Brussels, 19/11/2010 (Agence Europe) - On Friday 19 November 2010, the European Commission published a report on the impact of the new European company statute (ES) on enterprise as part of the review of the EU Regulation on the European company statute (2157/2001). The report sets out positive and negative factors influencing the decision to set up an ES, assessing the main problems encountered in setting up and managing an ES and setting out the geographical distribution trends for ES creation in the EU. The assessment is accompanies by a working document examining ES and giving a league table of national measures, classified according to flexibility.
On the advantages of an ES, the report stresses its European image and supranational character, which can facilities cross-border mergers and acquisitions, internal reorganisation and transfers of company headquarters; and the ability of obtaining funding from banks and the EU. Factors holding back the creation and operation of an ES include: the complexity and long-winded nature of procedures, lack of experience and reluctance on the part of business advisors and the competent authorities, lack of understand of what an ES is in business circles and outside the EU and 'disproportionate' worker consultation requirements. Other practical problems encountered are: the high cost of setting up a company, legal insecurity, restrictions on the cross-border dimension (having to have a subsidiary in another Member State) and high capital requirements.
These elements specific to the ES, along with national issues, have resulted in an uneven geographical spread of ES throughout the EU. National issues quoted in the report include the size of national companies, proper understanding of ES in the relevant national circles, delays in creating and ES, the presence of 'dormant ES' and variations in the binding nature of national worker involvement rules. The greatest proportion of ES are found in Germany, the Czech Republic, the United Kingdom and France, and the lowest proportion (or none at all) in Poland, Spain, Portugal, Greece, Denmark, Slovenia, Hungary, Finland and Sweden.
EU Commissioner Michel Barnier said that around 650 European companies had been set up under the ES system in the EU and while the European Company Statute makes it easier for them to do business in Europe, some problems remain and the Commission would be making some changes. He commented that the report provided an excellent basis for discussion to this end. (F.G. trans fl)