Athens 28/03/2003 (Agence Europe) - "Adding more red tape means adding more problems. Growth originates with the business community not with rules !". So said Chris Scott-Wilson, Vice-President of the Kangourou Group and head of the Scott-Wilson Partnership, during a conference staged in Athens last 19 and 20 March (see EUROPE of 27 March, p. 15). Mr Scott-Wilson maintains that a new economy is taking shape in Europe and although the EU may be less price competitive than other regions of the world, it can change this situation by producing high-quality goods. In this case companies should not be subjected to stultifying red tap. Europe has to try to address this issue and the Member States have to minimise the formalities that deter companies from making investments, thereby creating wealth. Dimitris Armenakis, Vice-President of the Greek business confederation, welcomed the progress made by the single market. He said it has been a "success story" that has spawned jobs and business opportunities and was now underpinned by a single currency. However, many business operators are calling for an end to unnecessary red tape: "there is a lot of red tape facing companies, which are required to complete numerous forms. The corporate environment has to be more business-friendly. There has to be less red tape", he stressed. He pointed in particular to the hurdles facing smaller companies, even though they are the "backbone" of the economy. George Salagoudis, a Greek MP and a business coordinator, shares this view: "the EU is producing more and more cumbersome bureaucratic procures. The system has to be streamlined! The EU's modus operandi also has to change! ", he said. He cited the example of wind energy: "Greece has a lot of wind and rain but a tremendous amount of red tape has to be waded through before being able to catch a glimpse of the benefits derived from these resources" , he concluded.
During the final press conference, the emphasis was once again on creating a business-friendly environment . As this is the sole environment conducive to creating the wealth needed to boost the European economy. The key to success in this sphere will be innovation. Amidst the current economic slowdown, businesses are tending to become withdrawn and freeze their investments. Mr.Scott-Wilson said: " the money for investments is derived from profits. When companies make a profit they plough it back into innovation". One journalist pointed to the problems involved in creating a "business Europe", citing the example of the high taxes Belgium levied on companies wishing to put down roots in the country. The journalist also mentioned the names of Member States that had a less business-hostile tax system. The MEP Karl von Wogau (CDU), President of the Kangourou group, acknowledged it is a struggle to achieve a harmonised policy in this area and what a time-consuming process it is trying to make some progress. "I don't know of any Ministry of Finance willing to relinquish its taxation prerogatives", he said. This sentiment was echoed by Mr Scott-Wilson, who said "smaller companies are still faced with technical obstacles when seeking to leave one Member State and set up shop in another one".