European Commission trying to give SMBs a break

by Hugh Bicheno on 29 June 2008, 10:24

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Verheugen speaks

Well worth reading in full is this report of a meeting between representatives of the UK’s Federation of Small Businesses, which has very recently opened a new office in Brussels, and European Commissioner for Enterprise and Industry Günter Verheugen.

Unfortunately the report described Verheugen as a Eurocrat, when in fact he has been briefed against relentlessly by EU mandarins. His offence? Stating that EU bureaucrats are devoted to regulations for their own sake, and seldom consider their impact on the real world.

In person, Verheugen was more nuanced. “Regulations aren’t normally the work of bureaucrats in an ivory tower, but interest groups and industry,” he explained. “A regulation that is too complicated for you is something other groups in society desperately want.”

“Regulations aren’t normally the work of bureaucrats in an ivory tower, but interest groups and industry"

Verheugen tried to be diplomatic about the UK bureaucracy’s habit of “gold plating” EU regulations, but permitted himself a sharp comment about the failure of the British press to differentiate between policy initiated at the EC level and as applied at national level.

Business-friendly Commission

Fairly high on the Eurocrat list of black marks against Verheugen must be the programme he has initiated which compels 300 of his department’s most senior officials to do a one-week traineeship in an SMB, in a country other than their own. His expectations are low, however.

“European policy influences the environment but does not have too many direct and practical consequences,” he said. “My main priority is to improve the framework conditions for SMBs. I believe the strongest potential we have for growth is in your sector.”

Verheugen expressed a hope that – under the present Commission – some change in Eurocrat culture was possible, and called for support. “Now you have the most business-friendly Commission you’ve ever seen,” he pleaded. “There’s a unique window of opportunity – please use it.”

We think it's very encouraging to see someone with influence over the European juggernaut attempting to steer it, even slightly, in favour of small business for once. If any HEXUS.channel readers have any examples of ways in which they think regulations, domestic or Brussels-driven, impede them from doing business.



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