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Barroso earns mixed reviews from SMEs

Published 09 September 2009 - Updated 23 December 2011
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Some business leaders say the outgoing EU executive has been the best that SMEs have ever known, while others fear the Small Business Act could be overlooked if the next Commission does not keep up the momentum. EurActiv.fr contributed to this report.

European Commission President José Manuel Barroso last week mentioned SMEs just five times in the 43-page document, which sets out his priorities for the next five years. 

The document emphasised the need to restore economic stability and create jobs, while promising to foster a new entrepreneurial culture in Europe. 

Barroso acknowledged the need to level the playing field in order to give SMEs access to markets. He also stressed that smarter regulation would be required in order to strike a balance between consumer protection and "strangling" SMEs with red tape. 

French business groups expressed surprise that the Commission president had neglected to name-check the Small Business Act, which has been a flagship project for outgoing Enterprise Commissioner Günter Verheugen. 

Jean-François Roubaud, president of the General Federation of SMEs (CGPME), said implementing all elements of the Small Business Act in each of Europe's 27 member states should remain a priority. 

Jean-Claude Karpeles, president of Club Europe Chamber of Commerce and Industry, strongly agreed, while noting that the SBA was nothing more than good intentions from the European Commission unless implemented at national level. 

SMEs welcome commitment to private company statute 

Unsurprisingly, Barroso's pledge to pursue a European private company statute was warmly welcomed, as this move would greatly facilitate the exposure of French SME to the European single market. 

Reservations remain concerning support for SMEs seeking to expand into fast-growing emerging markets. According to Karpeles, this greater internationalisation in the small business sector will not be realistic unless SMEs are provided with a thorough review of these countries. He praised the attention given to technological innovation at the service of sustainable development, as this is a niche SMEs are likely to occupy. 

Environmental concern is widely shared, according to Karpeles, but he stressed that government intervention in this area should not distort competition. 

'Best Commission SMEs have ever had'

Business groups in Brussels were less inclined to criticise President Barroso's plan, preferring instead to remind the Commission of its priorities for the coming five-year term. 

Economic and Fiscal Policy Director Gerhard Huemer said the Barroso Commission will be remembered fondly by SMEs. 

"If you look at what the Commission did in the last five years with Barroso and Verheugen, it was the best Commission SMEs have ever had," he said. 

He said the Commissioner president's speech was designed to push all the right buttons without having time to go into great depth on any particular issue. 

"The document points to the right challenges and makes clear that we need a strong Europe on the international stage. We want to see fair competition, balanced competition, and social stability". 

Huemer said it would be unfair to expect a great detail on entrepreneurship or on cutting red tape in such a wide-ranging document. "In any case we don't need a second Small Business Act – we need to make the SBA work." 

Positions: 

In a letter to Mr Barroso dated last Thursday, BusinessEurope called on the Commission president to make job creation a priority. Access to finance and fighting protectionism were also stressed in the document signed by BusinessEurope President Jürgen R. Thumann and Director-General Philippe de Buck

The business group also urges Barroso to help develop "an exit strategy" to excessive public deficits and ensure a return to fiscal sustainability in each of the member states. "Coordination of national reform efforts to enhance growth and sustainability of social systems will be vital and should be further reinforced," the letter says. 

Claudio Cappellini of the Italian SME group, CNA, expressed disappointment that Barroso did not explicitly refer to the Small Business Act. 

"Politically we do not find any reference to the Small Business Act and this is in contrast with the outstanding political signal the SBA should provide. Businesses are looking for greater consistency and courage in the programme of the European Commission," he said.

Cappellini welcomed references to the green economy but stressed the urgency surrounding business failiures in Europe at present. "Right now when SMEs close they are not replaced by new ones. We need a stronger push for European coordination of economic policies among the governments and a redefinition of industrial policies in the face of changes in the global economy," he added. 

Background: 

SMEs, which are defined as companies with no more than 250 employees and a maximum turnover of €50 million, are generally seen as the backbone of the European economy, accounting for 99% of EU businesses and providing around three-quarters of all private sector jobs. 

The Lisbon Growth and Jobs Agenda, adopted in 2000 and aimed at making the EU "the most dynamic and competitive knowledge-based economy in the world by 2010," first recognised the need to boost the competitiveness of SMEs. 

The Small Business Act was formally proposed by the EU executive in June 2008 and adopted by European leaders at the end of 2008. 

The document contains a range of proposals designed to make life easier for small and medium-sized businesses in Europe by cutting red tape and addressing long-standing frustrations over late payments. 

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