Brussels, 29/01/2010 (Agence Europe) - The European Parliament legal affairs committee, in almost unanimously adopting the draft report by Klaus-Heiner Lehne (EPP, Germany), has backed the European Commission's controversial proposal allowing member states to exempt micro-companies from the 4th accounting directive (see EUROPE 9984). It says that EU countries could give exemption from European rules for micro-companies which meet at least two of the three criteria suggested by the Commission: - net turnover of under €1 million; - a balance sheet total of under €500,000; - and/or average of 10 or fewer employees during the financial year. Lehne's amendment, which added a further criterion - limiting cross-border revenue to 10% of total revenue - was withdrawn. MEPs, however, ask member states to keep it compulsory for micro-entities to keep records of their business transactions and financial situation. Member states should also take account of the differing impact of the threshold values when implementing the directive at national level. The report is expected to be put to the vote in plenary session in February.
The European Small Business Alliance (ESBA) immediately hailed the committee decision. The vote showed “a healthy mindset amongst MEPs towards small business”, though it was “only a first step in the right direction”, said ESBA President Tina Sommer in a press release. However, according to Luc Hendrickx of UEAPME, the proposal was “the finest example of bad regulation”. The SMEs themselves, apart from the German companies, had not asked for exemption because they needed the information targeted and it was not true to say that micro-companies would no longer need any accounting if their member states took up the option proposed, he added. The battle is far from over, since, ranged against the legal affairs committee is the Parliamentary economic affairs committee, and there is deadlock on this issue in Council. (M.B./transl.rt)