Member States Endorse Small Business Act, Sustainable Industrial Policy

Brdo pri Kranju, 16 April

EU ministers in charge of competitiveness voiced broad support Wednesday for two initiatives mulled by the European Commission - the Small Business Act and sustainable industrial policy - which are considered the key drivers to the EU's effort to improve competitiveness.

"The European Commission is very satisfied because it found broad support for two major policy initiatives," European Industry Commissioner Guenter Verheugen told the press after an informal meeting of the EU's Competitiveness Council at Brdo pri Kranju.
The small business act involves measures and policy actions at the EU and member states' level to reduce start-up costs for companies, cut red tape, increase the companies' participation in EU programmes, including public procurement, and relax rules for state aid to small and medium-sized enterprises (SMEs).
"We don't have enough enterprises in Europe and an enterprise that does not exist cannot create jobs. If we want to solve the unemployment problem in the long run we need to have more enterprises, more entrepreneurs and better conditions for doing business in Europe," said Verheugen, who expects the act to be adopted by the end of the year.
According to Verheugen, this is one of the most important initiatives that the Commission will adopt before the end of its term.
As Slovenian Economy Minister Andrej Vizjak put it, SMEs are vulnerable because of their size, but they are also dynamic and responsive to change. "We have to unlock their growth potential, only on the basis of growth and development can we expect high-quality products and services and higher value added."
Competition Commissioner Neelie Kroes added that there should be a better system of state aid for SMEs. Kroes announced that the Commission would introduce a general block exemption that will facilitate state aid to SMEs by removing the obligation to register state aid with the European Commission for more than 20 measures.
One of the ways in which the EU wants to increase the number of SMEs is by raising the participation of women. According to Kroes, this would go a long way towards bridging the gap to the US in terms of the number of SMEs. "We cannot afford to neglect so much talent in our economy," she said.
The ministers also heard today a first-hand account from entrepreneur Ivo Boscarol, the boss and owner of Pipistrel, a manufacturer of ultra-light airplanes, who blames rigid administration for hampering the growth and development of SMEs.
"The rigidity of the European system is the biggest competitive advantage of other global economies compared to the EU," Boscarol said. Businesses have accepted globalisation as a challenge, but it is hampered by the rigidity of European institutions and legislation.
Sustainable industrial policy meanwhile involves an action plan (to be unveiled in mid-May) encouraging consumers to buy environment-friendly products, identifying obstacles to the development of political initiatives for environmental industry, and shaping approaches that contribute to a low-carbon, sustainable economy.
The EU wants to turn measures directed at combating climate change into an opportunity for business, by being a pioneer in the development of low-carbon technologies, production of low-energy sustainable products, and by encouraging consumers to buy environment-friendly products.
"This will create very promising business opportunities. We are not creating a system that will place an additional financial burden on companies. On the contrary, we want to give them framework conditions which will allow them to get a stronger market position in Europe and outside," Verheugen said.
That way, according to Verheugen, Europe will be "in the driver seat not only as far as concrete measures against climate change are concerned, it will also be in the driver seat in industrial production."
This view was echoed by Slovenian Development Minister Ziga Turk, who underlined in a speech to the ministers today that climate change and the reduction of CO2 emissions would entail huge costs. But what will be somebody's cost will also be someone else's income.

Member States Endorse Small Business Act, Sustainable Industrial Policy

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