However, a wide variety of positions are likely to emerge when member states thrash out their differences in a public debate on the issue on Thursday (24 September).
While there is consensus on the need to cut red tape for Europe's smallest enterprises, practical difficulties relating to ditching accounting requirements have been highlighted by governments.
One objection is that giving national ministers the power to exempt so-called "micro enterprises" from the 4th and 7th European accounting directives would effectively mean falling back on national company law.
This runs counter to the EU's broader goal of encouraging greater use of the internal market by SMEs, but is in line with the desire to cut red tape – an issue that European Commission President José Manuel Barroso has pledged to make a priority of his next five year term (EurActiv 21/09/09).
Squaring these conflicting priorities will be a challenge for ministers, many of whom are also concerned that reducing the administrative burden on small firms could make it more difficult to collect statistics.
The reduced transparency that would follow the scrapping of accounting requirements is seen by some as too high a price to pay for the reduction in red tape.
Annual accounts provide governments with a clear picture of business activity in the micro-enterprise sector and are also used by tax authorities. Alternative methods of collecting this data will be examined on Thursday, but this again risks adding a new layer of red tape for SMEs.
Some member states have indicted that they are willing to support the plan, despite being reluctant to implement it in their own countries.
The EU executive's suggestion that scrapping accounting rules will be optional is sparking concerns of a regulatory "race to the bottom". Member states that prefer not to implement the proposal believe they will be forced to do so in order to compete with European neighbours.
However, micro-enterprises tend to operate locally and are generally not involved in cross-border trade.
Shelve the proposal pending review
A number of member states take the view that the sticky problem of implanting the European Commission's proposal could be delayed until the 4th and 7th accounting directives are reviewed.
The legislation dates back three decades and it is widely accepted that reforms are needed to bring the directives up to date.
Charlie McCreevy, the EU's commissioner for the internal market, has already indicated that an overhaul of the accounting directives is due. He said a major review is now called for, adding that this should be guided by the 'Think Small First' principle set down in the Small Business Act.
The precise shape of the European Council's view on the matter is unlikely to become clear until December, when the Swedish EU Presidency publishes its conclusions.
