EP candidates told of problems of small businesses in Europe

The European Parliament should listen more to the needs of small- and medium-sized enterprises apart from not placing additional burdens on them through new labour market, social and environment regulations, a memorandum by the European organisation representing Small and Medium Enterprises and Crafts (UEAPME) has said.

UEAPME issued the memorandum on the occasion of the elections for the European Parliament next month.

It is aimed at making prospective MEPs more aware of the problems faced by small businesses in Europe.

The GRTU - Malta Chamber for Small and Medium Sized Enterprise, which forms part of a Pan European Action Programme organised by UEAPME, yesterday invited candidates for next month's elections to a meeting to help them better understand the issues affecting SMEs in EU member states.

In his address, GRTU director general Vincent Farrugia augured that, irrespective of their political or other affiliations, MEP candidates would unite to speak through one voice for the good of Malta, and in this case in favour of small enterprises.

The platform for discussion was the memorandum which insisted that Europe should unlock the growth potential of crafts and SMEs and to strengthen its economic governance.

According to the memorandum, even though there was some lip service by European and national decision-makers in their recognition of SMEs, too many concrete decisions were still being made without consideration of the needs of such enterprises.

The memorandum states that the European Parliament must insist that a serious "business impact assessment" be carried out for all regulations which had an impact on enterprises.

Amendments made by the European Council and Parliament had also to be assessed and these assessments must include all compliance costs and administrative burdens.

UEAPME said the EP must ensure that these impact assessments were carried out independently and were not to be sponsored or financed by interest groups.

UEAPME expects the new MEPs to invite SME representative organisations to all hearings on issues which were relevant for SMEs and provide the financial means to allow SMEs' experts to participate in such meetings.

Moreover, the European Parliament should support the creation of "better regulation units" within the European Commission and the Parliament itself, to support the services to find the best regulatory approach and to take responsibility for the appropriate consultation of all stakeholders.

It also expected financial support from the European Parliament for the establishment of a European Think Tank/Academy for SME policy.

Among other things UEAPME urged the new European Parliament to remove the remaining barriers for a better implementation of existing regulations for a successful European internal market.

This market had increased economic activity and provided more employment, but there still were too many barriers which hindered the full deployment of the economic potential of crafts and SMEs.

UEAPME said in its memorandum that Europe's SMEs recognised that the Lisbon council's targets not only included economic performance, but also social and environmental standards in order to improve living conditions for Europe's citizens.

These targets could only be achieved if a highly competitive and well performing economy provided the resources for a better life.

Therefore, UEAPME added, policy markets had to avoid endangering the economic base of the European social model by introducing new labour market, social and environmental regulations, which had a negative influence on economic performance and were therefore counter-productive.

UEAPME said flexible working time arrangements were essential for SMEs to increase their productivity and competitiveness.

Small enterprises employed more than 80 million people, which was more than 66 per cent of total private employment in the European Union.