“SMEunited appreciates the reference to the Think Small First principle in the Better Regulation Communication.
A better focus on SME friendly provisions is necessary to create an enabling regulatory framework for small companies”, stated SMEunited president Galli. He calls on the co-legislators to work together to ensure that the Better Regulation Communication delivers concrete results for an entrepreneurial environment with more legal certainty and proportionality.
The first pillar of the Communication, ‘Simplicity by Design’, and the accompanying Action Plan on Regulatory Deep Cleaning are an important opportunity to change how we draft EU legislation and make it more proportionate, practical, and manageable for SMEs. Mr Galli particularly welcomed the initiative to design legislation with implementation in mind from the outset, including through realistic transposition and implementation deadlines.
President Galli highlights the intended increased use of impact assessments and the more targeted approach focusing on key economic, social, and environmental impacts. He adds that a robust evidence base, including a proper assessment of the impact on SMEs, is essential to ensure that new legislation is justified, proportionate, and workable in practice. Further, reacting to the regulatory discipline, he stressed the importance of assessing whether legislative action is the best approach to reach a certain policy objective.
SMEunited supports the concept of enforcement by design. “Considering enforcement mechanisms from the outset when drafting EU legislation is the right approach. Workable rules for SMEs must be clear, implementable, and enforceable from day one”, he added. Taking into account implementation and enforcement from the start will also contribute to reduce gold plating.
With regard to the Regulatory Deep Cleaning Action Plan, President Galli welcomes the intention to review existing legislation, eliminate overlaps, reduce unnecessary burdens, and enhance consistency across policy areas. Nevertheless, President Galli expresses concerns as stronger internal governance within the European Commission has not been given sufficient attention. Better coordination between Directorates-General and during interservice consultations is essential to ensure that the impact on SMEs is properly assessed and that simplification objectives are consistently reflected across all policy fields.
Additionally, SMEunited reacts positively on the Single Market focus areas for enforcement listed in Annex II, particularly the focus on tackling late payments by public authorities. “Addressing late payments by public authorities is a good start. Nonetheless, it also remains an important issue for SMEs in B2B transactions”, added President Galli.
When SMEunited presented the Think Small First Charter last year, it called on policymakers to draft legislation from the perspective of SMEs, assess the direct and indirect impacts from the outset, and include SME-friendly provisions in all relevant legislative acts. “Today’s initiative must now turn these commitments into daily practice. SMEunited stands therefore ready as a social partner to contribute to the Simplification Platform to support simplification and burden reduction efforts”, concluded Mr Galli.
