18.12.2012   

EN

Official Journal of the European Union

C 391/37

—

welcomes the European Commission's Proposal for a Regulation of the European Parliament and of the Council establishing a Programme for the Competitiveness of Enterprises and small and medium-sized enterprises (2014-2020) as a commitment to recognising competitiveness as a fundamental and leading factor in ensuring sustained economic growth and more jobs in the EU;

—

draws attention to the numerous existing initiatives taken by local and regional authorities in all Member States, for example local small business centres, microcredits awarded by local or regional authorities or free expert advice on setting up small businesses, which often provide the basis for a successful start-up microenterprise;

—

draws attention to the needs of young entrepreneurs, for whom enterprise is often the only opportunity for professional development, and who are inclined to take a risk on an activity, often developing it throughout the European market. These entrepreneurs are thus predisposed to being competitive in global markets;

—

points out that achieving global competitiveness is possible only by tackling the imperfections in the European market which make European SMEs less able to compete with their counterparts from other parts of the world. SMEs must play a bigger role in implementation of EU projects and their position should be improved in relations with major entrepreneurs which are often the general contractors of such projects. To this end, it stresses the importance of networking for SMEs.

Rapporteur

Witold KROCHMAL (PL/EA), Member of Wołów Town Council and Local Authority

Reference document

Proposal for a Regulation of the European Parliament and of the Council establishing a Programme for the Competitiveness of Enterprises and small and medium-sized enterprises (2014-2020)

COM(2011) 834 final

1.

welcomes the European Commission's Proposal for a Regulation of the European Parliament and of the Council establishing a Programme for the Competitiveness of Enterprises and small and medium-sized enterprises (2014-2020) as a commitment to recognising competitiveness as a fundamental and leading factor in ensuring sustained economic growth and more jobs in the EU;

2.

believes that the proposed regulation complements previous EC initiatives under the Europe 2020 strategy; acknowledges the role played by SMEs in the EU economic system and recognises the shortcomings and turbulent nature of the SME environment, which may slow down or even limit the development of businesses and the growth in their competitiveness;

3.

emphasises that the CoR position is backed up by the survey SME-friendly Regions and Cities (1) involving local and regional authorities carried out by the Committee's Europe 2020 Monitoring Platform;

4.

recognises that Member States and regions are largely responsible for tackling market shortcomings, but believes that the EU can help in certain areas by promoting good practices, ensuring that the single market functions effectively and improving the conditions for the business environment so that businesses, including SMEs, can compete sustainably on a global scale, this implies striving towards a low-carbon, resource-efficient economy;

5.

considers that this Programme will significantly increase confidence in Europe's enterprise sector in both European and global markets. The effect of increased confidence in markets will be greater interest in enterprise and a more expansive policy by existing businesses, including SMEs, which are a major source of economic growth (58 % of turnover in the EU) and employment (67 % of private sector jobs) and which created 85 % of new jobs between 2002 and 2010 in this sector;

6.

believes it is right that the Programme highlights the importance of the tourism sector, which is associated with a large number of SMEs in the EU employing a huge number of people;

7.

stresses the importance of supporting businesses and SMEs at the various stages of their development, from business start-ups to businesses that already exist, or even those being restructured, on the assumption that the effect of the support is to boost the competitiveness of the business in the EU market and external markets;

8.

recognises that one of the main conditions for the Programme's success is the promotion and development of an enterprise culture and business ethics in EU society; therefore welcomes the possibility to take part in the competition for the European Enterprise Award at national, regional and local level, and in other projects of this type;

9.

points out that annually three European regions obtain the "European Entrepreneurial Region" awards in recognition of the favourable conditions they provide for SMEs;

10.

believes that promoting enterprise should begin in school, through development of positive attitudes towards enterprise and promotion of self-reliance in the economic sphere. This will enable the making of informed decisions about the nature of the work students wish to do once they have to enter the labour market. In order for school-leavers and graduates to be able to begin work as entrepreneurs on the basis of the skills they have acquired, making it highly likely that there will be a demand for the services they provide, care must be taken that this training does not ignore the needs of the market;

11.

calls for integration of enterprise trends and development into vocational training, as ongoing education for our entrepreneurs is essential for the competitiveness levels;

12.

draws attention to the needs of young entrepreneurs, for whom enterprise is often the only opportunity for professional development, and who are inclined to take a risk on an activity, often developing it throughout the European market. These entrepreneurs are thus predisposed to being competitive in global markets;

13.

draws attention to the numerous existing initiatives taken by local and regional authorities in all Member States, for example local small business centres, microcredits awarded by local or regional authorities or free expert advice on setting up small businesses, which often provide the basis for a successful start-up microenterprise;

14.

also draws attention to the position of female entrepreneurs and as well as specific target groups including amongst others immigrant and expatriate entrepreneurs, who require a special initiative to develop the competiveness of their businesses, taking into account existing EU policies in this area;

15.

calls on local and regional authorities to implement the Programme; draws particular attention to the need to eliminate or reduce red tape and obstacles for obtaining external funds, and to simplify the documents submitted for contracts and dropping the requirement to provide bank guarantees for small-scale works;

16.

points out that achieving global competitiveness is possible only by tackling the imperfections in the European market which make European SMEs less able to compete with their counterparts from other parts of the world. SMEs must play a bigger role in implementation of EU projects and their position should be improved in relations with major entrepreneurs which are often the general contractors of such projects. To this end, it stresses the importance of networking for SMEs;

17.

points out that the EU, together with the Member States, must ensure that the single market operates effectively and improve the business environment by eliminating or reducing difficulties faced by SMEs in accessing finance, their limited ability for expansion into markets outside their country of origin both within the single market and outside it, as well as excessive tax burdens and red tape. These conditions must be met at the same time as ensuring access to knowledge and new innovative technologies as well as cooperation with local vocational schools and academic institutions which in their programmes must take account of SMEs as the driving force of the European economy;

18.

considers that the Programme should place more emphasis on increasing SME involvement in the EU's research and innovation efforts, projects and programmes, including by establishing public-private partnerships. Greater involvement in research projects will boost companies' internal skills and thus also their international competitiveness.

In the proposal to establish a research and innovation programme, Horizon 2020, particular attention is drawn to the need to increase SME involvement in research projects. Increasing their involvement in research makes information and knowledge available to SMEs, some of which are world leaders;

19.

notes that only such an approach will enable businesses and SMEs to develop in a way that takes account of commitments to a low-carbon economy based on the latest environmental technologies enabling goals to be achieved in the area of climate and energy policy;

20.

welcomes the Programme's proposed budget which amounts to EUR 2,522bn. At the same time, notes that the amount of EUR 1,4bn earmarked for financial instruments, which will support businesses and SMEs directly, represents only 56 % of the total Programme budget. In case the demand for financial instruments is higher than could reasonably be expected, change in percentage allocations should be decided in the Committee where all countries benefitting from the Programme for the Competitiveness of Enterprises and SMEs (COSME) are represented in line with the provision of Article 16 of the draft regulation. It is the remaining part of the budget, earmarked for activities to support the SME environment, that guarantees that funds allocated for the whole Programme for the 2014-2020 period are used efficiently and effectively;

21.

believes it is appropriate to allocate 1,7 % of the Programme budget to administrative support for the Programme since these funds must guarantee that the Programme operates effectively while not placing an excessive burden on the budget;

22.

is of the view that measures financed from the Programme budget cannot be a substitute for initiatives at national, regional or local level, but should strengthen these measures and make them more effective, giving them an EU dimension, through effective coordination and the removal of cross-border obstacles to cooperation between private actors or public authorities. This cooperation should be encouraged by means of "horizontal" networking rather than "vertical" centralisation;

23.

considers that the support provided should be fully justified by the goals and should generate positive impacts across Europe through crowding-in and multiplier effects and capitalising on the results achieved;

24.

stresses that is to a large extent dependent on productivity, innovation and efficiency, which is the source of sustainable growth in incomes, on the ability of businesses to take full advantage of opportunities such as the European single market and on institutional solutions creating the conditions for sustainable growth of businesses. Therefore projects which strengthen the factors having the greatest impact on sustainable competitiveness of businesses and SMEs should be treated as a priority;

25.

draws attention to the fact that the participation of third countries in the Programme on the basis of protocols to association agreements and on the basis of other agreements should be treated as an opportunity to expand the area of activity of businesses operating in the EU area and to acquire experience of how businesses function outside the EU market; the participation of other third countries in the programme should also be possible, financing should be provided from other programs designated for cooperation of EU Member States with non-Member States;

26.

draws attention to the importance of enterprise education, including through lifelong learning, evolving in the direction of developing skills, attitudes and incorporating CSR enabling people to take on the challenges of the modern global market, while respecting traditional European business ethics;

27.

believes that efforts to promote enterprise and develop pro-enterprise attitudes should also cover entrepreneurs embarking on the path of self-employment beginning their professional lives, including also women who make this effort and take the risk;

28.

is of the view that measures to improve access by SMEs to financing including the equity facility and the loan guarantee facility should complement the financial instruments currently used under the cohesion policy. There should also be the possibility to link them with other specifically defined funds from Member States;

29.

stresses the importance of the possibility to grant cross-border credit and loans enabling SMEs to tap the huge potential of the single market, which should strengthen the competitiveness and sustainability of business initiatives, in the tourism sector for example;

30.

draws special attention to the Equity Facility for Growth (EFG) focussing on funds that provide venture capital. Stresses that, on the basis of an appropriate risk assessment, the programme manager should help support as many SMEs as possible, including those which under normal banking procedures have little chance of obtaining assistance but which can help strengthen the overall potential of SMEs and reduce unemployment significantly;

31.

remains sceptical on the LGF loan level and urges the Commission to specify what criteria were used to set this level as the CIP programme did not establish any limits. Highlights that loans for start-ups, investment or transfer are often for significantly higher amounts than the set limit and is concerned that this leads to a situation where higher loans would be guaranteed under the Horizon programme, even though it is only supposed to be used for innovation projects;

32.

therefore calls for a return to the previous Competitiveness and Innovation Framework programme, which did not set any limits;

33.

regards as legitimate the individual approach to negotiations with institutions seeking risk-sharing funding for their lending, both in terms of the size of loans, which is dependent on the amount of the guaranteed portfolio risk, and the period for which loans are granted;

34.

calls for both financial instruments geared towards venture capital and funds earmarked to cover SME debt portfolios to be subject to continuous risk reduction checks;

35.

regards as appropriate the transfer of the indirect management of the Programme to the European Investment Fund (EIF) and to the executive agencies, with the European Commission responsible for continually monitoring the Programme. This form of management guarantees that the positive experiences of the EIF as an instrument supporting SMEs, acquired over more than ten years, will be made use of;

36.

recommends that use be made of the experiences in this area of the European Investment Bank (EIB) and the Enterprise Europe Network, which has experience of internationalising SMEs, including outside the EU;

37.

considers that, in order to ensure the Programme is implemented successfully and that it is effective, there must be close cooperation with local and regional authorities and institutions managing the Programme, facilitating the flow of information in each area of the Programme's implementation;

38.

considers experiences with the internationalisation of SMEs outside the EU and the transfer of information on this subject to be important; this should help SMEs to reduce transaction costs linked to cross-border activities. This is an area for development by experts from EU institutions, with cooperation from national and regional authorities;

39.

points also to the possibility of creating centres for disseminating information about SMEs. The Committee does not, however, wish to suggest what form these bodies should take or the specific way in which they would operate. These issues should be settled in the framework of multilateral cooperation agreements among countries and regions;

40.

proposes that direct management of the Programme take place mainly at regional level with support and supervision from the national authorities. This level of management should also build a system for monitoring the risks associated with projects being carried out;

41.

proposes that project monitoring also be part of the assessment of implementation on the basis of the indicators for the achievement of medium-term goals, set out in Annex 1 to the proposal. Monitoring should also encompass information on the implementation of measures within the framework of the Programme relating to climate protection and other EU policies;

42.

stresses that these activities must be consistent and in accordance with the monitoring activities carried out by the European Commission, whose representatives, alongside employees from the Court of Auditors and the European Anti-fraud Office (OLAF), will carry out on-the-spot audits, checks and inspections;

43.

considers that the audit strategies should be geared towards the objective assessment of the Programme's implementation and should not be a burden for Programme beneficiaries. The monitoring systems should take account of the project implementation phases so as not to have a negative impact on the pace of implementation and not lead to excessive additional costs;

44.

draws attention to the fact that, in light of the current budgetary situation in many countries, national governments are seeking the simplest means of boosting budgetary revenue by raising the level of various contributions that increase the cost of labour, which can in effect lead to the collapse of SMEs or their transition to the grey economy. We therefore call for protection of SMEs, since the policy described above will delay recovery from the economic crisis and may in practice cancel out the Programme's added value. SMEs are an effective tool for reducing unemployment;

45.

believes that the administrative burdens linked to business start-ups and the tax burdens on operational companies may make it difficult for businesses, and SMEs in particular, to improve their competitiveness in many EU countries; the Committee of the Regions therefore calls for the net administrative burden in all relevant EU legislation to be reduced by 25 % until 2020; believes it would be a good idea to consider removing a broader range of barriers for stakeholders from the SME sector;

46.

considers that the Programme should provide additional bonuses for the countries and regions which have adopted the most favourable systems for SMEs, enabling them to develop, increase their competitiveness and expand into external markets, in order to support such activity. Promoting positive attitudes is aimed at encouraging appropriate trends in different countries and regions;

47.

calls on the European Commission to make every effort to improve access to information on development of markets in fast-growing countries, ways of investing in these countries, current legal systems and local customs governing business activity;

48.

believes that information on external markets must be easily accessible for SMEs, i.e. it should be affordable, accurate and rapidly available. In addition to SME information centres, the EU's diplomatic representations in those regions of the world should play a major part;

49.

stresses that developing the entrepreneurship of EU citizens requires changes in education and training system, which is a long-term activity. There is therefore a risk that medium and long-term goals will not be achieved.

50.

draws attention to the possibility that SME activities could be overregulated at EU, national or local level. Such overregulation may needlessly complicate procedures linked to the activities themselves and to obtaining support within the framework of various programmes, which will have a negative impact on SMEs' competitiveness. Cutting bureaucracy and lowering the barriers to starting and running a business must be treated as a priority.