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SME UNION
Newsletter January/February 2007
Foreword
Upcoming Events
Service & Info
Latest Events
SME Lex
Foreword top
Dear Members of the SME UNION, dear friends of SMEs!
The SME UNION looks back at a very successful year 2006. Many of our key demands have been met. The increase of the de-minimis-limit for national funding to 200.000 EUR was a special success for small and medium-sized enterprises.

Verheugen joins SME fight against red tape

During my meeting with EU Commissioner Verheugen on 29 January he pointed out that the SME initiatives of the European Commission, which will be the main focus of the European Spring Council in March, have to be supported by the Member States and public awareness has to be risen. "Do not leave this important issue to the administrative apparatus. We need politicians who drive this issue forward", summarized the Commission Vice-President. As European political small business organization we guaranteed our full support. As regards the fight against bureaucratic obstacles for SMEs, the SME UNION urged Commissioner Verheugen to disseminate and communicate national best practice examples of cutting red tape and handed over some concrete examples. Further issues I could discuss with SME Commissioner Verheugen were the challenges for SMEs in the light of the new European energy initiative and the future of a European Constitution.

Meeting with new EPP-ED President Daul

In the name of the SME UNION we could congratulate MEP Joseph Daul for his election as President of the EPP-ED Group in the European Parliament. With him we could discuss our SME agenda and he promised his full support for the SME Circle of the EPP-ED Group and our work.

SME UNION working year kick-offs in Spain and Hungary

With the newly created SME Union Spain and Partido Popular we could organize an international conference on "Opportunities for SMEs & Family Enterprises from La Rioja in the EU" in Logrono. Our traditional January international SME Union Hungary conference in Budapest was a big success this year discussing "SME Micro-Financing, Better Regulation & Integration of Hungarian SMEs".

We wish all of you a good start into the working year 2007. The SME UNION Topic of the Year 2007 will be “Less and Better Regulation for European SMEs”. Please support us in this important issue and find more information about all our latest events and SME services in our current Newsletter. We wish you a joyful reading and look forward to seeing you at our next events.
Upcoming Events top
2007-02-27, Brussels, SME Working Breakfast on Roaming
The SME UNION in cooperation with SME Global organizes a Working Breakfast, 8.00-9.30h in the European Parliament with EP Roaming Rapporteur MEP Paul Ruebig, business representatives and EU Telecom experts.

Invitation
2007-03-27, Brussels, Conference on Challenges Facing SMEs in the New Accession States
The SME UNION of the EPP and ACCA, the Association of Chartered Certified Accountants, cordially invite you to a Conference dealing with the problems and challenges SMEs are facing in the new accession states. The conference will take place on Tuesday, 27 March 2007 from 10:00 to 12:30h, in the Renaissance Hotel Brussels. The three panels deal with SME growth finance, less and better regulation and access to EU funding.

Draft Programme
Service & Info top
SME President Leitl discusses fight against red tape with Commissioner Verheugen
„The SME UNION fully supports the Better Regulation initiative of the European Commission”, emphasized President Leitl when meeting EU Commission Vice-President Verheugen on 29 January. The Commission wants to cut the red tape burden by 25 percent by 2012. This could lead to an increase of European GDP of 1.5 percent, according to Commission estimates. „The time is ripe to act. Now the Commission has to walk the talk”, said Mr Leitl. He demands to cut the administrative burden by 25 percent until 2010. „This would really boost growth and innovation in Europe.” President Leitl brought Comission Vice-President Verheugen a piggybank to Brussels which symbolizes the money European business could save and invest if red tape was reduced substantially. The SME UNION asks the Commission to disseminate and communicate national best practice examples of cutting red tape stating concrete examples. President Leitl handed over the SME UNION focus of its 10m+ (10 Million New Jobs until 2010) implementation program for 2007 including the points of reduction of administrative burden, Commission support versus national “gold plating”, increase of the de minimis limit to 300.000 EUR and an ERASMUS program for entrepreneurs. The talk ended by discussing the future of the European Constitution and the possibility of a Europe of different speeds, a topic which both of the gentlemen agreed to be a very interesting model to be looked at further.

Press Release SME UNION
Focus 2007: 10m+ "10 million more jobs until 2010"
President Leitl meets newly elected EPP-ED President Joseph Daul
Joseph Daul was announced newly elected leader of the European People's Party - European Democrats (EPP-ED) Group, replacing Hans-Gert Pöttering with a victory of 134 votes against 115 for his closest rival, Gunnar Hokmark, with nine blank votes. “I congratulate Mr Daul to his election as President of the EPP-ED-Group in the European Parliament. I hope that he will strongly support our fight to get all the obstacles out of the way of small and medium-sized enterprises (SMEs) to enable them to unfold all their powers”, SME UNION President Christoph Leitl said meeting Joseph Daul, and of January in Brussels. President Daul promised continuous support for SME issues within the EPP-ED Group and especially through the SME Circle of the Group. Daul himself is entrepreneur and even more so a big supporter of the Lisbon Agenda.

Press Release
SME UNION President Leitl meets SME Envoy Francoise Le Bail
In January 2007 President Leitl met SME Envoy Francoise Le Bail. The European Commission special SME Envoy used this opportunity to thank for the invitation to the SME UNION Conference on Micro Enterprises that took place in December 2006 where she could play a major role. She emphasized the success of strategic aid that has already been achieved since this event. Nonetheless, political support must be held up to develop further awareness. An important point of the talks were the mid-term reviews on SME policy. Le Bail pointed out the importance of renewing the business networks of EICs and IRCs asking for the support of President Leitl. The SME UNION President thanked for the great cooperation with DG Enterprise and reported from his meeting with Commissioner Verheugen. At the end of the talk both Le Bail and Leitl agreed to further promote the Erasmus programme for entrepreneurs which is seen as a very good chance for promoting the entrepreneurial spirit in Europe.
New EU Energy and Climate Change Package
On 10 January 2007 the European Commission proposed a comprehensive package of measures to establish a new Energy Policy for Europe to combat climate change and boost the EU’s energy security and competitiveness. The package of proposals set a series of ambitious targets on greenhouse gas emissions and renewable energy and aim to create a true internal market for energy and strengthen effective regulation. The Commission believes that when an international agreement is reached on the post-2012 framework this should lead to a 30 percent cut in emissions from developed countries by 2020.

Press Release SME UNION
Further Information
Merkel presents German Presidency work programme
In the first half of 2007 Germany assumes the EU Presidency for the 12th time and will therefore organize and chair the Council meetings from 1 January to 1 July 2007.
German Chancellor Angela Merkel, presented in Strasbourg the work programme established under the motto “Together Europe can succeed” on 17 January 2007. On Better Regulation, the German Presidency is seeking to establish impact assessments for all new projects. Moreover, the programmes will aim to set up concrete reduction targets and have a standardized system for measuring administrative burdens throughout the EU. Merkel’s speech indicated that the main focus point of the German Presidency will be supporting SMEs, fighting red tape for businesses and the renewal of the European Constitution, with the Presidency setting out a roadmap for the constitutional process. The SME UNION and close cooperation with its German Member organisation MIT started already a dialogue and is looking forward to a fruitful cooperation with the German Presidency.

Programme
Speech Merkel
Presidency Website
New European Parliament President comes from EPP-ED
On 16 January 2007, Hans-Gert Pöttering of the German contingent of the EPP-ED, was elected President of the European Parliament. He will sit for two-and-a-half years, replacing Spanish socialist, Josep Borrell Fontelles, in a mid-term change agreed by the two main groups in 2004. The arrangement meant that the PSE and EPP-ED supported the PSE candidate for the first part of the Parliamentary term, and the EPP-ED candidate for the second part, in order to overcome the fact that neither group received the absolute majority of MEPs needed to elect a candidate. The SME UNION of the EPP congratulates President Poettering, a long time and loyal supporter of our organisation, to this great success!

Further Information
SME UNION strongly present as Committee Coordinators
The SME UNION of the EPP congratulates the following SME UNION board members and friends of being elected as spokespersons for European Parliament Committees. The election of the EPP-ED Group Committee spokespersons during the February plenary session for the rest of the parliamentary term which goes through to the next European elections in June 2009 showed the following results. The co-ordinator, as he is called in Parliament jargon, represents the Group when decisions on the management and functioning of the committees are taken, and allocates the reports.

Economic and Monetary Affairs: Coordinator Alexander RADWAN, Vice-Coordinator Piia-Noora KAUPPI

Employment and Social Affairs: Coordinator Philip BUSHILL-MATHEWS

Internal Market and Consumer Protection: Coordinator Malcolm HARBOUR

See entire List of EPP-ED Coordinators
SME Union Romania President Milut elected PNTCD Chairman
The extraordinary congress of PNTCD passed on 21 January the motion of Marian Petre Milut who was thus validated as president of the National Christian Democrat Peasant Party PNTCD. The Christian Democrat congress validated with 522 votes Mr. Milut at the head of PNTCD and Aurelian Pavelescu as first Vice-President. Gheorghe Ciuhandu is now President of the National Coordination Council. The 800 delegates of the 47 branches of PNTCD had to opt between the motions of the three candidates running for the party leadership, ex Minister of Agriculture during CDR mandate, Ioan Avram Muresan, the leader of Cluj branch, Serban Radulescu, and Marian Milut, President of National Union of Romanian Employers. The SME UNION congratualtes him to this great success!
The newly elected PNTCD President Marian Petre Milut introduced himself in Brussels
From Tuesday the 6th till the 8th of February 2007 the newly elected President of Romanian EPP Party PNTCD, President of SME Union Romania and President of the Romanian National Union of Employers (UNPR), Marian Petre Milut, was visiting Brussels as the head of a Romanian Delegation to introduce himself as newly elected PNTCD president and kicking off the PNTCD European Parliament election campaign, scheduled for May 2007. After the welcome and the discussion about cooperations with SME UNION Secretary General Patrick Voller the delegation took part at the EEI Debate on European Spirit of Entrepreneurship. President Milut could meet there with Prof. Edmund Phelps, Winner of the 2006 Nobel Prize in Economics.
On 7 February the delegation followed the invitation to the EIN-EPP Seminar on Europe’s Energy Challenge in the Residence Palace. The opening remarks were given by Wilfried Martens, President of EPP. A meeting with the EPP chairman followed. On 8 February Petre Marian Milut, Prof. Alexandre Herlea, former Minister of EU Integration and EU Ambassador, Radu Munteanu, Vice-President of PNTCD and Pavel Platona, Ambassador, Director of International Relations of UNPR, had a meeting with Antonio Lopez–Isturiz, MEP and Secretary General of the EPP, and Kostas Sazmatzouglou, EPP Director of International Relations to discuss about PNTCD policy within EPP.
In the afternoon of the same day, Leonhard Orban, Commissioner for Multilingualism welcomed the Romanian delegation in his office in the EU Commission for profitable discussions about the bilateral cooperation and the situation of Romania in the EU. Afterwards Marian Petre Milut was welcomed by Werner Müller, Secretary General of UEAPME where they continued the discussions and further talked about the cooperation of the SME UNION with UEAPME. In the afternoon the Political Bureau of all EPP Party representatives took place where Marian Petre Milut had a short intervention about the PNTCD program and its future.
Othmar Karas: 1st Vice-Chairman of the EPP-ED Group
With 207 of 224 valid votes, Othmar Karas, Head of the Austrian People’s Party Delegation, was elected first Vice-Chairman of the EPP-ED Group in the European Parliament. Karas was delighted about the result and announced that he will spend all his energy on realizing his programme and ideas together with all members of the EPP-ED Group for the upcoming years. All together there have been 10 candidates elected for the EPP-ED chair. The SME UNION congratulates Karas, member of the SME UNION Presidency and President of the SME Intergroup, and is looking forward to a good cooperation during the next years.
EU supports Self Employment!
In order to distinguish the needs of SMEs, 337 one-person-companies have been questioned within the context of the EU-Research Project “Self-Employment”. The project aims to analyse existing support services for persons in self-employment without employees. It povides best practice examples, closing with recommendations to enhance the support for specific target groups.

Further Information
Latest Events top
2007-01-19, Logrono, Spain, International SME Union Spain Conference
On 19 January 2007, the SME UNION of the EPP together with the SME Union of Partido Popular and the EPP-ED Group organized an International SME Conference on “Opportunities for SMEs & Family Enterprises from La Rioja in the EU” in Logrono, Spain. Both international and local politicians and entrepreneurs discussed the challenges that SMEs and family enterprises in the Rioja region are facing as well as the opportunities they have in the European Union.
The welcome panel was moderated by Spanish MEP Esther Herranz-Garcia who enjoyed a very warm welcome from the audience to her hometown Logrono. José Maria Ruiz-Alejos, President of the Chamber of Commerce and Industry La Rioja, María Isabel Saénz-Solano, President of the Rioja Association of Family Enterprises, and Patrick Voller, Secretary General of SME UNION, welcomed the participants with their opening remarks and showed facts and figures of the current situation of Spanish SMEs and their employees. Keynote speaker Pedro Sanz, President of La Rioja and member of PP, emphasised the importance to transfer weaknesses into strengths and mentioned the office of La Rioja in Brussels, to which Spanish entrepreneurs can turn to with their questions or in order to receive support in addition to SME Union Spain.
Conference host and MEP Esther Herranz-Garcia moderated the first panel outlining the challanges of women & family entreprises in La Rioja. Conchi Bravo, President of MERURBAN (Association of Women of Rural Areas), was stressing the need of being present in Brussels. María Ángeles Saralegui, President of MEPAR (Association of Women Entrepreneurship) focused on their experiences and views on women entrepreneurship, their rights in employment and gender equality.
The second panel discussed the opportunities for SMEs from La Rioja in the EU and was moderated by Patrick Voller who explained various funding opportunities established for Spanish SMEs by the European Union. Gerardo Arroyo Herranz, Secretary General of SME Union Spain and President of Hispabenelux SXXI, presented an overview about interest representation and lobbying activities at EU level. Velmir Vukadin, President of SME Union Serbia, gave a short imput about SMEs in Serbia and compared it with the situation in Spain. Both panels where followed by vivid discussions where participants showed great interest in learning more about activities and developments concerning SME funding and EU support. The conference finished with a cocktail reception with a selection of fine spanish wines from the Rioja region.

Funding opportunities for SMEs in Spain
Presentation Gerardo Arroyo Herranz
2007-01-26, Budapest, Hungary, 7th Annual International SME KKVE Conference
The second SME UNION conference of 2007 took place in Budapest. On 26th of January more than a hundred people gathered together to discuss the topic of “SME Micro-Financing, Better Regulation & Integration of Hungarian SMEs”. First of all the President of the Hungarian SME Union KKVE, György Bisztray, welcomed the speakers, participants, international guests, Hungarian MPs and MEPs. His opening remarks were followed by the speech of Peter Jungen, Co-President of the SME UNION of the EPP, emphasizing the importance of the conference’s topic. Jungen just arrived to Budapest from the World Economic Forum in Davos presenting his fresh impressions from the international business talks. Mihály Varga, former Hungarian minister of finance also welcomed the guests in the name of the Hungarian conservative party, FIDESZ.
In the first panel discussion about “Micro Financing SMEs in the European Union” the keynote speech was given by Ivan Pilip, Vice-President of the European Investment Bank. He convinced the entrepreneurs that supporting SMEs is one of his main objectives and gave two examples (JASPERS & JESSICA) of the technical assistances provided by the EIB. Zsolt Becsey MEP introduced the speakers and moderated the discussion. Peter Jungen, SME UNION Co-President and angel investor compared the investment situation of the US and EU. Although the latter developed in the recent years, it is still lacking of angel investments. Afterwards Kristina Maksinen, adviser retail banking at the European Savings Banks Group gave three working examples of micro financing in Europe. The balance sheet-based model is applied by the Bulgarian Post Bank, the off balance sheet-based model is adopted in Spain while the best example for the agency based-model is used by Bank Post in Romania. Antal Szabó, regional adviser at the United Nations Economic Commission for Europe expressed that in his opinion the social aims of Mother Theresa and the spirit of a successful entrepreneur like Erno Rubik can be combined in the micro-financing practice of Muhammad Yunus, who won the Nobel Peace Price in 2006. Thus micro credits are the best examples for governments in order to support the society and to promote entrepreneurship. In the end of the panel two best Hungarian micro-financing practices were described by László Krisán, CEO of the KA-VOSZ Financial Services Trading Close Co. and Márton Braun, MP. The Széchenyi Card, the Micro-Credit Program of the MVA, among other financial programmes were also presented by representatives of the different organisations at the information fair parallel to the two panel discussions.
The topic of the second panel discussion was “Less & Better Regulation for Hungarian SMEs”. Róbert Kassai, Vice-President of Hungarian Association of Craftsmen’s Corporations proposed 13 changes in the current Hungarian and European Regulation system in order to facilitate the way of financing SMEs in the European Union. Ferenc Obreczán, secretary general of Hungarian Farmers Alliance and Zoltán Cséfalvay professor of Andrássy Gyula University talked about the worsening situation of Hungarian farmers due to the fact that they are not able to obtain financial assistance of the EU. At the end of the conference the participants decided to send a proclamation to the EU in order to put a greater emphasize on the special Eastern-European problems and to promote a better regulation process in the European Union. In his closing remarks Patrick Voller, Secretary General of the SME UNION summarised the event and promised the help of the SME UNION as a lobbying organisation for achieving the common aims of Hungarian entrepreneurs.

Presentation Maksinen
Presentation Braun
Presentation Pilip
Presentation Kassai
Presentation Lorand
Presentation Laszlo
Presentation Janos
Presentation Norbert
Presentation Fayl
2007-02-07, Brussels, SME UNION Working Breakfast with national MPs
On the occasion of the 3rd Joint Parliamentary Meeting on the Lisbon Strategy the SME UNION in cooperation with SME Circle organized a Working Breakfast moderated by Malcolm HARBOUR, MEP and Vice-President of the SME UNION.

Impulse statements were delivered by Gerard DE GRAAF, Head of Unit for Strategic Objective Prosperity – Lisbon Strategy who stressed the importance of keeping up the pace by better educating entrepreneurs and easing bureaucracy and Klaus-Heiner LEHNE, Shadow Rapporteur in the European Parliament who talked about the importance to link economic growth with job growth as well as a better patent policy for SMEs. The impulse statements were concluded by Ludek SEFZIK, ODS Member of the Senat of Parliament of the Czech Republic who pointed out that European countries have to focus on reforming their social policy, the internal market and crossboarder competition. Interventions were provided by Hugo LUEDERS, Director of European Public Policy at CompTIA who concentrated on the importance of Information and Communications for SMEs, and Gilbert FAYL, Secretary of Foreign Affairs of the European Academy of Science and Arts who talked about the Budapest Round Table and its fruitful economic dialogue between generations.

Programme
Impulse Statement De Graaf
2007-02-12/13 SME UNION visit to Sofia, Bulgaria
The purpose of this visit was to brainstorm about future cooperation with our two new SME UNION members of the EPP in Bulgaria, the SME Union of the Democratic Alternative of Nadezhda MIHAYLOVA, Member of the Bulgarian Parliament and former Minister for Foreign Affairs as well as the SME Union of the European Democratic Path of Maria CAPPONE, Member of the Bulgarian Parliament, former Observer at the European Parliament. Furthermore the SME UNION expressed its full support for both organizations for the upcoming European Parliament elections scheduled for May 2007. The delegation could as well discuss about the SME situation in Bulgaria and inform our new members about European SME support programmes. SME UNION President Christoph LEITL could meet with the two new SME UNION member organizations in Bulgaria at the Institute of Stability and Security in South-East Europe as well as with representatives and mayors of the Association of Bulgarian Regions and Cities and the Konrad Adenauer Stiftung director for Bulgaria, Ralf JAKSCH to discuss SME support for the new EU member state.
During a working breakfast with representatives of Bulgarian business, Takuda Bank, Alpha Bank, Dexia Bank; Vice-President of the World Bank responsible for Bulgaria and friends from sister parties financial support initiatives for SMEs could be discussed in greater detail. During the visit of the Bulgarian Parliament and meetings with representatives of the Bulgarian EPP parties, including a meeting with the Vice-President of the Parliament, chairwoman of the EPP BANU party Anastasia Dimitrova MOSER, SME support within the national assembly was forged.
Last but not least during a meeting with SME representatives from regional European Democratic Path-branches and young entrepreneurs and business owners from across Bulgaria a lively discussion about Europe, information about SME programmes and further cooperation of the two organisations rounded up the two days visit in the capital of Bulgaria.

Annual Bulgarian SME Report 2006
SME Lex top
Facing out of Indirect Taxation
The European Commission proposes a phasing out of capital duty by 2010 in order to support the development of EU companies. Capital duty is an indirect tax levied on contributions of capital for capital companies and restructuring operations involving capital companies. Given its detrimental economic effects, it is an obstacle to economic growth.

Further Information
New Commission publication on corporate tax policy
The European Commission has published a new publication on corporate tax policy referring to its collection on “Economic Papers”. In Europe, declining corporate tax rates have come along with rising tax-to-GDP ratios. The paper explores to what extent income shifting from the personal to the corporate tax base can explain these diverging developments. The Commission exploits a panel of European data on firm births and legal form of business to analyze income shifting via increased entrepreneurship and incorporation. The results suggest that lower corporate taxes exert an effect on entrepreneurship.

Commission Paper
Labour Law: Launch of Public Consultation
On 23 November 2006 the Commission launched a public consultation on "Modernising labour law to meet the challenges of the 21st century". The presentation of the Green Paper that is the basis of the consultation was preceded by a behind-the-scenes row which went on for several months between employers, trade unions, member states and Commission services. The paper was re-drafted and is now more adjusted to business reality than earlier drafts. A special focus lies on the distinction between "fictious self-employment" and "economically dependent self-employment". In both forms the self-employed person is dependent on a single client. The first case tries to avoid giving someone the appropriate employment status, whereas the second case is a relationship in which both provider and client see benefits.

Next steps: The consultation will remain open for four months, until 31 March 2007. It will be followed by a Commission communication on flexicurity in June 2007.

Further Information
Better Regulation: Shift in approach to law making
A European Commission shift in law making is set to mean a slash in Member States’ administrative burden to the tune of 25% by 2012. SMEs are particularly hard hit by excessive EU bureaucracy, which is estimated to cost the bloc somewhere in the region of EUR 350 billion annually. However the simplification of the laws seems to be making only slow progress, with just 15 of the targeted 54 laws having been reviewed so far. The targeted cut in red tape, which is one of the Better Regulation goals of the renewed Lisbon Strategy, is intended to lead to more investment for growth and new jobs amounting to EUR 150 billion.

Further Information
Energy sector inquiry confirms competition problems
The European Commission has published its final report on the energy sector competition inquiry, concluding that consumers and businesses are losing out because of inefficient and expensive gas and electricity markets. Particular problems include high levels of market concentration, vertical integration of supply, generation and infrastructure leading to a lack of equal access to, and insufficient investment in infrastructure, and possible collusion between incumbent operators to share markets. To tackle these problems, the Commission will pursue follow up action in individual cases under the competition rules (anti-trust, merger control and state aids) and act to improve the regulatory framework for energy liberalization. The Commission has already conducted a number of inspections in companies where these particular issues warrant investigation.

Further Information
FP7 made simpler for SMEs
A project initiated by a number of industry and research organizations has drafted a simplified consortium agreement template for the projects funded under the Seventh Research Framework Programme (FP7) of the EU. According to one of the project initiators, Eurochambres, the new template agreement "will be particularly beneficial to SMEs as it simplifies the administrative and management costs of project participation for SMEs".

Further Information
Legislative Overview: SME-related dossiers in the European Parliament
Below you can find an overview by the SME Circle on existing dossiers issued by the European Parliament which deal mainly with the SME issue or have at least remarkable impact on small and medium enterprises.

SME related Dossiers
Gender Equality between Women and Men 2006-2010
The Roadmap on Gender Equality published by the Commission outlines six priority areas for EU action on gender equality for the period 2006-2010: equal economic independence for women and men; reconciliation of private and professional life; equal representation in decision-making; eradication of all forms of gender-based violence; elimination of gender stereotypes; promotion of gender equality in external and
development policies. For each area, it identifies priority objectives and actions.

Next Steps: The vote in the Commission on 24 January will be followed by the vote in the Plenary in February.

Commission Roadmap
For comments and further information please do not hesitate to contact us.
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