Brussels, 24/09/2009 (Agence Europe) - On Thursday 24 September, European ministers with responsibility for competitiveness held a public debate on the draft directive that would allow member states to exempt micro-businesses from the requirement, in the 4th accounting directive, to present annual accounts. This would affect those companies that meet at least two of the following three criteria: - turnover of less than €1 million; - balance sheet total of less than €500,000; - fewer than 10 employees. While all member states are agreed on the importance of administrative simplification, most are against a move that would partially unravel harmonised European rules. Hungary, Luxembourg and Portugal have proposed an alternative that would allow the rules for micro-businesses to be simplified while staying within the framework provided by European legislation.
The legislative proposal is being defended tooth and nail by the European Commission. It could bring savings of €6.3 billion, Internal Market Commissioner Charlie McCreevy has said, firmly believing that nothing must be done to prevent those member states which wish from applying the measure. The member states that back the move (the Czech Republic, Denmark, Germany, Finland, the Netherlands, Poland, Romania, Slovakia, Slovenia and the United Kingdom) highlight its importance in this time of economic crisis, minimise its potential cross-border impact and counter the argument that the companies affected would no longer be required to produce accounting documents. Germany and Denmark believe that the recommendations of the Stoiber group on reducing the administrative burden should be respected. The United Kingdom, which has estimated potential savings at £200 million, has said that the measure would have no effect on the internal market.
Those member states that oppose the Commission proposal (Austria, Belgium, France, Hungary, Ireland, Italy, Luxembourg, Malta, Portugal and Spain) are critical of a move that could harm the spirit of the internal market. Exempting micro-companies from the 4th accounting directive would deprive some economic agents and public authorities of useful information, particularly in terms of statistics, and could work against the companies concerned when they seek credit from banks. “If Germany goes down that road, the pressure will increase with us,” Austria said. It believes that “free choice is a false choice”. Malta says the planned system would have “serious consequences” for the internal market. France is astonished that the Commission intends to launch a consultation on IFRS accounting standards applicable to SMEs at the same time as the review of the 4th and 7th accounting directives. (M.B./transl.rt)