A serious crisis of confidence is shaking the global economy and financial activity. Europe is affected by a significant slowdown in growth, and European enterprises – particularly small and medium-sized enterprises (SMEs), the main providers of employment and engines of growth in Europe – are facing increasing financial difficulties.
On the other hand, insecurity dominates households which worry about their purchasing power, workers about their employment, pensioners about their retirement and savers about their deposits. The European Union cannot remain silent and inactive. Within this context, in response to the financial crisis and in preparing for recovery, respect for the principle of subsidiarity must go hand in hand with the coherence and solidarity of member states.
In our immediate recognition of the concerns and particular attention deserved by SMEs at such a critical period within the international financial sphere, I have very recently been involved in the drafting and presentation of an urgent request of a tax exemption plan for SMEs within member states of the European Union, alongside other Members of the European Parliament.
I presented the written declaration on behalf of the working group to the European Parliament with the main target of drawing the Parliament’s attention to the essential being and role of small and medium-sized enterprises within Europe. SMEs form part of a vital productive sector of huge importance for the economy, society and employment. Small and medium-sized enterprises are a driving force in the economy of the European Union, with regard to both the production and exportation of goods and services and thus, should be supported by a sound policy of incentives with the aim of encouraging investment and support technological innovation.
In successfully receiving the urgent request of a tax exemption plan for SMEs in the European Union, the European Parliament has asked the Commission to develop a three-year plan containing urgent tax exemption measures for SMEs in order to promote investment and support technological innovation. In addition, the Parliament has also asked member states to provide for financial incentives for small and medium-sized enterprise start-ups, promote their development and ensure their competitiveness, income and job stability through domestic action plans, policies and frameworks. Ultimately, the European Parliament instructed its President to forward this declaration, together with the names of the signatories, to the Commission, Council and parliaments of the member states.
The speeding up of the completion of an innovative and growing single market that is open and efficient is the only lasting response to globalisation, the economic crisis and the demands of vulnerable units such as small and medium-sized enterprises. One of the EPP-ED’s constant priorities is to promote policies that will enable the single market to achieve high rates of economic growth and expand consumer choice.
Europe cannot aspire to high social ambitions until growth has recovered and economic units are strengthened. Now more than ever, free competition and a spirit of enterprise must be championed as factors that will create jobs and thus protect purchasing power. Particular attention must however be paid to SMEs and their susceptible nature.
A well-functioning and open single market is one of the EU’s most valuable tools when it comes to sustaining growth and driving prosperity. Within the European Parliament, I shall continue to work with the member states to strive towards a fully functional single market for the direct benefit of EU citizens and businesses alike. The reforms launched under the Single Market Review to improve business environment opportunities and drive consumer confidence and demand are also highly demanded. The above mentioned initiatives and other strategies which the European Union is pushing forward in protection of these businesses will safeguard and empower SMEs to stay in business in a period of crisis.
For a Europe of growth and employment, I highly commend the EPP-ED group, in proposing concrete and pragmatic measures as a holistic part of its vision and long term workings. In the current climate, particular focus must be placed on ensuring sustained financing of the economy and security plus confidence for savers. We must also encourage anything that will prevent undue tightening of finances for households and enterprises, particularly SMEs alongside a Small Business Act for Europe, giving innovative SMEs the confidence, legal clarity and access to finance to succeed in the single market.
David Casa is a Nationalist MEP
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www.davidcasa.eu