“Entrepreneurs are under an ever-growing mountain of rules, compliance requirements, and reporting obligations. The regulatory crisis facing SMEs must end. Europe must trust entrepreneurs again and, when required, regulate less and regulate better”, stated SMEunited President Davide Galli in response to the State of the European Union address.
“We recognise the efforts to reduce the impact of regulatory burden on SMEs. However, for many small businesses, the challenge remains overwhelming”, Mr Galli stressed. “Entrepreneurs are struggling to keep pace with the growing number of compliance requirements and administrative and reporting obligations, which take valuable time away from running their businesses”.
“SMEunited calls on the European Commission, the European Parliament, and Member States to commit to reducing burdens on SMEs, in line with the Think Small First principle. This means advancing the Omnibus proposals at a rapid pace, as well as tackling gold plating”, Mr Galli added.
However, neither of these can become a blame-shifting exercise. While Member States must avoid adding unnecessary national requirements, the European Commission must take responsibility as Guardian of the Treaties. “The Commission, Council, and Parliament must stop playing ping-pong and start working together to reduce complexity for Europe’s entrepreneurs”, emphasised Mr Galli.
The European institutions must exercise legal restraint, slash red tape, and fully apply the Think Small First principle if they want to regain the trust of entrepreneurs and their belief in the European project. “We urge policymakers to focus on the implementation and enforcement of existing legislation before proposing new rules”, reiterated Mr Galli.
“Reporting obligations should be justified, regularly reviewed, and removed when no longer effectively used”, Mr Galli added. Additionally, all implementing acts, delegated acts, and guidelines must be available at least 36 months before the entry into force of new legislation. “SMEs need sufficient time and legal certainty to understand their obligations and prepare for compliance”, Mr Galli explained.
“As entrepreneurs, we ask for trust from decision-makers. Trust that we will achieve the objectives you put forward and that we will develop the right solutions, without overly prescriptive guidance from civil servants”, Mr Galli concluded.
