ESBA Bulletin of 07 February 2018
07 February 2018by ESBA -- last modified 07 February 2018
EU/Geoblocking: EU misses the mark with Geoblocking decision
On 6 of February the European Parliament Plenary approved the agreement on the geo-blocking regulation, reached in trilogue by the European Institutions 2017. ESBA welcomes any initiatives that intends to simplify operating within the Single Market for businesses and citizens. Unfortunately, the decision made yesterday has done the exact opposite for small businesses.
Small traders will now be forced to trade with all EU Member States, even if they do not wish to do so for very good reasons. We have tried to explain to the Institutions that, whilst this might be manageable for very large players and convenient for consumers, it is detrimental to micro companies. Growth and expansion for these companies happens organically and, though we can do our best to facilitate this, we must not force it. Many small online traders start selling locally, and then expand slowly, as their experience and knowledge grows and their turnover increases, so they can carry the cost of this gradual expansion.
It seems as though the EU, in the context of this file, has been working in reverse order. Rather than setting the right framework conditions first (simpler VAT systems, safer contract rules, better cross-border parcel delivery, less legal uncertainty, to name a few), businesses are thrown in the deep end of very choppy waters. Half measures, such as the 'you have to sell but you don't need to deliver' trick clearly do not offer real solutions. Here the problems begin when a dispute between the seller and buyer arises. The institutions claim in the recitals that they will address those barriers in the near future, which for some of our members will be too little too late.
Now that the damage is done, we strongly urge the Institutions to do whatever is in their power to make all ongoing and related policy files – such as contract law -as small business friendly as possible. We foresee a general revision of the geo-blocking file in the near future, once the mistakes have become obvious in practice.
EU/Insolvency: Early Warning Europe and the SME Intergroup of the European Parliament to discuss insolvency and second chances
On 22 February, Early Warning Europe and the SME Intergroup of the European Parliament will host a working breakfast with stakeholders to discuss "preventing insolvency and allowing a second chance for entrepreneurs" in light of the upcoming vote in the EP JURI Commitee on the Commission's proposal for a new Insolvency framework. Among the speakers, there will be MEP Angelika NIEBLER, Rapporteur for the Directive Proposal, Andreas STEIN (DG JUST),Costas ANDROPOULOS (DG GROW) Véronique WILLEMS (UEAPME), Arnaldo ABRUZZINI (EUROCHAMBRES) and Celia FERRERO ROMERO (ATA).
For more on EU insolvency proceedings, please click here
EU/P2B: ESBA Responds to Commission's Platform to Business Plans
On 6 February, ESBA published its response to the Commission's Platform to Business Plan (P2B), currently under development. The envisioned proposal will tackle some key element of the uneven relationship between platforms and their business users. However, according to ESBA the approach used by the Commission – i.e. drafting a proposal targeted almost exclusively on big companies while simply offering a blanket exemption for micro companies and a par-exemption for small companies – fails to adequately address the essence of the Think Small First principle, de-fact equating micro companies to second- or third tier companies.
For more on ESBA position on P2B, please click here.
EU/SMEs: European Enterprise Promotion Award 2018
On 5 February, the Commission launched the 2018 European Enterprise Promotion Awards (EEPA). Public bodies and public-private partnerships from across the EU Member State are eligible for the competition. Project nominations will be happening on a national level with different deadlines across countries, while European level nominations will have to be submitted by National Coordinators by 03 July. The EEPA 2018 Jury will announce the shortlist by the end of September and the winners will be awarded during the prestigious ceremony that will take place in Graz, Austria on Tuesday 20 November as part of the annual SME Assembly.
The 2018 EEPA categories are as follows:
- Promoting the entrepreneurial spirit
- Investing in entrepreneurial skills
- Improving the business environment
- Supporting the internationalisation of business
- Supporting the development of green markets and resource efficiency
- Responsible and inclusive entrepreneurship
For more on the European Enterprise Promotion Award 2018, please click here
EU/Data Protection: New data protection rules for the EU
On 24 January, the European Commission published a set of guidelines to facilitate the application of the General Data Protection Regulation approved in May 2016 that will enter into force as of 25 May 2018. In order to prepare EU governments for the reform, national data protection authorities and national administrations will receive active support from the Commission thanks to a new practical online tool, which will help citizens, SMEs and other business and organisations to comply with the new rules. The new Data Protection Regulation will enable the free flow of data across the Digital Single Market and will ensure better privacy for consumers while opening-up new opportunities for businesses, especially SMEs.
For more information on Data Protection, please click here
EU/Internal Market: A better VAT rate to help SMEs flourish
On 18 January, the European Commission published two proposals aiming at creating a definitive VAT system for a robust single European VAT area, with the aim of supporting a deeper and fairer single market and helping boost jobs, growth, investment and competitiveness. Furthermore, the initiative will help reduce the €50 billion lost to VAT fraud each year in the EU while supporting business and securing government revenues as well as creating simpler VAT rules which will result in a cut by as much as 18% per year on the overall VAT-related compliance costs, in particular for SMEs. The proposed measures follow up on the 'cornerstones' for a new definitive single EU VAT area - proposed in October 2017 - and the VAT Action Plan towards a single EU VAT area - presented in April 2016. These legislative proposals will now be submitted to the European Parliament and the European Economic and Social Committee for consultation and to the Council for adoption.
For more information on EU VAT policy, please click here
EU/Data Protection: SMEs need Member States to quickly adapt national legislations to implement the GDPR
On 30 January, representatives from UEAPME met Commissioners Ansip and Jourova to discuss the implementation of the General Data Protection Regulation (GDPR). The regulation will enter into force on 25 May 2018, however, many SMEs are worried they won't have time to prepare for all the provisions they will have to comply with, since only two Member States have adopted relevant national legislation to be ready with the implementation. Although the GDPR provisions are directly applicable to European citizens, Member States still need to adapt national legislation by repealing and/or amending national laws. Talking to the Commissioners, UEAPME raised concerns for the slow reaction from the Member States in implementing the GDPR provisions and emphasized that with less than 4 months away SMEs will have huge difficulties complying with the Regulation in time.
For more information on Data Protection, please click here
EU/SBA: EESC calls for an inclusive and horizontal European SME policy
On 29 January, the EESC adopted an exploratory opinion urging the Commission and the Council to make the Small Business Act (SBA) legally binding and embed it within the European Semester and Annual Growth Survey. According to the EESC, doing so would allow to better answer the challenges SMEs are currently facing, such as harsh competition, shortage of skilled labour, new forms of work and of consumption, an increasingly complex and intense flow of information, limited resources for innovation and complicated access to finance. The EESC opinion stresses the need to have an inclusive, coherent and effective horizontal European SME policy based on thr "think small first" principle, which would take into account SMEs at an early policy development stage.
For more information on the Small Business Act for Europe, please click here
EU/Trade Defence: Revamp of the EU trade instruments since 1995
On 23 January, the European Parliament's international trade committee endorsed the Commission's proposal to modernise the EU's trade defence instruments (TDIs). The initiative will foster more transparency (in particular with regard to provisional anti-dumping duties), faster procedures and more effective enforcement for efficient investigations. Those measures will allow the EU to deal more effectively with the challenges of the global economy and unfair competition from imports. Moreover, the new rules will make it easier for SMEs to participate in trade defence investigations thanks also to practical help and advice from the Commission's trade defence experts. The entering into force of the new rules is expected for May 2018, following approval from the European Parliament and the Council.
For more information on trade defence, please click here
EU/Taxation: Cross-border tax arrangements in need on more precise hallmarks
On 18 January, EESC adopted an opinion on disincentives to tax avoidance or evasion urging the Commission to specify its new directive on administrative cooperation amongst Member States in the field of taxation. The directive proposes a mandatory reporting scheme on cross-border tax arrangements and transactions falling within four standard types of reportable activities. However, according to the EESC, the proposal leaves to taxpayers and tax authorities the interpretation on whether transactions fall within one of the above mentioned reportable activities or not. It is therefore necessary for the Commission to specify the four criteria identifying the reportable activities, set out in the directive, in order to avoid over-reporting, administrative burdens and to ensure a uniform approach across national legislations.
For more information on EU transparency taxation policies, please click here
EU/New Skills Agenda: The European Commission adopt new initiatives to improve key competences and digital skills of European citizens
On 17 January, the European Commission called on Member States to improve pupils' education through work experiences while at school in order to ensure a wider knowledge of the European Union and better digital skills. This proposal is part of a wider EU strategy on the future of citizens' education and it will provide more funding for programmes such as Erasmus+ and other instruments for virtual mobility, such as the e-twinning network, a platform that allows pupils and teachers to communicate, collaborate and develop projects through a "learning community." This initiative will also support the development of digital skills closing the gap between the use of digital technology in everyday life and in education.
For more information on Digital Learning, please click here
EU/Brexit: the EU Withdrawal Bill gets approved by British MPs
On 17 January, the House of Commons voted by a majority of 29 to approve a landmark Brexit bill after weeks of debate and a damaging government defeat. The approved Bill repeals the 1972 law that made Britain a member of the European Union and transfers four decades of EU rules onto British statute books. The Scottish National Party (SNP) made a last attempt to ditch the Bill, conscious of a possible "constitutional crisis". The Bill, which would see policymaking in devolved areas returned from Brussels to London, and not to the local executive in Edinburgh, could also draw anger from Wales. After reaching a deal on the key separation issues in December, Britain is due to start talks with the EU this month on a transition deal before moving on to the future relationship. Britain wants a new trade agreement to replace its membership of the EU's single market and customs union, although critics warn it has unrealistic expectations.
For more information on Brexit, please click here
EU/Competition: The 2017 State Aid Scoreboard confirms the benefits of the Juncker Commission's State Aid Modernisation package
On 16 January, the European Commission published the 2017 State Aid Scoreboard, which showed that more than 97% of new State aid measures are being paid out without prior authorisation from the Commission. The annual State Aid Scoreboard is based on expenditure reports provided by Member States and covers all existing aid measures to industries, services, agriculture and fisheries. It also includes aid granted to financial institutions in the context of the financial and economic crisis. However, aid to railways and services of general economic interest is not covered by the Scoreboard. The aim of the new State aid rules, implemented by the Commission since May 2012, is to reduce red tape and speed-up the allocation of resources in order to foster investment, economic growth and job creation while leaving the Commission to focus on measures that have the biggest impact on competition.
For more information on State Aid Modernisation (SAM) and its implementation, please click here
EU/Banking & Finance: A revised Payment Services Directive for cheaper, safer and more innovative electronic payments
On 12 January, the EU adopted the revised Payment Services Directive (PSD2, Directive 2015/2366/EU), proposed by the European Commission in July 2013 and agreed by co-legislators in 2015. This Directive aims to modernise Europe's payment services to the benefit of both consumers and businesses, so as to keep pace with the rapidly evolving market. In particular, the new rules will limit the fees for transactions based on consumer debit and credit cards and ban retailers from imposing surcharges on customers for the use of these types of cards. However, although the new rules were supposed to enter into force by 13 January 2018, the European Commission is concerned that many Member States have not yet transposed the Directive and is urging them to do so as a matter of urgency.
For more information on PSD 2, please click here
EU/Finance: Member States fail to sweep new financial market rules
On 3 January, a sweeping overhaul of EU financial market rules went into effect, but most EU countries were not prepared to start enforcing the new rules. The new Mifid II (markets in financial instruments directive II) aims to reinforce consumer protection and attempts to avoid some of the problems that led to the 2007 financial crisis by requiring stronger surveillance of trading practices. The new regime requires that fund managers' report details of trades within 15 minutes, or face fines, and modernizes how banks and companies record communications about trading. However, only 11 member states met the deadline to start applying the new rules and implement the electronic reporting measures for banks and traders. To respond the concerns over the faltering start to the new law, the European Securities and Markets Authority (ESMA), in charge of overseeing Mifid II, warned that companies can still comply with the rules even if the member states where they are located have not yet translated the EU directive into national law.
For more information on Mifid II, please click here
PUBLICATIONS
The Impact of the Platform Economy on Job Creation
Over the past ten years, the platform economy has become a topic of great interest in Europe. It has been cited as a force for economic growth and innovation, lower-cost goods and services, and low-barrier employment opportunities. At the same time, platforms have been criticised for potentially expanding the number of workers in precarious jobs. Thus, stakeholders – including policymakers, social partners, workers and platforms – have sought to better understand the platform economy, as evidenced by the growing body of literature surrounding platform issues.
To access this publication, please click here
Regulating the Platform Economy: How to Protect Workers While Promoting Innovation
The rise of the platform economy has made it a topic of great interest among European policymakers, as evidenced by the European Commission's 2016 Communication "A European agenda for the collaborative economy". The regulatory challenges facing policymakers are manifold, ranging from taxation to competition policy to worker protection. Furthermore, many basic aspects of the platform economy are unclear, such as its size, the number of workers who take part in it and, indeed, its very de?nition. What types of regulation are necessary to ensure that the bene?ts of the platform economy are maximised for all Europeans? How can the productivity gains associated with the platform economy be distributed throughout society? Perhaps most importantly, how can policymakers support innovation while also protecting consumers, workers and communities?
To access this publication, please click here
Reconciling risk sharing with market discipline: A constructive approach to euro area reform
After nearly a decade of stagnation, the Eurozone is finally experiencing a robust recovery. While this comes as a relief – particularly in countries with high debt and unemployment levels – it is also breeding complacency about the underlying state of the Eurozone. Maintaining the status quo or settling for marginal changes would be a serious mistake, however, because the currency union continues to suffer from critical weaknesses, including financial fragility, suboptimal conditions for long-term growth, and deep economic and political divisions. While these problems have many causes, a poorly designed fiscal and financial architecture is an important contributor to all of them
To access this publication, please click here
The Impact of Brexit on the EU Energy System
With or without the UK, the EU will be able to complete its market, to achieve its climate and energy targets with feasible readjustments, and to maintain supply security. In addition, the authors do not expect that it will be in the UK's interest to seek a competitive advantage for its companies by discriminating against EU energy companies active in the UK, or by competing with the EU's manufacturing industry through lowering energy taxes or environmental standards. Despite our belief that the negative impact of Brexit on the EU energy system is manageable, our analysis demonstrates the immense number and sizable impact of very important details that will need to be resolved in a short period of time. Moreover, our analysis shows that special attention should be paid to the impact of Brexit on the Irish energy system.
To access this publication, please click here
CONSULTATIONS
Public consultation on building a proportionate regulatory environment to support SME listing
DEADLINE: 26/02/18
The consultation will help the Commission identify ways to cut red tape and build a supportive environment for SMEs wanting to list their shares or bonds on SME Growth Markets, without jeopardising investor protection and market integrity. The public consultation will focus on three broad categories of issues. It will seek to identify how the 'SME Growth Market' concept, created by MiFID II, can be further improved (1.). The aim of the consultation is also to identify areas where the administrative burden placed on listed SMEs can be lightened (2) and where some targeted regulatory changes could help (re)build the local ecosystems surrounding SME-dedicated exchanges (3).
Public consultation on EU funds in the area of strategic infrastructure
DEADLINE: 08/03/18
In 2018, the Commission will make comprehensive proposals for the next generation of financial programmes for the post-2020 Multiannual Financial Framework, which is the EU's long–term budget. The Commission's proposals will be designed to make it possible for the EU to deliver on the things that matter most, in areas where it can achieve more than Member States acting alone. This requires a careful assessment both of what has worked well in the past and what could be improved in the future. This consultation is an integral part of the process and its objective is to collect the views of all interested parties on how to make the most of every euro of the EU budget. Consultations have taken place in the context of evaluations of existing EU financial programmes covering several policy areas, including on current performance and future challenges. The views expressed by stakeholders in these consultations will be taken into account as part of the current process for the future Multiannual Financial Framework.
Public Consultation on the transparency and sustainability of the EU risk assessment in the food chain
DEADLINE: 20/03/2018
The consultation is also a follow-up to the commitments made by the Commission in reply to the European Citizens' Initiative on glyphosate and aims to obtain feedback from all stakeholders and EU as well as non-EU citizens on the following topics:
- The transparency and independence of the EU risk assessment system with respect to the underlying industry studies and information on which EFSA's risk assessment/scientific advice is based;
- risk communication; and,
- the governance of EFSA, in particular the involvement of the EU Member States (MS) in the EU risk assessment system.
Public Consultation on the Establishment of the Innovation Fund
DEADLINE: 10/04/18
The aim of the consultation is two-fold: to provide the wide public and stakeholders with an opportunity to express their views on the elements relevant for the establishment of the Innovation Fund; and to gather input (data and factual information, expert views) from industry, academia and other interested stakeholders on specific elements, such as key innovation challenges, expectations and financing needs of potential beneficiaries, that need to be considered when designing the Innovation Fund Ensure that all affected and interested stakeholders are represented.
Public consultation on EU rules for products used in the construction of buildings and infrastructure works
DEADLINE: 16/04/18
This public consultation aims to give all interested citizens and stakeholders the opportunity to contribute to the exercise and give their views on key issues relevant for the evaluation and impact assessment. In providing this opportunity, this consultation supplements previous, more targeted consultations of stakeholders. The consultation will inform the Commission's evaluation and impact assessment report and the legislative proposal accompanying the report, if the outcome of the evaluation points towards the need to change the EU rules on construction products.
COMING-UP
EU Institutions: important dates
8 February Working Party on Telecommunications and Information Society
Working Party on Transport – Intermodal Questions and networks
Working Party on Social Questions
Working Party on Tax Questions – Direct Taxation
9 February Working Party on Competitiveness and Growth – Industry 1
2 February Working Party on Intellectual Property – Copyright
Working Party on Telecommunications and Information Society
13 February Working Party on Competitiveness and Growth - Internal Market
Working Party on Land Transport
Working Party on Tax Questions - Indirect Taxation
Working Party on Social Questions
14 February Working Party on Social Questions
Coreper I
Coreper II
15 February Working Party on Social Questions
Working Party on Telecommunications and Information Society
16 February Working Party on General Affairs
Working Party on Land Transport
19 February LIBE Committee Meeting
TRAN Committee Meeting
FEMM Committee Meeting
20 February Working Party on Competitiveness and Growth
Working Party on Social Questions
LIBE Committee Meeting
TRAN Committee Meeting
FEMM Committee Meeting
21 February Working Party on Intellectual Property – Copyright
Working Party on Social Questions
Coreper I
Coreper II
Coreoer (ART.50)
IMCO Committee meeting
ECON Committee Meeting
JURI Committee Meeting
ITRE Committee Meeting
EMPL Committee Meeting
CULT Committee Meeting
22 February Working Party on Tax Questions - Direct Taxation
IMCO Committee Meeting
ECON Committee Meeting
JURI Committee Meeting
ITRE Committee Meeting
EMPL Committee Meeting
CULT Committee Meeting
26 February Working Party on Social Questions
Working Party on Land Transport
Working Party on Tax Questions - Direct Taxation
LIBE Committee Meeting
ECON Committee Meeting
TRAN Committee Meeting
27 February Working Party on Competitiveness and Growth – Industry
LIBE Committee Meeting
ECON Committee Meeting
TRAN Committee Meeting
28 February Working Party on Telecommunications and Information Society
Coreper I
Coreper II
Coreper(ART.50)
Other SME-related events
Hearing on the effectiveness of EU policies for SMEs
08-02-2018
The hearing is part of the EESC follow-up work related to its opinion on Improving the effectiveness of EU policies for SMEs, adopted in July 2017. The main objective of the hearing is to debate the effectiveness and efficiency of EU policies for SMEs and gather valuable input and feedback from Italian stakeholders on the matter with a view to finding ways in which they can be improved. Particular emphasis will be put on the recommendations that have been outlined in the EESC opinion with the aim of implementing them at national level. Issues such as access to finance, improving access to markets and internationalisation, promoting entrepreneurship, reducing the administrative burden, simplification, supporting SMEs' competitiveness and innovation will be at the forefront. The stakeholders are also invited to express their views on the current definition of SMEs and on its potential need for revision.
To find more about this event, please click here.
CAPITAL MARKETS SUMMIT 2018. THE FUTURE OF FINANCE IN THE NEW EUROPEAN ORDER
8-02-2018
The future of Europe's single financial market is still unclear: The European Commission is set to propose the building blocks of the Capital Markets Union by 2019, just as the full effects of Brexit are expected to hit. Will Europe take this opportunity to reinforce its commitment to deeper market integration? For the third consecutive year, POLITICO and l'AGEFI join forces to present the Capital Markets Summit. On February 8, 2018, 130+ industry leaders and policymakers, will gather to discuss Europe's path to spurring economic growth, innovation, and investment in its ever-evolving capital markets ecosystem.
To find more about this event, please click here
Self-employment in Europe: labour market and social protection
09-02-2018
The joint event 'Self-employment in Europe: labour market and social protection' will take place on Friday 9 February 2018 in the Conseil Central de l'Economie, Brussels, Belgium. The half-day event from 14.00 – 17.00 will be an opportunity to explore recent Eurofound and European Social Observatory (OSE) research on the issues surrounding self-employment and Social protection. In particular, it will be an opportunity to share expertise in the context of the European Commission's initiative on 'Social protection for all'.
To find more about this event, please click here
DEEPENING THE EUROPEAN ECONOMIC AND MONETARY UNION: A DEBATE WITH COMMISSIONER MOSCOVICI
14-02-2018
In December 2017, the European Commission presented its package to further integrate the European Economic and Monetary Union (EMU). Its aim is to further increase the unity and efficiency of EMU by 2025 and the effectiveness of the common currency governance. The proposal includes the gradual transition to a single representation of the euro abroad, including the creation of an EU Minister of Economy and Finance and a unified seat at the International Monetary Fund, as well as the creation of a new European Monetary Fund. EURACTIV invites you to this high-level Forum to discuss with Commissioner Pierre Moscovici the future of EMU.
To find more about this event, please click here
WORKING CONDITIONS AND QUALITY OF EMPLOYMENT
22-02-2018
Defending and promoting public services in Europe is a key issue for EPSU. The focus of the workshop will be on looking at the work done by the EPSU Women and Gender Equality Committee, the challenges faced in implementing its work programme and the focus for the future work of EPSU on gender equality. This will assist in defining future aspects of the EPSU equality programme. The most important aspect will be to develop a relevant action plan to implement our work.
To find more about this event, please click here
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