ESBA Bulletin of 28 April 2017
02 May 2017by ESBA -- last modified 02 May 2017
HEADLINES
EU/Social and Employment: Work-life balance off balance
On 26 April 2017, the European Commission published the European Pillar of Social Rights Package. ESBA welcomes any initiative that provides a healthy work-life balance and makes it easier for women to return to the work-force after a period of maternity leave. However, ESBA regrets the measures announced in the proposal, which will make it even more difficult for small companies to hire additional staff. Particularly micro-companies will suffer under the proposed rules, which make them pay for increased periods leave for both parents at sick-pay levels, as well as additional paid leave until the child's teens.
ESBA Secretary – General Patrick Gibbels said: "The welfare system in Europe is already extremely generous for employees. Especially in countries where employers' costs already make it virtually impossible for small companies to hire additional staff, measures such as these might just be the nail in the coffin of Europe's smallest companies. ESBA is in favor of creating employment through healthy policies. We appreciate the importance of a healthy work-life balance but, once again, our members are expected to pay the hefty bill".
For more information on the European Pillar of Social Rights package, please click here.
EU/ Digital Single Market: IMCO committee adopts report for the prohibition of geo-blocking
On 25 April, the Parliamentary committee on the internal market and consumer protection (IMCO) adopted a report on geo-blocking. The report entails a prohibition for companies to differentiate between, or block, consumers who seek to access their online interface or to complete a sale, solely because of their location within the EU. Apart from IT-related compliance costs, companies will be burdened with an obligation to sell. This burden is somewhat moderated by the position that "passive sales" will be governed by the law of the seller's country. A problem persists, however, in that it is unclear what constitutes a passive sale, obscuring whether it is the seller or consumer country's law that should apply to a sale. Additionally, the inclusion of digital copyrighted content is likely to have an adverse impact on the creators and distributors of such content who, unlike retailers of tangible goods, do not benefit from the non-obligation to deliver. Consequently, they may be forced to sell under uniform conditions across markets with different specificities. The report could have the opposite than intended effect of increasing retailers' hesitation to establish an online presence and make them less competitive if they do so. Next, negotiations shall take place between the European Commission, the European Parliament and the Council where it is possible that provisions of the report can be clarified or altered.
ESBA Secretary General Patrick Gibbels said: "ESBA has historically been in support of initiatives that enhance free trade and the Single Market, and continues to do so. However, the Single Market cannot be completed by force. We understand the Commission's desire to forge a true Single Market as soon as possible but forcing small businesses to trade with all EU countries as soon as they decide to offer their products online is taking it a step too far. Too many ostacles such as different VAT regimes, legal uncertainties and language barriers still exist. The EU should be focusing on setting the right conditions first, making it easy and safe for SMEs to trade cross border. If these requirements are met, SMEs will naturally start trading across the EU, in order to maximize their business potential".
For more information on geo-blocking, please click here.
IN BRIEF
EU/Finance: More protection for investors and alternative sources of funding for SMEs
On 5 April 2017, the European Parliament approved new uniform rules regarding the information given in investor prospectuses and the access of SMEs to finance. The new rules allow investors to make an informed assessment of assets, liabilities, profits, losses and rights attached to investment products. The new form of prospectuses should be a precise and clear seven-page summary, providing key information on the issuer, the securities and a clear warning of the risks involved. Concerning the access to finance for SMEs, the European Parliament established a specific, standardised and lighter EU growth prospectus regime for SMEs. The new rules will apply from 24 months after their entry into force.
For more information regarding the investment in EU, please click here.
EU/Investment: Commezbank AG provides extra lending to SMEs and MID-Caps.
On 19 April 2017, the EIB and EIF made available a tranche guarantee of around EUR 90 million to Commerzbank AG. The guarantee will allow Commerzbank to provide further lending of several hundred million EUR to SMEs and MID-Caps of the German Mittelstand. Ambroise Fayolle, Vice President of the EIB stated that supporting SMEs as the biggest economic sector of the EU is at the top of their priorities. European commission Vice-President Jyrki Katainen believes this fund will boost innovation and economic growth as well as creating new jobs across Europe.
For more information about the investment plan, please click here.
PUBLICATIONS
CEPS: The Circular Economy: A review of definitions, processes and impacts
On 7 April 2017, CEPS published a paper on the circular economy. The paper reviews the literature on the circular economy before attempting to map the processes involved and their application in different sectors. It suggests that research on the circular economy is currently fragmented. Finally, the paper highlights the fact that there is limited information on the Circular Economy's indirect effects on the economy and on the social impacts of the circular economy transition.
To access this publication, please click here.
Bruegel: From start-up to scale-up: examining public policies for the financing of high-growth ventures
On 10 April 2017, Bruegel published a policy paper providing a conceptual framework for understanding the challenges of financing scale-ups. It examines the challenges entrepreneurial companies face in going beyond the start-up phase and growing into large successful companies and the long-term financing of these so-called scale-up companies, with a focus on the United States, Europe and Canada. The policy paper investigates long-term public policies to support the creation of a better scale-up environment.
To access this publication, please click here.
Friends of Europe: Europe has to decide on an offensive strategy to take the lead in the 4th Industrial Revolution
On 21 April 2017, Friends of Europe released an article assessing the options the EU could take to tackle the disturbance of the 4th Industrial Revolution. This disturbance is encouraged by 3 hidden transformative impacts: extreme automation, big data, and the internet-of-everything. It then developed two field that could see a new European strategy in the future: The Big-Data and the Digital Skills.
To access this publication, please click here.
CONSULTATIONS
Public consultation on whistleblower protection
DEADLINE: 29/05/2017
The aim of this consultation is to enable to collect information, views and experiences on the benefits and drawbacks of whistleblower protection. Additionally, the consultation aims to identify the elements that are important for effective whistleblower protection and problems arising both at national and EU level from gaps and weaknesses of existing whistleblower protection and from the divergences of protection across the EU, as well as on the need for minimum standards of protection.
To access this consultation, please click here.
Public consultation on the functioning of the administrative cooperation and fight against fraud in the field of VAT
DEADLINE: 31/05/2017
The aim of this consultation is to gather views from stakeholder about their experiences with the current rules on administrative cooperation and fight against cross-border fraud in the field of VAT. The consultation also aims at collecting quantitative data on possible reduction or increase of regulatory costs/benefits for businesses especially SMEs. The results of the public consultation will be used to update the rules governing the administrative cooperation and the fight against cross border VAT fraud with a view to improve the functioning of the single market and tackling the heavy losses to the Member States and EU revenues.
To access this consultation, please click here.
Public consultation on FinTech: a more competitive and innovative European financial sector
DEADLINE: 15/06/2017
On 23 March 2017, the Commission opened a public consultation on Financial Technologies (FinTech) aimed at collecting stakeholder views regarding its upcoming proposal. The Commission's consultation is targeting privacy concerns surrounding self-learning algorithms in FinTech. With this consultation, the Commission hopes to achieve adequate data- and consumer protection without overregulating the sector. The public consultation will run until 15 June 2017, after which the Commission will analyse the results and release a proposal in the following months.
To access this consultation, please click here.
Public Consultation on the Review of the Significant Market Power (SMP) Guidelines
DEADLINE:26/06/2017
This public consultation aims at reviewing the SMP Guidelines in order to update them in time for the implementation of the European Electronic Communications Code. The SMP Guidelines foresee that the Commission should amend the Guidelines when appropriate, taking into account the experience of applying the regulatory framework and the jurisprudence of the EU Courts.
To access this consultation, please click here.
COMING-UP
EU Institutions: Important Dates
02-04 May 2017: European Parliament Plenary Session
03 May 2017: Coreper I and Coreper II
04 May 2017: 20th European corporate governance conference
05 May 2017: Coreper I
08-10 May 2017: European Parliament Committee Meetings
10 May 2017: Coreper II
11 May 2017: Foreign Affairs Council
11-12 May 2017: Maltese Presidency conference - Mobility takes research further
12 May 2017: Coreper I
Other SME-related events
The Future of Industry in Europe - Challenges and Instruments for Local and Regional Authorities
02/05/2017, Brussels
On 2 May 2017, the Committee of the Regions will organise a workshop that will debate the main challenges and instruments for industrial modernisation from a regional and local perspective, and aim to identify the key gaps and opportunities on which policy could focus. Member States and the European Commission are showing renewed interest in charting a strategic vision for European industry. Regions are key stakeholders in this debate. By developing and expanding its knowledge-intensive and technologically advanced manufacturing sectors and boosting digitalisation, Europe can enhance its international competitiveness and generate badly-needed new sources of growth and jobs. Regional eco-systems are crucial in this.
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