UEAPME, the European organisation representing SMEs and the craft trade, published its latest SME barometer on Thursday 11 October, which reached its highest level since 2007 with 81.7%, although the growth of the index is slowing down due in particular to the great uncertainties surrounding the Brexit negotiations. This is a concern that UEAPME president, Ulrike Rabmer-Koller, wants to raise ahead of the next tripartite social summit and the European Council.
With an index of 71.2 points, SMEs in member states with strong economic links to the United Kingdom (the 'Brexit group', which includes the United Kingdom, Ireland and Denmark) are more than 10 points below the European average and more than 12 points below the eurozone.
"The worst thing is uncertainty", the president explained to a small group of journalists, saying that this regulatory uncertainty – which could drag on throughout the transition period, until the end of 2020 – is killing the business of SMEs. Speaking with journalists, the president believes that it will be difficult to reach a decisive agreement next week at the European Council, but perhaps in November at the ad hoc summit (see EUROPE 12110).
In this respect, Rabmer-Koller recalled that a 'no deal scenario' would be the worst thing for SMEs. At the same time, the proposal put forward in July by the British government proposing differential treatment between goods and services (see EUROPE 12061) is also not acceptable, as it would endanger the internal market, she said. "There must be a balance between a 'no deal' and cherry picking", she insisted.
Lack of skills. The lack of a skilled workforce is a major burden on the activity of SMEs, some of which have to refuse orders due to a lack of manpower, the president explained. In Austria alone, the country from which Rabmer-Koller comes, 85% of SMEs would have difficulty finding skilled labour. In her opinion, a twofold response must be provided: - move education systems towards a dual system with an emphasis on vocational training; - give preference to selected immigration.
To view the full study: https://bit.ly/2CC549C. (Original version in French by Pascal Hansens)