The European Commission upped the ante on member states by publishing a detailed progress report which it says demonstrates that it has already identified measures that will save businesses €40.4 billion.
However, it says a further €30.7 billion could be saved if the European Parliament and EU member states adopt proposals currently under consideration.
In a statement released yesterday, the EU executive said it is now in the hands of national and EU politicians to ensure that businesses feel the difference on the ground.
European Commission President José Manuel Barroso said the executive is on track to meet its target on reducing the administrative burden.
"Businesses are already set to save €7.6 billion a year. That will become about €40 billion if member states and the European Parliament back our proposals in full," he said.
Commission Vice-President for Enterprise Günter Verheugen said Brussels has done everything in its power to achieve the 25% target by 2012.
"I invite the European Parliament and member states to adopt all of our remaining proposals to make them fully effective for the European economy as soon as possible," he said, adding that it costs nothing to cut red tape but can provide a major boost for small and medium-sized enterprises.
Translating talk into action
UK Conservative politician Giles Chichester said tough talk on cutting down on unnecessary paperwork has yet to overturn the EU's reputation as a source of red tape. He added that the European Parliament should look back on old laws and consider whether they ought to be scrapped altogether.
Business groups indicated yesterday that businesses are yet to feel any day-to-day impact of the reduction in administration burdens.
E-invoicing and exempting micro-enterprises from accounting obligations can save €18 billion and €7 billion respectively, but these have run into problems at national level (EurActiv 22/09/09).
The practicality of cutting administrative requirements while maintaining accountability have proven more complex than initially presumed, with some concerned that reduced accounting requirements could make life more difficult for SMEs.
However, EU countries have signed up to minimising red tape as part of the Small Business Act and the European economic recovery plan. Member states have now set ambitious national targets which Brussels is pledging it will enforce vigorously.
Cutting red tape will remain a priority for the next European Commission, with President Barroso himself seizing control of the issue as part of a shakeup of commissioners' portfolios (EurActiv 21/09/09).
