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Proposal by the Independent Small Businesses to the European Convention

ESBA - CEA PME - CEDI

The European Convention has taken on the task of drawing up a constitution that is comprehensible to all European citizens. The basic principles of our economic order will also be anchored in this, i.e. a socially and ecologically oriented market economy. In view of the current difficult economic situation, with high unemployment throughout Europe, SMEs have an increasingly important role to play in helping to create positive economic development. Support for start-ups and the maintenance and expansion of independent companies are fundamental necessities in the future policy of the EU.

The Proposals in Short

The Independent Small Businesses in Europe ask Members of the European Convention to prepare a consolidated constitutional text which will allow future European institutions and Member States to deliver the following:

More transparency and democracy in all EU activities
Simplification of tax systems for cross-border transactions
The establishment of an independent EU legislative audit office
Simplification and flexibility in cross-border labour activities
Simplification for business start-ups
Stricter enforcement of EU competition rules
Reduction of state subsidies
Successful enlargement without any distortion of the Internal Market
Promotion of activities with SMEs in developing countries

1) More transparency and democracy in all EU activities

- The European Parliament is the only European institution directly elected by the people of the EU. This gives it a special legitimacy. Its role in the EU proposal and decision-making process should be reinforced.

- Majority decisions should be the rule in the Council of Ministers in order to reduce congestion in the reform process, which particularly affects SMEs. Unanimity decisions should only apply in a strictly limited number of exceptional cases that affect Member States constitution.

2) Simplification of tax systems for cross-border transactions

- A value-added tax system on the basis of the country of origin principle should be introduced.

- Uniform and adequately long periods up to taxation in the destination country for cross-border services. The establishment of a period of 18 months for the continuance in force of the income tax and corporate tax regulations of the country of origin would make the often non-standardised deadlines of the double taxation agreements superfluous.

3) The establishment of an independent EU legislative audit office

- To ensure that less damaging regulations are introduced in the future, we feel it is necessary for a non legislative making body, namely an independent EU legislative audit office to be responsible for and carry out the impact assessment

4) Simplification and flexibility in cross-border labour activities

- Legitimate crafts and trade companies, service providers and freelancers must be able to freely make cross-border transactions and be protected against arbitrary official interference. This is why the introduction of special complaints boards in the EU Commission is necessary, so that complaints can be processed within fourteen days.

- Existing national vocational qualifications must be immediately recognised in other EU countries insofar as no special foreign-language knowledge or knowledge of country-specific situations such as legal systems etc. is necessary. The creation of possible European-wide minimum requirements may only be demanded if the vocational groups concerned are prepared for this before training.

- Making the various overtime regulations more flexible would facilitate cross-border movement of services. The labour law of the country of origin would have to continue to apply at the place of the service or contract etc., as employees sent out for a short time have completely different interests from those of locally based employees.

5) Simplification for business start-ups

- The principle of freedom of establishment demands a Europe-wide harmonisation of the modalities for establishing businesses in order to ensure a more effective and faster business start-up. It should be possible to start up a company within a day.

6) Stricter enforcement of EU competition rules

- The unrestricted establishment of large-scale retailing outlets must be addressed in order to maintain retailing outlets for consumers in rural and urban areas.

- In the case of economic projects in border regions with cross-border effects, the regions concerned in the neighbouring states must have rights of co-determination.

- Unfair competition practices of large-scale retailers, e.g. the sale of goods at prices below cost, must be prohibited throughout Europe as they are detrimental to the competitive opportunities of SMEs. Every job created in a large-scale retailer destroys three in the small retailer sector.

7) Reduction of state subsidies

- State subsidies and grants must be reduced throughout Europe as they mainly benefit large enterprises and thus put SMEs at a competitive disadvantage. They should only be used for real cases of economic and social emergencies.

8) Successful enlargement without any distortion oF the Internal Market

- We support the enlargement of the European Union. As economy of the Candidate countries to Accession are mostly based on small businesses and self-employed, we ask the European Convention to make sure that the Internal Market is improved for small businesses.

9) Promotion of activities with SMEs in developing countries

- We ask for EC market access rules to be simplified to allow trading with SMEs in developing countries. Such rules should be based on the principles that basic human, social and environmental rights are observed in such countries.

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Page last updated: 04/02/2007 5:38:05 AM