EU matters interview Mr. Calleja, you are currently the Commission´s Special SME Envoy. How can SMEs’ confidence be enhanced during this time of economic stagnation? The European Union is experiencing difficult times. It is the worst period since the Second World War, with an unprecedented decline in industrial production. Unemployment is increasing, and markets lack confidence. According to the European Commission’s forecast for 2012, we are entering a period of recession. The time has come to put the real economy – SMEs – at the centre of our work. In the European Union, there are 23 million SMEs, responsible for the creation of 80% of new jobs. They are the backbone of economy. Together with Member States, we have to support SMEs: to facilitate the establishment of new companies, to improve access to finance, to help develop the entrepreneurial spirit and to reduce regulatory burdens. It is our objective to support SMEs to help them act as the driving force of the EU’s economic recovery. If, by implementing policies conducive to SMEs, we could encourage each SME to create one, new job, we would get rid of unemployment in Europe. For this reason, we have to put SMEs first in our policy making. The Review of the Small Business Act for Europe (“SBA”), adopted by the Commission in February last year and fully endorsed by the Member States in May, gives a new impetus for SME policy at EU level. The Czech Republic and Poland together are countries with highest share of microenterprises (95%). The Commission intends to apply lighter regulations and exemptions to small companies. However in some cases, this approach can be disputed. What will be the EC´s rules in deciding whether or not to grant an exemption? A high proportion of microenterprises is a sign of dynamism. The European Commission has three priorities in the SME agenda – to simplify the regulations and liabilities, to improve access to finance, and to help SMEs in reaching third markets. The European Commission is aware that the smallest companies face the greatest costs in complying with regulations. On 23rd November, the European Commission adopted a report on minimizing the regulatory burden for SMEs and adapting EU regulation to the needs of microenterprises. This report acknowledges that under certain circumstances, it is in the interest of micro-entities not to burden them with unnecessary regulations and to leave them out of the reach of certain legislative proposals, which will require circumstantial case analysis and justification. As of January 2012, the Commission will base the preparation of all future legislative proposals on the premise that in particular microenterprises should be excluded from the scope of proposed legislation unless the proportionality
-
of their being covered can be demonstrated. The burden of proof on whether to include small companies in this range or not will lie in the hands of the Commission´s services. To ensure that no rules (public health and safety) are violated, any exclusion of the microenterprises will be made on a case-by-case basis. Our guiding principle remains untouched: the “think small first” principle, in other words, by avoiding administrative fines, penalties and other additional costs for SMEs in the first place. We have to put ourselves in SMEs´ shoes. When drafting further legislation, we have to think first about small companies and ask ourselves if we can simplify the procedures, lighten the regulations or extend the transitional period for SMEs. Discussion on a possible revision of the European SME definition shouldn’t prevent us from undertaking immediate and imperative procedures. Access to finance is particularly hard for SMEs. Does the European Commission plan to ease the access to microcredits and bank guarantees for SMEs? Access to finance is a priority for us. The 2007–13 Competitiveness and Innovation Framework Programme (CIP) supports innovative activities, provides better access to finance and delivers business support services in the regions through different specified programmes. It mainly covers guarantees, venture capital and access to capital markets. The European Commission foresees that up to 315 000 SMEs will have benefitted from the programme by the end of the seven-year timeline. We have just published an Action Plan, outlining several measures of how to improve access to finance for SMEs. Among them is a proposal for a new legislative regime that allows venture capital funds to operate across borders easily. Other possibilities of European funding also exist, such as JEREMIE or PROGRESS, which is especially designed for the smallest companies. We will also do our utmost to enhance access to credit for SMEs and self-employed people in our future programmes, such as the Competitiveness of Enterprises and SMEs (COSME) programme, Horizon 2020, and the European Regional Development Fund and the European Social Fund. Since there are many instruments available, it is crucial that the European Commission coordinates well with the Member States and the financial institutions like the European Investment Bank or the European Investment Fund, so that we cooperate with each other and carry out the EU legislation – such as the Late Payment Directive – in a efficient manner. For SMEs, Brussels is far from their everyday life. How do you ensure that your proposals reflect the needs of real SMEs on the ground? We ensure it by applying the “think small first” principle, as well as by putting a special emphasis
on the governance of EU SME policy. To better reflect the actual situation on the ground and maintain a good contact between Brussels and the Czech nation, the SBA Review has placed a new governance system. One key aspect of this system is the appointment of the national SME Envoy from all Member States to act as an advocate of the “think small first” principle within their administration and to promote the SBA implementation. The Network of national SME Envoys is also an opportunity for the European Commission to further listen to and communicate with shareholders. For me, one of the most important roles of the SME Envoy at national level is similar to my duty with the European Commission: to ensure that all government bodies – including at the regional and local levels – integrate the “Think Small First” principle into their policy making and regulation proposals. We have already made certain commitments and have agreed that by 2012, we will all enhance the necessary time in setting up a business (aiming for a maximum of 3 days, at a cost of up to €100), increase the value of SMEs’ participation in public procurement contracts, increase the access to bank loans and microcredit, and ensure the systematic application of SME Test at national level. Czech SMEs are still struggling with accessing the EU programmes. There is still much more attention on structural funds at national level. How would you attract their attention to the new SME programme? Will it be easy to access? We are aware of some difficulties in accessing the EU grants. For this reason, we are focusing on generally simplifying the EU programmes for the next multi-annual financial period, creating single points of contact and one-stop-shops and aligning the rules between different programmes. Simplification concerns not only the EU programmes, such as COSME and Horizon 2020, but also the structural funds. The Enterprise Europe Network will continue to have an important task in distributing information about these programmes’ existence and facilita-ting SMEs’ access to them. Your previous job was dedicated to the aviation sector. Is there any space for SMEs in this as well? The aviation sector is highly innovative and has the same dynamism that should be spread to others. Aviation companies invest almost 12% in modernization. Therefore, they are a good example for other sectors. At European level, we have to decide on common standards. The Czech Republic has a very active aerospace industry, and Czech SMEs should make the most opportunity out of this sector. By Alena Vlačihová CEBRE
Amsterdam Athinai Berlin Bratislava Bruxelles Bucureşti Budapest Dublin Helsingfors Kobenhavn Lefkosia Lisboa Ljubljana London Luxembourg Madrid Paris Praha Rïga Roma Sofia Stockholm Tallinn Valletta Vilnius Warszawa Wien
115