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SME UNION
Newsletter September/October 2008
Foreword
Upcoming Events
Service & Information
Latest Events
SME Lex
Foreword top
Dear Members of the SME UNION, dear friends of SMEs!

Two fruitful months of hardworking are almost finished and the team of the SME UNION, the business organization of the EPP, got a good head-start on the current EU SMEs topics. In September, we held the second International SME Aerospace, Defense & Security Conferenceon “Space: A new Business opportunity for European SMEs?” in Brussels. The aim of this conference was to enhance the exchange of ideas in order to create a much more solid ground on which SMEs can stand up. In fact, many interested participants, including entrepreneurs and experts in the sector, attended and enriched the panels with their inputs.

On the 7th of October the Environment Committee of the European Parliament voted on the EU-Emission Trading Scheme and against the warnings of business it was decided to burden the industry already from 2013 on with CO2-fees which never can be carried out. As a matter of facts, small and medium sized enterprises will face massive burdens and now we can actually start to fear that they will not invest in Europe anymore. As SME UNION we cannot and will not accept the deindustrialization of Europe.

Also, in October we were proud and glad to learn that Paul Rübig was awarded MEP of the Year in the category research and innovation. SME UNION board member, former SME UNION President, current President of SME Global and active participant of the SME Circle of the EPP-ED Group, MEP Rübig absolutely deserved this vote.

Furthermore, on the 13th October, the Annual SME UNION Topic of the Year Conference 2008: “Small Business Act and Micro financing” took place in the EPP Headquarter in Brussels. At this occasion, Philippe Maystadt, President of the European Investment Bank and Christine Lagarde, Minister of Economy, Industry and Employment of France received the SME UNION Political Entrepreneurship Award 2008. The conference followed the Presidency Meeting and the bi-annual Political Bureau where many topics were discussed, especially the Small Business Act, the current financial turmoil and its relevance for European SMEs, and last but not least the Topic of the Year 2009. Our members decided to lay the focus on “Creative SMEs as key driver for innovation and growth: New solutions for the energy challenge!”. Finally, an SME UNION Resolution addressed to the EU October Summit urged the member states to tackle the real issues with whom European citizens and businessmen are confronted. It pledges for the creation of an SME Guarantee Fund that will support and encourage start-ups and innovative SMEs. At last it stresses the importance of the Small Business Act and the prioritization of SMEs.

Several important events are still in the pipeline and any further details about these and other events as well as useful SME information you will find in this Newsletter. We wish you a useful reading and are looking forward to welcoming you at our next events.
Upcoming Events top
2008-11-04, Brussels, Working Breakfast “Microcredits & its Role for SMEs”
MEP Zsolt Becsey in cooperation with the SME UNION of the EPP will organize a Working Breakfast on “Microcredits & its Role for SMEs” to which you are all kindly invited. This event will take place on Tuesday 4 November 2008 at the “Salon des Membres” in the European Parliament between 8.00 and 9.30. The moderation will be lead by Zsolt Becsey MEP, Rapporteur on Microcredits. Further information will follow, for questions or registration please contact project manager Agnes Viol at +32 2 233 38-31 or sme@sme-union.eu.
2008-11-13, Brussels, Working Breakfast “Looking beyond the Doha Round"
SME GLOBAL in cooperation with the SME UNION of the EPP will organize a Working Breakfast on “Looking beyond the Doha Round” to which you are all kindly invited. This event will take place on Thursday 13 November 2008 at the “Salon des Membres” in the European Parliament between 8.00 and 9.30. Further information will follow, for questions or registration please contact project manager Maxence Furdos at +32 2 233 38-32 or sme@sme-union.eu.
2008-12-03, Brussels, Working Breakfast “Energy Efficiency, Adjustable Speed Motors & the role of SMEs”
Grundfos in cooperation with the SME UNION of the EPP will organize a Working Breakfast on “Energy Efficiency & Adjustable Speed Motors: Saving 7% of worldwide electric energy consumption” to which you are all kindly invited. This event will take place on Wednesday 3 December 2008 at the “Salon des Membres” in the European Parliament between 8.00 and 9.30h. Further information will follow, for questions or registration please contact project manager Anna Königshofer at +32 2 233 38-37 or sme@sme-union.eu.

2008-12-10, Brussels, Working Lunch “A New European Software Strategy: Opportunities for SMEs”
The Computing Technology Industry Association (CompTIA) in cooperation with the SME UNION of the EPP will organize a Working Lunch titled “A New European Software Strategy: Opportunities for SMEs”. This event will take place on Wednesday 10th December at the “Salon des Membres” in the European Parliament between 12:30 and 14:00h. For any further information or registration, please contact the project manager, Andrea Almeida, at the +32 2 233 38 37 or at the email address: sme@sme-union.eu.

2008-11-04/06, Belfast, Ireland, 35th International Small Business Congress
From 4 to 6 November 2008 the University of Ulster together with the Institute for Small Business & Entrepreneurship is organizing the 35th International Small Business Congress” in Belfast, Ireland entitled “An Entrepreneurial Odyssey – from local heroes to global champions.

Website
Email
2008-11-13/15, Evian, France, World Entrepreneurship Forum
The first worldwide think-tank dedicated to entrepreneurship and its role in society. The forum brings together more than 70 participants of the highest level: entrepreneurs, social entrepreneurs, political decision-makers and international experts. One theme: "Entrepreneurship as a creator of economic wealth and social justice", resulting in the definition of concrete recommendations in response to three questions:
• How can we create a more favourable environment for entrepreneurship ?
• How can we assess the actions taken by entrepreneurs ?
• How can we better train the entrepreneurs of the future ?

World Entrepreneurship Forum
2008-11-18/19, Istanbul, Turkey, Business Opportunities for SME UNION members
From 18 to 19 November 2008 the Confederation of Businessmen and Industrialists of Turkye (TUSKON)is organizing the “Turkiye Mid-Eastern Europe Foreign Trade Bridge” summit. The confederation of Businessmen and Industrialists of Turkey is a nation-wide roof organization for 7 regional federations and 125 associations all of which were founded by different businessmen and are devoted to improve conditions in business life. For this event all SME UNION members and partners from Albania, Bulgaria, Bosnia-Herzegovina, Czech Republic, Croatia, Kosovo, Hungary, Macedonia, Moldova, Poland, Romania, Serbia, Slovakia, Slovenia, and Greece are invited to participate.

Tuskon on line application
tuskon@tuskon.org
2009-05-6/14, Brussels, Prague, Europe, First European Union SME Week
The Commission is organizing the first European SME week in May 2009 to inform SMEs about available support at EU and national level and to encourage more people to become entrepreneurs. The SME week will be a European umbrella campaign for activities that take place throughout Europe. The SME week will run from 6 to 14 May 2009. It will be launched in Brussels on 6 May but the vast majority of events during the week will take place across Europe in the Member States. The closing event will be organized together with the Czech Presidency on 13 and 14 May 2009. This event will include the European Enterprise Awards ceremony.

European Commission, Enterprise and Industry
Service & Information top
MEP Rübig wins MEP of the Year Award 2008
MEP Paul Rübig, a convinced European and persistent fighter for the concerns of small and medium-sized enterprises in Europe, was awarded as MEP of the year in the category research and innovation. SME UNION board member, former SME UNION President, Christoph Leitl and current President of SME Global and active participant of the SME Circle of the EPP-ED Group, absolutely deserved this vote and congratulate cordially in the name of SME UNION and European business. In his twelve years as Member of the European Parliament, Rübig has set countless initiatives for SMEs and fought for important ameliorations. The Upper Austrian has been chosen in a secret poll among all Members of the European Parliament. Joseh Daul MEP, Chairman of the EPP-ED Group, has congratulated the EPP-ED winners of The Parliament Magazine MEP Awards 2008. Daul said that this is international acknowledgement of the EPP-ED Group's political work. Paul Rübig (Research and Innovation) and five members of the EPP-ED Group were honoured with an award in several categories: Kinga Gál (Justice and Civil Liberties), Alojz Peterle (Health and Food Safety), Neil Parish (Agriculture and Fisheries) and Marie Panayotopoulos-Cassiotou (Employment and Social Affairs), Alejo Vidal-Quadras (Energy). The Parliament Magazine, devoted to issues concerning the European Union, held its annual awards ceremony for 2008 on 8 October. The nominations were made by European non-governmental organisations and the final decisions were made by the Members of the European Parliament.

SME UNION Press Release
EPP-ED Press Release
European good practice selection for SMEs
The Conference of the European Charter for Small Enterprises made the annual selection of good practices fostering SMEs in the different Member States. Each year the European Commission collects good practices to foster SMEs from its Member States. They received more than 150 good practices under the Charter exercise, out of which 40 are displayed in their brochure, which is now available. Please find below the 10 Good practices in SME policy that have been voted "most beneficial to implement" by the participants of this year's conference on the European Charter for Small Enterprises.

Brochure
Good Practice Catalogue
Practical Guide to EU funding opportunities for Research and Innovation
The "Practical Guide to EU funding for research, development and innovation", launched on September 8, provides with user-friendly information on combining the different funding sources; it includes a description of each fund, advices for policy makers and an innovative Checklist and Scorecard. The Checklist and Scorecard allow potential beneficiaries to quickly identify exactly how they can access European funding at every stage of the development and implementation of a project. The EU possesses three key funding instruments to support research and innovation: the 7th Research Framework Programme; the Competitiveness and Innovation Framework Programme and Cohesion policy which is funded through the Structural Funds and Cohesion Fund. When operating individually, these three funding sources already act as effective tools in support of RTDI. However, their value can be further enhanced by combining them. The Practical Guide arises directly from the conclusions of the European Commission's Communication "Competitive European Regions through Research and Innovation", adopted in August 2007, which examined the current situation in relation to EU funding for research and innovation and called on Member States and regions to make more effective use of the available funding instruments.

More information
Cordis
Order EU Commission Enterprise & Industry Magazine now!
The new Enterprise & Industry on-line magazine will provide regular updates on policy development, on legislative proposals and their passage to adoption, and on the implementation and review of regulation affecting enterprises. It will keep you informed on the work the European Commission is doing to make the European Union a better place for business and entrepreneurs to operate. Articles will cover issues related to SMEs, innovation, entrepreneurship, the single market for goods, competitiveness and environmental protection, better regulation, industrial policies across a wide range of sectors, and more. The magazine will be published three times a year, in English, French and German.

More information
Enterprise and Industry Magazine
Subscribe to China IPR SME Helpdesk Newsletter now!
The first issue of the newsletter edited by the China IPR SME Helpdesk focuses on the counterfeiting in China and provides information about Helpdesk’s activities and the upcoming events in Europe and China on Intellectual Property Rights.

Newsletter
Website
Give a name to the new EU mobility scheme for entrepreneurs
This pilot project, which the SME UNION demanded since years and successfully lobbied for, aims to facilitate exchange of experiences, learning and networking for nascent EU entrepreneurs through periods spent at companies of experienced entrepreneurs in other EU member states. The specific objective is to contribute to enhancing entrepreneurship, internationalization and competitiveness of potential start-up entrepreneurs in the EU and newly established micro and small enterprises.

Vote now!
Chambers promote intelligent energy for SMEs
On 16 September, Chamber delegates from 12 countries met in Brussels to launch "CHANGE". This two-year project, co-financed by the "Intelligent Energy Europe" programme, aims to create capacity and develop activities in Chambers to help SMEs use energy more efficiently. The CHANGE project helps SMEs optimise their energy use by developing a European network of intelligent energy advisors at Chambers of Commerce and Industry (CCIs) and by kick-starting concrete assistance to SMEs.

Intelligent Energy Europe
Energy Project-CHANGE
FP7: Two calls for SMEs just opened
The European Commission has launched a new round of calls to strengthen research and innovation capacity of SMEs under the European Union´s Seventh Framework Programme for Research and Technological Development (FP7 R&TD).

FP7 Capacities: Research for SME Associations Call 2 – Call for Proposals
Topic: Strengthening the innovation capacity of European SMEs and the creation of SME Association/Groupings with the aim of developing new technology solutions to problems common to a large number of SMEs in specific industrial sectors through research and technological know how.Participants: At least 3 independent SME Association/Groupings established in 3 Member States (MS) or Associated Countries (AC), 2 Research and Technological Development (R&TD) performers (independent from any other participants), 2 SMEs (other enterprises or end-users) established in 2 MS or AC.
The indicative budget is: EUR 78.55 million
Deadline: 18 December 2008

FP7 Regions: Regions of Knowledge Call 1 – Call for Proposals
Topic: Supporting economic competitiveness and in particular the emergence of lead markets enhancing the sustainable use of natural resources and of the natural and man-made environment.
Participants: Consortia of partners representing a minimum of three regional research-driven clusters from at least three different European Countries.
The indicative budget is: EUR 16.15 million
Deadline: 27 January 2009

Call List
LIFE: Call for proposal for SMEs
26/09/2008, call for proposals. Funding call for LIFE environment projects open. SMEs encouraged to apply. For this second LIFE+ call for proposals, the deadline for the submission of proposals to the Member States is 21 November 2008. A total amount of EUR 207,5 million is available for the 2008 call for proposals.

LIFE Call for Proposal
DG Enterprise and Industry published the new edition of “Putting Small Business First”
Published by the European Commission's Directorate for Enterprise and Industry, this guide helps Small and Medium-Sized Enterprises (SMEs) to better understand EU business policy, its key initiatives and programmes. It shows how SMEs can get involved to do business and where they can turn to for additional information. The guide also includes information on the proposed Small Business Act for Europe (SBA).

Putting Small Business First Guide, English
Putting Small Business First Guide, German
Webpage
Funding Start-ups and SME Innovation Guide for MEDA Countries
Released within the Medibtikar project, this guide aims to facilitate entrepreneurs’ search for funding innovation in MEDA Countries(Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco. Palestinian Authority, Syria, Tunisia, Turkey), gathering all the financing tools required for the creation of new SMEs for the research of instruments providing business and innovation support. Medibtikar projet will run till mid 2009.

SME Innovation Guide
EUMED: Regional Co-operation with the Southern Mediterranean Countries– An overview of programmes and projects
Released by the EuropeAid Cooperation Office of the European Commission, this report underlines the strategic impact of regional cooperation and provides concrete information on cooperation and actions undertaken within the Euro-Mediterranean Partnership (Barcellona Process).

Brochure
EC Co-operation Programmes
Stoiber Group launches “Best Idea for Red Tape Reduction Award”
18/09/2008, as the European Commission continues its progress towards its goal of reducing administrative burdens for enterprises by 25 percent in 2012, citizens and entrepreneurs are now invited to come forward with their practical ideas for cutting red tape. The High Level Group of Independent Stakeholders on Administrative Burdens (HLG AB) launched today a new competition “Best Idea for Red Tape Reduction Award”.

Enterprise and Industry Newsroom
Red Tape Newsroom
Global Entreprise Survey Report 2008
The ICAEW (Institute of Chartered Accountants in England and Wales) annual Enterprise Survey draws upon the expertise of our members working at the heart of business. The survey includes responses from chartered accountants in three key global regions – continental EU, the Far East (Hong Kong, Singapore and Malaysia) and the US – in addition to the UK. While taking account of the nature of companies in the global regions employing chartered accountants – typically larger than the UK companies surveyed and highly represented in the financial services sector – this survey allows to make insightful global comparisons on the international economic environment. The survey looks into the impact of the turbulence in financial markets – the credit crunch, changes in global commodity prices and the effects of changes in consumer demand together with major exchange rate movements. The impact on businesses’ growth plans and on their plans for continued expansion into new markets are main topics of this publication.

Global Enterprise Survey Report 2008
2009 to be designated European Year of Creativity and Innovation
The European Parliament backs a Commission proposal for 2009 to be designated 'European Year of Creativity and Innovation’. However, while the Commission chiefly wishes to emphasise lifelong learning, the European Parliament proposes a broader focus, highlighting a wider range of EU programmes. Each year the EU chooses a theme for a campaign aimed at raising public awareness of, and drawing national governments' attention to, a specific issue. Rapporteur Katerina Batzeli (PES, EL) backs this tradition, calling it a means of "heightening public awareness, disseminating information concerning good practices, stimulating political debate and exchanges, and activating the public." Previous years saw 2006 designated as European Year of Workers' Mobility, 2007 as European Year of Equal Opportunities and 2008 as European Year of Intercultural Dialogue. Bearing in mind this information our members voted for the SME UNION Topic of the Year 2009 “Creative SMEs as key driver for innovation and growth: New solutions for the energy challenge!”

More information
Catherine Ashton appointed new EU Trade Commissioner
Catherine Ashton has been confirmed as the new European Commissioner for External Trade. The appointment by the Council of Ministers follows the departure of Peter Mandelson to take up the position of Secretary of State for Business, Enterprise and Regulatory Reform in the United Kingdom. Commissioner Ashton assumes the duties of Trade Commissioner as of today. She will soon appear in front of the trade committee of the European Parliament. Speaking following her appointment, Commissioner Ashton said: "I am delighted and very proud to have been asked to serve as Commissioner, to be a part of the European response to the global challenges we face. I look forward to setting out my views to EU member states and the European Parliament very soon." Catherine Ashton was nominated by UK Prime Minister Gordon Brown, in agreement with Commission President Jose Manuel Barroso, on Friday.

Press Release
DG Trade
Latest Events top
2008-07-15, Brussels, EHFG Working Breakfast on Healthcare Directive
On 15 July 2008 the European Health Forum Gastein together with the SME UNION of the EPP organized a Working Breakfast on “The Cross-Border Healthcare Directive – Chances and challenges for patients and providers”. This event was very well visited, which can be brought back to the interesting and actual topic. The event started with a short introduction of Paul Rübig MEP, President of the SME Global and Member of the EP Industry, Research and Energy Committee, who did also the moderation of this Event. He announced the importance of the health care industry and their influence (10-20% of the GDP) and the necessity of further development and improvement.

Matthias Schuppe, Secretary General of European Health Forum Gastein (EHFG), went on with the introduction of Paul Rübig and underlined the significance of the mobility of the citizens. Furthermore they have to be well informed about their rights and possibilities. During the last years EHFG created important input concerning this topic. The keynote speaker, Robert Madelin, Director General, European Commission – DG Health and Consumers, mentioned that it is unusual for them to act with the SME side of the healthcare industry but he also highlighted the importance of this dialogue. He announced three pillars, which are responsible for the success of the Cross Border Health Care Directive. First, the legal basic conditions have to be created. This includes legal security as well as law cases. The second pillar is about quality and safety and last but not least, the coordination and reduction of red carpet. The following Impulse Statement of Miroslav Mikolášik, MEP, Committee on the Environment, Public Health and Food Safety was also affected of the meaningfulness of the patients’ mobility. He also added that the EU must encourage technological innovation in the health care industry. Wittmann- Stahl, Health Attaché, Permanent Representation of Germany to the European Union, also mentioned that law cases and a lot of further discussions are necessary to create legal security and as a result the possibility to go abroad for healthcare. She ends her speech with a cup of questions on which attention should be paid.
Günther Leiner, President of European Health Forum Gastein made clear that in Austria everybody gets health care without any payment in advance. Foreign patients often pay nothing or very late, so there has to be a regulation which creates the same conditions for everyone. The possibility of health care abroad should be available for the whole population, especially when a better treatment can be guaranteed in other member states. In the following fruitful discussion, the lack of information was a big topic.

Patients’ rights in cross border healthcare
EU Health Portal
Coordination of Social Security
Directorate General for Health and Consumers
2008-09-11, Brussels, Working Breakfast with Czech Education Minister
On 11 September 2008 the SME UNION of the EPP together with the The Czech Ministry of Education, Youth and Sports, Jan Brezina MEP and The Czech Business Representation to the EU (CEBRE) organized a Working Breakfast on “Administrative Burdens, Partnerships and SMEs: Educational Priorities of the Czech Presidency '09”. This event was very well visited, which can be brought back to the interesting and actual topic.The event started with a short introduction of Jan BREZINA, MEP, Member of the EP Committee on Industry, Research and Energy, Member of the SME Circle, who did also the moderation of this Event. He underlined the importance of education and the priorities of the Czech Presidency ’09.The keynote speaker Ondrej LISKA, Minister of Education of the Czech Republic mentioned the importance of the issue of the Czech Residency. He announced that first should be the Partnership between the academic sphere and the entrepreneurs. He mentioned that the academic people should start business with new skills as long the legal and also the social regulation is not fulfilled.

The following impulse statement of Jiri PLECITY, Member of the Cabinet of EU Commission Vice-President Günter Verheugen was also affected of the crucial factor of the role of education. He also added that the EU has to help to build knowledge and also the education system. Pál SCHMITT MEP, Vice-Chairman of the Committee on Culture and Education mentioned that the first priority of the education is informal exchange and partnership. As he continued it is extremely important to advance migrants and social minorities to get a higher education. In the following fruitful discussion the legalization, the lack of sport activity at the youth people and the key competence of lifelong learning were the big topics.

Afterwards a press conference took place, where the Czech Minister Ondrej Liska, MEP Jan Brezina and the Secretary General of SME UNION Patrick Voller outlined again the importance of remaining European education competitive towards the rest of the world and the importance of the partnership between education sector and employers, especially entrepreneurs as the key to economical success of Europe.
2008-09-18, Brussels, 2nd SME Aerospace, Defence & Security Conference
On Thursday, 18 September 2008, the SME UNION of the EPP together with the SME Circle and the SME Aerospace, Defence & Security organized the conference on “Space: a new Business opportunity for European SMEs?” that was organized under the Patronage of the French Minister for Higher Education and Research Valerie Precresse and the President of the EPP-ED, Group Joseph Daul and chaired by Karl von Wogau, Chairman of the Subcommittee on Security and Defence. The Conference took place at the North Rhine-Westphalia Representation, in Brussels and was sponsored by EADS Astrium, Konrad-Adenauer-Stiftung and Robert Schuman Fondation. Peter Weilemann, Director of the Konrad Adenauer Stiftug, Karl von Wogau, Chairman of the EP Subcommittee on Security & Defence and Patrick Moulin, President of SME Aerospace, Defence & Security gave introduction to the Conference. A message written by Valerie Precresse, French Minister for Higher Education and Research, was red by Jean Jacques Favier. The conference was attended by a great number of participants, particularly entrepreneurs and experts in this sector. Some of them fruitfully took the floor during the Conference. There were three discussion panels presented by the Secretary General of SME Aerospace, Defence & Security, Barbara Frontini Bizjak. Speakers of the first panel dealt with the theme “Space: A new Business Opportunity for European SMEs?”. Paul de Fraipont, Director de SERTIT (France), Peter Volk, Chief Executive Officer of GAF AG (Germany) and Christian Hoffmann, Manager Director of GEOVILLE (Austria), moderated by Etelka Barsi-Pataky, MEP, talked about this topic.
In the second discussion table, panelists concentrated their speeches on “Space: How Key Players can contribute to the growth of the space market”. Alojz Peterle, MEP, moderated Jean Max Puech, Vice President Finance of ARIANESPACE, Andras Roboz, EUROPEAN COMMISSION Project Officer in the unit H2 “Space Policy and Coordinator”, Johannes von Thadden, Head of Political Affairs of ASTRIUM, Daniel Wagner, Ministry of Economy and Science of the State of Saarland and Paolo Salvato, Vice President, Deputy Business Development and Institutional Clients.
In the last panel, moderated by Patrick Moulin, Adam Sowa, Deputy Chief Executive Operation of the European Defense Agency (EDA) and Bernard Molard, Chairman of Security and Defense Committee of Eurospace discussed about the “Duality of Civil and Military Space. The European way”.

Message Ministre Precresse
Message MEP Daul
Speech Favier
Speech Sowa
Contribution Roboz
Introdution III Panel Moulin
Slides Molard
2008-09-26, Oradea, Romania, SME Union RMDSZ Conference
The SME UNION organized in cooperation with RMDSZ, Democratic Alliance of Hungarians in Romania, a Conference on SMEs on Friday, 26 September 2008 in Oradea. This conference was organized to involve Romanian SMEs in the activity of SME UNION in order to set up business connections taking part of a strong European business network to ease information flow and to develop the SME sector, particularly in the Transylvania Region. The introductory remarks were done by Iuliu Winkler MEP, Member of the SME Circle, and former Delegate Minister for Trade who organized and hosted the event. Jean Michel Ferrand MP, SME UNION Vice-President gave a cordial welcome followed by Patrick Moulin, Secretary General SME Union France of UMP, President of SME Aerospace, Defence & Security. They underlined the importance for the Transylvanian SMEs to connect to SME UNIONs network and to benefit from this huge network. Special guest at the Conference was Minister of Communication and Information Technology Karoly Borbely. In his keynote speech, he addressed the audience by an overall view and opportunities for the future of SMEs.

Due to other excellent input statements from Ferenc Bogar, Economic Counsellor, Hungarian Embassy to Romania, Istvan Imre, State Secretary for Foreign Trade, Ministry for SME, Trade, Tourism and Liberal Professions, Rozália Biro, Vicemayor of Oradea, this event was a great success. The conference was followed by a business lunch where Barbara Frontini Bizjak SME Union Head of Office and SME Aerospace, Defence & Security Secretary General presented in her introductory remarks the practical cooperation possibilities between Transylvanian SMEs and SME UNION, in order to increase and develop SMEs activity. After the conference a visit to the Varadinum Expo was organized and concluded by a Cocktail reception in the Hotel Continental.

Frontini Speech
2008-10-07, Brussels, SME UNION visit of Kosovo Minister of Trade & Industry
Lufti Zharku, Kosovo Minister of Trade & Industry and Naser Grajcevci, CEO of the Kosovo SME Support Agency, were invited by the SME UNION to treat the theme of “Access to Finance for SMEs” at the Working Breakfast organized on Tuesday 7th of October. Zharku’s input allowed everyone to have a new look on this subject. Afterwards, he visited the European Parliament and he met the Vice-President of the EPP, Corien Wortmann-Kool MEP. Together they were able to exchange their views on the LDK application. For lunch, the Minister was received by the President of SME Global, Paul Rübig MEP. This lunch was the opportunity for Minister Zharku to talk about different events and projects with the other MEPs that were present. Finally, the minister was invited by Kostas Sasmatzoglou, Secretary of External Relations of the European People’s Party for a meeting.
2008-10-07, Brussels, Working Breakfast “Access to Finance for European SMEs”
On Tuesday 7 October 2008, the Confédération Européenne des Associations de Petites et Moyennes Entreprises (CEA-PME) and SME UNION of the EPP with the support of the European Commission organized a Working Breakfast on “Access to Finance for European SME”. Paul Rübig MEP and President of SME Global and Member of the EP Industry, Research and Energy Committee, started this event and moderated the interventions of the speakers. He put the accent on the fact that after Basel II financing business operations is quite complicated for SMEs and, during a financial crisis, the security and transparency of banks, even retail banks are more than necessary. Lutfi Zharku, Kosovo Minister of Trade and Industry and Naser Grajcevci, CEO of the Kosovo SME Support Agency, told that SMEs are the backbone of the Kosovo economy and the development is driven by the performance of the private sector. These are especially mining, metals and chemicals companies and count as 99 % of the total number of companies registered.

Markus Will, Fraunhofer IPK, Scientific Coordinator of FP6 Research Project INCAS (Intellectual Capital Statement), underlined the importance to have guideline for intangible assets such as Intellectual Property Statement (IPS), in order to have better access to finance. As keynote speaker Will mentioned that IPSs are also SME management tools that help the leaders of the companies to take the right decision (internal risk and strategy indicators).
Impulse statements given by Patrick Klein, Financing Innovation and SMEs, DG Enterprise and Industry, talked from the view of the European Commission. He mentioned that finance based on intellectual capital has to be seen in the context of the Lisbon Strategy that highlights the big role of intellectual capital and it is important that the EC work out some standards, like a World Intellectual Capital and a suitable legal form suggested might be a directive. Zsolt Becsey MEP, EP Rapporteur on Microcredits considered that SMEs are crucial for employment, but also for macro economic stability. Markus Becker-Melching, Managing Director of the Association of German Banks, focused on intellectual capital. He mentioned that until summer 2008 there were no affects on loans to companies, but since then the general increase in caution also reached company loans. To start a business, enterpreneurs need capital and bank loans. The intellectual capitals like education or experience in an industry are also often prerequisites. After the final considerations made by Manfred Vohrer, Member of the Executive Board of CEA-PME, a fruitful final discussion moderated by Patrick Voller Secretary General of SME UNION concluded the event.

InCas Presentation Will
2008-10-08, Brussels, Working Breakfast "Reach and the Reality for SMEs"
The Weinberggroup in cooperation with SME UNION hosted a working breakfast on the subject of: “REACH and the Reality for SMEs”. In fact, REACH is a new European Community Regulation on chemicals and their safe use. It deals with Registration, Evaluation, Authorization and Restriction of Chemical substances. In all ways, this new regulation affects SMEs and their development and there are many different opinions about it. For many, the REACH will be a new opportunity for SMEs, and for others, it will only increase the challenges.
MEP Paul Rübig, President of the SME Global and member of the EP Industry, Research and Energy Committee, gave a cordial welcome and introduced the main concerns of SMEs as regards the REACH Regulation. He was followed by Kevin Bradley, Senior Director at the Weinberggroup, who gave a very stimulating presentation about the new norms that will be applied when the handling of chemical substances matters. He was able to catch the interest of many interested listeners in the audience with his input because of its great clearness and accuracy. Graham Willmott, Head of Unit REACH at the DG of Enterprise at the European Commission, talked about their viewpoint, their intentions behind REACH and gave an interesting and constructive input concerning its implementation. Then it was the turn of Herbert Salzer from Bussetti Ltd, a Viennese SME, to give the “other side of the coin” opinion. For Salzer, REACH is a challenge for the future business and they would appreciate an SME friendly legislation that would facilitate the development of startups and the paperwork of SMEs. Marc Leemans, Member of the Management Board of the European Chemicals Agency, continued with an interesting insight in the work of ECHA and gave us their thoughts and ideas on this issue.
Finally, Catherine Mir from the French Ministry of Sustainable Developmentgave her input treated several different “facettes” of the implementation of REACH under the French Presidency in this half of the year. The Working Breakfast was ended by a discussion between the speakers and the participants that introduced very interesting remarks to the debate.

Presentation Reach Bradley
2008-10-09, Brussels, Working Breakfast “SMEs in the Framework of the Construction Product Regulation”
On Thursday 9 October 2008 the SME UNION of the EPP and the European Association of Craft, Small and Medium-sized Enterprises (UEAPME) with the support of the European Commission organized a Working Breakfast on “SMEs in the Framework of the Construction Product Regulation". Paul RÜBIG, MEP and President of the SME Global and Member of the EP Industry, Research and Energy Committee, gave a warm opening. Den DOVER, MEP, President of FOCOPE, Member of the EP Committee on Industry, Research and Energy moderated the interventions of the speakers and gave the final impulse statement. UEAPME Enterprise Policy Director Luc Hendrickx gave the keynote speech. He focused on the upcoming regulation, which will be a test on the application of the “Think Small First” principle to EU rules. The present wording of the regulation clarifies the previous rules and provides a set of simplified procedures of non-series products and micro enterprises. Such simplified procedures should also apply to small series. Moreover, small enterprises are still under-represented in the standardisation process. Tapani Mikkeli, Deputy Head of Unit of the DG Enterprise and Industry, European Commission gave the first impulse statement. He adverted about two important points: first of all the importance of simplification, to approve an easier access to standards and norms for SMEs. Secondly he focused on clarification. Standards have to be defined more precisely; because without this, the survival of the SMEs in the complex world of standard norms will be troublesome. Antonin Ferri, Deputy Adviser for Industrial Affairs of the Permanent Representation of France focused on the fact that the satisfying process of exempting small scale production from CE marking (a mandatory conformity mark, means that the item meets all the essential requirements of the relevant European Directives) is not taken over in the current CPR. None of the member states is hostile to a simplified procedure for micro-companies, but there is a concern about the potential abuses of such a system which could spread uncertainty about the quality and safety of construction products. As all micro-companies have a responsibility towards their customers it is in their interest to ensure a simplified system would not harm general customers´ confidence.

Agnes Thibault, Secretary General of the European Building Confederation (EBC) amplified that the Crafts and SMEs of the construction sector are usually users of construction products, but also sometimes manufacturers. The current CE marking process has been developed for the industrial production in series, which is not at all adequate for the small enterprises that produce individual products or small quantities. The cost of testing is obviously disproportionate to the cost of production of individual products or those ones produced in non-series. This is why EBC has been working with the European Commission in order to include simplification measures in the proposal for a Regulation on construction products adopted on the 23rd May by the Commission. Elisabeth Stampfl-Blaha, Secretary General of Austrian Institute of Standardization pointed that SMEs do have the possibility to actively contribute to the standards development process, via the national "mirror committees".
Here they can participate in their own language, not far from their business site. This possibility exists, the processes are open, but the SMEs and especially their associations must use those processes to bring in the SMEs view. As a conclusion Den Dover confirmed that the main idea of the Working Breakfast is to give SMEs a fairer opportunity to reach the given standards and norms. Finally he coordinated a fruitful discussion, which placed further additions and views, of the interested participants.

EBC Position and Amendments
2008-10-13, Brussels, SME Coordination Group discusses EU ETS and Small Business Act
During the deliberations at the SME Parliamentary Coordination Group meeting held on Monday 13 October in Brussels special invited guests like Mechthild Wörsdörfer from DG Enterprise informed the Group about the status-quo of the Small Business Act from the Commission’s perspective. On the other hand, from Kirsi Ekroth-Manssila, Deputy Head of Unit, DG Enterprise and Industry, the Coordination Group members learned more about the planned SME Week from 6 to 14 May 2009. As regards last Tuesday’s vote of the European Parliament Environment Committee for an EU emission trading package, SME UNION President Leitl warned again that this proposal expels industry from Europe and reinforces recession tendencies. Against the warnings of business it was decided to burden the industry already from 2013 on with CO2-fees which never can be carried out. Logical consequence is that businesses including small and medium-sized enterprises will be forced to move away from Europe. Enterprises, which will face massive burdens in a few years, will not invest in Europe anymore, but will shift their investments to other areas. We already feel the effects, because many concerned enterprises have suspended their investment plans for now, until the necessary disburdening signals come from Brussels. Leitl would have preferred and suggested a benchmark system allocating to the most up-to-date producers that have the most current state of the art technology, free of charge certificates. “This system would not punish those who have already invested and would motivate the others to follow those examples” explained the President of the SME UNION. The members of the SME Coordination group agreed that they were all in favor of climate protection, but the tools must be right. The SME Parliamentary Coordination Group works on the enforcement of dialogue between SME organizations.

Leitl on EU ETS
ETS Discussion in SME Coordination Group
2008-10-13, Brussels, SME UNION Bi-Annual Political Bureau Meeting
On Monday 13 October 2008 the SME UNION bi-annual Political Bureau meeting, including all SME UNION members was opened by President Leitl congratulating MEP Piia-Noora Kauppi, SME UNION Vice-President, for being nominated as the new director of the Federation of Finnish Financial Services. Since it was her last meeting with the SME UNION, Leitl thanked her great support, loyalty and her engagement for SMEs in various SME UNION and SME Circle functions through out the last years. In the name of the organization he wished her all the best for the new baby and new job challenges.

President Leitl reported to the members, the latest SME UNION events including his meeting with United Nations Secretary General Ban Ki-moon in New York to discuss the concerns of European economy and how to improve the world wide economic situation. During the meeting, the SME UNION budget proposal for 2009 was approved by its members. The current issues discussed were the Small Business Act, the present financial crisis and the adoption of SME UNION Resolution for European Council Summit October 2008.
“Bearing in mind the weak results in support of the European economy of the last European Council in June 2008, I urge the heads of state and government and the French EU Council Presidency to tackle the real issues with whom European citizens and businessmen are confronted now“, demanded SME UNION Christoph Leitl, in the run-up to the European Council on October 15 and 16 in Brussels. He summarized the main points of the resolution in the run-up to this week’s European Council in Brussels as follows: “Increasing consumer and energy prices and the current financial turmoil are generating new problems, especially for small and medium-sized enterprises since the additional costs are especially burdening SMEs. During such a downturn, access to finance for SMEs must be a priority. Banks are now even more reluctant to provide loans to more risky projects, like innovative ventures and start-ups. Nonetheless start-ups and innovation are crucial for maintaining and strengthening the EU’s competitiveness. Therefore the European Investment Bank (EIB) should bring forth its own SME Guarantee Fund to provide counter-guarantees to national and regional institutions providing guarantees and equity side funds particularly to start-ups and innovative SMEs, donated with a yearly budget of at least 500 million EUR. Furthermore, during this time of general financial crisis, it is imperative that SMEs do not bear the brunt of the credit starvation, by larger companies seeking to make later payments to SME suppliers. “We strongly believe that bringing Europe closer to the citizen means concrete measures and answers for needs and concerns of entrepreneurs and citizens. The current discussion about the EU Small Business Act is a unique chance to ensure that European SMEs will be able to continue to be a strong backbone of our economy. If business goes well – all are well!”

As prepared by the SME UNION Presidency meeting before, the members discussed the membership application of the Ukrainian Julia Timoshenko party and decided to organize a fact-finding mission to Kiev after the 7 December 2008 elections.

Last but not least the members of the SME UNION voted for the Topic of the Year 2009. The title chosen was “Creative SMEs as key driver for innovation and growth: New solutions for the energy challenge!”

SME UNION addresses EU Summit and pledges for SME guarantee fund
2008-10-13, Brussels, Annual SME UNION Topic of the Year Conference and Political Entrepreneurship Awards 2008
On Monday 13 October 2008 the SME UNION of the EPP and the UNPR organized a Conference on the topic: SBA & Micro Financing. The conference started with the welcome address of Wilfried Martens, President of the EPP. In his speech he mentioned “The SME UNION is one of the most active and dynamic organizations of the party, and all its contributions constitute, a precious source of innovation and progress for the EPP, the SMEs and Europe”. Martens sustained that SMEs have a key role in future positive economic development inside and outside the European Union. In his speech he also explained that the role of politics must be the creation of economic, fiscal and logistic environment in which entrepreneurial spirit can prosper. He continued by saying that entrepreneurs have to be supported and their importance must be acknowledged if the EU wants to walk the way of prosperity.
This introduction was followed by the opening speech of Christoph Leitl, President of the SME UNION of the EPP. In the beginning of his speech he clarified that politics do not create jobs, as the entrepreneurial spirit of the SMEs. He explained that the SME UNION contributed extensively from the beginning to the input of the SBA and it’s most important input was nevertheless the results of their “Low Level Group for Better Regulation” presented, last June to Commissioner Verheugen and the public its package of concrete measures and political demands to substantially reduce red tape. He continued by saying that dealing with the European Small Business Act has the potential to completely change European SME policy. He put in plain words that it must become a politically binding act for the European Commission, Parliament and the Member States. Afterwards he moved on to the Micro-financing topic where he declared that the moment had come for a European initiative to boost financing for small and medium-sized enterprises. Finally he declared that he strongly believes in the fact that bringing Europe closer to citizens, means concrete measures and answers for needs and concerns of entrepreneurs and its society.
This speech was followed by the laudatio of Peter Jungen, Co-President of the SME UNION. He was very satisfied that he could make the acquaintance of the holders of the Political Entrepreneurship Award. First of all, Christine Lagarde, French Minister of Economy, Industry and Employment, who is a longtime supporter of an SME friendly policy. Lagarde, already in 2006, when nobody was speaking about a European SBA, was already lobbying for it together with the SME UNION. Secondly, it was the turn of Philippe Maystadt, President of the European Investment Bank who has proven to be a crucial and supportive friend of SMEs. He has helped them in many ways, as President of the EIB but also before that, as Finance Minister of Belgium.
After that, the SME UNION President Christoph Leitl opened the SME UNION Political Entrepreneurship Award Ceremony. Philippe Maystadt received the award in the first place, followed by Patrick Moulin, who was representing Christine Lagarde.
After the Ceremony, the Panel Discussion started with the main topics: Small Business Act – Where do we stand and the role of Micro Financing. The introduction and moderation was maintained by Peter Jungen. He explained that innovation is the most important thing, because it turns ideas into money. He made clear that Europe needs six million more entrepreneurs to catch up unemployment and only innovation can make the difference in the future. Maive Rute, Director of Promotion of SMEs from DG Enterprise and Industry in the European Commission, explained that SMEs encourage growth and create new jobs in Europe. She explained that the SBA could be found as well in the United States. Nevertheless, she clarified, the European version is not just a vulgar copy, “it is unique” because it puts together the political and legal principals. She strongly advised that the EC has to work together with the member states of the EU and has to help small businesses and protect them. She also gave a very accurate explanation of the pilot project of the ERASMUS program for new entrepreneurs. It this program they send 800-900 young entrepreneurs to other countries and give them the opportunity to acquire a better international experience.

The next speaker was Philippe Maystadt, holder of the SME UNION Political Entrepreneurship Award. In his speech he talked about the ways the European Investment Bank Group supports SMEs. The EIB has granted credit lines to banking intermediaries throughout Europe who then on-lend these funds to SMEs. At the same time, the European Investment Fund (EIF) has provided specialized support for SMEs based on two major product lines: acting as a fund of funds in the venture capital area, it has invested in focusing on high-tech and innovative SMEs. Finally, Maystadt concluded by saying that the EIB group provides support to some 150 000 to 200 000 SMEs every year.
In parallel to the work done by the Commission on the SBA, the EIB Group has undertaken a consultation in the past 12 months in the 27 member States together with SME associations, the public support institutions and our partner banks. This is the first time that the Bank has engaged in such a wide consultation process with the aim of determining how its support to SMEs is currently viewed by the market, and how it should evolve in the future.
Gunnar Hökmark MEP, Rapporteur on SBA at the European Parliament Committee on Economic and Monetary Affairs, gave the last impulse statement. He underlined that it is important for SMEs to have healthy financial markets because their functioning affects terribly SMEs. He said: "In order to face this situation we need to increase knowledge, we need to see what we want to do in the future and where to focus our attention. We must create the conditions for SMEs to grow up and develop. Microsoft and Apple started in a garage. We need more competition and we need more transparency for the consumers". These words were followed by a fruitful discussion and by the conclusions of Patrick Voller, Secretary General of the SME UNION. He invited everybody to the cocktail reception afterwards hosted by Marian Petre MILUT, President of the UNPR and PNTCD.

Message from the French Minister Lagarde
SME Lex top
Group exemption supports SMEs
On 7 July, the European Commission presented its regulation concerning group exemptions. As a first very important part of the “Small Business Act”, the regulation aims to support mainly SMEs, as it combines already existing rules on the one hand, but creates new and progressive ones on the other hand. The process of notification can be arranged without including the Commission, which will reduce administrative expenses to a large extent. Other important improvements like aid in terms of guarantees or bonds will also help to create a better environment for SMEs in the future.

More information
Regional policy to become 'launch-pad' for SMEs
On 9 July, the European Commission presented its new initiative focusing on helping EH cohesion policy to better assist small businesses. In order to support SMEs, Regional Policy Commissioner Danuta Hübner announced the € 27 billion allocation, with the biggest share going to technology and innovation. As the money is coming from the cohesion fund, Hübner pointed out its high importance as representing SME’s biggest source of finance across the EU budget. The program is also supposed to help implementing the Small Business Act, presented by the Commission in June 2008. One key factor of the initiative to be successful are regional programs like the micro- credit project, which are supposed to improve conditions for SMEs in the member states. In Austria for example, SMEs are encouraged to engage young academics as “innovation assistants”.

More information
Cohesion Policy 2007-2013
EU faces “long row” over cross-border healthcare
A recent proposal to ease reimbursement of the health care European citizens receive while visiting other EU countries is just "the beginning of a long row," predicted a top Commission official as German diplomats warned they may challenge the legal basis of the draft directive. After repeated delays and lengthy internal consultations, the Commission finally published its proposal for a Directive on the application of patients' rights in cross-border healthcare on 2 July 2008. Overall, the directive is set to clarify the right of patients to seek health care in another EU country and be reimbursed by their national system. On that topic, on 15 July 2008, the European Health Forum Gastein together with the SME UNION of the EPP organized a Working Breakfast on “The Cross-Border Healthcare Directive – Chances and challenges for patients and providers”.

Next steps:
* Fall 2008: In-depth analysis of the draft Directive by the Council.
* The proposal has little chance of going through the co-decision procedure during the Barroso Commission. First reading in the Parliament may still take place next spring, but the readings will have to begin again from scratch after the June 2009 parliamentary elections, involving the appointment of new rapporteurs.

Patients´rights in cross-border helthcare
More information

Debate on EU social agenda
Reactions to the EU's new social package were split as the Commission presented it to MEPs on 2 September, with many voicing their support but critical that it is not far-reaching enough. Meanwhile, Socialist leader Martin Schulz used the opportunity to open the election campaign against the political right, who would lead Europe in the "wrong direction". The Commission and the French EU Presidency, which took over the EU reigns on 1 July, have both declared social policy a priority in 2008. French President Nicolas Sarkozy has repeatedly stressed the need to make Europe "more protective", contrary to the views of more liberal member states such as the UK. The renewed social package is based on a consultation with European social partners carried out in 2007 and aims to put the social dimension back on the EU's agenda three years after the Lisbon Strategy was refocused on growth and jobs. The initiative can also be seen in light of Commission President José Manuel Barroso's hopes of securing a second term, which depends on the approval of both the member states and the European Parliament. Presenting the Commission's package to MEPs, Employment Commissioner Vladimir Spidla highlighted two measures out of the overall 18 proposed in July: the draft Discrimination Directive and the revised Directive on the European Works Council. The former, which aims to ban discrimination on grounds of sexual orientation, religion and disability outside the workplace, would bring member states, businesses and citizens "more clarity and legal certainty," Spidla said. However, "this does not mean that uniform rules have to be applied everywhere. For example, in insurance or banking it will still be possible to treat people differently based on age and disability," he added. The French chair of the EPP-ED Group, Joseph Daul, voiced strong support for the Commission's initiative but also asked it to go "even further" into areas such as the fight against poverty, better integration of disabled people into the labour market and the promotion of workers' mobility and training."No political family is more committed to the defence of a Social Europe than the centre-right, represented by the EPP-ED Group", Daul pointed out. In a statement that appears to be a precursor to the next European election campaign, Daul was also eager to distinguish his party from the political opponents. "Too often, the Socialists and the parties of the left think that they have found the magic formula for more social justice. And, too often, they forget that in order to obtain that, to guarantee the durability of our social models, we need to provide the means." The British leader of the Conservatives in the European Parliament, Philip Bushill-Matthews, dismissed the Commission's package by saying "the EU cannot solve all the ills of society with more one-size-fits-all legislation as determined by big business and big trade unions".

Next steps:
* October 2008: Commission to propose a revision of the rules governing the European Globalisation Adjustment Fund, which supports people who lost their job due to globalisation.
* 2010: Measures of the renewed social package could go into effect after approval by governments and the European Parliament

EU Parliament
Commission

Compromise on European Works Council
EU Employment Commissioner Vladimir Špídla on 4 September welcomed the deal struck between social partners' on a revision of the European Works Council (EWC) Directive after months of deadlock and Commission threats to go it alone if no amicable solution was reached. Earlier this week, trade union and business representatives - who had been struggling to find a common position since the Commission took the initiative by announcing a review with a social partner consultation in February - informed the French Presidency that they accepted the proposal to revise the EWC Directive. The proposal was a key element of the EU executive's new social package presented on 2 July.

The European Trade Union Confederation (ETUC) had been pressing for a review of the 1994 EWC directive since 2004, pointing to large gaps in implementation. Indeed, the directive obliged companies with 1,000 or more workers and at least 150 employees in two or more member states of the European Economic Area (all EU states plus Norway, Iceland and Liechtenstein) to set up councils with worker representatives from all countries. However, twelve years after the directive's entry into force, only about a third of companies have done so, with medium-sized businesses of up to 5,000 workers lagging behind the most. While trade unions have asked for a more prominent role in the negotiation process with employers and a clearer definition of 'information' and 'consultation', businesses' main demand is a two-year transition period following the adoption of the new directive. This should allow for voluntary agreements in cases of so called 'controlled undertakings' – such as acquisitions or financial participation.

Jorgen Ronnest from BusinessEurope, which represents 40 national federations at the EU level, told EurActiv that he considered the agreement to be "a win-win situation" for all parties and "as sensible as it can be" given the demands of the different actors. He especially lauded the efforts of the French Presidency, which he said approached all social partners just after the Commission had adopted the text. "I am convinced that a revised directive will translate into a better functioning of European Works Councils and make them more efficient. This will serve the interests of workers and employers alike," Commissioner Spidla said. Most parties hope the revised text will be adopted by all 27 member states under the current French Presidency.

Proposal to review legislation on EWC
Parliament backs major telecoms and internet overhaul
24/09/2008. The European Parliament approved a broad revision of the rules governing the Internet and telecoms sectors in a bid to boost competition and offer a wider range of services to consumers. Some provisions originally proposed by the Commission have been watered down.

Next steps:
* National governments now have to decide if they will push through comprehensive reform. The next Telecoms Council is scheduled for the end of November. There is strong support for the adoption of the package before the end of the current Parliament in mid-2009, but many issues remain open to debate.

Text adopted by the Parliament
More information

Reducing burden for SMEs: Simplification of EU rules on mergers and divisions proposed
The European Commission has put forward a proposal for a directive that will further reduce the administrative burdens on European public limited-liability companies in the area of mergers and divisions.

Press Release
Small Business Act: 'Everything in the SBA is negotiable'
29/09/2008. All measures in the recently proposed Small Business Act (SBA) are "negotiable", including one on a reduced rate of VAT that is strongly opposed by several member states, Commission Vice-President responsible for enterprise Günter Verheugen told EurActiv in an interview .


Next steps:
* The SBA proposal is currently discussed in the European Parliament. In the leading ITRE Committee Rapporteur is MEP Herczog, shadowed by MEP Fontaine. Following SME Circle MEPs were nominated as rapporteurs and will contribute from the SME UNION family side: Karas (JURI), Weisgerber (EMPL) and Hökmark (ECON)
* The vote in the leading ITRE Committee is earliest foreseen for 19-21 January 2009 (tbc)
McCreevy announces major initiatives on accounting rules for Small Businesses
03/10/2008, Charlie McCreevy, Commissioner for the Internal Market and Services, has announced a Member State option to exempt micro entities from the EU Accounting Directives, and an overhaul of their rules for small businesses.

Press Release
Accounting
Consumer Rights Directive: Step forward for cross-border shoppers but further safeguards needed, says SME UNION Vice-President Harbour
"The EU proposal on consumer rights will simplify complex and different rules across Member States, reduce barriers that impede businesses from selling cross-border, increase consumer choice, and lower prices. It will be a further important step towards the completion of the internal market for consumers and business", said Malcolm Harbour, Coordinator of the EPP-ED in the Internal Market Committee.The Directive will allow for a comparable high level of consumer protection across the European Union by requiring clear information on the goods, rights on late delivery and non-delivery, cooling off periods, returns, refunds, repairs and guarantees. This will facilitate cross-border purchases allowing consumers to exploit more fully the advantages offered by the Single Market. There will be no reason to claim that one Member State is more protective of his consumers than another; there will be no justification to block business from another Member State from being active on domestic markets by abusive consumer legislation. This in turn will produce significant improvements in cross-border competition, in particular for small and medium-sized enterprises. "However, the proposal only provides for the harmonization of core contractual aspects between the trader and the consumer. The draft Directive therefore fails to address other important aspects of a contract, which will continue to be regulated by the Member States. This distinction between core and non-core aspects not only presents an obstacle to cross-border trade but will also serve to undermine the aim of the proposal, which was to increase cross-border consumer confidence and legal clarity", added Andreas Schwab, Vice-Coordinator of the EPP-ED-Group in the Internal Market Committee. "A mutual recognition mechanism, which has been described as the Internal Market Clause by the European Parliament, is essential if the problems surrounding consumer confidence and legal uncertainty are to be fully addressed", the MEPs said. Therefore, whilst the EPP-ED broadly supports the proposal, they call for a bolder and more comprehensive Directive to include those aspects left outside the full harmonisation process. Such a provision is necessary if this proposal is to completely address both the key aspects and major problems surrounding consumer contract law.

Malcom Harbour, MEP, Tel: +32-2-2847132
MEP Karas Rapporteur for revision of bank capital requirements
The European Commission has put forward a revision of EU rules on capital requirements for banks that is designed to reinforce the stability of the financial system, reduce risk exposure and improve supervision of banks that operate in more than one EU country. Under the new rules, banks will be restricted in lending beyond a certain limit to any one party, while national supervisory authorities will have a better overview of the activities of cross-border banking groups. The proposal, which amends the existing Capital Requirements Directives, reflects extensive consultation with international partners, Member States and industry. It now passes to the European Parliament and the Council of Ministers for consideration. Internal Market and Services Commissioner Charlie McCreevy said: "These new rules will fundamentally strengthen the regulatory framework for EU banks and the financial system. I believe that they are a sensible and proportionate response to the financial turmoil we are experiencing. Basic rigour, transparency and prudence are key to a healthy and stable banking system."

The main changes proposed are as follows:
* Improving the management of large exposures
* Improving supervision of cross-border banking groups
* Improving the quality of banks' capital
* Improving liquidity risk management
* Improving risk management for securitised products

The proposed amendments are, in the main, a direct follow-up to the Roadmap for the current financial turmoil agreed by EU Finance Ministers. In part, they are also a response to the recent recommendations of the G-7 Financial Stability Forum. The European Council has expressed a strong sense of urgency emphasizing that the measures should be adopted by April 2009.

European Commission Regulatory Capital
EU emission trading package expels industry from Europe and reinforces recession tendencies
On 23 January 2008, the Commission presented a series of proposals to put the political commitments concerning the emission reduction into law. The EU ETS (Emission Trading Scheme) which is an economy-market instrument of the environment policy of the European Union to implement their determined aim of world’s climate regulationis, is the mainstay of this ‘climate and energy package’.

On 7 October the environment committee (ENVI) gave it’s backing to almost every compromise amendments, introduced by Parliament’s rapporteur MEP Doyle. By doing so, the warnings of the business world, were consequently despised. The rapport’s (adopted with 44 votes in favour, 20 against with one abstention) main elements are among others:
*The power sector should be obliged to obtain 100% of CO2 permits at auction after 2013.
* Energy-intensive industries should be required to obtain 15% of emissions permits at auction in 2013, with a gradual phase-in towards 100% auctioning by 2020.

“This is not a constructive way to fight the climate change” MEP Rübig warned. “We want to take this challenge in a proactive and positive manner, without putting the economy and the employment in danger. Rejection of free allowances for expending economies would not match any economical or ecological reason. We have to face a decision: Either we choose penalty taxes for the industrial production of Europe or we create a new approach, which enables our industry to implement a balanced strategy between economic growth, environmental protection and ecological innovations.” he added.

SME UNION President Christoph Leitl criticized “This decision will burden industry already from 2013 on with CO2-fees. The logical consequence is that business, including small and medium-sized enterprises as well, will be forced to move away from Europe. We have to undertake everything in order to prevent this irresponsible burden. I cannot and will not accept a deindustrialization of Europe”. The delocalization of energy-intensive industries, in regions without any restriction, have as consequence even more CO2-Emission.

Regarding the informal trialog, the EPP-ED once again claims that acting in a rush could end up with fatal outcomes. In times of a financial crisis, we should not risk to endanger the competitiveness of the European industry even more. In what concerns the allocation of the emission-allowances, the EPP-ED and SME Circle MEPs, almost without exceptions, would have preferred and suggested a benchmark system allocating to the most up-to-date producers with the most current state of the art technology free of charge certificates. “This system would not punish those who have already invested and would motivate the others to follow those examples”, explained the SME UNION President.

The current date for the next plenary session is provided for the 3 and 4 December. In conclusion, the situation as it is now represents huge new barriers for the industrial world including SMEs.

SME UNION Press Release
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