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| Newsletter June/July 2005 |
| Upcoming Events |
| Service & Information |
| Latest Events |
| SME lex |
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Dear Members of the SME UNION, dear friends of SMEs!
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It is a pleasure for us to present you the June/July double special issue of the SME UNION Newsletter thanks to the high acitivity level and changes in our organization.
At our SME UNION General Assembly 2005 on Tuesday 21 the current President of Eurochambres and President of the Austrian SME UNION member Wirtschaftsbund, Christoph Leitl, was unanimously elected to become the next President of the Small and Medium Entrepreneurs Union of the European People's Party. Leitl takes over this position from former Commission President Jacques Santer who headed our organization for the last two years.
Together with Leitl a strong team of European entrepreneurs, MEPs and conservative politicians were elected to support the work of the SME UNION. German Board Member Peter Jungen was appointed to become the only Co-President with own portfolio. Read more about the new team below!
As a new category of our Newsletter you will find "SME lex", our newly created SME legislative monitoring section communicating legislative SMEneeds from and to the SME Circle in the European Parliament, bringing the issues to the level of the cross-party SME Intergroup for support and telling our members how to raise support from their national parties.
We wish all of you a joyfull reading, a good summer and hope to see you soon again at our events and activities. |
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2005-07-06, Strasbourg, SME Intergroup Meeting
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The next SME Intergroup Meeting in Strasbourg to the topic “Brainstorming for a Modern European Policy for SMEs” will take place on 6 July 2005. After the introduction of the Presidents of the SME Intergroup, the Vice-President of the European Commission and Commissioner for Industry and Enterprise Günter Verheugen will talk about the new SME initiatives from the EU Commission. The speeches will be followed by a discussion. For SME Intergroup Members only!
For further information contact the office of SME Intergroup President Othmar Karas MEP at + 32 2 283 7627 or
okaras-assistant@europarl.eu.int
Program |
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2005-07-06, Brussels, European Days 2005 to the topic “European Economy on the road of successful regions and neighbourhood”
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In the framework of the “European Days 2005” and the opening of the Representation of Styria in the “House of the Regions”, Avenue de Tervuren 82 – 84, a Round Table discussion will be held with Univ. Prof. DDr. Gerald Schöpfer, Minister of Economics and European Affairs of the Federal County of Styria, and other opinion leaders.
For further information please contact: josef.mantl@jmc.cc, +32/ 477/ 85 07 13
Invitation |
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2005-07-12, Brussels, TAE Award 2005
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The Taxpayers Association of Europe, in cooperation with the European Economic Senate are inviting to the celebration’s ceremony at the Residence Palace, in Rue de la Loi 155. The award will be going to Ivan Miklos, Deputy Prime Minister and Minister of Finance of the Slovak Republic, and Ingo Friedrich, Vice President of the European Parliament. The comment will be given by Bernhard Friedmann as the President of the European Economic Senate and former President of the European Court of Auditors.
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2005-09-23, Brunei Darussalem, Asia-Europe Emerging Economic Leaders Forum
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From 20 to 23 September 2005 the Asia-Europe Foundation (ASEF) is holding a forum in Brunei Darussalem. This meeting will provide the participants with the opportunities for an open dialogue and exchange of views and to learn more about different business cultures in Asia and Europe. This event aims to discuss the different points of view on how to finance small and medium enterprises (SME) and to discuss mechanisms to promote bi-regional cooperation in fostering the increased economic cooperation between Asia and Europe.
ASEF Homepage |
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2005-09-27, Brussels, UNICE: SME access to finance: a better understanding
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The UNICE is organizing a seminar to the topic "SME access to finance: a better understanding" in the UNICE Conference Centre, 169 Avenue de Cortenbergh, on 27 September 2005 from 13.00 - 17.00 h. In the European Union, nine out of ten companies are small or medium-sized enterprises, so they provide almost two thirds of the jobs. UNICE helps those entrepreneurs to state their concerns about accessing finance and push for change "Let SMEs grow!".
For further information please contact Ms Nathalie Dejong at n.edjong@unice.be.
Information |
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2005-10-18, Brussels, Franchising in Europe: Opportunities and Challenges
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The European Franchise Federation (EFF), Partner of the SME UNION, will host a conference. The objective is to present franchising to a wide audience, including MEPs and experts from the Commission. Franchising plays a significant role in the distribution sector, as a vector of creating SMEs, and for promoting entrepreneurship in a context of partnership and professionalism.
EFF Homepage |
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Service & Information |
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PCG Quality Systems
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The Professional Contractors Group (PCG) is a professional trade organisation set-up to represent the interests of all knowledge based workers. The Group is now the fastest growing professional organisation in the UK with over 12,200 members, 70% are IT contractors.
PCG (QS) is the first cross-sector scheme of its kind, being delivered at a fraction of the cost of any credible alternative, and incorporates:
• a fully hosted Electronic Quality Management Systems (EQMS) and technical support throughout
• remote online of conduct
• the option of business loan facilities
PCG believes that certification through the scheme will help the brightest and bet independent consultants to compete on a level playing field for public sector and corporate projects.
One of the obstacles for small consultancies, however, is that more and more public sector bodies are insisting that their suppliers have ISO9001 certification. ISO9001:2000 is the internationally recognised standard for quality. PCG has introduced a UKAS-accredited ISO9001 certification scheme. PCG (QS) is a scheme created specifically to meet the needs and working practise of the independent contracting sector and SMEs.
Further information |
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New website of Pan-European Business Co-operation Schemes (PES) support SMEs
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A new website will facilitate the work of the Pan-European Business Co-operation Schemes (PES). 4,000 Small and Medium-Sized Enterprises (SMEs) from over 20 different economic sectors are being brought together in 32 matchmaking events at major international trade fairs over the next two years. This will help generate new business opportunities for SMEs from new and old Member States, candidate and neighbouring countries and strengthen both economic and social ties. Small and medium-sized enterprises not only make up much of Europe’s economy, they have a crucial role to play in building bridges across borders within Europe and beyond. The Commission allocated a total of € 6 million to the projects for the period September 2004 to September 2006.
Further information |
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Nine out of ten enterprises used the internet in 2004
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At the beginning of 2004, the highest levels of internet usage by enterprises were recorded in Denmark and Finland (both 97%), and in Belgium and Sweden (both 96%). The lowest levels were registered in Portugal (77%), Hungary (78%), Lithuania (81%), and Cyprus (82%).
Further information |
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Ivo Sanader opened first business One-stop shop in Croatia
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Last month Prime Minister Ivo Sanader opened the first one-stop shop to facilitate the opening of new business in Croatia. Entrepreneurs are now able to set up a business within two weeks. The purpose is to ensure quicker access to information and to help future entrepreneurs completing administrative procedures.
Further information |
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New SME Brochure
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UNICE has published a brochure where European entrepreneurs and SMEs speak out their need for growth. This document in its initial phase summarises the recommendations of entrepreneurs and SMEs on five main policy areas to foster Europe’s entrepreneurial spirit and support growth of SMEs:
• Coordinated and strong entrepreneurship and SME policy
• Concrete translation of commitment to entrepreneurship education
• Easy access to finance
• Less obstructive taxation
• Better regulation: reducing administrative burdens and riding Europe’s entrepreneurs of unnecessary red tape.
Further information |
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SME Galileo: EUR 50 000 to contribute to Galileo
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Small business, entrepreneurs and researchers are being offered EUR 50 000 in business development support to come up with the best idea for new applications for Galileo, Europe’s satellite navigation system. The Galileo Masters 2005 competition aims to encourage small enterprises from across Europe to produce new products for Galileo.
One billion Euro for the Galileo satellite system
The member of the industry, research and energy committee at the European Parliament with its rapporteur SME Circle Vice-President MEP Etelka Barsi-Pataky accepted the drafted proposal from the European Commission, with affirms to back the two last stints of the European satellite navigation system Galileo with one billion Euros. The last two stints will embrace a timeframe from 2007 – 2013. This will be a crucial step ahead to finalize the monolithic European project Galileo and a further involvement of SMEs.
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Seven million Euro more for SMEs in 2006
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The Committee on Industry, Research and Energy approved the proposal of the Commission to extend the multiannual programme for enterprise and entrepreneurship, and in particular for small and medium-sized enterprises (SMEs), by one year to 31 December 2006.
The reason for that is that its functions will in future be performed by its successor programme the “Framework Programme for Competitiveness and Innovation” (CIP), which is planned to run from 2007 – 2013 to coincide with the financial perspective and the time-frame. To bridge the gap between the existing and the new framework programme, the Commission proposes extending the existing framework by one year and raising the total budget.
The multiannual programme for enterprise and entrepreneurship is THE key element in the Community’s policy to promote entrepreneurship and support innovation in European SMEs. As the programme is smoothly operating and as it is important to maintain and extend aid to entrepreneurs and SMEs in Europe, which are the backbones of Europe’s economy, the budget is increased to EUR 91 million, which is equal to the budgeted amount for 2004.
Further information |
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EU project helps IT SMEs from new member states
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The European Commission aims to increase the participation of SMEs from all ten new member states in the EU’s Information Society Technology (IST) research programme. The EU has therefore funded the EPRI-start project, which offers an extensive range of activities and opportunities for both innovative IST-oriented enterprises from the New Member States (in order to secure funding) and consortia in the IST community (in order to find partners).
EPRI-start is developing a Network of European Associates, a free association on a voluntary basis of projects and organisations following complementary goals related to the stimulation of the participation of small and medium enterprises from the New Member States of the European Union in the European Union’s IST Programme.
The network aims to synchronise and coordinate activities of its members in order to increase the efficiency of each of its partners’ activities and extend the scope, reach, and impact of the coordinated actions. The network thus contributes to an economical use of available resources; it is especially beneficial to the IST community in terms of targeted networking.
Further information |
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SME Energy: Green Paper on Energy Efficiency
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Because of a changed bahaviour of the consumers and the use of energy efficient technologies the European Union could save until 2020 a fifth of the current energy consumption. With the Green paper around EUR 60 billion could be spent less on Energy. This is from the Green paper, which the European Commission presented last week.
In this book several options are presented, how the saving can be affected exactly. Around half of it could be saved just by the complete realization of existing EU-legal instruments. For the rest there is the need for additional efforts. The Commission proposes for example to promote the production of environment-friendly vehicles or to minimize the losses at the production and transport of electricity by the use of modern technologies by incentives of taxes. Other proposals concern different areas of commercial economy, the service sector, but also private households. The Commission calculates that an average household could save EUR 100 by using energy saving lamps.
Additionally to the financial savings those measures could also be a contribution to decrease the dependence of the EU of fossil sources of energy, as well as reducing the CO2- output concerning the Kyoto-objectives.
Further information |
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European Commission adopts negotiating proposal for services and investment talks with Mediterranean countries
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The European Commission made proposals for talks of liberalisation of services and investments with the Mediterranean countries. The negotiations are a major step to create a Free Trade Area between the EU and the Mediterranean countries.The liberalisation of services and investment will bring considerable economic benefits throughout the Euro-Med zone, and can be part of a wider strategy to boost trade within the region itself.
Further information |
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Position Paper of the Austrian Federal Economic Chamber on “United Kingdom EU-Presidency 2005”
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The Austrian Federal Economic Chamber published the Position Paper concerning the most important demands to the UK-Presidency, which will be marked by the need to counter the feeling of uncertainty and stagnation that has spread among European citizens, especially after the French and the Dutch “NO” to the European Constitution. Other areas which are treated in this paper are the future steps of EU-enlargement, a compromise on the Financial Perspective of the EU for the years 2007 – 2013, the economic, social and environmental policy, the research and development policy, education and training etc.
Further information |
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2006 – European Year of Workers' Mobility
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The European Commission defined the year 2005 as the year of the mobility of employees. The objective is to increase in the public the understanding of the advantages of a job in a foreign country or the change in another type of industry. Brussels puts in total six million Euro at the disposal for such projects. With a part of this money a “mobility conference” will be financed, which will take place in June 2006. Even though the boarders within the European union disappeared, the Europeans remained shy concerning mobility. Only 1,5 % of the European citizenships live abroad – this is as much as 30 years ago.
Further information |
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2005-06-27, Volume 1 of European View published
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The EPP launched the first edition of the “European View”. This Journal of the Forum of European Studies published by the European People's Party is an intellectual platform for politicians, opinion makers, and academics that tackles contemporary themes of European politics. The first issue of this ground-breaking publication is dedicated to "Europe's Economy and the Challenge of Growth", and features José Manuel Barroso, Angela Merkel, Jose Maria Aznar, Jan Figel, Ivan Miklos, Alexander Radwan, Alexander Stubb and Peter Jungen. We congratulate our Co-President Peter Jungen to his contribution “Entrepreneurs in Europe: A Vision of Prosperity” supporting European SMEs.
Further information |
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2005-06-15, Brussels, Working Breakfast “Secure Energy - Shaping the Commission Energy Report 2005
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The SME UNION organized in cooperation with SME Energy a working breakfast to discuss the secured energy supplies of SMEs.
Secure the energy supply in the future
Annette Bergmann, Bundesverband Neuer Energieanbieter (BNE), said that as only 56 % of depreciations are invested in new energy infrastructure, there is no guarantee in secured energy supply for the future. So there is still a big gap between investments in energy infrastructure and depreciation.
Helmut Schmitt von Sydow, Director in DG TREN, European Commission, mentioned some items which have to be discussed: list of competitive components, components of energy price and the power of energy analysis.
Europe has to get more independent…
Paul Storme, Board Member from the European Independent Oil Trading Firms, mentioned that Europe is getting more and more dependent on external energy suppliers. Nowadays it is about 50 % of the energy consumed which is imported, but in a few years it will be around 70 %. The European Union must therefore find a mix of measures to encourage new entrants to come into the market and consequently split the share of the market power. The window of the opportunity of liberalizing the market would only be opened for a limited time.
The “Feed-in” system
Marc Timmer, European Forum for Renewable Energy sources (EUFORES), made a counter-part to the criticism of the “Feed-in” system mainly used in Germany. It is true, that it hinders the free movement, but on the other side, SMEs should be promoted to use alternative energy like biogas etc.
The event was followed by a lively discussion.
Program Secure Energy for SMEs
Factsheet Secure Energy for SMEs
Presentation Annette Bergmann
Speech Paul Storme |
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2005-06-16, Brussels, Working Breakfast on “Finance and SMEs - Basel II, late payments and special SME ratings”
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More than 50 guests, including numerous MEPs and representatives of the European Commission gathered, to discuss the current financial situation of the SMEs with the leading provider of independent credit ratings, Moody’s and Europe’s leader credit management company, Intrum Justitia. The purpose of the event was to examine the consequences of Basel II and the current late payment directive from a practical point of view.
Moderator MEP Alexander Radwan, President of the SME Circle stressed in his introductory speech the importance of such events bringing law makers and high level practitioners together.
Need for new SMEs
David Wright, Director of Internal Market and Services DG explained that the high unemployment rate in the European Union can be reduced by an economic growth which has to be achieved in a way European citizens set up new SMEs. He added that the European Union needs a considerable change in the attitude of risk-taking, to reach the economic growth mentioned.
SMEs are particularly hard hit by late payments
Leif Hallberg, director of Public Affairs of Intrum presented the results of the latest 2005 European Payment Survey, revealing that the existing legal enforcement procedures do not sufficiently meet the needs of combating late payments. He emphasized that payment made on time is a crucial prerequisite for the survival of SMEs.
Ratings can be a useful tool for SMEs
Michel Madelain, Group Managing Director of Moody’s presented the new rating service developed specially for SMEs. He stressed that because SMEs will gain insight into their credit profiles, they can benefit from this assessment in their interaction with counterparties and creditors.
Program Finance & SMEs
Factsheet Finance & SMEs |
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2005-06-21, Brussels, SME UNION General Assembly 2005
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Leitl takes over SME UNION Presidency from Jacques Santer
On Tuesday, 21 June 2005 the current President of Eurochambres and President of the Austrian SME UNION member Wirtschaftsbund, Christoph Leitl was unanimously elected to become the next President of the Small and Medium Entrepreneurs Union of the EPP. Leitl takes over this position from former Commission President Jacques Santer who headed the SME organization for the last 2 years.
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Together with Leitl a strong team of European entrepreneurs, MEPs and conservative politicians were elected to support the work of the SME UNION. German angel investor and Treasurer of the German member organization MIT (Mittelstands- und Wirtschaftsvereinigung der CDU/CSU) Peter Jungen was appointed to become the only Co-President with own portfolio according to the new leadership structure. Jungen will dedicate his work to a strong political coordination within the SME UNION, will concentrate on legislative cooperation with the SME Circle of the EPP-ED Group and will continue to shape the EPP policy towards a more growth-oriented and SME friendly policy.
Former SME UNION President Jacques Santer will continue his work in the organization in the role of Past President. Together with the other Honorary President MEP Ingo Friedrich, Vice-President of the European Parliament and founding father of the SME UNION and the new Honorary Member, the Deputy Minister for Economy and Finance of Greece, Christos Folias, he will advice and oversee the organization from the senior level.
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6 Vice-Presidents were elected to reach out to the SME UNION Member Organizations and the European Parliament. MEP Valdis Dombrovskis, former Finance Minister in Latvia, MEP Malcolm Harbour, coordinator for the EPP-ED Group on the Internal Market and Consumer Protection Committee and MEP Piia-Noora Kauppi, member of the Legal Affairs Committee are the three MEPs guaranteeing the close cooperation with the European Parliament and the SME Circle of the EPP-ED Group. The three Vice-Presidents representing the SME UNION Member Organizations are Jerzy Samborski, President of SME Central and chairman of the Polish member Unicorn, Jean-Michel Ferrand, Member of the French Parliament and SME speaker for the UMP as well as Tomaz Toplak, former President of the Central Bank of the Republic of Slovenia.
New SME UNION Treasurer is the Secretary General of the Austrian member Wirtschaftsbund and Member of the Austrian Parliament Karlheinz Kopf. Together with his two Co-treasurers MEP Christian Ehler and Secretary General of the German member MIT Hans-Dieter Lehnen, they will take care of the financial aspects of the Union.
As Auditors will function for the next two years the President of the Hungarian member KKVE György Bisztray and MEP John Purvis.
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The newly elected President Leitl pointed out in his election speech that he will focus on
• Strengthening the organization in all 25 EU member states and reaching out to the candidate countries. Only through the vital and creative work of SMEs who are the backbone of the European economy, we will find a way out of the current economic crisis and will be able to boost growth.
• “We need a European growth rate of 3% for the next 5 years in order to create 10 million new jobs” stressed the new SME UNION President.
• The SME UNION will fight for better framework conditions for European SMEs. Leitl wants to implement this SME agenda in close cooperation with the SME Circle of the EPP-ED Group in the European Parliament, whose President is the CSU MEP Alexander Radwan.
• We need a strong organization with a strong political commitment to implement our SME agenda in favor of a free market economy and the completion of the European Single market (including the services market with a good Services Directive)
• First we need a stronger political integration of the EU before the next steps of further enlargement can be undertaken.
One day later, 22 June 2005 Christoph Leitl was reelected to the President of the Austrian Federal Economic Chamber for another five years. The SME UNION congratulates him for this reelection.
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2005-06-21, Brussels, EU & China Conference: The Growing Role of Private Business
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More than 160 guests, including Jacques Santer, President of SME UNION, Guan Chengyoung Ambassador of the Chinese Mission to the EU, Christos Folias Deputy Finance Minister of Greece, Christoph Leitl, President of EuroChambres, numerous MEPs and representatives of various Brussels based SME interest groups, gathered at 8.30 in the morning in the Committee of the Regions to discuss the Growing Role of Private Business in China and its impact on SMEs in Europe. The second broad issue, which was in the spotlight of the speakers, was the crucial role of the WTO regarding the economic interplay between the EU and China.
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Fostering the economic interplay and cultural exchange
Jacques Santer emphasized the success story of the 30 years diplomatic relations between the EU and China. The Chinese Ambassador stressed the fact and explained how the Chinese Government is fostering and strengthening the role of private business in China. Christos Folias pointed out that the internal European economic situation is colouring the political relations between the EU and China. Christoph Leitl believes that only a certain amount of trust can ensure a sound economic interplay between the two powers. Xavier Durieu, Secretary General of EuroCommerce, dwelled on the point that Europe has to face the Chinese competition with qualitative advantage instead of protecting its market.
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Europe’s future is not in low-tech textiles
The second panel was composed by the Swedish MEP Gunnar Hökmark, Peter Waumas a Professor at the Shenzen University, Dirk Vantyghem from Eurochambres, Dean Spinanger a Trade Expert from the Kiel Institute for World Economics and Sylvain Plasschaert a Professor at the University of Leuven. They all came to the conclusion that Europe should non waste its energy and efforts in protecting the low-tech textile industry, because this is not going to be the future for Europe.
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Creating a level playing field for European SMEs in China
At the third round experts from different institutions gathered to discuss the opportunities and threats for European SMEs on the Chinese market. Rupert Schlegelmilch represented the Commission, Zhang Xiatong represented the Chinese Mission to the EU, Peter van Beek was displaying the point of view of entrepreneurs, which are engaged with China, Othmar Karas was representing the Delegation for relation with China of the European Parliament, Patrick Itscher was fighting for the interests of the Trade Union Federation – Textiles Clothing and Leather and Ralph Kamphöner represented EuroCommerce. The better part of the speakers saw in China an opportunity rather than a threat. Peter Jungen, the President of the European Enterprise Institute closed the panel sending the message, that Europe should get rid of the rampant risk avoidance mentality, to be more competitive in comparison with China.
The event was followed by a lively discussion.
Program of Press Conference
Program of China Conference |
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2005-06-28, Brussels, Presentation Lunch “Hayek Institute – The Austrian School of Economics”
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The Hayek Institute from Vienna presented itself in the European Parliament. It is a private and politically independent research institute located in Vienna (Austria) and Standford (USA). The interest is to promote the tradition of the “Austrian School of Economics”. To comply with the aim the Institute takes up questions concerning economic and social politics and offers studies and solutions on a scientific basis. |
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Othmar Karas MEP remarked at the introduction that the Free Market still has to be accompanied by social measures. Barbara Kolm-Lamprechter, Secretary General of the Hayek Institute, presented the main topics of the organization, which are tax reforms, education etc. The presentation was followed by a lively discussion, as often the opinions were very different.
Further information |
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2005-06-28, Brussels, Book Presentation „Österreich 2050“
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Many Austrians came to the book presentation of “Österreich 2050” to the SME Union. Gregor Woschnagg, permanent Austrian EU representative in Brussels, said that usually Austrians are looking confidently in the past, that is why he is happy to have young people looking in the future. The chapters reach from education, Europe, security, job market, media, taxes, art and culture, population trends and integration, to democracy and politics. The book encourages to discuss long-term objectives for Austria – objectives, which last longer than one legislative period. But it is not just a “collection” of proposals, it is at the same time criticism of the current political processes and discussions. After the presentation the visitors took the possibility to discuss with the authors about those topics.
If you are interested in this book:
Publisher: Czernin Verlag
Price: EUR 19.80
ISBN: 3-7076-0059-9
Authors: Veit Dengler, Felix Dibelka, Thomas Goiser, Gottfried Haber, Anja Hasenlechner, Paul Hysek, Matthias Koch, Harald Mahrer, Theresa Philippi, Patrick Voller
Further information |
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2005-06-29, Brussels, Working Breakfast on “What SMEs want to REACH”
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MEP Malcolm Harbour - Vice President of the SME UNION – welcomed more than 50 guests, including numerous MEPs, representatives of the European Commission and SMEs, to discuss the Commission draft concerning REACH. The purpose of the event was to examine the consequences of REACH in its current form and which changes are necessary for SMEs.
Risk-assessment has to be the basis for data requirement
MEP Hartmut Nassauer, Rapporteur of REACH, presented practical steps to make REACH less bureaucratic and less costly for SMEs. His proposed systems would require companies to register and test chemicals according to the highest risk they pose to human health and the environment. This runs contrary to the initial Commission proposal, which proposed registration based on the volumes produced or imported.
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REACH cuts profits and hinders R&D
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Roman Moosburger from Bussetti & Co explained the consequences of REACH for SMEs considering as example Bussetti & Co. The enterprise would have to change its working activities; it would not be longer a trading and producing enterprise but a trading enterprise. Andreas Diez, CEO of Byk-Chemie, said that with REACH time to market would become longer and R&D more expensive. Furthermore, SMEs would have a lack of specialists for the reports. Therefore he considered Nassauers’s proposal as the way how the Commission draft could be improved.
Data-sharing only voluntarily
Though SMEs can create consortia to reduce reporting costs, they are forced to lay open sensitive data. For enterprises with standard products this is not a danger, enterprises with unique products run the risk of losing their market position. Therefore data-sharing can only be voluntarily.
Invitation
Report |
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Patentability of Computer-implemented Inventions
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The Parliament's Legal Affairs Committee adopted on 20 June 2005 the draft directive on the patentability of computer-implemented inventions. Most of the major amendments proposed by the rapporteur Michel Rocard and other MEPs, critical to the proposal were rejected.
Issue: Most of the debate has been dealing with the question of whether pure software should be patentable or not. The classical test that has been applied to a patent application has so far been that whether it deals with the forces of nature, which would not be the case with pure software.
Positions: The rapporteur's main objective was to avoid the patentability of pure software. In order to achieve this, he proposed an amendment to change the directive's title to "patentability of computer-aided inventions". In addition, he introduced an amendment saying that the innovation must be of a technical nature: "In particular, the technical contribution must be novel and not obvious to a person skilled in the art." The Legal Affairs committee rejected both amendments, but it adopted an alternative amendment defining the scope as "computer-controlled inventions".
UEAPME-Secretary General Hans-Werner Müller was in the first reaction disappointed about the result, as, in case that the plenary will join this opinion, it will have negative effects on small and medium sized enterprises.
The ongoing argument over patents in the software industry has exposed a conflict of interest between SMEs on the one hand and larger companies on the other. Big business would like to patents both on physical inventions that use software and pure software. Most anti-patent groups accept that the former should be patentable, while they say the latter shouldn’t. SMEs, who make up the majority of the industry, oppose the idea of patents on pure software but for some big businesses they are a lucrative proposition. A Council common position on the controversial directive – patentability of computer implemented inventions – was adopted in March this year, and it will be passed for a vote in a plenary session of the European Parliament at the beginning of July.
Latest & next steps
In its last session before the summer break, which will last from 4 - 7 July, the Parliament's plenary will vote on the report adopted by the Legal Affairs Committee.
Further information |
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Commissioner Verheugen launches legislative simplification process
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Commissioner Günter Verheugen proposes a fast and substantial simplification of the EU-regulations. Verheugen started a legislative initiative to make the EU-regulations more transparent and easier to understand. Now the process is in the pipeline and Verheugen is attending the response of the Member States.
List of Council Priorities
Better regulation |
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Committee of Economic and Financial Affairs has adopted MEP Zsolt Becsey’s report
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The ECON Committee of the European Parliament has unanimously adopted Zsolt Becsey’s (EPP-FIDESZ), member of the SME Circle, report on the introduction of the one-stop-shop scheme (OSS) and welcomed the decision with applause on 21 June 2005.
As it was emphasized by the only Hungarian member of the ECON Committee, the new system shall bring indispensable advantages for SMEs. The proposal of the EP backed up by Becsey reflects the so-called OSS scheme. According to this, those in economic life have to meet their engagements, that is their VAT-registration obligation only in their own country instead of being forced to do so in all 25 member states. This contributes to the reduction of administration costs. The OSS scheme – among other things – speeds up VAT-administration (payment or refund) carried out it another member state.
The Hungarian member of the SME Circle recommended that in the first three years of the SME, the limit of the subjective tax exemption should be a minimum of € 50 thousand and a maximum of € 100 thousand, and it cannot exceed € 100 thousand later as well. Of course, the subjective tax exemption is optional for the SMEs.
Further information: zbecsey@europarl.eu.int
Report |
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Internal Market Committee debates report on the services directive
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The long awaited draft report by Evelyne Gebhardt (PES, Germany) on services in the internal market was presented in full to Parliament's Committee on the Internal Market and Consumer Protection on 24 May 2005. The aim is to clarify the concepts of country of origin and mutual recognition, to explain better the special nature of services of general interest (SGI) and to emphasis the right of the Member State where the services are provided to carry out controls (the principle of control by the host country).
Furthermore Gebhardt says in her report that administrative procedures at one-stop shops should be kept to a minimum and be purely formal in nature make the establishment of service provider less bureaucratic and faster. At the same time, the one-stop shop should give additional guarantees of the right of the host state to carry out controls (in the Commission proposal, the country of origin had the right and duty to control services supplied abroad by its own nationals).
There is another significant change. The Commission has established a list of national practices which it says hinder the free movement of services and which it says should be banned. Evelyne Gebhardt wishes to remove some measures from this list, as she believes there are rules which are seen by the Commission as barriers to the freedom to provide services whereas they are in fact part of a coherent body of legislation in the Member States. Banning them would be harmful to social cohesion, she believes.
MEP Malcolm Harbour (EPP-ED shadow rapporteur and SME Circle member) said this report would not improve growth and employment.
The leading Committee for the Internal Market will vote on the Services directive in September. The first reading in the European Parliament will be held in October or December. The so-called 'Bolkestein Directive' on Services in the Internal Market was presented by the Prodi Commission in January 2004 as one of the key elements of the Lisbon reforms agenda. Critics of the proposal attacked it for leading to 'social dumping'. The SME UNION published in cooperation with other institutions a factsheet concerning this topic.
Factsheet Draft report |
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SMEs and the 7th Framework Research Programme
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A specific SME The paper has been composed on 9 June 2005 by a SME Circle workshop chaired by MEP Ehler. It was drafted with the intention to submit it to MEP Buzek (EPP-ED) as the responsible EP-rapporteur.
The Position Paper of the SME Circle Workshop on the 7th Framework Programme on Research welcomes the view of the Commission on SME as the backbone of the European economy. Further it requests that the increase of the estimated financial means for the Framework Programme is reflected more strongly than up to now in the SME-specific measures and that the implementation of the goal – 15 percent of the financial means in the thematic priorities for SMEs– is secured by an efficient monitoring mechanism. The SME Circle calls for a better access of SMEs to public private partnership projects within the 7th FRP and requests that there should be an integration in the governance and the monitoring of this programme. From that point of view the SME Circle wishes a specific role for the SME Envoy as an interface considering the specific needs of SMEs in the programme. Further the SME Circle demands for an evaluation report pointing out the research areas in which a European SME funding has proved to be reasonable and recommends, that more flexibility should be given in the Member States in such areas, in which European SME funding is effective. The SME Circle considers it necessary that within the thematic priorities the terms of admission for SME are created in a way to make them more attractive to SMEs, by fostering small projects with a limited number of partners and a flexible use of instruments according to the needs of SMEs.
Further information: wahlkreisbuero@christian-ehler.de
The Commission has launched a consultation on simplification within the Seventh Framework Programme. Interested parties have until 31 August 2005 to submit their comments.
Position Paper
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Special case “Directive on optical radiation” from the committee of employment
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The directive on optical radiation is now in its second reading in the committee of employment and contains extensive duties for employers. Due to the fact that the employers have to fulfil duties like riskmanagment and documentation if their employees are working in the sunlight, this directive causes a heavy burden for SMEs. This directive will be passed for a vote in a plenary session of the European Parliament at September, after a voting of the committee of employment in July.
Further information: tlinnemann@europarl.eu.int
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Doha Development Agenda: Summary of the EU’s revised services offer
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The European Commission has transmitted to the WTO the EU’s revised services offer in the Doha Development Agenda (DDA) negotiations. The revised offer outlines how the EU is prepared to further open access to its services market in exchange for improved access to other WTO Members’ markets. While ambitious in scope and responding in many ways to requests for access from developing countries the EU’s offer safeguards public services such as education, health and audio-visual services.
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Council agrees to move forward on REACH
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During the Competitiveness Council on 6 June 2005, Ministers agreed that the EU should move forward and make the necessary political decisions to make REACH a reality.
Chair of the meeting, Jeannot Krecké, said that with 50 impact studies the majority of the Ministers agreed that time had come for the Council to conclude the issue. Such a conclusion is expected during the British presidency commencing on 1 July.
Consequently, the Council emphasised its purpose to advance the REACH proposal with a view to reaching a political agreement following the assent of the European Parliament. Krecké said this agreement should fully take account of the impact that the new legislation will have on SMEs, on the producers/importers of low-volume substances and on the competitiveness of European industry. However, Sweden and Estonia expressed concerns about the ease at which SMEs would be able to communicate with the European Chemicals Agency.
In the European Parliament there is a busy schedule of REACH activities. The Industry Committee (ITRE) will consider amendments 21 June while it will vote on 13 July 2005. The Parliament’s plenary vote is due to take place during the second October plenary. The SME UNION organized a Working Breakfast to this topic giving the possibility that MEPs and representatives of SMEs could exchange their ideas (see latest events).
The European Commission launched a Webpage, which encompasses advocacies how to cope with chemicals at the workshop following the European decree REACH. This constitutes a further attempt made by the Commission to display REACH in a more efficient way to the public.
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European SME Charta Update
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The European SME Charta Conference took place on 15 – 16 June 2005 in Luxemburg. The prior items which have been matter of the conference, were education and as well the topic regulation of the insolvency legislation. It was followed by a discussion on the aftermaths of this new draft tackling the insolvency legislation. These are pivotal issues for small and medium enterprises.
Further information |
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German SME Circle PKM meets EU SME Circle
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At the end of April the PKM (Parlamentskreis Mittelstand) held a Board Meeting with the counterpart in Brussels, the SME Circle of the EPP, in the European Parliament. Alexander Radwan MEP, President of SME Circle, attended this meeting. The core topics were the intensification of the cooperation and an improvement of the exchange of information between Brussels and Berlin, to be able to react earlier in the future vis-à-vis developments on European level. Other topics treated at this meeting were EU Constitution, Services directive, the REACH proposal, the EU-anti discrimination regulation and then realization of Basel II at European level.
Factsheet PKM |
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Commission asks business in online consultation: Your opinion counts!
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Reducing overregulation and bureaucracy contributes to growth and jobs
As a next concrete step to deliver on its promise, the European Commission has now launched a public on-line consultation to ask business how they feel the business environment in the EU can be improved and administrative burden can be reduced. Through an online questionnaire, the Commission asks companies and other interested parties to identify particularly burdensome rules and make suggestions as to how best to simplify them. The consultation is open from 1 June 2005 via the Commission's " Your Voice in Europe ". The information gathered will be compiled and examined in the Commission’s “Red Tape Observatory” and the responsible Commission services.
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Progress Report on Entrepreneurship Action Plan
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DG Enterprise has published its progress report on Phase I key actions of the Entrepreneurship Action Plan, launched in February 2004. Among the 38 sub-actions to be carried out, around one quarter has been completed, including the good practice booklet “helping to create an entrepreneurial culture”; the creation of the Women’s entrepreneurship portal; Commission conferences on Basel II or the Commission proposal for a VAT One-Stop-Shop System.
Also, the 2005 Implementation Report on the European Charter for Small Enterprises in the Member States contains a detailed assessment on entrepreneurship education policy and on bankruptcy laws in EU25.
According to DG Enterprise, the remaining sub-actions will be finalised within the next 12 months. Phase II key actions of the Action Plan is currently being prepared for launch in 2006.
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| Newsletter June/July 2005 |
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