In a proposal designed to feed into the debate on the EU 2020 strategy, Gordon Brown calls for a "concerted and continuing" effort to move from recovery to growth.
The document says the EU's SME Envoy should be empowered to hold Commission directorates-general to account for their commitment to 'Think Small First' – a pledge contained in the Small Business Act (SBA) approved by EU leaders in 2008 (EurActiv 2/12/08) .
"This should include naming and shaming those DGs that fail to apply the SME test to new regulations that place a burden on business, and those that do not apply Common Commencement Dates [for implementing pro-enterprise legislation] and share good practice within the Commission," the UK says.
Brown also wants to invite the European Court of Auditors to perform annual check-ups to assess whether better regulation programmes are delivering on their promises.
An ambitious timetable for implementing the SBA should be agreed with a view to having all elements of the Act in force by the end of 2010, according to the UK, which wants the EU executive to produce progress reports outlining actions taken to remove barriers to business start-ups.
The UK leader, who faces an uphill battle to hold onto power in a general election later this year, laid out his vision for European recovery at a meeting in London with the president of the European Council, Herman Van Rompuy.
Venture capital a high priority for Brown
Funding for SMEs is also high on Brown's agenda, with London pushing for the European Investment Fund (EIF) to be given access to capital markets in order to attract billions in private funding. The capital would be injected into key high-tech sectors such as the life sciences, digital manufacturing and low-carbon industries.
EU venture capital funds should be scaled up, says the UK, which is proposing the establishment of an open internal market for investment capital, allowing venture capital, private equity and all other types of investment funding to be marketed to professional investors across the EU "on the basis of a single home authorisation through the Alternative Investment Fund Managers Directive".
The temporary state-aid framework should be ended this year in order to restore discipline and maximise opportunities for competition, the document suggests.
Patent reform remains key to innovation
In a detailed and sweeping overview of what needs to be done to reinvigorate European industry, Brown calls on Brussels to pass a European Innovation Act and to streamline EU innovation funding programmes so that companies find them easier to use and more relevant.
Rapid progress on establishing a European patent and a single patent litigation system is required, the UK says, and the power of public procurement should be harnessed to drive innovation. The proposal says businesses should compete in bringing innovative technologies and ideas to address specific challenges identified by public bodies.
London is also suggesting the establishment of an EU-wide Small Business Research Initiative that would offer innovative start-ups the chance to develop new technologies which help solve society's problems.
A 'robust and competitive' financial services sector
Brown also wades into the debate on how tightly financial services can be regulated without strangling the City of London. He wants an annual Economic Summit to review EU efforts to shore up financial market stability and economic reforms.
The paper runs through the reforms already underway at EU level – including the establishment of a new European Systemic Risk Board (ESRB) and European Supervisory Authorities (ESA), which should be in place by 2011.
However, further European legislation is needed to improve oversight of capital and liquidity, over-the-counter derivatives and clearing infrastructure, and crisis management, according to the UK.
It says further amendments to the Capital Requirements Directive (CRD) in mid-2010 – in line with the work of the Basel Committee – will make banks more shock-resistant by ensuring that they hold "more and better quality" capital.
"It will be key to ensure that the right regulation is implemented in the right places, based on strong consultation and impact assessments: the unintended consequences of poorly-designed regulation may stifle growth through reduced lending to businesses," the document warns.
Brown is also underlining the need for the EU to take the lead in coordinating standards at global level, including the IMF and G20.
