Highlights

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On 30 and 31 May, the Competitiveness Council discussed a number of initiatives aimed at reducing red tape in order to make life easier for small and medium-sized enterprises (SMEs). The watchwords were simplification, smart regulation, smooth procedures and assistance.

The Council reviewed the Small Business Act (SBA), which, since its launch two years ago, has made a significant contribution to improving the business environment for SMEs. In future, efforts will mainly be focused on cutting bureaucracy, facilitating access to finance, supporting businesses' access to new markets and stimulating entrepreneurship.

Ministers assessed progress on creating a new type of company - the European Private Company, or SPE (from the Latin Societas Privata Europaea ) - with the intention of addressing the problems faced by SMEs seeking to operate across borders. Setting up branches in other member states is currently a costly and time‑consuming affair as each member state has its own specific rules on forming companies. The European Private Company will provide for a flexible company law regime across the EU, reducing the compliance costs connected with establishing and running SMEs.

Also on the agenda was the simplification of reporting rules for microenterprises. Ministers reached political agreement on a new directive which will allow member states to exempt very small enterprises (i.e. with less than 10 employees) from the requirement to publish annual accounts. Points still to be agreed include the turnover and balance-sheet thresholds to be used to define microenterprises.

In the area of research, the Council reviewed the Eurostars Joint Programme, which supports successful SMEs by cofinancing market-oriented research projects run by them. The programme is founded on large-scale European cooperation between member states in applied research and innovation in any technological or industrial field.

The EU's 23 million SMEs are the backbone of its economy, are primarily responsible for creating wealth and economic growth, and are the engine behind innovation. More than 99% of all European businesses in the European Union are SMEs. They employ more than 90 million people, or 67% of the private sector workforce. Nine out of ten SMEs are microenterprises, with fewer than 10 employees.

More information:
Press release (pdf)
Public debate
Press conference webcast