On 4 November, more than 700 entrepreneurs filled the hemicycle of the European
Parliament for the seventh edition of the European Parliament of EnterprisesTM. For one day, businesspeople from across Europe became Members of the European Parliament; debating, voting, and speaking directly to policymakers. It was democracy in its purest form: the voices of those who create jobs and prosperity taking centre stage at the very heart of Europe’s decision-making process.
Prominent Members of the European Parliament contributed to frank and open discussions on trade, the single market and decarbonisation/competitiveness. It was however highly regrettable that not a single member of the European Commission was able to join Europe’s entrepreneurial community in the Brussels hemicycle, despite earlier confirmations. In their absence, the voice of business filled the chamber — and their message was unified, clear, and impossible to ignore: “Free enterprise from bureaucracy and let business breathe!”
The call for a drastic cut in reporting and regulatory requirements was explicit. Because despite recent fine words on simplification, the Commission’s promise to cut 25% of the red tape burden (and 35% for small businesses), Europe’s entrepreneurs sense little change on the ground.
In fact, a staggering ninety-eight percent of participants reported no noticeable reduction in administrative or regulatory obligations since the new European Commission took office nearly one year ago.
A disconnect between words and reality. The debates were characterised by the engagement of the entrepreneurs and the diversity of their experiences. Common sense guided their votes, yet there was also frustration: too often, EU policy remains an exercise in rhetoric rather than reality.
While political leaders proclaim a “new competitiveness deal” for Europe, the everyday experience of businesses across the Union tells a different story: complexity rather than clarity, reports rather than results. Entrepreneurs are not anti-regulation: they simply need smart regulation that enables rather than obstructs innovation and growth.
In short, the EU must stop producing strategies and frameworks that look good on paper but change nothing in practice. This is not a fashion show. This is real life - and our European way of life and values are in jeopardy if we do not quickly restore an effective policy agenda for growth.
A new test for Europe. The Parliament and Commission cannot keep piling new obligations on companies while failing to deliver on long-promised reforms. The precautionary principle has made the EU world leaders in regulation, but this is not something to be proud of. We must rediscover the innovation principle, and start shaping policies that encourage experimentation, risk-taking, and investment. Before drafting any new law, EU policy- makers should ask themselves a simple question: “Will this law help European businesses?”
If the answer is no, then please stop and think again.
Entrepreneurs speak truth to power. Ninety-one percent of entrepreneurs voted in favour of appointing a dedicated EU SME Envoy to champion the needs of the ninety-nine percent of European companies that are small and medium-sized enterprises. Eighty-six percent declared that sustainability reporting does not strengthen competitiveness, while ninety-nine percent continue to struggle with high energy costs that undermine investment and the green transition. Along with the Ninety-eight percent that felt no reduction in administrative burden during the past year, these figures tell a worrying story. Europe’s entrepreneurs don’t want new announcements, and they don’t expect handouts.
Instead, they want long overdue action. Specifically, they want an end to unnecessary and disproportionate sustainability reporting requirements that divert resources away from innovation and growth; they want the completion the Single Market, particularly in services and digitalisation; and they need affordable energy that they can rely on. In addition, they want new trade agreements and new partnerships with third countries to counter growing global protectionism and to reinvigorate trade.
The European Parliament of EnterprisesTM demonstrated both the deep engagement and the enduring patience of our entrepreneurs. But patience is wearing thin. Businesspeople have done their part — investing, hiring, exporting, innovating — through crises, wars, and uncertainty. Now they expect Europe’s political leadership to do theirs.
Vladimír Dlouhý is the president of Eurochambres.