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SME UNION
Newsletter March 2006
Upcoming Events
Service and Information
Latest Events
SME Lex
Dear Members of the SME UNION, dear friends of SMEs!
All roads lead to Rome – according to this well-known proverb this city is, besides Brussels, in the centre of this month’s SME UNION events. At the end of March we are celebrating our 10th anniversary and 30 years of SME policy within the EPP looking back on many challenges and achievements concerning the encouragement and realization of SME needs. In the framework of the EPP congress we are pleased celebrating together with high-ranking politicians e.g. Commission President José Manuel Barroso, President of the European Council Wolfgang Schüssel or the Italian Prime Minister Silvio Berlusconi. Therefore we can assume great discussion opportunities, knowledge and experience exchanges.

Asides Rome, we are awaiting the results of this year’s European Spring Council which is going to take place in Brussels 23rd and 24th March. For SMEs, being in the centre of the Austrian presidency program, the Spring Council is an important moment regarding our future challenges and possibilities. The SME UNION will present just in time its Spring Council paper called “10 Million New Jobs Until 2010 (10m+)” demanding from the Member States, Commission and European Parliament to support and initiate concrete actions with tangible targets in order to give the necessary boost and so urgently needed jobs to our economy.

The February vote of the European Parliament on the Services Directive is a first step forward into the right direction for European businesses, SMEs and consumers benefiting from better and more liberal regulations concerning the EU services market. It provides economic growth and employment within less bureaucracy – essential issues driving Europe on to greater competitiveness and development. The vote of the Parliament has to be respected and shall now unblock the debate in the Council.

Aiming at this goal, the recently announced plan of the Commission to establish a European Institute of Technology (EIT) for excellence in innovation, research and education is in line with supporting a better European starting position. Thus, let’s continue working together effectively. Please find more about these issues in this newsletter. We are looking forward to seeing you in Rome and at our next events.
Upcoming Events top
2006-03-16, Strasbourg, SME Intergroup Meeting
The next SME Intergroup Meeting on March, 16 will deal with the current Austrian Presidency and SMEs, being in the centre of the Presidency’s program. Experts from the Austrian Presidency and the Commission will discuss the prevailing actions and future activities with the SME Intergroup MEPs.

Further information:
Beate Reisinger: okaras@europarl.eu.int
2006-03-20, Brussels, Discussion on European Social Model
To talk about basic principles and reforms of the European Social Model the Hanns-Seidel foundation, the Konrad-Adenauer foundation, the Fondation pour l´innovation politique and the CDA Wetenschappelijk Instituut are inviting to a discussion on the topic ”The European Social Model – Strength through variety”. The event is taking place between 12.00 and 17.00h in the Permanent Representation of Baden-Württemberg.

Programme
2006-03-21, Brussels, SME UNION Working Breakfast on European Private Company
On March, 21 the SME UNION, the SME Circle of the EPP-ED and VDMA will discuss the role of European Private Companies together with speakers from the Commission and various associations. The event, taking place in the European Parliament between 8.00 and 9.30h will analyse the legal framework of European Private Companies are a new vehicle for SMEs.

Invitation
VDMA Position Paper
2006-03-22, Brussels, SME UNION Working Breakfast on the Spring Council
March is an important month for SMEs. The Spring Council under the Austrian Presidency will deal with key issues concerning future possibilities and challenges. Therefore the discussion of the Working Breakfast organised by the SME UNION, the SME Circle and UEAPME is about “Getting Ready for the Spring Council. - What’s in for SMEs?”. It will take place in the European Parliament from 8.00 to 9.15h.

Invitation
2006-03-25, Munich, Assembly of SME Union Bavaria
The SME Union Bavaria, Mittelstandsunion of the CSU, is inviting for its Assembly in Munich on March, 25 at 10.00h. Erwin Huber, Bavarian Minister for Economy will present the keynote speech on “New ways for SME`s - the Bavarian economic policy in times of the CDU/CSU-SPD coalition”. The event will be hold in German.

Further information
2006-03-28, Brussels, Conference on "Insolvency and Fresh Start after Business Failure"
The European Commissions DG for Enterprise and Industry is organising a conference on Insolvency and Fresh Start after Business Failure. It will focus on ways of preventing bankruptcy, tackling the stigma attached to business failure and promoting a fresh start subsequent to failure. The speeches are planned to include statements from members of the Commission, World Bank, United Nations as well as experiences of a bankrupt entrepreneur and several European initiatives.

Further information
2006-03-29, Vienna, Changes in Chemicals as Challenge and Chance
To inform the interested public at national and international level on ongoing developments regarding chemicals policy the Austrian presidency of the EU is hosting a conference on “REACH and the globally harmonised system of classification and labelling of chemicals (GHS) – Changes in chemicals as challenge and chance”. Representatives from the European Parliament, European Commission, Member States Authorities, Industry and NGOs will present different views and key issues to discuss.

Programme
2006-03-29/31, Rome, SME UNION 10th Anniversary Events
All roads lead to Rome! At 29 and 30 of March our organisation will celebrate its 10th Anniversary in the framework of the 30th Anniversary Congress of the EPP and in combination with the EPP-ED study days. This means that all EPP-ED Members of the European Parliament will be there as well as more than 20 heads of State and Government already announced there coming.

Our SME UNION events will take place on WEDNESDAY, 29 March. From 14.45 - ca. 17.00h we will visit the Sistine Chapel in the Vatican, followed by the SME UNION 10th Anniversary Dinner Reception at 20.30h at Ristorante Pierluigi.
On THURSDAY, 30 March from 8.30-12.30h SME UNION and SME Circle are organising an excursion to Tivoli, the flourishing area for marble processing SMEs. We will visit marble processing enterprises and the Confartigianato headquarters, the biggest Italian Crafts Organisation. The trip will be followed by our Lunch Reception in Hotel Hilton Cavalieri at 12.30-13.30h. From 13.30-15.30h the highlight, our SME UNION 10th Anniversary Political Bureau Meeting will take place in Hotel Hilton Cavalieri. During our Political Bureau Meeting we will officially celebrate our 10 Years Jubilee and will present our Anniversary publication. We will give away the "Political Entrepreneurship Awards" in connection with the foundation of our organisation. At 15.30h the official SME UNION 10th Anniversary events end, but the 30th Anniversary EPP Congress starts and will last until Friday 31.3. 17.00h. You should not miss it!

Further information: sme@sme-union.org

Invitation Dinner Reception
Invitation Anniversary Political Bureau
Invitation Sistine Chapel
Further information EPP Congress
2006-04-04, Brussels, Final Networking Conference BOSS
Eurosportello Veneto and UEAPME are presenting the results of the European Commission project Business Opportunities and Services for Small-micro companies (BOSS) within the scope of their Final Networking Conference. The leading question is whether EU enlargement will be a threat or an opportunity for SMEs. The project was designed to assist areas bordering candidate countries in the new economic and social situation. Therefore the development of cross-border activities of SMEs including possible difficulties will be a main agenda item.

Further information
2006-04-24, Prague, Foundation Conference of SME Union of ODS
In the framework of the foundation of the SME Union of ODS Czech Republic in cooperation with the SME UNION of the EPP we invite to a national conference on “Today’s Obstacles to SMEs Development in the Czech Republic”. Various speakers from different institutions and business companies will discuss the agenda concerning the perspectives for Czech SMEs, friendly SME environment, technologies, research and improved access.
2006-05-29/30, Wroclaw, SME UNION General Assembly and Conference
This year, the SME UNION shall hold its General Assembly 2006 on 29 May in Wroclaw, Poland, one of the main Polish cities with a great airport. The events will take place in the beautiful and historic town hall of Wroclaw (Breslau). The proposed programme is as follows: Monday 29.5. 14.30-16.00h Presidency, 16.30-18.30h SME UNION General Assembly, followed by a Dinner Reception at 20.00h. At the same time the International Business Development Forum “FUTURALLIA 2006” will start in Wroclaw.

Further information Futurallia
2006-05-30, Wroclaw, Conference on “Building Europe from the bottom”
On May, 30th the UNICORN SME Union Poland in cooperation with the SME UNION of the EPP is organising a Conference on “Building Europe from the bottom. Bringing together SMEs with local and regional governments”. Speakers from various European countries will give their remarks on the situation of SMEs and local government between 09.00 and 14.00. Danuta Hübner, Commissioner for Regional Policy already confirmed her participation.

Further information:
jerzysamborski@unicorn-sme.org
2006-06-13/14, Vienna, Conference on the European Charter for Small Enterprises
The European Charter for Small Enterprises is the topic of a Conference, planned by the Austrian Presidency and the European Commission in June to exchange experiences in small business policy. Especially three priority areas were selected for the Charter exercise and will be dealt in workshops and speeches: the Single Market, business support and also successful e-business models.

Programme
2006-10-31, Cardiff, Conference on International Entrepreneurship
The Institute for Small Business & Entrepreneurship is organising its 29th Conference from October, 31 till November, 2 in Cardiff, Wales. This years topic for presentation and discussion is: “International entrepreneurship – from local to global enterprise creation and development”.

Further information
Service and Information top
Better regulation with help of expert advice
In order to improve and simplify the general regulatory policy for enterprises, industry, consumers, social partners and citizens at large, the European Commission has set up a new advising expert group. As an interface between Commission and key governmental authorities at the Member State level it is supposed to facilitate the Commissions` strategies and the development of better regulation measures at both national and EU level. Therefore, the group is composed of national professionals appointed by the Commission, acting on proposals from the Member States.

Further information
SME UNION congratulates Michael Fuchs becoming chairman of the German SME Circle PKM
Economic expert Michael Fuchs, Member of the Bundestag, has been elected new chairman of the CDU/CSU parliamentary Circle for medium-sized businesses by the circle members in February. The SME UNION supports his ambitions to disburden the SMEs in Germany and looks forward to a good cooperation with the German PKM SME Circle.

Further information
European Globalisation Fund (EGF)
On March 1, the European Commission presented the new European Globalisation Fund (EGF) for the financial periode 2007-2013, a regulation, which is seen to absorb adverse effects of changing trade patterns on workers associated with globalisation. It is supposed to be a sign of solidarity by providing one-off, time limited individual support and re-entering help to those who have to experience the negative consequences of globalisation through job losses. The measures, including job search assistance, wage allowances, personalised retraining, promoting entrepreneurship or assisting self employment are designed to support workers laid off by multinational or national companies including SMEs in all Member States. The annual EGF will provide up to 500 million Euro by benefiting up to 50.000 workers for a maximum duration of 18 months. The EU Member States have to apply for funding, which, in the Commissions objective, will be operational from January 1, 2007.

Further information
Flagship for excellence in higher education, research and innovation
In order to promote Europe`s competitiveness and to emphasize on high quality, the European Commission argues for setting up a European Institute of Technology (EIT). By linking talented students, researchers, staff and leading businesses worldwide, the EIT is seen to strengthen research, education and technology as pronounced by leading Commissioners on February, 22. With the help of SMEs, the collaboration will also provide several commercial opportunities. From now on, the decision on the project is up to the European Council. SME UNION President Leitl underlined that the EIT has to help to translate R&D results into commercial opportunities with the help of SMEs and should assist to counteract the fragmentation of the EU’s research and higher education system.

Further information
Press release
Job search without boarders - New website online
In the context of the current European Year of Workers` Mobility the Commission presented the new website “Job search” containing about one million job opportunities in 28 European countries. The EURES website will provide all European citizens direct access to all the job vacancies published by the public employment services. Whit it, the portal is a first step to promote the advantages and the necessity of mobility throughout the EU. Several projects, events and campaigns will follow during the theme year which was opened officially with a conference in February.

Further information
EURES Website
New handbook on B2B e-markets published
eMarket Service, the internet portal on B2B e-marketplaces co-funded by the DG Enterprise and Industry of the European Commission, has published a new handbook to provide support and information for SMEs. Entitled “E-markets and online directories – a handbook for small businesses” it describes the different kinds of e-markets, their potential benefits and risks and how to participate effectively in them from a buyer’s or a seller’s perspective.

Further information
High level group on Energy, Environment and Competitiveness
The European Commission has launched a new High Level Group on Competitiveness, Energy and the Environment for promoting the coordination between policy and legislative initiatives and creating a more stable and predictable regulatory framework. The improvement of the growth potential of basic and intermediate product industries by strengthening the connection between industrial, energy and environmental policies is a main intention of the new built group. As a part of the EU`s partnership for growth and jobs, the expert group consists of Commissioners for Enterprise and Industry, Competition, Energy and Environment, Ministers, Members of the European Parliament and stakeholders being familiar with diverse topics, including Günter Verheugen, Vice-president and Commissioner for Enterprise and Industry, Martin Bartenstein, Austrian Minister for Economic and Labour, the German Minister for Economic Affairs and Technology Michael Glos and Alan Johnson (UK), Secretary of State for Trade and Industry.

Further information
Commission report on free movement of workers since 2004 enlargement
The report on the impact of the last EU enlargement concerning workers` mobility published by the Commission in February mostly pointed out positive effects of labour flows from the new to the prior Member States. Workers` free movement from the EU Member States in Central and Eastern Europe helped to relieve market shortages, contributed to a better integration into the labour market and pushed forward the economic performance in Europe, the report says. Therefore countries having not applied restrictions after May 2004 have experienced a higher economic growth, a drop of unemployment and a rise of employment. In general, the flow of workers from Central and Eastern Europe was lower than expected and did not bring along a surge in either numbers of workers or welfare expenditure following the enlargement. The report also indicates that national restrictions have had little direct effect on controlling workers`movement. Till the end of April the Member States have to decide whether to lift this restrictions.

Further information
Corporate Governance: Publication on the "comply or explain" principle
The European Corporate Governance Forum, which examines best practices in Member States in the field of corporate governance, has issued, besides its annual report, a public statement clarifying the “comply or explain” principle. The principle is seen as a centr al element of the European code-based approach to corporate governance by obliging companies to justify any deviation from corporate governance codes. Market regulation is more flexible and effective within this framework. Therefore common understanding of the principle’s scope and the conditions for more effective work which are now promoted by the Forum are very important. In its report about future activities, the Forum stated to continue the work on the role and rights of shareholders.

Further information
European Parliament: Member States have to open up their labour markets
The European Parliament approved an own-initiative report on the effects of globalisation on the Internal Market, drafted by the Hungarian MEP Edit Herczog in February. MEPs asked the old Member States which are still maintaining restrictions to open up their labour markets for citizens from the new Member States. The opening is seen as a bold step to complete a more flexible internal market, which is necessary for solving problems in areas such as economic growth, labour market performance, research and innovation and therefore an adjustment to the global changes. Negative effects arising from globalisation have to be cushioned while positive effects must be taken in advantage the MEPs emphasised. Important are better research and knowledge as well as SME access to innovation and investment.

Further information
Verheugen: Implementation of modern SME politics
Attending a conference on the “Implementation of modern SME politics” at the end of February, Günter Verheugen, Commission Vice-President and Commissioner for Enterprise and Industry, underlined main problem areas concerning European SME politics. Improvement of the business climate, general governmental framework regulation by Home State Taxation, reduction of bureaucracy and support of research and innovation are the key aspects to be focused on. Verheugen asked the Austrian Presidency to promote advancements during the Spring Council.

Further information
SMEs in the centre of governmental strategies in Germany
The German governmental coalition of CDU/CSU and SPD has argued for active politics in economy and technology by placing emphasis on the innovative small and medium-sized businesses which will gain support from the future investment program of the government amounting to 25 billion EUR. Rising research and innovation undoubtedly necessary for competitiveness can be achieved by a triangle of economy, science and government, the German minister for enterprise and technology Michael Glos pointed out. Therefore the innovative attendance of SMEs has to increase by creating equal financial chances and tax frameworks and by improving the clime for investment and consume during the next years.

Further information
State aid: Commission proposes to rise “De minimis” regulation
According to a proposal of the European Commission, the ceiling of the current “De minimis” Regulation should be rise from 100.000 EUR to 150.000 EUR. With this, more small subsidies will be exempt from the notification obligation under EC Treaty state aid rules lifting the requirement of prior notification to the Commission. The approach is part of the State Aid Action Plan, an initiative designed to simplify the state aid rules and refine the economic analysis of subsidies. The planned increase is supplemented by a number of safeguards seen to prevent abusive use of the provisions. Also further measures to simplify, consolidate an expand the current block exemptions are included providing the Member States more flexibility. Therewith particularly SMEs are seen to be supported and will benefit.

Further information
New edition of "European business - facts and figures"
The Statistical Office of the European Community Eurostat has published a new edition of “European business – facts and figures” including a comprehensive picture of the structure, development and characteristics of European business and its different activities in various sectors of economy. At the same time a new section on the Eurostat website dedicated to European Business has been installed which provides access to a selection publications, data and background information.

Publication
Eurostat Business Section
Euro Guide for SMEs in the new Member States
The guide “Fit for the Euro – A guide for small & medium-sized enterprises” which was first published in 2005 is now also available in all languages of the new Member States. It was arranged by the European Commissions DG Enterprise and Industry to help SMEs prepare for the introduction of the Euro.

Further information
Tax revenue at 40.7 % in 2004
As published by Eurostat in February, the tax revenue in the EU25 stood at 40.7 % of GDP and on 41.1 % in the euro-zone in 2004. Among the Member States, there were substantial differences in the structure of taxation and in the tax-to-GDP ratio: the highest tax to GDP ratio was recorded in Sweden with 51.2 % whilst the lowest ratio was observed in Lithuania with 28.7 %. Compared to 2003 the tax revenue rose in fourteen States, fell in ten and remained stable in Sweden.

Further information
Latest Events top
2006-02-21, Brussels, Discussion on Member States in the Balkan Area
In cooperation with „Europatage 2006“ – a project to communicate the idea of the European Union in its Member States – the SME UNION organised a discussion on “The Future of South-Eastern Europe: Reflection during the Austrian Presidency”. Speeches and introductions to the topic were given by Erhard Busek, Co-Ordinator of the Stability Pact for South Eastern Europe, Karlheinz Kopf, member of SME UNION Presidency and Austrian MP, Patrick Voller, SME UNION Secretary General and Josef Mantl, head of “Europatage 2006” project. Busek gave a lecture on the problems and progresses of the new and the future Member States of the European Union in the Balkan Area. The attendants used the opportunity for a lively discussion.

Programme
2006-03-07, Brussels, "At the heart of Lisbon: Supporting innovative SMEs"
To discuss the importance of innovation for SMEs, the SME UNION organised together with Microsoft and EPRI-start a conference on “At the heart of Lisbon: Supporting Innovative SMEs” in the European Parliament. It provided an overview on innovative information and communication technologies (ICT) SMEs are facing in Europe. The project EPRI-start was introduced by different participants in the field, illustrating their individual point of view and own experiences. The meeting was chaired and opened by MEP Othmar Karas who pointed out the main exigencies for SMEs: access to financial research, the use of new ICT technologies and reduction of bureaucracy. Afterwards, Peter Jungen, Co-President of the SME UNION, spoke about the necessity of supporting innovative SMEs mentioning arising difficulties e.g. the lack of financing innovation and the multitude of business-starting regulations. Therefore he demanded a better collaboration between politicians and entrepreneurs.
Then the focus turned on the EPRI-start project, a initiative funded by the European Commission and Microsoft’s European Grants Advisor Program (EUGA) launched to help SMEs using structural EU funds in the key areas of IST research effectively. EUGA was represented by Wilfried Grommen, Microsoft General Manager for Business Strategy who presented how politics can be changed into practice. The three helping steps of the European Grants Advisor are to create awareness, supporting the application process and to provide financial solutions. Marco Langhof, Project Coordinator EPRI-start presented the project’s goals and obstacles. In the last part of the meeting Rafael Malo de Molina, Quota Research, Spain and Witold Holubowicz, Professor at University of Poznan represented Member State activations followed by a discussion.

Further information
Programme
Presentation Quota Research
Presentation Epri Start
SME Lex top
Directive on workers protection from optical radiation
In the third reading in February, the European Parliament and the Council approved the EU directive designed to protect workers from exposure to artificial sources of optical radiation. It lays down minimum standards for the prevention and early diagnosis of health dangers and sets exposure limit values. By emphasizing only artifical sources of optical radiation, natural sources as the sun were excluded, which makes the often used name “sunshine directive” inappropriate. The decision is a great success for the SME UNION and the SME Circle of the EPP-ED Group by being a good example for SME lobbying limiting the scope of the directive to arificial optical radiation.

Further information
Services Directive: benefits to European economy
After the February vote of the European Parliament on the Services Directive Malcolm Harbour, Vice-President of the SME UNION and MEP, gave a briefing on the vote outcome on March 7. He outlined further steps to be taken regarding the Directive which is expected to implicate various benefits for the European economy.

The next steps will be:

4th April 2006: Revised proposal by the European Commission
20th-21st April 2006: Informal discussions by responsible Ministers
June 2006: Possible political agreement among Member States
Autumn 2006: Second reading by the European Parliament
2007: Inter-institutional agreement and adoption

Presentation Harbour
Press release February
Press release March
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