Press Release: Commission moves fast to cut administrative burdens for small businesses

The European Commission has tabled a first set of pure reduction proposals to cut unnecessary administrative burdens for companies, primarily Small and Medium Sized Enterprises (SMEs), without changing the level of protection. The three proposals, aimed at transport companies, small bakers, butchers and grocery shops and the merger or division of enterprises are part of a package of fast track actions, which the Commission announced in January 2007. The total package of ten actions will save companies €1.3 billion a year on administrative costs. It is part of a broader policy objective of the Commission to cut administrative burdens for enterprises on a European level by 25 percent by 2012, on which the upcoming European Council will have to take a decision. A fourth fast track action on energy crops has already been endorsed and will be adopted in March 2007. With these three proposals the Commission moves at an unprecedented speed to deliver on its promise to cut red tape. The proposals will now go to the European Parliament and the Council for adoption. At the same time the Commission will start a screening programme to look at cutting administrative burdens and unnecessary information obligations in thirteen priority areas such as employment, taxation, agriculture and statistics.