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ESBA Bulletin of 12 March 2018

12 March 2018
by ESBA -- last modified 12 March 2018


IN BRIEF

EU/Taxation: Digital tax proposal: revenue or profit?
On 7 March, the Commissioner Moscovici held a roundtable to discuss with Tech companies, the digital tax proposal which should be presented before the end of the month. This meeting came after the leak from last week, reported by Reuters, of a very controversial draft which proposes to tax the digital companies on their gross digital revenue. This temporary system would apply to companies with a worldwide revenue above €750 million. The European Commission is trying to find a taxation system which seize the new business models. The current tax system was created for the brick and mortar businesses and fails to tax digital company with no physical presence in Europe. The Commission said to listen the worries of the industry and announced that the proposal might considerably change. It is yet not definite if the proposal will introduce a tax on revenue or profit.
For more information on EU taxation, please click here

EU/Labour law: Posting of Driver: the glimpse of light at the end of the tunnel
On 28 February, during their 7th trilogues, the Institutions finally found a common ground on most key elements of the Posting of Worker Directive. It is not yet the final agreement, just the glimmer of light at the end of the tunnel after two years after the presentation of the directive. The settlement concerns a maximum period of posting of 12 months, the principle of equal pay for equal work in the same place and the entry into force two years after the adoption. An 8th trilogue will be hold on the 19th of march, for the institutions to finalise their agreement. Finally, these concessions are not yet settle and will need the to be validate by both COREPER and the Plenary sitting of the European Parliament.
For more information about Labour law, please click here

EU/Brexit: The European Commission goes on the offensive on the withdrawal agreement
On 28 February, the European Commission published a 119-long draft legal text on the withdrawal agreement with the UK that is expected to rise pressure at No. 10 of Dawning street. According to the text, Northern Ireland will remain part of the EU customs union and maintain full regulatory alignment — effectively imposing a new trade boundary in the Irish Sea – while the European Court of Justice will retain legal authority to adjudicate any disputes that arise in relation to the withdrawal treaty, including any disagreements on citizens' rights or the U.K.'s continuing financial obligations to the EU. In addition, the Commission's text confirms that the Brexit transition period will end on December 31, 2020 (the final day of the EU's current long-term budget plan) and reaffirms that during said period the U.K. will lose all voting rights and decision-making power but will still have to comply with all existing EU laws and regulations — as well as with any new rules adopted by the EU27. Other provisions of the draft treaty concern nuclear safeguards, fishing quotas and drug approvals. The draft will be discussed with the EU27 in the Council, and with the European Parliament, and only then it will be submitted for consideration by the U.K.
For more information on the Draft Agreement, please click here

EU/Brexit: How Jeremy Corbin learned to stop worrying and love the custom union
On 26 February, after months of silence, the leader of Britain Labour party, Jeremy Corbin, finally laid down its own vision of Brexit and the future relations between the UK and the EU27. Mr Corbin announced for the first time that if he was in charge: "Labour would negotiate a new and strong relationship with the Single Market that includes full tariff-free access and a floor under existing rights, standards and protections". Nonetheless, he also argued for 'exemptions after Brexit to allow London to subsidise some industries and nationalize others, where necessary'. For all intents and purposes, cherry-picking on the Single Market, as the EU would say.
For more information on the Brexit negotiations, please click here

EU/Social pillar: ECJ ruling is set to overhaul current provisions on pregnancy and layoffs
On 23 February, the European Court of Justice ruled that pregnant and breastfeeding woman will not be exempted from massive layoffs in the workplace. The current European law prevents employers from dismissing woman during pregnancy until the end of their maternity leave, but the ECJ ruling is set to change that. Nevertheless, the Court added that its ruling does not prevent each Member State to provide additional protection for this working group.
For more information on the EU Pillar of Social Rights, please click here

EU/DSM: Contract law for sales of good: another burden for SMEs?
On 22 February, the Internal Market and Consumer Protection Committee of the European Parliament agreed on the draft report of the Rapporteur Arimont and gave him a mandate to enter the interinstitutional discussions. However, following the steps of its sister-policy, the Geo-Blocking Regulation, the draft report as it is, risks to put additional burden on SMEs. The report includes alarming rules such as a deadline of one month for completion of repair, the reverse of the burden of proof for one year and no obligation for consumers to notify the trader of an irregularity within a time frame. But most importantly, ESBA wonders how this directive will work in light of the "Geo-blocking-obligation-to-sell-without-physical-delivery" rule. For an effective Digital Single Market, the European institutions need to assess the implications of one legislative proposal on the others and be attentive not to add burden on SMEs.
For more information on the Digital Single Market, please click here

EU/Single Digital Gateway: MEPs give overwhelming support to new e-government procedures
On 22 February, the European Parliament Committee on the Internal Market and Consumer Protection (IMCO) gave its negotiating team, led by Ms Mizzi (S&D), a mandate to start talks with EU Ministers in order to reach an agreement on the Single Digital Gateway proposal. The Commission's proposal originally required Member States to grant online access to the most important and frequently used procedures, such as requests for a birth certificate, car registration, permit for business activity or registering for social security benefits. However, MEPs added new procedures, including requesting a residence certificate, enrolling in a public university, requesting recognition of professional qualification, declaring income taxes, and also VAT registration for companies. The mandate was approved by 32 votes to three, with no abstentions.
For more information on the Single Digital Gateway, please click here

EU/Taxation: Will tech companies move from low-tax EU countries, after proposed digital tax?
On 21 February, the ECON Committee in the European Parliament approved two draft reports on a new Corporate tax plan: The Common Consolidate Corporate Tax base (CCCTB) and Common Corporate Tax Base (CCTB). The reports aim to create a single taxation system fitting the current digital economy and making it clear and fair for all Member States. Addressing the taxation of digital economy has been an issue for the European Union, primarily because of different taxation law in Member States. The proposed Corporate tax plan will create a system to equally distribute tax revenue across Member States based on activity of the Digital firms in the various Member States. The reports will prevent the company to move their revenue to Member States with low tax system without angering them.
For more information on EU taxation, please click here

EU/Circular economy: The European Strategy for Plastics to challenge the current plastic recycling system.
On 8 February, Jyrki Katainen, the European Commission's Vice-President for growth and investment, gave an interview to the press in which he highlighted the progresses of the EU circular economy strategy on the issue of unsustainable consumption of plastics. Mr. Katainen noted that, at the moment, it is still cheaper to use new plastic than to use the recycled ones contributing to the problem. However, he also recognized that the majority of plastics ends up in the oceans and landfills, threatening both marine life and creating health problems. According to the Commission VP, despite several obstacles in addressing the consumption of plastic, such as an under-funded recycling industry and the persistent difficulty of handling different kinds of plastics, nonetheless solutions are available and varies from charging for plastic bags, to encouraging companies to use recycled plastic and shifting from the usage of plastic made from fossil fuel to Bioplastic made from sustainable sources. For Mr Katainen, an EU-wide regulation that sets standards for plastic packages is the way to go, and that is the purpose of the European Strategy for Plastics in a Circular Economy adopted on January 16, 2018.
For more information on the EU Circular Economy, please click here

 

PUBLICATIONS

Strengthening the EU's Resilience in the Virtual Domain

This paper analyses the unstoppable phenomenon of globalisation through the lens of cyberspace. It looks at how the threats associated with this domain could evolve into a cyberwar. The paper assesses the EU's stance on cyberspace and elaborates the directions that the EU should develop and pursue in this regard.
To access this publication, please click here

Squaring the MFF circle: How match funding can deliver the EU's new priorities
The informal EU summit has ended without a breakthrough on the size and details of the next Multi-annual Financial Framework (MFF), the Union's multi-year budget from 2021 onwards. This is hardly surprising. We are only at the beginning of a long negotiation process that has always been contentious; more so this time due to the dual pressure of lower contributions - with the exit of the UK, one of the main net payers - and the need to finance the EU's pressing priorities - migration, internal and external security and possibly new instruments to strengthen the Economic and Monetary Union (EMU) as well as the accession process to the common currency.
To access this publication, please click here

Supporting press publishers in a digital era
The history of media, including press publishing, has always been linked to technology advancement. The sector has been continuously transforming itself in line with the emergence of new distribution models and evolving consumer behaviour. Today, digitalisation is the main driver of that change. Some media players have argued a copyright reform was warranted to regulate the competition between traditional publishers and online news aggregators. In its copyright directive proposal, the Commission has proposed "neighbouring rights", entitling press publishers to receive remuneration in the form of royalties from online search engines or news aggregators that, for example, display snippets of news in search results.
To access this publication, please click here

CONSULTATIONS

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; the 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.
To access this Consultation, please click here

Public Consultation on the Establishment of the Innovation Fund
DEADLINE: 10/04/2018
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.
To access this Consultation, please click here

Public consultation on EU rules for products used in the construction of buildings and infrastructure works
DEADLINE: 16/04/2018
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.
To access this Consultation, please click here

Exchange of data to combat VAT fraud in the e-commerce
DEADLINE: 25/04/2018

This consultation aims at collecting different stakeholders opinion on:
the problem of VAT fraud in the field of e-commerce (business to consumers cross-border sales of goods and service) and its EU dimension;
whether the current EU legal framework to fight VAT fraud provides the tax authorities in EU countries with the proper tools to fight VAT fraud in the field of e-commerce;
whether a EU harmonised approach could provide for better tools to tax authorities in EU countries to fight the VAT fraud in the field of e-commerce;
the impact of the different policy options in terms of fighting fraud, regulatory costs and individuals rights, including issues of privacy and protection of personal data.
To access this Consultation, please click here

Public consultation on the review of the SME definition
DEADLINE: 6/05/2018
The SME definition as provided in Recommendation 2003/361/EC is the structural tool to identify enterprises that are confronted with market failures and particular challenges due to their size, and therefore are allowed to receive preferential treatment in public support. It is a widely used tool in EU policies such as competition (state aid), structural funds, research and innovation (Horizon 2020). Moreover, the SME definition is relevant for some European administrative exemptions and reduced fees, such as for Regulation on registration, evaluation, authorisation and restriction of chemicals (REACH). The Commission is currently preparing for an evaluation and possible revision of some aspects of the SME definition. This public consultation is part of this process and will allow any interested actor to provide feedback on the evaluation and impact assessment of the SME definition.
To access this Consultation, please click here

Public consultation on ecodesign and energy labelling on refrigerators, dishwashers, washing machines, televisions, computers and lamps
DEADLINE: 7/05/2018

Given that most European citizens are likely to buy dishwashers, refrigerators, washing machines and washer-dryers, computers, televisions and lighting products at some point in their life, the aim of the public consultation is to gather their views and opinions by means of a questionnaire in a transparent way. There are however specific technical questions on each product group.
To access this Consultation, please click here

Public Consultation on the Evaluation of the European Union's Policy Coherence for Development (2009-2016)
DEADLINE: 31/05/2018

The Council and the European Parliament have requested an independent assessment of progress regarding the EU's Policy Coherence for Development (PCD) commitment. An external evaluation has been commissioned by DG DEVCO to cover the period 2009-2016 and will provide stakeholders with an overall independent assessment of the EU's actions on PCD. It will also serve to identify key lessons and produce recommendations to improve current actions and inform future choices for the EU's approach to PCD. The objective of this consultation is to gather feedback from the broadest possible range of stakeholders, including those in partner countries, in relation to the issues analysed as part of this evaluation. The results of this public consultation will be taken into consideration when drafting the evaluation report.
To access this Consultation, please click here

COMING-UP

EU Institutions: important dates
12 March Working Party on Information Exchange and Data Protection (DAPIX)
Working Party on Telecommunications and Information Society
EP Plenary Sitting
ENVI Committee Meeting

13 March Working Party on Land Transport
Working Party on Telecommunications and Information Society
EP Plenary Sitting

14 March Working Party on Competitiveness and Growth – Internal market
Working Party on Tax questions
Working Party on Technical Harmonization
COREPER (ART. 50)
COREPER I
COREPER II
EP Plenary Sitting

15 March Working Party on Land Transport
COREPER II
EP Plenary Sitting

16 March Working Party on Competitiveness and Growth – Internal market
Working Party on Intellectual Property - Copyright
COREPER I

19 March Working Party on Social questions
ECON Committee Meeting
CULT Committee Meeting
IMCO Committee Meeting
LIBE Committee Meeting
TRAN Committee Meeting

20 March Working Party on Social Questions
Working Party on Land Transport
Working Party on Telecommunication and Information Society
ECON Committee Meeting
CULT Committee Meeting
LIBE Committee Meeting
TRAN Committee Meeting

21 March Coreper I
EMPL Committee meeting
ITRE Committee meeting
MCO Committee Meeting


22 March EMPL Committee Meeting
ITRE Committee Meeting
IMCO Committee Meeting

26 March Working Party on Technical Harmonization
Working Party on Telecommunication and Information Society
JURI Committee Meeting
ECON Meeting
LIBE Committee Meeting

27 March Working Party on Land Transport
Working Party on Competitiveness and Growth – Internal market
JURI Committee Meeting
ECON Committee Meeting
LIBE Committee Meeting
EMPL Committee Meeting
FEMM Committee Meeting

28 March Working Party on Competitiveness and Growth – Internal market
Working Party on Telecommunications and Information society
Coreper I
Coreper II
Coreper (ART.50)
EMPL Committee meeting
FEMM Committee Meeting

Other SME-related events

Enhancing Data Protection in Europe: Towards a Safer Digital Future
13/03/2018

Data is at the heart of the digital revolution and a key factor to the solution of many 21st century challenges. The rapid explosion of digital technologies had raised questions regarding the ways to harness this abundance of information in a way that is safe and secure for users. More than 90% of Europeans say they want the same data protection rights across the EU – regardless of where their data is processed (European Commission 2015). The much-awaited reform on Data protection agreed on by the European Parliament and Commission in December 2015, will finally come into force in May 2018. It aims to establish a more modern and harmonized data protection framework across the EU, giving citizens back control over their personal data and simplifying the regulatory environment for businesses within the Digital Single Market
To find more about this event, please click here

Achieving a Business-friendly Environment in the EU: Revitalising the European Agenda on SMEs
14/03/2018

Small and medium-sized enterprises (SMEs) are the backbone of the EU's economy. They represent 99.8% of all companies operating in the non-financial business sector, accounting for 67% of total employment and 57% of added value. Almost all these SMEs are micro enterprises, employing less of 10 people. Notwithstanding the necessary actions required by national governments, the EU has a crucial role in creating a supportive environment for businesses across Europe.
To find more about this event, please click here



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The European Small Business Alliance (ESBA) is a non-party political group, which cares for small business entrepreneurs and the self-employed and represents them through targeted EU advocacy and profiling activities.

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