It was agreed that thorough impact assessments and cost-effectiveness analyses should be carried out on national legislative and non-legislative proposals to determine their potential impact on business.
Describing SMEs as the backbone of the European economy, ministers said they should be "respected and considered" when setting up framework conditions for industry.
The Competitiveness Council, which continues its work today (29 May), said that companies should be given adequate time to adapt to any new requirements before legislation is introduced, in accordance with the 'Think Small First' principle contained in the Small Business Act introduced last June.
Ministers also asked the European Commission to monitor the impact on business of the REACH regulations on chemicals, "especially SMEs, taking into account the current economic situation".
Discussing the impact of the financial crisis on small companies, the Competitiveness Council said banks should be encouraged to resume "normal lending activities" as a condition of state support.
Mary Coughlan, Ireland's Tánaiste – or deputy prime minister – told EurActiv that governments will ensure regulations are "business proof". "The Irish government already assesses legislation to ensure it is poverty proof, gender proof and so on. We also now examine proposals to ensure they are business proof, with respect to SMEs in particular," she said.
Coughlan, who serves as minister for enterprise, trade and employment, added that ministers had also agreed to ask the European Investment Bank to further increase the funds available for SMEs.
At a press briefing, Czech Trade and Industry Minister Vladimir Tošovský said the Small Business Act and Better Regulation initiative were central to discussions between ministers. "Member states agreed to carefully examine the impact of any regulation introduced at national level," he said.
Günter Verheugen, vice-president of the European Commission responsible for industry, said the meeting had demonstrated member states' support for Brussels' efforts to support SMEs. "They see these projects as long-term initiatives but also as part of the short-term response to the current crisis," he said.
