'Small Business Act' to boost job creation[fr][de] 

European Industry Commissioner Guenter Verheugen welcomed the "broad support" that his initiative received at an informal meeting of EU ministers in charge of competitiveness on 16 April. 

Along with Slovenian Economy Minister Andrej Vizjak, the commissioner explained that the forthcoming "Small Business Act" will mark a shift in the focus of European job creation policies, from industry to SMEs. These, said Vizjak, represent the "backbone" of the European economy, accounting for roughly 70% of EU jobs and GDP. 

Predicting that Europe will lose jobs in big industry - as competition from low-wage countries like China increases and heavy industries move outside Europe to avoid strict environmental standards - Verheugen stated: "The only way to compensate for that is to create good and secure jobs and more small and medium-sized enterprises." 

Vizjak noted that earlier attempts to boost employment in the bloc had often resulted in the creation of poorly paid and low value-added jobs. "A change is needed in the European Union. The Slovenian Presidency firmly believes that we should forge ahead and do more not only to increase the number of enterprises but also to enhance their quality and growth." 

Ministers agreed that the aim of the initiative must be to help small innovative enterprises in Europe to grow by addressing barriers such as the lack of access to finance and high risks and difficulties in retaining exclusive rights to use innovations. 

Competition Commissioner Neelie Kroes said it would also facilitate state aid to SMEs and set up policies to involve more women in SMEs.

"I can guarantee it will be a substantive package with a lot of legislative proposals, a lot of political actions to be undertaken at EU and member state levels," Verheugen announced after the meeting. 

But SME federations are already dismissing the initiative as a "paper tiger" unlikely to contain any binding measures to help open up more markets to them (EurActiv 08/02/08).