SMEs and the European Parliament - a partnership for Europe's future
20.10.2005
The summer of 2005 has been characterised by all sorts of debate about the future of the European Union. Amidst its constitutional shortcomings and venomous budgetary disputes, as well as the everyday insecurity imposed by the threat of terrorism, the Europe-wide guiding consensus on the future direction of the Union called for by Commission President José Manuel Barroso at the beginning of his term seems more distant than ever. Few decision-makers agree on how to revitalise the European project and how to achieve the long-sought of aim of connecting the Union with the people.
However, from the point of view of Europe???s SMEs, there is no need to despair. While a grand agreement on the political direction of the EU remains elusive, we can observe a growing consensus in favour of deep-seated economic reform. The realisation that a properly functioning economy is a precondition for popular acceptance of new, top-down political arrangements is beginning to hit home. The logic is, after all, pretty straightforward: if the foundations of your house are crumbling, you don???t start by installing a new roof.
In the absence of a new constitutional framework and an improved political narrative, the building blocks of Europe???s resurgence will, for the time being at least, need to consist of sensible economic policies and a regulatory environment conducive to business. The interests of SMEs are crucial in this context.
The Commission???s agenda for better regulation is of vital importance. Happily, we are seeing a shift away from overregulation at the EU-level and towards a greater consultation of market participants. Speaking for his "quality not quantity"-approach to regulation, Internal Market Commissioner Charlie McCreevy recently pointed out that "good rules help businesses and citizens by removing obstacles, tackling distortions in competition and/or market failures. Bad rules are a drain on Europe's competitiveness and its job creation potential." This is all the more true in the case of SMEs.
The European Parliament is constantly strengthening its role as the main channel through which SMEs make their voices heard in EU legislation. As a democratic body, the Parliament is inherently open to the diffuse concerns of Europe's entrepreneurial majority. It is thus able to hold the Commission to account on its promise to act in the interests of businesses, as well as to take the lead in various policy-areas where the Council is only capable of sub-optimal wrangling.
A good example from recent months is the directive on computer-implemented inventions (CII). In July, after a tense and emotional debate over two years, the European Parliament rejected the Council Common Position on CII, which had the support of the Commission, with an overwhelming majority.
It was the first time in history that the European Parliament had rejected a Council Common Position before conciliation in the matter under the co-decision procedure. The reasons were both political and economic. The Council Common Position entirely failed to take account of the views of the majority of the Parliament, as expressed in its first reading. As it were, the Parliament's views were the ones largely supported by Europe's SMEs.
Had the Parliament failed to take this decisive action, the resulting directive would have been unsatisfactory for nearly all businesses concerned. Unfortunately, the attempt to harmonise European patent regimes for CII failed, but in the end, for SMEs as well as other market players, rejecting the whole proposal was a smaller setback than the adoption of bad legislation would have been.
Another example of legislation where Europe's emerging consensus in favour of economic shake-up should mobilise national politicians and EU institutions into action is the Services Directive. For too long, the debate has been dominated by the paranoid agitations of groups who, refusing to leave their comfort zones, prejudice the interests of the majority. The media are partly to blame, as made-up headlines about job losses sell far better than balanced analyses of expected pros and cons.
SMEs and politicians alike have a duty to turn this debate around before it is too late. The EPP-ED group in the European Parliament is looking for a purposeful and forward-looking result when the Directive is voted on later this autumn. As the greatest expected beneficiaries, SMEs should also close ranks and make their interests in support of a broad liberalisation package known to their elected representatives and customers.
Amid the crisis of EU political confidence and lacklustre economic performance of many member states, it is important for those who understand and believe in the benefits of European integration to maintain their grip. Despite the lack of political momentum, nothing is lost yet. The EU still possesses the tools to advance the economic agenda Europe needs. The partnership between SMEs and the European Parliament is central in this endeavour.
Piia-Noora Kauppi
Member of the European Parliament |
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