Brussels, 08/03/2005 (Agence Europe) - The Competitiveness Council of 7 March focused mainly on its contribution to the European Summit on breathing new life into the Lisbon Strategy (yesterday's EUROPE, p.10). In order to create an environment which is more conducive to competitiveness, it also debated better regulations and simplification of the legislation, and heard a Commission presentation of its 5th annual report on the implementation of the Small Enterprises Charter.
The Council held an exchange of views on improving regulations and simplification of the legislation, on the basis of the report by the Luxembourg Presidency, taking over where the Irish and Dutch Presidencies left off. The report focused on: 1) the use of impact studies (on the environment and competitiveness) by the Commission whilst it prepares its proposals; 2) impact studies carried out by the Council when it makes substantial changes to the Commission's proposals; 3) simplification of legislation. The Commission informed the ministers about its forthcoming initiative for better assessment of the effects of new legislative and political proposals on competitiveness. Addressing the Council, the Commissioner for Industry, Günter Verheugen, said that he was “convinced that a well thought-out legal framework can help competitiveness” and announced that the Commission was to present a communication, probably on 16 March, on new objectives and actions in the field of reducing the administrative burden, impact assessments and the simplification of legislation. Mr Verheugen said that “impact studies must be designed so that the Commission's legislative proposals stand the test of European competitiveness”. The Commission, which announced that it would call on external experts, notes that the accumulation of obstacles (rules, problems with market access, lack of competition pressure) may slow down innovation in areas of high growth potential. For this reason, it plans to launch a series of sectorial studies to identify obstacles to growth an innovation in key sectors, paying particular attention to the administrative formalities facing SMEs.
On the simplification of legislation, the Commission feels that it should pay particular attention to phytosanitary protection, waste management and medical appliances. During the debate, after which the Council agreed on a number of guidelines for the work still to be done, several Member States underlined the fundamental importance of impact studies and the need to step these up- notably in Finland, Denmark, the UK and France. Sweden highlighted the simplification of legislation. France spoke in favour of simplification, but only if this is in line with the Community acquis. The United Kingdom hoped that the Commission's report on the list of priorities in simplifying the legislation would indeed be available for June. Denmark stressed the need to set quantitative objectives for the administrative burden. Lastly, the Netherlands hoped that the Commission would take position on each of the priorities established under the Dutch Presidency last November.
On the basis of the Commission's presentation of its 5th report on the implementation of the Small Enterprises Charter (which assesses all changes to the dossier between autumn 2003 and autumn 2004: see EUROPE of 16 February, p.9), the Council was able to hold an exchange of views on stimulating entrepreneurship. It stated that this report contributed considerably to the achievement of the Lisbon objectives, given the essential role played by SMEs in furthering Europe's competitiveness. During the debate, Spain highlighted the progress it has made in boosting entrepreneurship, particularly with a new law on bankruptcy favouring a second chance and the revision of the conditions necessary to set up a company, which are now considerably simpler.
Sweden pointed out that on the basis of Spain's experience and that of Finland, it had begun entrepreneurship lessons in primary and secondary schools.
On unfair trade practices, Jeannot Krecké told his colleagues of the agreement reached at second reading between the EP and the Council on the proposed directive banning unfair or dishonest practices carried out by professions towards consumers and aiming to stamp out misleading or aggressive trade practices (see EUROPE of 5 March, p.6). The formal adoption of the directive is to take place without debate at the EP session of 6 and 7 June.