Strasbourg, 09/03/2010 (Agence Europe) - On Wednesday 10 March, the European Parliament adopted the draft report of Klaus-Heiner Lehne (EPP, Germany) approving the draft directive authorising member states to exclude micro-enterprises from certain European accounting rules. The micro-enterprises affected must meet two or three of the following criteria, which the EP leaves unchanged: a turnover of less than €1 million; a total balance sheet of less than €500,000 and employing fewer than ten staff. MEPs consider, however, that member states that use the option granted, such as Germany and the United Kingdom, must respect the “obligation of keeping registers illustrating commercial transactions and the financial situation” of the companies concerned. The ball is now in the court of the Council, which appeared divided on this dossier last September (EUROPE 9984).
MEPs rejected by a large majority the motion demanding the total rejection of the legislative proposal submitted by around 40 of their colleagues. This motion recognises the need to reduce administration charges but considered that the impact study on the draft directive had been “insufficient”. It also called for a, “general review in 2010 of the fourth and seventh directives on company law” - a request that the EP finally accepted in its legislative resolution.
On Monday 8 March, during the plenary debate, the rapporteur said that it would be “butchers and bakers”, who are not developing within the single market but who want to be exonerated from European accounting rules. According to the rapporteur, the presentation of annual accounts is “not at all necessary” for receiving bank loans. The commissioner in charge of the internal market, Michel Barnier, defended the legislative proposal, which was expected to make reporting requirements more coherent “for all micro-enterprises by creating a single reporting system and significantly reducing the costs borne by these entities”. He said that including this proposal in the accounting directives' review would take “more time, indeed several years”. He stated that it was pointless to impose rules at a European level if it was not really necessary. The commissioner also rejected criticism that the proposal would eliminate all accounting requirements for micro-enterprises - “these companies will have to keep receipts that clearly indicate what transactions have been carried out and what financial situation the companies are in”.
The EAPME (European Association of Craft, Small and Medium-sized Enterprises) sharply criticised the result of the Parliamentary vote. In a press release the organisation's secretary general, Andrea Benassi, asserted: “Contrary to what the Parliament claims, the proposal as approved will not cut red tape or produce savings for micro-companies. Conversely, it will generate new constraints for them, both in countries where the ex-emption will be used and elsewhere. This is not better regulation”. Tina Sommer, the president of the European Small Business Alliance, on the other hand welcomed the EP's decision stating: “Today's decision of the European Parliament increases the credibility of EU claims towards reducing administrative burdens”. She is urging the Council to follow the example of the European Commission and the EP. (M.B./transl.fl)