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SME UNION
Newsletter July 2007
Foreword
Upcoming Events
Service & Information
Latest Events
SME Lex
Foreword top
Dear Members of the SME UNION, dear friends of SMEs!

Summer holidays are in front of the door and it is time for the SME UNION to recall the main successes and highlights of the first half of the working year 2007. On the other hand we need to get ready and prepare for a very important fall starting with fresh energy after the summer pause of the European Parliament and legislative bodies.

EU labour market high on the agenda

Just recently the European Commission came out with a proposal of common principles of Flexicurity to promote more and better jobs by combining flexibility and security for workers and companies. Furthermore, the European Parliament voted on the portability of supplementary pension rights in order to increase the mobility of workers but clearly missed this chance and increased bureaucracy for SMEs. Last but not least the plenary assembly in Strasbourg voted on the Green paper on EU labour law and gave thanks to the joint effort of the EPP-ED Group a strong signal for a more competitive Europe.

Successful German Presidency – Big challenges for Portuguese

The German EU Council Presidency could meet up to its expectations and found thanks to the professional chairmanship of Angela Merkel a way out of the deadlock as regards a future constitutional treaty for Europe. It is now up to the Portuguese politicians to hammer out the concrete details of this political agreement. This Presidency has to unleash the growth potential of SMEs getting real with cutting down red tape for European small businesses. In fall the Commission will come out with legislative proposals for the EU energy market linked to the topic of climate change, very crucial for our SMEs.

Celebrating 10 Years SME Union Malta with Prime Minister Gonzi

Networking and SME legislation events took place during the last weeks. One of the highlights was the exchange of views with Maltese Prime Minister Gonzi and the celebration of 10 years SME Union Malta.

Further details about all these mentioned SME issues and events you will find in this Newsletter. We wish you a fruitful reading, a good summer break and are looking forward to welcoming you at our next events starting with full energy end of August.
Upcoming Events top
2007-09-13/14 Geneva, 5th Annual Forum on Intellectual Property and SMEs
The World Intellectual Property Organisation (WIPO) will organize on 13th and 14th of September 2007 in Geneva, Switzerland the Fifth Annual Forum on Intellectual Property and SMEs for IP Offices and Innovation Related Institutions in the Organisation for Economic Cooperation and Development (OECD) Region.

Further information
2007-10-02 Brussels, EFF - SME UNION Conference on Franchising & SMEs
On Tuesday 2 October 2007 the European Franchise Federation in cooperation with the SME UNION will organize a conference entitled 'The World of Franchising: Chances and Challenges for SMEs.' The event will comprise discussions on ‘Possibilities of Franchise Financing’ and on 'Better EU Framework for Franchising'. For further information please contact SME UNION Project Manager Cleopatra Rusu or +32 2 233 38-31.

Draft program
2007-10-17 Brussels, SME Conference on Passport to Trade
On Wednesday 17 October 2007 the SME UNION in cooperation with EUROCHAMBRES, the European Enterprise Institute, EUROPUBLIC and Leonardo da Vinci will organize a conference entitled ‘Passport to Trade: Working across cultures in the EU’. The event will be followed by the presentation of the EU Project Passport to Trade as well as by a discussion. For further information please contact SME UNION Project Manager Cleopatra Rusu or +32 2 233 38-31.

Draft program
2007-09-28 Bucharest, 3rd International UNPR - SME Conference: Transport and Infrastructure in Romania
"Transport and Infrastructure in Romania: Highway to Prosperity" will be the subject of the annual UNPR - SME conference in Romania organized by UNPR, BTL Design and the SME UNION. The panel discussions around this crucial topics will take place on Friday 28 September in Palace of the Parliament (Room Nicolae Balcescu) in Bucharest. The event will be followed by a cultural program on Saturday 29 September 2007. Further information from SME UNION Project Manager Cleopatra Rusu or +32 2 233 38-31.

Draft program
2007-11-21 Brussels, SME Action Day
On Wednesday 21 November 2007 BUSINESSEUROPE, the Confederation of European Business will organize an SME Action Day to exchange best practices for growth and discuss how SMEs can play a be significant in a globalized world.

Further information & Online registration
Service & Information top
Portuguese Presidency
1 July 2007 marked the end of the successful German EU Council Presidency and at the same time the beginning of Portuguese. One of the main priorities of the new Presidency is the EU treaty. The SME related events organized by the Portuguese Presidency will be:

3-4 October 2007: Conference of Experts in Gender Equality: Employability and Entrepreneurship, Lisbon
9 October 2007: Conference on Employment in Europe- Perspectives and Priorities, Lisbon
9 October 2007: Seminar on Financial Innovation on the SMEs Market, Estoril
13 November 2007: Conference on Information and Communication Technology: Uptake for SMEs Competitiveness, Lisbon
7 December 2007: European Enterprise Awards-Ceremony, Oporto
7 December 2007: Conference on SMEs and Entrepreneurship, Oporto

Portuguese Presidency homepage
Portuguese Presidency in Brief by Euractiv
Calendar
Priorities of the Portuguese Presidency
WEBER SHANDWICK ‘Inside the Portuguese Presidency. A guide for business’
SME Women Quarterly Newsletter June 2007 published
The second issue of the SME Women Quarterly Newsletter - a new initiative of the SME Women Working Group was published. The aim of the Newsletter is to improve the communication between the members of the Working Group as well as to promote diverse activities of SME Women all over Europe.

SME Women Quarterly


If you want to register for this newsletter please send your full contact data to SME UNION.
Collective Research SME Support Program Cornet
The Cornet program was launched in order to facilitate SMEs performing in the field of research. Cornet’s aim is to create a European platform for collective research by improving cooperation between policy makers and programme managers already being funded by diverse European Programmes. Guides and workshops concerning the collective research will be launched to facilitate implementation of new collective research programmes in new EU Member States. Additionally Cornet partners arrange transnational calls for this kind of projects. The Cornet project is funded by European Commission through the ERA-Net scheme (FP6 ERA-Net). The project started in 2005 and was established for 36 months.

Further information
European robot initiative for SMEs in manufacturing
A new project aimed for strengthening the competitiveness of SMEs in manufacturing was launched under the acronym SMErobotTM through the FP6: Production Scheme. The project will last 48 months and is aimed to create a new concept of robot automation – a new group of robots adapted to the requirements of SMEs.

Further information
Restrictions for workers from Romania and Bulgaria
The British government is to review restrictions on the number of Bulgarian and Romanian citizens permitted to work in Great Britain. In January, when two countries joined the EU the UK capped the number of low – skilled workers from both countries at 20,000 but had allowed unrestricted access to the citizens of member states which joined EU in 2004. The review will be assisted by a new Migration Impacts Forum, involving specialists from industry, local government and police.
EU overall tax ratio rising
According to latest figures from Eurostat from 26 June 2007 taxes and social security contributions paid in EU rose in 2005. The overall tax ratio rose from 39.2% in 2004 to 39.6% of gross domestic product, having the first increase in 1999. The highest tax was noted in Sweden, Denmark and Belgium while the lowest on Romania and Lithuania.
EU energy market competition
From 1 July 2007 EU citizens can choose freely their gas and electricity supplier with no additional costs. This regulation should lead to more secure supply, encourage competitive energy prices and lead to development of renewables. On 5 July 2007 the Commission was adopting an energy consumers charter in order to protect public rights in open market.
Models to reduce regulatory burden on SMEs
In May 2007 the European Commission issued an expert group report on "Models to reduce the disproportionate regulatory burden on SMEs".

Download report
Latest Events top
2007-06-27, SME Working Breakfast on Sustainable Tourism & SMEs
On Wednesday 27 June 2007 the SME UNION of the EPP in cooperation with SME Tourism organized a Working Breakfast on the topic of Sustainable Tourism & SMEs. Moderator Jan Christian Ehler MEP, Member of the SME Circle and SME Tourism President welcomed the participants. In the introductory remarks he stressed the importance of tourism for European SMEs and he underlined the relevance of tourism policy for other areas, especially environment. He mentioned that 90% of all companies involved in European tourism are SMEs.
The Working Breakfast continued with three impulse statements. Francesco Ianniello, Head of Unit Tourism, DG Enterprise and Industry, highlighted the idea that the European tourism has to be both competitive and sustainable. He referred to the public consultation launched by the European Commission on an “Agenda for a sustainable and competitive European tourism”. He also emphasised that, based on the results of the consultation, the European Commission will prepare in October a communication regarding the tourism area. Margie Sudre MEP, Chairwoman of the European Parliament Intergroup on Tourism, pointed out on 26 June 2007, a report regarding a new policy concerning the tourism framework was adopted. The main aim of this report was to launch ideas and solutions related to an improved access of SMEs to information on European financing for infrastructure and sustainability. Further important issues for sustainable tourism are new forms of tourism like wellness, fishery, etc, quality certification and aviation solutions.
The concluding remarks were delivered by Hannes Thomasberger, Director of SME Tourism who spoke about European Holiday Coordination Plan. He mentioned also the setting up of the SME Tourism and its clear responsibility to raise the awareness regarding the European tourism and to promote the possibilities of the Eastern European tourism market - with obvious consequences as job creation and lowering costs for consumers. During the discussion Czech MEP Petr Duchon gave examples of sustainable tourism in his country.

Speech Franco Ianniello
2007-07-04, Brussels, Farewell Party at SME UNION
On Wednesday 4 July 2007 a farewell party for Barbara Schweighofer, SME UNION Head of Office took place at SME UNION headquarters. The event gathered about 50 people. Thank-you and farewell speeches were given by Jerzy Samborski, Vice-President of the SME UNION, Patrick Voller Secretary General, Hans-Dieter Lehnen, Secretary General of the German SME Union MIT, Karlheinz Kopf, SME UNION Treasurer and Luc Vandeputte, Deputy Secretary General of the EPP. After the official part the guests were invited to a buffet. The SME UNION family expressed its greatest satisfaction with the work and dedication from Mrs. Schweighofer during the last three years and wishes her all the best for her next steps and future endeavors. The new Head of Office starting this fall will be Barbara Bizjak from Slovenia.
2007-07-04, Malta, 10th Anniversary SME Union Malta SIZM PN
The 10th anniversary celebration of the SME Union Malta was organized by the team of Alexander Vassallo, President of SME Union Malta SIZM PN. On Friday 6 July the Cocktail Reception under the patronage of the Prime Minister of Malta Lawrence Gonzi was a great success.

Censu Galea, the Competitiveness and Communication Minister of Malta, Edwin Vassallo, State Secretary for Small Business and the Self Employed of the Ministry of Finance and Economic Affairs and Joe Saliba, the Secretary General of the National Party of Malta, attended the festivity. Simon Busuttil, Karl von Wogau and Jean-Pierre Audy, from the side of SME Circle, were among the congratulators. SME Global President Paul Rübig, the two SME UNION Vice-Presidents Valdis Dombrovskis MEP and Jean-Michel Ferrand MP congratulated SME Union Malta SIZM PN to their 10th Anniversary.
The evening began with greeting words of SME Union Malta SIZM PN President Alexander Vassallo and the Prime Minister Lawrence Gonzi. SME UNION Vice-President Jean-Michel Ferrand and SME UNION Secretary General Patrick Voller congratulated, in the name of SME UNION, the “birthday child” SIZM PN Malta with personal speeches. For those participants who already arrived a day before, the SME Union Malta SIZM PN organized a boat trip. The international guests were also taking part in some of the events of the EPP-ED Group study days in Malta taking part at the same time.
SME Lex top
Welcomed EP vote on EU labour law
On Wednesday 11 July the European Parliament in Strasbourg has adopted by 479 votes in favor to 61 against with 54 abstentions, the initiative report on the Commission’s Greenbook on EU labour law with several amendments.

In this report the European Parliament urges the European Commission to fully take into account the variety of labour market models existing in the European Union and emphasizes that the differences between Member States labour law systems are so big that a uniform approach to labour law across the EU may be problematic. The European Union should focus on the reviewing and implementing existing legislation, with a particular reference to its impact on SMEs. On the other hand SMEs must play a central role in improving labour law, as they are fundamental to increasing employment.

SME UNION Co-President Peter Jungen congratulated the EPP-ED delegation for its joint effort finding a common position on this crucial issue. This initiative report now supports more flexibility and competitiveness for Europe brining it closer to its Lisbon goals creating more and better jobs. According to the report, which is in response to the European Commission's Green Paper on 'Modernizing labour law to meet the challenges of the 21st century', since growth in employment is possible only in combination with overall economic growth, modernization of labour law must take into account the expectations of both workers and employers.

Adding to the report and underlining for the future debate, the SME UNION of the EPP points out that new and sustainable jobs can only be created by a dynamic economy. It is a fact that countries with a high economic freedom level also enjoy high growth rates, high GDP per capita and low unemployment. Furthermore, Europe needs an economical system that evolves around strong entrepreneurship. Employees will need a great deal of entrepreneurial spirit. The administrative burden on start-ups has to be eased, the regulatory environment simplified, the general level of taxation reduced, access for new enterprises to sources of finance, particularly risk capital, improved and entrepreneurial culture should be promoted, commented SME UNION Co-President Peter Jungen after the vote. Employment protection needs a reform. Stringent employment protection legislation in Europe tends to reduce the dynamism of the labour market. Self-employment is a basis for entrepreneurship. It has to be supported and viewed as one of the forms of the development of an entrepreneurial mind - not as a way of avoiding labour regulations, concluded SME UNION Co-President.

A big contribution to this important step forward within the European Parliament came from Polish SME Circle Member MEP Jacek Protasiewicz, rapporteur in the lead Employment and Social Affairs committee. Thanks to the strong effort of the EPP-ED Group and especially its coordinator of the Employment and Social Affairs Committee MEP Philip Bushill-Matthews the biggest Group in the Parliament could speak out clearly for a more competitive Europe.

Next steps:
With this step the EP adopted an own-initiative report. This opinion of the EP will now be discussed in the Commission. The result of this report will have an impact on the White Book as next step from the Commission.

Green Paper - Modernizing labour law to meet the challenges of the 21st century
EU Parliament report
EU Commission Communication
Further information
SME UNION Press Release
EC Communication on Flexicurity
The Commission on June 27 proposed the establishment of common principles of flexicurity to promote more and better jobs by combining flexibility and security for workers and companies. Flexicurity strategies can help modernize European labour markets and better address the opportunities and challenges of globalisation. They include at the same time flexible and reliable contractual arrangements, active labour market policies, comprehensive lifelong learning strategies and modern social protection systems providing adequate income support during periods of unemployment. The Commission also sets out a number of typical pathways to help Member States draw up their own national strategies for flexicurity and learn from each other's experiences and best practices. In line with the EU's Lisbon Strategy for Growth and Jobs, the common principles of flexicurity aim to ensure that more Europeans get the most out of today's fast-changing global economy.

EU Commission info
Eurochambers Press release
UEAPME press release
BUSINESSEUROPE press release
EU Green Paper on action for climate change
The Commissions Green Paper sets out four areas where early action can be taken at EU level. One of the areas listed is research and the need to address the complexity of interrelated factors surrounding climate change. While welcoming the emphasis placed on climate change in the EU's Seventh Framework Programme (FP7), the paper notes that there are several gaps in our understanding of the impact of climate change. To address these, the paper suggests the following actions:

1. develop comprehensive and integrated methodologies for the assessment of impacts, vulnerabilities and cost effective adaptation
2. improve the basic understanding and prediction of impacts in Europe, including in the North Atlantic, the Arctic, the Mediterranean and the Black Sea
3. clarify the expected impacts of climate change and ozone layer depletion on ecosystems and explore ways to enhance their resilience
4. develop long-term comprehensive and Europe-wide high resolution datasets and models
5. improve access to existing data and integrate data relevant for adaptation into INSPIRE (Infrastructure for Spatial Information in Europe), SEIS (Shared Environment Information System) and GMES (Global Monitoring for Environment and Security)
6. make better use of existing Community-supported information systems, such as the European Flood Alert System, the European Forest Fires Information System, and the Monitoring and Information Centre (MIC) for civil protection
7. provide every four to five years up-to-date synthesis reports on climate impacts, adaptation and vulnerabilities, based inter alia on the results from EU-funded and national research
8. support research on adaptation for businesses, services and industries
9. launch Europe-wide studies on the present and future plans of coastal regions to strengthen coastal protection, the environmental and economic costs involved in these plans, the impacts they may have on the community budget and on the economy of coastal regions
10.Improve knowledge on flows and availability of resources.

The three other policy areas identified by the Green Paper are: integrating climate change adaptation actions into existing and forthcoming legislation, policy responses and funding programmes; integrating global adaptation needs into the EU's external relations and building a new alliance with partners around the world; and setting up a European advisory group on adaptation to climate change to analyze coordinated strategies and actions.

Next steps:
An internet consultation will be open soon and will last until November 2007. The Green Paper is also addressed to the EU institutions and committees. The responses will go into the development of a Communication on adaptation to climate change to be issued by the Commission by the end of 2008.

Further information
Company law simplification: Victory for better SME regulation
SME UNION Vice-President MEP Piia-Noora Kauppi has expressed her satisfaction with the approval by the European Parliament of her report on simplifying mergers and divisions of listed companies. The report ensures that if all the shareholders of a company agree, an independent expert's report will no longer be needed in each such instance. "The move is small on paper but significant in practice. SMEs with just a small number of shareholders stand to save time and money, especially in Member States that have still required such a report for every planned division", the rapporteur said. The cost of the report, involving the selection of experts, their appointment or approval by a judicial or administrative authority and lengthy investigations, has been estimated at €3500 per merger or division. "We need to use every opportunity to cut back red tape and free up resources that businesses have at their disposal. Shareholders can still ask for the report - we are simply making it non-mandatory when the report brings no additional information", Kauppi underlined.

The rights of creditors and employees in cases of mergers and divisions are not affected by the proposal, which brings two existing company law Directives into line with the Takeover Directive approved in 2005. Public limited liability companies will no longer have to order costly expert reports in cases of mergers and divisions, unless there is a demand for such reports among shareholders. European Parliament accepted on 11th of July 2007 a Commission proposal for removing unnecessary burdens on small businesses. The suggestion, which concerns over 600.000 European corporations, must be approved by the member states.

Commission Vice President Günter Verheugen, responsible for enterprise and industry policy, said: “This is a landmark case for better regulation. Today we set a new precedent for removing red tape at high speed in the EU. It is a good example of unnecessary burdens that could and should be removed very quickly. But we will not rest until we reach our target of reducing the burdens by 25% in 2012. More fast track actions will be tabled soon.”

EU Parliament position
EU Commission package of "fast track actions"
More information
EP vote on supplementary pension rights a missed opportunity
On Wednesday 22 June 2007 in Strasbourg European Parliament adopted the draft of the new directive on supplementary pension rights. This draft however does not state clearly whether the directive will concern retroactively already existing pension rights. Moreover it might be a cause of additional red tape for SMEs. Pension legislation meets significant inconsistencies across Member States. A well prepared directive could help to improve the mobility of workers as well as assure the proper standards of living for the European citizens at the later stages of their lives. This issue is becoming extremely important due to population ageing and noticeable demographic changes. The Rapporteur of the draft directive is Ria Oomen-Ruijten MEP (EPP-ED, NL).

Further information
Commission proposal on wine subsidies reform
The Commission plans to abolish ineffective subsidies for surplus wine production in a bid to make EU producers more competitive. In this regard it adopted on 4 July 2007 a proposal for reforming the Common Market Organization for wine. The purpose of the reform is to make better use of the annual budget of EUR 1.3 billion to help the wine sector. The Commission therefore proposes the abolition of all inefficient market support measures like distillation, aid for storage or export subsidies as well as ban on the use of sugar for enriching wine. Throughout this reform the EU will provide the uncompetitive wine producers with financial incentives to encourage them, on a voluntary basis, to dig up their vineyards. One of the main aims of the proposed reform is to increase the competitiveness of the EU's wine-producers, strengthen the reputation of EU quality wine as the best in the world, recover old markets and win new ones. With regard to wine-making practices, the Commission proposes aligning EU's list of permitted practices with those accepted by International Organization of Vine and Wine. Regarding the labeling rules, the concept of EU quality wines would be based on geographical origins to make labeling simpler.

Next steps:
The Commission proposal for reforming the Common Market Organization for wine was sent to the European Parliament and Council of Ministers for their consideration. After the European Parliament will give its opinion and the Council will adopt it, the reform will come into force on 1 August 2008. The negotiations between the Council and the Parliament will be concluded by the end of 2007.

Commission Proposal
Simplified business environment for companies in the areas of company law, accounting and auditing
The European Commission suggested the simplification of administrative burdens resulting in a boost of Europe's economy, especially given the potential benefits this can bring for SMEs. The Commission has outlined the way for achieving this by adopting, on 14 November 2006, an updated simplification programme and the main elements for measuring administrative costs and reducing administrative burdens.

Next steps:
Member States, the European Parliament and other stakeholders are invited to submit their views on the proposals contained in this communication with a view to establishing a broad consensus on the changes that should be envisaged. Considering the timeframe for the simplification exercise, contributions are invited by mid-October 2007. In the follow-up to this communication and on the basis of the responses received, the Commission will prepare full and comprehensive impact assessments that will also take into account the results of the measurement of administrative costs currently under way. Subject to the outcome of these impact assessments, the Commission intends to submit legislative proposals in the areas covered by this communication early in 2008.

Further information
Postal services: EP establishes 1st reading position on postal market
On 11 July, the European Parliament adopted its 1st reading position on the proposal for a Directive concerning the full accomplishment of the internal market of Community postal services. The EP expressed its support for postal market liberalisation but a large majority of MEPs- 512 in favour and 155 against- voted for delaying the complete liberalisation until 31 December 2010. A transition period of 2 years for the 12 new Member States as well as for Member States with particularly difficult topography was also decided.

1st reading position of the EU Parliament
The initial legislative text proposed by the European Commission
Vademecum Community Rules on State Aid relevant for SMEs
Please find attached the Vademecum Community Rules on State Aid which is a concise summary on the basic EU rules on State Aid. Since the adoption of the State Aid Action Plan the process of adoption of new regulatory texts has been ongoing. It should be concluded by the year 2009.

Vademecum Community Rules on State Aid
Summer holidays!
The SME UNION office is closed from Monday 23 July 2007 until Friday 24 August 2007.
We wish all of our Members a good summer and relaxing days!
For comments and further information please do not hesitate to contact us.
If you wish to read this in your own language you can copy the text and use the following tool : http://translate.google.com

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Fax : (+32) 2 230 92 18



Content Manager : Lucyna Lekawska and Cleopatra Rusu

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