Apart from the key objective of further cutting red tape, which businesses clearly consider as the main obstacle to growth, the new legislation focuses on four key initiatives:
European Private Company
This proposal, strongly demanded by industry (EurActiv 15/05/07), aims at simplifying the legal framework for setting up and running businesses across EU borders.
It gives entrepreneurs the option of forming a European Private Company, also referred to by its Latin name 'Societas Privata Europaea' (SPE). The minimum capital requirement for an SPE is set at €1.
Late payment directive
This directive is foreseen for 2009 to help ensure that SMEs are paid within 30 days. It is key demand for SMEs, as they run a much higher risk of insolvency than larger businesses, with many of them forced to close down within the first two years due to lack of financial means.
A new exemption regulation on state aids
This measure aims to simplify procedures and reduce costs and should make it easier for SMEs to benefit from aid for training, research and development and environmental protection.
Reduced VAT rate for locally supplied services
These services also include labour intensive work, which is mainly provided by SMES.
Other initiatives include better access to public procurement contracts, solutions to environmental challenges or ways to stimulate entrepreneurship among young people.




