The Federation of Small Business (FSB) has welcomed the upcoming expansion of the EU, but has warned European leaders they are failing to meet a promise to make the continent the best place in the world to start up a company.
In its manifesto ahead of the European Elections in June, the FSB echoed other UK business groups by welcoming the enlargement of the EU from Saturday to include a further 10 nations.
The business lobby group said that UK firms will benefit from an influx of new workers which will help ease the skills crisis, which has hampered employers’ attempts to take on high-quality new staff.
However, the FSB said that the EU is failing to fulfil a pledge made at a summit in 2000, held in Portugal, in which member states promised to make the EU “the most competitive and dynamic knowledge-based economy in the world…within 10 years.”
The FSB’s manifesto said that without sweeping changes made by the EU, the goal of improved business conditions on the continent will fail to be met by 2010.
The manifesto urged European leaders to keep regulations in check, repeal outdated legislation and include small businesses more in consultation.
John Walker, the FSB’s policy chairman, said that we are almost halfway through the timetable set in Lisbon, but nowhere near halfway towards achieving the goals.
“The central theme of the FSB manifesto is that the Lisbon agenda and the subsequent Small Business Charter will fail unless EU institutions make substantial changes in their policies for small firms before it is too late for the 2010 deadline.
“EU leaders have recognised that small businesses are the backbone of the EU economy. They now need to translate this recognition into firm action with major changes to the regulatory regime,” he said.
