Photo by Mathieu Stern on Unsplash
The body representing small businesses at EU level says Europe’s economy is lagging behind.
SMEunited has now called for action to help address the issue and for concrete actions at all levels to improve SME competitiveness.
This comes after EU heads of State and Government recently pledged to apply what they callthe Think Small First principle.
SMEunited says this means that policies and upcoming legislation must now reflect this commitment to ensure the key role of SMEs in the European economy.
It says, “The European Union must act now to ensure prosperity in Europe and further strengthen the competitiveness and the single market of the European Union”.
It says Europe’s economy is lagging behind and the reasons are many-fold.
The reasons, it is claimed, include geopolitical shifts, regulatory burden hampering innovation and business focus, climate and demographic changes.
High energy prices, unfair competition and dependencies on raw materials from third-countries with the risk of supply chain disruptions, are other factors, it says.
The Brussels based group said, “Our choice is either falling further behind or tackling Europe’s problems and shortcomings.”
The call comes after European Council conclusions in April which insisted on the Think Small First principle to be applied by the EU Commission when designing new legislation.
To foster SME competitiveness, SMEs now demand a reduction of regulatory burden, including administrative and reporting requirements.
SMEunited says it worked in the Fit for Future Platform on a methodology to avoid piling up reporting obligations, putting forward 6 concrete suggestions for action.
It says, “Member States, the Commission and stakeholders must work together to achieve tangible results.”
It goes on, “Building on the Letta and Draghi reports, EU institutions, together with stakeholders, must work towards developing a functioning single market.”
“Barriers must be tackled in a structured approach. Policy-makers must ensure a level playing field – among the business community and in particular with regard to competition with third-countries.”
“Moreover, EU Institutions must ensure the diversification of supply chains.”
