member States’ authorities responsible for market surveillance, industry and 

‘ingredient names’. This consists of around 15 000 substances 

other stakeholders.

used in cosmetics products, and needs to be updated frequently 

as firms try out new product ‘recipes’.

CosIng will be updated on a regular basis in order to provide accurate information. 

www.ec.europa.eu/enterprise/cosmetics/cosing

throughout the Internal Market without the need to clear 

More effective market surveillance

regulatory hurdles in each country. “The system has worked 

well, contributing to a strong cosmetics industry in Europe and 

giving consumers high levels of protection,” says an official 

from the European Commission. “Indeed, the EU’s model 

has been adapted for regulation in other parts of the world, 

facilitating global trade in cosmetics products.”

One key feature of the revised rules will be simpler notification 

procedures. Under the existing rules, companies placing a new 

co-operation and sharing of information between national 

suitable tools to verify that an appropriate safety assessment 

cosmetic product on the market in the EU have to provide 

authorities. This means that when problems with a given product 

information on their product to national authorities and to a group 

are identified, national authorities will be able to react more quickly 

of anti-poison centres throughout Europe. Often there are slight 

to protect consumers. Moreover, manufacturers will now be obliged 

variations in the procedure and in the format of information to be 

to notify the authorities should they become aware of any serious 

supplied. The new Regulation will create a single central notification 

undesirable effects related to any of their products.

Getting up to date

However, the common rules date from the 1976 Cosmetics Directive, 

procedure, so that enterprises need only follow one process 

covering the whole Union.

Another key feature of the proposed Regulation is the setting up 

of minimum requirements for the safety assessment of cosmetic 

when there were just nine Member States in the then European 

National authorities will be able to redeploy their resources to 

products carried out by the manufacturer. The introduction of 

Economic Community, a third the size of today’s EU. Moreover, 

spend more time checking that products on the market are safe, 

more precise rules on product safety assessment will clarify the 

the rules have been amended over 50 times since 1976 in order 

rather than processing information. The Commission will facilitate 

obligations of manufacturers and provide Member States with 

has been carried out before the cosmetic product was placed 
on the market.   ■

❯❯❯❯  Contact

Cosmetics and Medical Devices Unit

Directorate-General for Enterprise and Industry

entr-cosm-med-dev@ec.europa.eu

www.ec.europa.eu/enterprise/cosmetics

 
 
 
 
18

Enterprise & Industry | July 2008 

Single Market 

Single Market 

Enterprise & Industry | July 2008

19

SIX-MONTH WINDOW 
FOR REACH 
PRE-REGISTRATIONS

© Rafal Zdeb

Chemical substances already on the market must 

Registration process

be pre-registered by 1 December 2008 with the 

European Chemicals Agency if they are to continue 

being sold after 1 June this year. The requirement 

comes from the new REACH Regulation designed 

to assess and manage the hazards to health 

and the environment posed by all new and 

existing chemicals.

T he REACH Regulation (Registration, Evaluation, 

Authorisation and Restriction of Chemicals) came fully 

into effect on 1 June 2008. A single Regulation replaces 

about 40 pieces of existing legislation regulating the use of 

All manufacturers of chemicals in the EU and all companies 

which import chemicals from outside the Union must register 

their products with the new European Chemicals Agency (ECHA) 

if volumes exceed one tonne a year. An external supplier can 

nominate a company within the EU as its only representative, 

to fulfil the obligations of an importer.

Chemicals new to the market must be registered immediately, 

accompanied by a full registration dossier. Chemicals already on 

the market, known as ‘phase-in’ substances, can be pre-registered 

free of charge in a simple on-line process between 1 June and 

1 December 2008. It is estimated that about 30 000 substances will 

need to be pre-registered.

Pre-registration allows companies to benefit from extended 

chemicals, and places the onus on industry to demonstrate that 

products are safe.

REACH applies to all chemicals in a very broad sense, not just 

chemicals handled in an industrial environment but all the 

chemicals that surround us. However, it excludes chemicals 

New agency will oversee REACH 

The  European  Chemicals  Agency  (ECHA),  which  became 

operational on 1 June, will manage the technical, scientific and 

controlled by other legislation, such as those used in medicinal 

administrative  aspects  of  REACH.  Initially,  its  main  tasks  are 

products or foods.

The old regulatory structure had failed to assess the estimated 

100 000 chemicals already on the market. Over a period of 

20-25 years, about 140 have been identified as needing a full risk 

assessment and of those only 40 have been studied.

The new Regulation aims to make the management of chemicals 

safer. To achieve this, it requires industry to gather data on 

chemicals, find out about the risks they pose to the environment 

and to human health, and determine how to manage those risks. 

All existing chemicals should be assessed over the next ten years, 

with priority given to those which are most hazardous and used in 

the largest quantities.

to  handle  the  pre-registration  and  registration  of  chemicals, 

carry out the evaluation of dossiers and oversee the substance-

evaluation process.

ECHA  provides  guidance  to  industry,  and  information  to  the 

public  regarding  chemicals.  It  runs  its  own  helpdesk  and 

coordinates the network of national helpdesks.

The  executive  director  of  ECHA,  Geert  Dancet,  was  appointed 

to a five-year term from 1 January 2008. The agency expects to 

have more than 400 staff working in its Helsinki office by 2010.

www.echa.europa.eu

importers then have a longer period to prepare a full registration 

dossier, depending on the degree of risk and the annual 

production volumes. The most hazardous and largest volume 

chemicals must be fully registered by 1 December 2010, while 

safer and lower-volume substances can wait until 1 June 2013 or 

1 June 2018.

Each registration dossier will contain data about the properties and 

classification of the substance, its effects on health and guidance for 

using it safely. The greater amount of chemical produced, the more 

detailed the dossier needs to be.

ECHA may require further evaluation of certain substances and, in 

the case of particularly hazardous materials, they can be referred to 

the European Commission for authorisation. In addition, substances 

posing a risk to human health or the environment that is not 

adequately controlled can be made subject to restriction.

Pooling data

Manufacturers or importers who fail to pre-register existing 

chemicals by 1 December 2008 should withdraw them 

from the market until the full registration process has 

been completed. ECHA will publish a list of pre-registered 

substances in January 2009.

Once the pre-registration period has closed, manufacturers and 

importers will be grouped into a ‘substance information exchange 

forum’ (SIEF) for each chemical. The forums will be used to pool 

information that can be used to draw up the dossiers and avoid 

unnecessary duplication of tests, thereby saving costs, and animal 

Extensive guidance on REACH and the pre-registration process 

is available from the ECHA website and from national helpdesks 

run by Member States. ECHA’s on-line Navigator tool can also help 

clarify obligations under REACH.

It should be stressed that manufacturers and importers should not 

miss this pre-registration period. There is a concern that there are a 

lot of companies, in particular SMEs, which are not aware of REACH. 

And even among those which have heard of it, there are some 

companies outside the chemicals sector that still believe they are 
not affected.    ■

❯❯❯❯  Contact

REACH Unit 

Directorate-General for Enterprise and Industry

entr-reach@ec.europa.eu

www.ec.europa.eu/enterprise/reach/index_en.htm

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Enterprise & Industry | July 2008 

Industrial policy 

Industrial policy 

Enterprise & Industry | July 2008

21

SPACE FOR 
EUROPEAN 
INNOVATION

Smooth operators

In order to function effectively, all the 

multitude of complex components in 

earth observation and monitoring systems 

need to be able to function together as a 

harmonious whole.

implementation of many other EU 

The applications GMES delivers fall into 

policies. GMES monitors the state of the 

three main categories: mapping, support 

environment and its short-, medium- 

and forecasting. Mapping covers road 

and long-term evolution to support 

maps, topography, land-use patterns, 

policy decisions. It is also the European 

risk maps for floods and forest fires, etc. 

contribution to the worldwide Global 

Forecasting covers not only weather, 

Earth Observation System of Systems 

but air pollution levels in cities, and the 

Launched in 1998 as a joint EU-ESA 

(GEOSS) initiative.

quality of marine waters. 

programme, the GMES initiative seeks to 

provide the seamless and invisible link 

between all the divergent space-based and 

terrestrial technologies in order to maximise 

Prepared for the worst… 
and the best

the value of earth observation for society 

GMES’ possibilities are extensive. 

and the economy.

There is potentially a very wide range of 

downstream applications. 

GMES also seeks to support emergency 

responses to natural and human-induced 

disasters. An inkling of this potential 

was seen following the tsunami of 2004 

when satellite images helped direct the 
relief effort.    ■

“This major collaborative initiative focuses 

on promoting research and innovation 

in order to develop downstream 

environmental, security and economic 

services,” explains an official of the 

European Commission.

The overarching objective of GMES 

services is to help improve the 

environmental safety and overall security 

of European citizens and the European 

economy, as well as supporting the 

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In the 50 years since then, satellite 

telecommunications has become the most 

economically and socially significant space 

application, one which intimately affects 

Preview of things to come 

Last year, the EU, in collaboration 

with the European Space Agency 

(ESA), launched the European Space 

Policy (ESP). “Without the ESP, Europe 

❯❯❯❯  Contact

 Space Research and Development Unit

Directorate-General for Enterprise and Industry

entr-space-research-and-applications@ec.europa.eu

www.ec.europa.eu/enterprise/space_research/fp6.htm

www.gmes.info

The EU has transformed space 

into a strategic policy area. 

The Global Monitoring for 

could become irrelevant [in the space 

our daily lives: modern telecommunications 

A generation of GMES activities funded by the ESA and by the EU’s Sixth Framework Programme (FP6, 2002-06) is currently coming to an 

Environment and Security (GMES) 

sector],” Commission Vice-President Günter 

services, weather forecasting, earth 

end. One example of this is the Union-funded PREVIEW project which has sought to develop new or enhanced information services for risk 

initiative is among its major 

success stories and is reaping 

a wealth of environmental 

and social benefits, as well as 

stimulating space research 

and generating downstream 

commercial applications.

Verheugen, responsible for Enterprise and 

observation, air travel, shipping, the media, 

management to serve regional, national and European civil protection units.

Industry, cautioned at the launch.

the internet, global positioning, telemedicine, 

The ESP affects a wide range of policy 

tele-education and video conferencing. 

areas, including telecommunications, 

Over the past three decades, Europe has 

research and innovation, enterprise, 

developed a leading position in the civilian 

the environment, security, and more. 

satellite sector, deriving over half the European 

In fact, it is safe to say that space, 

space sector’s revenues from the global 

despite its out-of-this world reputation, 

satellite communications market.

is very much a down-to-earth pursuit. 

Global Monitoring for Environment and 

Security (GMES) and the Galileo satellite 

navigation system are currently the 

policy’s two main pillars.

Eye in the sky

Earth observation and monitoring are 

among the most crucial functions made 

possible by satellites. The most obvious and 

well-known use of observation technology 

is for weather forecasting, where satellites 

and weather stations collect data which is 

then interpreted by sophisticated computer 

Half a century ago, in 1958, SCORE, the first 

modelling technology to produce a usually 

communications satellite, was launched. 

accurate forecast.

PREVIEW has drawn on cutting-edge R&D to develop systems to help prevent, anticipate and manage different types of disasters, such as 

floods, forest fires, windstorms, earthquakes, landslides and man-made disasters. “PREVIEW is an important building block of the GMES 

initiative and complements EU space policy in general,” observes David Hello, the project’s coordinator. 

The project has focused on a number of priority areas, including new early-warning systems to better anticipate short-term risk connected 

to floods, landslides and other phenomenon; crisis-support services, such as fire monitoring, to enable more effective rescue operations; and 

the development of ‘risk maps’ for different types of hazards so as to improve prevention and preparedness measures. PREVIEW has also 

developed two models simulating an earthquake followed by a tsunami in the Mediterranean Sea as part of efforts to forge a Euro-Med civil 

protection system.

“[PREVIEW] is an important step towards developing operational GMES systems for emergency responses,” notes Hello. “Our new project, 

SAFER, will use PREVIEW’s results to develop core emergency response services,” he says. 

Under FP7 (2007-13), space is a research priority under the Co-operation programme. More than four-fifths of the €1.4 billion allocated for 
space will go to support the GMES initiative. 

www.preview-risk.com

 
 
 
22

Enterprise & Industry | July 2008 

News in brief & upcoming events

News in brief & upcoming events 

Enterprise & Industry | July 2008

23

NEWS IN BRIEF

SAFER AND GREENER CARS 
AND LORRIES

Through  a  proposal  to  fit  all  new  cars  with  electronic  stability 

control systems from 2012 onwards, and lorries with advanced 

emergency braking systems and lane departure warning systems 

from 2013, the Commission is seeking 5 000 fewer fatalities on 

EU roads each year. Also in the proposal, low-rolling-resistance 

tyres and tyre-pressure monitoring systems should help reduce 
fuel consumption and CO2 emissions.

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NEW FIGURES ON SME FINANCE

A new Enterprise Finance Index (EFI) website presents data and trends on developments 

in SMEs’ access to finance in the Member States. The website collates data from a variety 

of  national  and  international  sources  on  the  uptake  of  loans, 

guarantees, venture capital and other financial instruments in the 

EU. The aim is to increase transparency in a field which currently 

has  few  accepted  indicators.  The  website  can  be  found  at: 

www.ec.europa.eu/enterprise/entrepreneurship/financing/

enterprise_finance_index/index_en.htm

BETTER TRACEABILITY 
OF EXPLOSIVES
As  one  of  a  series  of  measures  to  help  combat  terrorism,  the 

European  Commission  adopted  measures  to  strengthen  the 

control  of  explosives  for  civil  use,  for  instance  in  the  mining 

industry. To prevent theft and to ensure that any theft or losses 

are  quickly  detected,  the  new  Regulation  requires  unique 

labelling  and 

tighter 

record-keeping 

for 

explosives throughout the EU. 

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LESS RED TAPE FOR 
CONSTRUCTION MARKET

Construction  product  markets  tend  not 

to  cross  borders,  so  the  Internal  Market 

for  them  is  less  developed  and  there  are 

therefore  fewer  benefits  from  increased 

competition.  This  is  why  the  European 

Commission is proposing a new, simplified 

Regulation aiming to remove all remaining 

regulatory  and  technical  obstacles  to  the 

free circulation of construction products in 

the European Economic Area.

❯❯❯❯  Find out more…

 For information on these and other recent activities 

and policy developments in the Directorate-General for 

Enterprise and Industry, visit our website: 

www.ec.europa.eu/enterprise/index_en.htm

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COMMISSION CUTS 
ADMINISTRATIVE 
BURDENS
The  European  Commission  is  moving 

quickly to deliver on its 2008 programme 

to cut administrative costs for businesses. 

Just  a  month  after  presenting  a  list  of 

11  Fast  Track  Actions,  the  Commission 

approved  proposals  for  four  of  these 

measures  which  will  make  life  easier 

for SMEs by lessening burdens in areas 

such  as  accounting  and  publishing 

business  data. This  is  expected  to  save 

€600 million in business costs.

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EUROPE REWARDS TOP 
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marking  of  firearms,  the  EU  Ministers  of 

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Justice  and  Home  Affairs  have  given  the  green  light 

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presented with the European Inventor of the 

to  reinforcing  the  fight  against  organised  crime  and 

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Year 2008 award by the Slovenian President 

firearms  trafficking.  The  new  rules  make  the  acquisition  and 

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possession  of  firearms  subject  to  more  rigorous  checks,  and 

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from Belgium, 
from Belgium, Germany, the UK and the US. 

strengthen their traceability. 

UPCOMING EVENTS
The French Presidency of the EU and the European Commission are organising several major 

events this autumn.

GMES Forum 2008, 
16-17 September, Lille

Third Security Research Conference, 
29-30 September, Paris

Global Monitoring for Environment and Security (GMES) is a major 

Effective  research  on  security  applications  is  an  essential  part  of 

European  initiative  to  harness  the  capabilities  of  satellite  and 

overcoming  the  terrorist  threats  which  hang  over  law-abiding 

remote  data-gathering  technologies,  together  with  information-

citizens  in  Europe  and  elsewhere.  This  conference  seeks  to  bring 

processing services, to enable us to protect our environment and 

together  those  working  on  technological  development  and  those 

human safety more effectively. This event marks the launch of the 

who have to implement and use security applications to ensure user 

first live GMES services, and aims to demonstrate their capabilities 

needs and expectations are best met. The event will also provide the 

and benefits, including how using these services can improve the 

opportunity to learn about, and prepare to respond to, future funding 

competitive position of companies.

www.forumgmes2008.eu

opportunities under the Seventh Research Framework Programme.

www.src08.fr

European Tourism Forum 2008, 
18-19 September, Bordeaux

Europe INNOVA Conference 2008, 
22-24 October, Lyon

An  annual  event,  the  forum  enables  stakeholders  from  the 

This  regular  event  brings  together  a  wide  range  of  professionals 

tourism  sector  across  Europe  to  come  together  to  share  ideas 

involved in facilitating innovation in enterprises across Europe, from 

and  experiences,  and  to  discuss  the  challenges  they  face  with 

innovation  agencies,  technology  transfer  offices,  research  centres 

policy-makers.  With  the  tourism  sector  at  the  heart  of  many 

and incubators, for example. Europe INNOVA is one of the European 

regional  economies,  Europe  needs  to  find  ways  to  ensure  that 

Commission’s  major 

innovation-support 

initiatives,  and 

the 

when consumer spending drops, tourist regions do not suffer. The 

conference enables hundreds of participants to share experiences 

event will also host the ceremony for the European Destination of 

and  make  new  contacts. The  focus  of  this  year’s  event  will  be  on 

Excellence Awards 2008.

identifying means to accelerate innovation in companies.

www.ec.europa.eu/enterprise/services/tourism/forums_index.htm

www.europe-innova.org

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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ENTERPRISE & INDUSTRY magazine

The Enterprise & Industry on-line magazine provides regular updates on policy development, 

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entrepreneurship,  the  Single  Market  for  goods,  competitiveness  and  environmental 

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In short, it addresses all EU policies under the responsibility of the European Commission’s 

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