OPINION OF THE COMMISSIONpursuant to Article 294(7)(c) of the Treaty on the Functioning of the European Union,on the European Parliament's amendment[s]to the Council's position regarding the proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCILamending Council Directive 78/660/EEC on the annual accounts of certain types of companies as regards micro-entities
Date: 2012-01-11
Institutions: European Commission
Subjects: firm governed by commercial law, micro-enterprise, publication of accounts, registration of a company

EUROPEAN COMMISSION 

Brussels, 11.1.2012 
COM(2012) 1 final 

2009/0035 (COD) 

OPINION OF THE COMMISSION 

pursuant to Article 294(7)(c) of the Treaty on the Functioning of the European Union,
on the European Parliament's amendment[s] 
to the Council's position regarding the  
proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT  
AND OF THE COUNCIL 

amending Council Directive 78/660/EEC on the annual accounts of certain types of 
companies as regards micro-entities 

(Text with EEA relevance) 

 
 
 
 
  
 
 
 
 
 
 
2009/0035 (COD) 

OPINION OF THE COMMISSION 

pursuant to Article 294(7)(c) of the Treaty on the Functioning of the European Union, 
on the European Parliament's amendment[s] 
to the Council's position regarding the  
proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT  
AND OF THE COUNCIL 

amending Council Directive 78/660/EEC on the annual accounts of certain types of 
companies as regards micro-entities 

(Text with EEA relevance) 

1. 

INTRODUCTION 

Article  294(7)(c)  of  the  Treaty  on  the  Functioning  of  the  European  Union  provides  that  the 
Commission  is  to  deliver  an  opinion  on  the  amendments  proposed  by  the  European 
Parliament at second reading. The Commission sets out its opinion below on the amendments 
proposed by the Parliament. 

2. 

BACKGROUND 

Date of transmission of the proposal to the European Parliament and 
to the Council 
(document COM(2009) 83 final – 2009/0035 COD): 

26/02/2009 

Date  of  the  opinion  of  the  European  Economic  and  Social 
Committee: 

15/07/2009 

Date of the position of the European Parliament, first reading: 

10/03/2010 

Date of adoption of the Council position: 

12/09/2011 

Date of COREPER agreement on the second reading compromise: 

23/11/2011 

Date of Parliament's Legislative Resolution at second reading 

13/12/2011 

EN 

2 

   EN 

 
 
 
 
 
 
3. 

OBJECTIVE OF THE PROPOSAL FROM THE COMMISSION  

The  proposal  from  the  Commission  was  adopted  in  the  context  of  the  Better  Regulation 
initiative.  In  providing  an  option  for  Member  States  to  exempt  micro-entities  from  the 
requirements of the Fourth Company Law Directive1, the aim of the proposal was to simplify 
and improve the existing regulatory framework so as to limit information obligations resulting 
from accounting requirements on EU micro-entities in order to: 

• 

• 

reduce the administrative burden; and 

enable alignment of micro-entities' reporting requirements with the real needs 
of users and preparers of accounts. 

4. 

OPINION  OF  THE  COMMISSION  ON  THE  AMENDMENTS  BY  THE  EUROPEAN 
PARLIAMENT 

The opinion of the European Parliament at second reading is a balanced compromise, making 
a limited number of amendments to the Council's position. 

In  a  move  closer  to  the  original  Commission  proposal  and  in  order  to  enable  more  micro-
entities to potentially benefit from a simplified regime, the European Parliament increases the 
size criteria defining micro-entities as no more than 10 employees, a maximum net turnover 
of €700,000 and/or a maximum total balance sheet  of €350,000 (two of thre e criteria have to 
be matched). 

It clarifies in Recital 9 the reach of the exemption from publication requirements foreseen in 
the Council position. As a result, the balance sheet information of micro-entities filed with the 
public  registers  should  be  obtainable  to  stakeholders  upon  application,  and  micro-entities 
should  no  longer  have  to  disclose  that  information  by  ways  of  publication  in  the  national 
gazette nor other equally effective means. 

A comprehensive review clause invites the Commission, not later than 5 years after entry into 
force, to submit a report on the situation of micro-entities taking account in particular of the 
situation at national level regarding the number of businesses covered under the size criteria 
and the reduction of administrative burdens resulting  from  the  exemption  of  the  publication 
requirement. 

Finally, it removes, with the Commission's consent, the encouragement for the Member States 
to draw up correlation tables. 

The position of the European Parliament is the result of a compromise obtained at a trilogue 
held on 9 November 2011. 

1 

Directive 78/660/EEC of 25 july 1978 based on Article 54(3)(g) of the Treaty on the annual accounts of 
certain types of companies, OJ L 222, 14.8.1978, p. 11. 

EN 

3 

   EN 

 
                                                 
5. 

CONCLUSION 

Pursuant  to  Article  293(2)  of  the  Treaty  on  the  Functioning  of  the  European  Union,  the 
Commission  accepts  the  amendments  voted  by  the  European  Parliament  in  second  reading 
according to the above described compromise text. 

EN 

4 

   EN