SMEs failing to exploit the EU’s single market

The EU’s small and medium sized enterprises are making far from enough use of the European single market, according to European Commission vice president for industry and entrepreneurship, Antonio Tajani.

The recession has made it impossible for EU member states to compete on their own

Speaking at a business breakfast organised by the Malta Business Bureau yesterday, Mr Tajani cited statistics which showed that only a quarter of European SMEs operated outside their home country and a mere 13 per cent conducted business with non-EU states.

“This is a disaster for us,” Mr Tajani told his audience, which included several entrepreneurial and tourism stakeholders, MEPs and a number of ministers.

Small Business Minister Jason Azzopardi also mentioned market access. European trade policy had to ensure the best possible access to non-EU markets, Dr Azzopardi said, adding that industry and academia had to better utilise one another’s strengths.

Excessive bureaucratic red tape not only damaged SMEs’ competitiveness, according to Mr Tajani, with Schengen visa procedures for Brazilian, Russian and Chinese nationals also overly complex and harming tourism.

“It is absurd to block tourists from visiting us because of slow bureaucratic procedures. Being flexible in this area would mean millions in extra revenue for member states,” he said.

Tourism Minister Mario de Marco agreed, saying the time had come for a “modal shift” to facilitate visa issuing processes. He noted how tourism had for a long time been “the Cinderella of the EU” – a label Mr Tajani endorsed – and spoke of the importance of marrying tourism with informational technology.

The recession had made it “impossible” for EU member states to compete on their own, Mr Tajani said.

“If they were to succeed, member states had to work together and coordinate their activities. Without Europe, where is the future for Malta?” he asked rhetorically.

Describing Mr Tajani as “a true friend of the Maltese”, Finance Minister Tonio Fenech listed several innovation-driven government initiatives and incentives. Innovation was what would make growth and prosperity actually happen, the minister said.

A brief panel discussion which followed the keynote speeches touched upon a range of issues, from the evolving political situation in Libya to Air Malta’s importance to the Maltese economy.