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ESBA Bulletin of 5 February 2019

05 February 2019
by ESBA -- last modified 05 February 2019

On 29 January 2019, The European Small Business Alliance organised the Better Regulation Event with First Vice-President Frans Timmermans. ESBA President David Caro opened the event and spoke to the audience about being a small business person himself and his own experiences with administrative and regulatory burden.


HEADLINES

ESBA Looks Back at Successful Better Regulation Event with FVP Frans Timmermans
On 29 January 2019, The European Small Business Alliance organised the Better Regulation Event with First Vice-President Frans Timmermans. ESBA President David Caro opened the event and spoke to the audience about being a small business person himself and his own experiences with administrative and regulatory burden. It is the cumulative effect and sheer volume of rules and regulations that make it such a compliance nightmare for small business owners. The complexity of some regulations as well as unnecessary duplication of documentation requests by different institutions take away far too much time from running the actual business and creating jobs and growth.

The Juncker Commission and, more specifically, First Vice-President Timmermans has made a real effort in reducing this by cutting back drastically on the number of legislative proposals that are tabled per year as well as executing fitness checks. It also created a Regulatory Scrutiny Board, in charge of testing proposals for unnecessary burdens before they hit the table. Caro also stated, however, that we are not there yet. "There is definitely still room for improvement. One of our major concerns is the frequent use of exemptions for micro-enterprises from (parts of) new legislation. Whilst this may seem like an alleviating exercise, in practice it is often not and even has the potential to put micro-companies at a competitive disadvantage", he said.

Anthea McIntyre MEP (UK, ECR) spoke about the need to alleviate burdens for small companies. She too is a small business person and knows where the shoe hurts first hand. In her capacity as leader of the ECR Better Regulation Working Group, she drafted a report, outlining how to improve the Annual Burden Survey, which is an excellent example of where Better Regulation could and should be headed.

First Vice-President Frans Timmermans, who just got off a troubled flight from Helsinki, nevertheless gave a solid speech looking back on his Better Regulation agenda. Mr. Timmermans was right in addressing all the good things his Commission has achieved so far but was fair in accepting what still needs to be done. He took on board ESBA's words of caution regarding overusing exemptions for micro companies. Mr. Timmermans is invested in the agenda and also wishes for his legacy to be continued by the next Commission. ESBA fully supports this. Ms. McIntyre took a moment to officially present her Annual Burden Survey report to the First Vice-President. Ample opportunity was given to the audience for a what turned out to be a very interesting questions and answers session.

More legal uncertainty for SMEs and consumers
On 29 January, the three Institutions came to an agreement in trilogue on the Contract Law for Sales of Goods directive. This agreement follows the compromise found earlier in January on the Contract Law for Digital Content proposal and closes the negotiations on the package. ESBA worries for its members, as the rules have not been defined clearly and will be subject to interpretation by the ECJ. This is what we call 'lazy law making' at the expense of small businesses. Indeed, according to discussions with several EU officials, it seems that the rules fail to protect SMEs from unforeseen fallbacks from the Geo-blocking directive.

The Geo-blocking Directive came into force in December 2018, obligating traders to sell to all Members States. Unfortunately, B2C relationships do not finish at the receipt of products. When a product becomes faulty, the trader, under the new rules, will be liable to bring it to conformity "free of charge", which includes transport costs. It becomes really tricky (and costly) when goods are located in Member States where traders had no intention to sell in the first place. The Institutions only included a provision on the proportionality of costs but seem to have failed to define "disproportionate costs" leaving SMEs unprotected and open to future case law.

ESBA regrets such law making which relies heavily on legal uncertainty and leaves SMEs vulnerable yet again.

IN BRIEF

EU/Transport Policy: Uncertain Future for the Mobility Package
On 7 February, the Conference of Presidents of the European Parliament will decide the future of the Mobility package files. Two proposals of the package, the posting of driver proposal and road haulage proposal, have suffered from a number of hurdles in the last few months. Last summer, the first Draft Reports, approved by the committee failed to pass through European Parliament Plenary Sitting. In January 2019, the second reports failed to pass through the TRAN committee which then decided to refer the entire package to the Conference of Presidents, though The future of this package is still really uncertain. It seems that the EPP would like to push a compromise text directly to plenary, but the content of the text has not been yet defined. The Conference of Presidents composed of the President of Parliament and the chairmen of the political groups will give their verdict on Thursday.

For more information on Transport Policy, please click here

EU/Social Rights: Trilogue agreement on work-life balance
On 24 January, the Council and the European Parliament reached an agreement in inter-institutional negotiations on work-life balance proposal. The aim of the proposal was to achieve higher levels of female participation in the labour market and to give gender-equal opportunities in the work environment. The institutions agreed on the following rules: a minimum of 10 working days of paid paternity leave, two months of non-transferable paid parental leave, five annual carer's leaves, and flexible working arrangement such as remote working. The compromise text needs to be formally confirmed by the European Parliament and the Council.

For more information on the work-life balance proposal, please click here

EU/Single Market: Commission begins of Infringement procedure for ensuring a well-functioning Single Market
On 24 January, The European Commission launched infringement measures to ensure proper implementation of the Service and Professional Qualifications Directives. More than ten years after the introduction of the Service Directive, many Member States still fail to have implemented the rules into their national law. The Service Directive is a key element of a well-functioning Single Market by reducing legal and administrative barriers. All the Members States except for Denmark received a formal notice for their non-compliance with Professional Qualification Directive. Few others Member States received additional notices concerning their non-compliance with the Service Directive. The Member States have two months to answer. The Commission will then decide to follow, or not, the next steps of the infringement procedure.

For more information on the Single Market, please click here

EU/Consumers: IMCO committee approved its Draft report on Effective enforcement proposal
On 22 January, the IMCO Committee approved their draft report on the "effective enforcement" proposal, one of the two major dossiers of the New Deal for Consumers Package. The package aims to enhance protections for consumers throughout the Union. The "effective enforcement" directive addresses 'dual quality', which occurs when two goods of different quality are advertised and sold as the same product. The IMCO draft report adds provisions to create more transparency in the online sphere and obligates search engines to notify users if search results are being promoted artificially due to payments. The IMCO Committee also modified the infringement penalties. Originally the Commission proposed a fine up to 4% of the company's annual turnover. The IMCO Committee modified this fine to include a maximum €10 million fine or a 4% fine on turnover (whichever is greater). The Council still needs to reach a general approach to enter to inter-institutional negotiations.

For more information on Consumer Policy, please click here

EU/Digital Economy & Society: E-Commerce Talks at WTO
On 25 January, The World Trade Organization decided to host talks for 76 partners on rules for e-commerce. Following an informal meeting in the margins of the World Economic Forum in Davos, world leaders scheduled a future meeting in February specifically on rules for e-commerce. The talks will be led by Australia, Singapore, and Japan. The EU along with 48 other members of the WTO (including China and the USA) will discuss future rules on e-contracts; regulation on cross-border sales; and potentially put an end to customs duties for purely electronic transmissions. The goal of this upcoming meeting is to encourage trade and reduce artificial barriers put up by arbitrary national laws which hinder international digital exchanges.

For more information on the Digital Economy & Society, please click here

EU/Internal Market: One more push to combat late payment
On 17 January, The European Parliament Plenary sitting approved with an overwhelming majority (570 votes to 23, with 26 abstentions), a report on the lack implementation of the Late Payment directive which came in to force in 2013. Late payments are one of the biggest burdens for small businesses, and unfortunately few years after the late payment directive, SMEs still face this problem every day. The major difficulty with this issue is on the enforcement side. Even if small businesses know their rights, they will not easily enforce them as they fear retaliation by – or even loss of – their big client. The report, lead by Rapporteur Comi, suggests a few measures to encourage good behavior and foster a culture of on-time-payment with the introduction of a Name and Fame mechanism. In parallel the Members States authorities should set an example by paying without delay, as well as not giving public procurements to companies that have history in not paying its subcontractors on time.

For more Information on the late payment directive please click here

EU/Institutional affairs: VAT Policy Voting Change in Council
On January 15, the Commission published a roadmap on a potential modification to the voting procedure used in the Council regarding VAT policy. The current voting procedure in the Council on VAT policy is unanimity, but the Commission wishes to move the Council to the qualified majority voting procedure. The Commission argues that the Council has not been able to pass meaningful VAT legislation due to its voting procedure, and that, this inaction is resulting in VAT fraud and a reduction of trust in the EU institutions. Under the 'Passerelle Clause', changes in voting procedures are allowed if the Council unanimously votes for the change, along with a majority of the European Parliament. National Parliaments have then six months to protest the modifications. It is unlikely that this initiative will make much progress, as the Commission's mandate is almost over, and several small Member States have an incentive not to give up their voting power on VAT policy.

For more information on Institutional Affairs, please click here

PUBLICATIONS

BRUEGEL: Vertical restraints and e-commerce
In this paper, the author presents how e-commerce has affected market strategies and competition in European markets and I analyze the economic and legal aspects of vertical restraints that are commonly applied in online markets. By combining available empirical evidence with theories of harm and by reviewing relevant case law I define the main anti-competitive concerns related to each category of vertical restraints.
While the competition policy framework is adequate to address these concerns, this article wishes to provide guidance on how the new vertical restraints linked to e-commerce should be treated. It also provides recommendations over the priorities and challenges that need to be addressed.

To access this publication, please click here

EPC: One step forward,two steps back:Towards no deal by default or design
The UK political system is in a deadlock. Its politicians are unable to make a decision between the different Brexit options on the table, with a high degree of uncertainty of what will happen next. The final outcome is far from clear: while many UK politicians reiterate that there is no majority for a no-deal scenario, it remains the most likely outcome, by default or by design.

To access this publication, please click here

WORLD ECONOMIC FORUM: No Such Thing as a Commodity: Routes to higher value added for SMEs in developing and least developed countries
Small and medium-sized enterprises (SMEs) are important actors in all economies and key to policies for inclusive growth, innovation, productivity and job creation. However, they tend to be trapped in low value-added tasks and commodity dependence. This White Paper sets out five ways SMEs in developing and least developed countries can move to higher value-added activities and increase their earnings. It draws on examples of successful initiatives and business models and shares recommendations for policy makers, development agencies and others concerned with enabling SMEs to take advantage of globalization and digitalization.

To access this publication, please click here

CONSULTATIONS

 

Interim evaluation of the programme on interoperability solutions for administrations, businesses and citizens (ISA2)
DEADLINE: 01/03/19
This consultation is an evaluation of the Interoperability solutions for public administrations, businesses and citizens (ISA²) programme. The Commission is calling upon private citizens, businesses, and online platforms to provide feedback on what the programme has offered them in terms of EU-added value and utility.

To access this Consultation, please click here

Evaluation of Administrative Cooperation in Direct Taxation
DEADLINE: 04/03/19
This evaluation will assess Directive 2011/16/EU on Administrative Cooperation in Direct Taxation in terms of its effectiveness, efficiency, continued relevance, coherence with the other policy initiatives and priorities, as well as its EU added value. The Directive has attempted to make the transmission of direct tax information (tax administrated by Member States) easily transferable across the Union, and to make the transfer of that information automatic in some specific instances.

To access this Consultation, please click here

Evaluation of the Executive Agency for Small and Medium-Size Enterprises (EASME)
DEADLINE: 08/03/19
Every three years the Commission carries out an external evaluation of executive agencies like EASME. EASME is an executive agency of the Commission and has its own legal character and independence. EASME is primarily responsible for several Horizon2020 projects and COSME. It is legally a temporary project and the project period for EASME has been extended to 2024.

To access this Consultation, please click here

Evaluation of EU legislation on design protection
DEADLINE: 31/03/19
The purpose of this stakeholder consultation is to gather sufficient stakeholder evidence and views in order to support the evaluation of Directive 98/71/EC of the European Parliament and of the Council of 13 October 1998 on the legal protection of designs ('Design Directive') and of Council Regulation (EC) No 6/2002 of 12 December 2001 on the Community designs ('Community Design Regulation') with a view to establishing the degree to which that legislation works as intended and can still be considered fit for purpose.

To access this Consultation, please click here

Evaluation of the provisions in the Directive 2006/54/EC implementing the Treaty principle on 'equal pay'
DEADLINE: 05/04/19
Although the EU legal framework prescribes equal pay, its effective implementation and enforcement remain an important challenge. This evaluation will assess the extent to which the provisions of Directive 2006/54/EC implementing the Treaty provisions on equal pay (Article 157(1-2) TFEU), as strengthened by the 2014 Commission Recommendation on pay transparency, can be deemed relevant, effective, efficient, coherent with other EU policies and of added value, as per the Better Regulation rules.

To access this Consultation, please click here

Evaluation of the Consumer Credit Directive
DEADLINE: 08/04/19
The evaluation will assess the effectiveness, efficiency, coherence, relevance and EU added value of the Consumer Credit Directive. It will focus on progress made to date, costs and benefits in relation to different stakeholders and whether original objectives and tools of the Directive correspond to current needs. It will also monitor how the Directive works together with other pieces of legislation and whether the EU intervention has delivered additional added value.

To access this Consultation, please click here

COMING-UP

05 February

  • TAX3 Committee
  • Working Party on Telecommunications and Information Society
  • Working Party on Transport - Intermodal Questions and Networks

06 February

  • Informal Justice and Home Affairs Ministers meeting
  • Working Party on Transport - Intermodal Questions and Networks
  • COREPER I
  • COREPER II

07 February

  • Working Party on Tax Questions - Indirect Taxation
  • Working Party on Land Transport
  • Working Party on Telecommunications and Information Society
  • Working Party on Social Questions
  • LIBE Committee
  • Informal Justice and Home Affairs Ministers meeting

08 February

  • Working Party on Competitiveness and Growth
  • Working Party on Social Questions
  • Working Party on Tax Questions - Indirect Taxation
  • Informal Justice and home Affairs Ministers meeting
  • COREPER I

11 February

  • European Parliament Plenary Sitting
  • Working Party on Land Transport
  • Working Party on Technical Harmonisation
  • ECON Committee
  • LIBE Committee

12 February

  • Economic and Financial Affairs Council
  • European Parliament Plenary Sitting
  • Working Party on Social Questions
  • Working Party on Telecommunications and Information Society

13 February

  • Plenary Sitting
  • Working Party on Consumer Protection and Information
  • Working Party on Technical Harmonisation
  • COREPER II

14 February

  • European Parliament Plenary Sitting
  • Working Party on Land Transport
  • Working Party on Social Questions
  • Working Party on Tax Questions - Indirect Taxation

15 February

  • Working Party on Tax Questions - Indirect Taxation
  • COREPER I

18 February

  • Competitiveness Council
  • Foreign Affairs Council
  • Working Party on Land Transport

Other SME-related events

Workshop - 'EU Funding: Policies and Programmes'
12/02/19
EU funding programmes are diverse and numerous, covering many different policy areas, activities and geographic locations. This course will give a comprehensive overview of EU funding for the non-profit sector, from the policy basis and funding programmes to identifying funding opportunities.

To find more about this event, please click here

Workshop – 'Post-2020 Multiannual Financial Framework Policy Framework and Funding Programmes'
14/02/19
Need the skills and competences to successfully plan, lead and manage European projects? Our European Project Management workshop will give you the essential tools to enhance all aspects of your project management capabilities to deliver projects on time, within budget and achieving your goals. Benefit from our 27 years as a successful European NGO and join us in Brussels on 13 June to learn how to make your European project a success!

To find more about this event, please click here

Second Policy Learning Forum on Upskilling pathways: a vision for the future
14/02/19
The EESC is organizing together with CEDEFOP a Policy learning forum (PLF) on 14-15 February 2019. The event aims at bringing together governments, social partners and civil society to help each other in the definition and implementation of the Council recommendation 'Upskilling pathways: new opportunities for adults' adopted in December 2016. This year's PLF follows on a successful similar of 2018 and is part of a series of events aiming to create a platform for mutual learning on upskilling adults with low level of skills.

To find more about this event, please click here

What do SMEs expect from the future EU SME policy?
19/02/2019
In a fast changing economic and societal context, what shape should the EU SME policy take during the next EU political cycle? Europe's 24 million SMEs are one of its biggest assets to address the accelerated pace of economic and societal challenges. At this conference, BusinessEurope will present an EU SME policy action agenda aimed at boosting SME contribution to growth, jobs and the sustainability agenda. To illustrate the ambitious policy approaches needed, the conference will discuss in particular how to develop future-proof regulation in the digital area, how to enable a fair and vibrant platform economy and how to promote SME internationalisation.

To find more about this event, please click here

Adapting to Climate Change: are our solutions working?
20/02/19
Climate change and its impact on society and ecosystems is a global challenge and the White Rose Universities of Leeds, Sheffield and York aim to provide effective policy and solutions to these problems. Underpinned by robust research, our speakers will focus on key climate change policy areas and the work being conducted over our global networks to enhance our physical, technological, economic and social understanding of climate change with strategies for mitigation and adaptation.

To find more about this event, please click here

The future of cohesion policy in the post-2020 period
22/02/19
The added value of the cohesion policy as the main EU investment enshrined in the Treaties has been lately put into the question, also due to the pressure that the current challenges are exerting on the EU decision-making process. Cohesion policy is presented as a distribution tool for financial support for less developed regions and the newer Member States, while the tangible results for the citizens, for the economy and for the overall convergence process at the EU level are strongly challenged.

To find more about this event, please click here

Tax as a force for good: rebalancing our tax systems to support a global economy fit for the future
27/02/19
The foundations of modern tax systems were laid down in the era of the industrial revolution: before globalisation and mass consumption, before the emergence of climate disruption and water supply risks, and before digitisation, automation and robotisation. Considering today's fast-changing world, tax systems will need to adapt.

To find more about this event, please click here

Better work-life balance: Closing the gender employment gap?
27/02/19
A positive work-life balance contributes to a more inclusive labour market, reducing the gender employment gap and raising individuals' quality of life. Despite some progress, female participation in the workforce is lower than for men and the gap becomes much larger for women with children or caring duties. This is one of the causes of the gender pay gap and gender pensions gap. Quality of life also suffers with the most recent 'Quality of Life Survey' by Eurofound showing a general decline since 2011. This is particularly the case for young and middle-aged women, as well as for blue-collar workers and workers with fixed-term contracts.

To find more about this event, please click here

The 9th Annual European Data Protection & Privacy Conference
20/03/2019
The Annual European Data Protection and Privacy Conference will return to Brussels on 20 March. Gathering over 200 cross-sector delegates and attracting an impressive line-up of top-level speakers every year, this event has become the must-attend annual data protection and privacy conference held in Brussels.

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.

European Small Business Alliance
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