A saving of 7 billion euros for SMEs
The first legislative success for the Belgian Presidency: Jean-Claude Marcourt, in his capacity as President of the European Competitiveness Council for industry, welcomed the fact that the Belgian Presidency has today been given a mandate by the Council to reach an agreement with the European Parliament on a flagship directive for the Small Business Act, that is to say, a directive on combating late payment in commercial transactions.
The objective of the Small Business Act is to foster the growth of SMEs by helping them to overcome the problems that continue to hamper their development.
The Small Business Act for Europe applies to all independent businesses with fewer than 250 staff and a turnover and/or balance sheet below a given ceiling, that is to say 99% of all European businesses.
The Minister also reiterated at today’s Informal Council that the pivotal role played by SMEs was now a matter of record. The “Think Small First” principle must be put into practice in all Community policies. The fact is that SMEs represent more than 95% of European businesses, generate almost 45% of the value added of industry and account for close to 59% of jobs. Numerous studies pinpoint the link between a country’s economic competitiveness and the internationalisation of its SMEs. It is clear that innovation is a key factor in this equation. It is also clear that SMEs must be proactively involved in the greening of the economy. However, they need specific tools in terms of access to finance, in particular risk capital, to markets and to innovation.
No fewer than 23 million SMEs in Europe are concerned.
It must be ensured that a thirty-day limit is placed on the payment of invoices to SMEs by public authorities or 60 days in the case of transactions between businesses.
It is estimated that this directive will mean a saving of 7 billion euros for SMEs.
The Minister welcomed the fact that this first success relates to the business environment for SMEs since promoting SMEs is one of the priorities for his Presidency.
