The European Commission has promised to cut red tape by 25%, but business groups are demanding a commitment from the heads of state attending the European Union spring council.
The Commission has announced that it will start a screening programme to look at cutting unnecessary administrative burdens for small businesses in areas such as employment and taxation.
“The Commission is sticking to its promise to cut unnecessary administrative costs,” said Commission vice president Günter Verheugen, responsible for Enterprise and Industry policy.
“Through minor changes that will not affect the level of protection, today’s package will substantially reduce paperwork and make life easier for entrepreneurs. By doing this in a speedy manner we show that we're serious about removing burdens for enterprises.”
However, the Forum of Private Business (FPB) has demanded a commitment to the promise to cut red tape for smaller firms.
“The 27 member states must be committed to meeting the European Commission’s target of a 25% reduction in red tape affecting business,” said Martin Smith, FPB European Spokesperson.
“It is of no use to continue with the policy of simplifying or removing regulations that have no impact on running a company, and then claiming a reduction in the burden of red tape.”
The FPB is calling for increased transparency in the transition of EU legislation into national law. It also wants ‘recognition that alternatives to regulation can at times be the most effective mechanism for delivering policy objectives’.
© Crimson Business Ltd. 2007
