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2015/2320(INI) How best to harness the job creation potential of small and medium sized enterprises (SMEs)?

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead EMPL KRASNODĘBSKI Zdzisław (icon: ECR ECR) CLUNE Deirdre (icon: PPE PPE), PAVEL Emilian (icon: S&D S&D), DLABAJOVÁ Martina (icon: ALDE ALDE), ŽDANOKA Tatjana (icon: Verts/ALE Verts/ALE), AGEA Laura (icon: EFDD EFDD), MARTIN Dominique (icon: ENF ENF)
Committee Opinion INTA
Committee Opinion BUDG Bernd KÖLMEL (icon: ECR ECR), Sophie MONTEL (icon: ENF ENF), Paul RÜBIG (icon: PPE PPE), Indrek TARAND (icon: Verts/ALE Verts/ALE)
Committee Opinion ITRE
Committee Opinion REGI NOVAKOV Andrey (icon: PPE PPE) Davor ŠKRLEC (icon: Verts/ALE Verts/ALE), Hannu TAKKULA (icon: ALDE ALDE), Damiano ZOFFOLI (icon: S&D S&D)
Lead committee dossier:
Legal Basis:
RoP 54

Events

2016/12/21
   EC - Commission response to text adopted in plenary
Documents
2016/09/15
   EP - Results of vote in Parliament
2016/09/15
   EP - Decision by Parliament
Details

The European Parliament adopted by 553 votes to 69 with 24 abstentions a resolution on how best to harness the job creation potential of small and medium-sized enterprises (SMEs).

Members recalled that SMEs (22.3 million were active in the EU-28 in 2014) create more jobs than other private sector companies, providing about two thirds of all private-sector employment in the EU. In 2014 SMEs contributed greatly to employment growth, up to 71 % in the non-financial business economy. Despite the fact that 90 % of world growth occurs outside the EU, only 13 % of SMEs have conducted international business outside the EU.

Job creation potential and skilled labour force : Parliament stressed that for achieving a sound environment for business development and boosting its job creation potential, national and European polices must in priority address the issues of skills (shortages, mismatches, brain drains), regulatory uncertainty and administrative burdens, as well as the problem of undeclared work and the de facto privileged position of multinational companies (MNC).

Parliament considered that tackling these structural problems would result, inter alia, in fairer competition and the extension of the social contribution and tax base to a higher number of economic operators, giving Member States the opportunity to finance employment-friendly policies, particularly for SMEs.

Favourable and stable regulatory environment : Parliament called for a favourable and stable regulatory environment, including intrinsic clarity of rules are essential prerequisites for sustainable quality job creation in SMEs. It stressed the need to:

envisage systematically measures to minimise the burden and obstacles while ensuring that employees receive adequate health and safety protection; review the rules affecting SMEs and fully apply the ‘Think Small First’ principle in order to remove unjustified burdens confronting SMEs and achieve regulatory and fiscal certainty as a precondition for job stability and quality. give SMEs favourable tax treatment for two specific reasons: (i) to remedy the inherent inequalities between SMEs and multinationals; (ii) to make it possible to use additional resources, together with public investment, to create jobs.

Given the regional disparities and imbalances in SMEs’ access to funding , Parliament called for a level playing field for all SMEs – with special focus on less developed, poorer and more remote or isolated regions – in accessing funding from EU-supported financial instruments while using intermediaries.

Members would welcome smart simplification initiatives aimed at improving the efficacy of the assessment of projects needing microcredit . Stressing the insolvency and bankruptcy risks for SMEs facing delays in payments , Parliament called on the Commission and Member States to improve the enforcement of the Late Payments Directive and to consider adequate financial mechanisms, such as bank guarantees.

The Commission was also called upon to:

create the European framework regulation to facilitate the creation of pan-European crowd-funding and crowd investing markets; facilitate the securitisation of loans to micro-companies and SMEs to increase their available credit; improve the regulatory framework for social businesses; continue taking into account the specific nature and situation of SMEs and micro-enterprises when revising the strategic framework in order to help these companies meet the objectives set out as regards health and safety in the workplace; adopt, when appropriate and in the framework of the European Semester’s country-specific recommendations, a differentiated approach to improving the environment for SMEs, taking into account the country-specific circumstances and the EU regions’ specific structural differences.

The resolution highlighted the need to facilitate access to the single market by removing the remaining unjustified administrative barriers and by combating unfair competition, market distortions, bogus self-employment and ‘letter box companies’ . It called on the Member States to:

adopt favourable legislative frameworks for setting up businesses as one of the ways to tackle the shadow economy, which disadvantages SMEs; develop forms of cooperation that involve all governance levels, businesses (including businesses linked to the social economy), trade unions, educational institutions and other stakeholders with a view to adapting their education and training systems to address the disparity between skills/qualifications and the needs of the job market, particularly those of SMEs.

Members were also firmly convinced that integrating refugees into the labour market would be impossible without active, solid support from micro-enterprises and small and medium-sized enterprises in the EU.

A level playing field : parliament noted that in some cases EU competition policy could result in an advantage that mostly benefits big market operators that are characterised by greater economies of scale than SMEs. In regions where economic development is focused on attracting foreign direct investment (FDI), MNCs could be in some cases treated preferentially in legislative matters.

Parliament stressed in this regard that EU competition rules must guarantee a level playing field for small, medium-sized and large enterprises, thus enabling their internationalisation, in particular in the context of new international trade agreements.

Moreover, it called on Member States to adopt the principle of income taxation in the place where it is generated and other measures against profits shifting practices of MNCs in order to ensure a level playing field for SMEs.

Lastly, the resolution encouraged SMEs to promote teleworking and smart working, enabling workers to balance their professional and personal lives better.

Documents
2016/09/15
   EP - End of procedure in Parliament
2016/09/14
   EP - Debate in Parliament
2016/07/25
   EP - Committee report tabled for plenary
Details

The Committee on Employment and Social Affairs adopted the own-initiative report by Zdzisław KRASNODĘBSKI (ECR, PL) on how best to harness the job creation potential of small and medium-sized enterprises (SMEs).

Members recalled that almost 99 % of European companies are SMEs , and that they create more jobs than other private sector companies, providing about two thirds of all private-sector employment in the EU.

Job creation potential and skilled labour force : the report stressed that for achieving a sound environment for business development and boosting its job creation potential, national and European polices must in priority address the issues of skills (shortages, mismatches, brain drains), regulatory uncertainty and administrative burdens, as well as the problem of undeclared work and the de facto privileged position of multinational companies (MNC).

Favourable and stable regulatory environment : Members called for a favourable and stable regulatory environment, including intrinsic clarity of rules are essential prerequisites for sustainable quality job creation in SMEs.

The Commission and the Member States should consider that if the impact of administrative requirements is felt disproportionately by SMEs. Measures to minimise the burden and obstacles should be systematically considered while ensuring that employees receive adequate health and safety protection.

The report called on the Member States to review the rules affecting SMEs and fully apply the ‘Think Small First’ principle in order to remove unjustified burdens confronting SMEs and achieve regulatory and fiscal certainty as a precondition for job stability and quality.

Moreover, SMEs should enjoy favourable tax treatment for two specific reasons: (i) to remedy the inherent inequalities between SMEs and multinationals; (ii) to make it possible to use additional resources, together with public investment, to create jobs.

The report highlighted regional disparities and imbalances in SMEs’ access to funding from national promotional banks, EU-funded programmes and other private and public funding institutions. It called for a level playing field for all SMEs – with special focus on less developed, poorer and more remote or isolated regions – in accessing funding from EU-supported financial instruments while using intermediaries.

Members would welcome smart simplification initiatives aimed at improving the efficacy of the assessment of projects needing microcredit . Stressing the insolvency and bankruptcy risks for SMEs facing delays in payments , the Commission and the Member States to improve the enforcement of the Late Payments Directive and to consider adequate financial mechanisms, such as bank guarantees.

The Commission is also called upon to:

create the European framework regulation to facilitate the creation of pan-European crowd-funding and crowd investing markets; facilitate the securitisation of loans to micro-companies and SMEs to increase their available credit; improve the regulatory framework for social businesses; continue taking into account the specific nature and situation of SMEs and micro-enterprises when revising the strategic framework in order to help these companies meet the objectives set out as regards health and safety in the workplace; adopt, when appropriate and in the framework of the European Semester’s country-specific recommendations, a differentiated approach to improving the environment for SMEs, taking into account the country-specific circumstances and the EU regions’ specific structural differences.

The report highlighted the need to facilitate access to the single market by removing the remaining unjustified administrative barriers and by combating unfair competition, market distortions, bogus self-employment and ‘letter box companies’. It called on the Member States to adopt favourable legislative frameworks for setting up businesses as one of the ways to tackle the shadow economy, which disadvantages SMEs.

Member States are urged to develop forms of cooperation that involve all governance levels, businesses (including businesses linked to the social economy), trade unions, educational institutions and other stakeholders with a view to adapting their education and training systems to address the disparity between skills/qualifications and the needs of the job market, particularly those of SMEs.

A level playing field : the report noted that in some cases EU competition policy could result in an advantage that mostly benefits big market operators that are characterised by greater economies of scale than SMEs. In regions where economic development is focused on attracting foreign direct investment (FDI), MNCs could be in some cases treated preferentially in legislative matters.

They stressed in this regard that EU competition rules must guarantee a level playing field for small, medium-sized and large enterprises to overcome the lack of economies of scales of SMEs thus enabling their internationalisation and boosting their job creation potential, in particular in the context of new international trade agreements.

Moreover, they called on Member States to adopt the principle of income taxation in the place where it is generated and other measures against profits shifting practices of MNCs in order to ensure a level playing field for SMEs.

Lastly, the report encouraged SMEs to promote teleworking and smartworking, enabling workers to balance their professional and personal lives better.

Documents
2016/07/13
   EP - Amendments tabled in committee
Documents
2016/07/13
   EP - Vote in committee
2016/05/25
   EP - Committee opinion
Documents
2016/05/24
   EP - Committee opinion
Documents
2016/05/13
   EP - Amendments tabled in committee
Documents
2016/03/01
   EP - Committee draft report
Documents
2015/11/26
   EP - Committee referral announced in Parliament
2015/11/12
   EP - NOVAKOV Andrey (PPE) appointed as rapporteur in REGI
2015/11/03
   EP - KRASNODĘBSKI Zdzisław (ECR) appointed as rapporteur in EMPL

Documents

Activities

Votes

A8-0248/2016 - Zdzisław Krasnodębski - § 17/1 #

2016/09/15 Outcome: +: 577, 0: 36, -: 35
DE IT FR GB PL ES RO BE HU BG NL PT AT SK CZ SE DK LT HR FI EL SI LV IE EE MT LU CY
Total
90
68
63
57
44
45
28
18
16
15
20
19
17
13
19
16
10
9
9
9
17
7
6
10
6
6
5
5
icon: PPE PPE
179

Belgium PPE

2

Denmark PPE

For (1)

1

Lithuania PPE

1

Finland PPE

For (1)

1

Latvia PPE

2

Estonia PPE

For (1)

1

Luxembourg PPE

2

Cyprus PPE

1
icon: S&D S&D
171

Netherlands S&D

For (1)

1

Czechia S&D

3

Denmark S&D

2

Croatia S&D

For (1)

1

Slovenia S&D

For (1)

1

Latvia S&D

1

Ireland S&D

For (1)

1

Estonia S&D

For (1)

1

Malta S&D

3

Luxembourg S&D

For (1)

1

Cyprus S&D

2
icon: ECR ECR
67

Italy ECR

2

Romania ECR

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1

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2

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2

Czechia ECR

2

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1

Croatia ECR

For (1)

1
2

Greece ECR

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1

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1
icon: ALDE ALDE
60

United Kingdom ALDE

1

Romania ALDE

3

Bulgaria ALDE

3

Austria ALDE

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1

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1

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1

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2

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1

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1

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For (1)

1

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3

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1
icon: Verts/ALE Verts/ALE
45

United Kingdom Verts/ALE

4

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2

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1

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2

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3

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1

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1

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1

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1

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1
icon: ENF ENF
32

Germany ENF

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1

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1

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1

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icon: EFDD EFDD
36

Germany EFDD

1

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1

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2
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4

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2

A8-0248/2016 - Zdzisław Krasnodębski - § 17/2 #

2016/09/15 Outcome: +: 448, -: 169, 0: 25
FR IT GB PL DE ES BE EL AT PT DK SE MT LU RO SK CY FI SI HU NL LV IE LT HR CZ EE BG
Total
63
67
56
44
90
45
19
16
17
19
10
16
6
5
27
11
5
9
7
17
20
6
10
8
9
18
6
15
icon: S&D S&D
168

Denmark S&D

2

Malta S&D

3

Luxembourg S&D

For (1)

1
3

Cyprus S&D

2

Slovenia S&D

For (1)

1

Netherlands S&D

For (1)

1

Latvia S&D

1

Ireland S&D

For (1)

1

Lithuania S&D

1

Croatia S&D

For (1)

1

Czechia S&D

3

Estonia S&D

For (1)

1
icon: ECR ECR
64

Italy ECR

2

Greece ECR

For (1)

1

Slovakia ECR

2
2

Netherlands ECR

2

Latvia ECR

For (1)

1

Lithuania ECR

1

Croatia ECR

For (1)

1

Czechia ECR

Abstain (1)

1

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2
icon: GUE/NGL GUE/NGL
49

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1

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3

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1

Cyprus GUE/NGL

2

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1

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3
icon: Verts/ALE Verts/ALE
45

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4

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2

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3

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1

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1

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1

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1

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2

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1

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1

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1
icon: ENF ENF
32

United Kingdom ENF

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1

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1

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1

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1

Austria ENF

Abstain (1)

4

Netherlands ENF

2
icon: EFDD EFDD
34

France EFDD

1

Poland EFDD

1

Germany EFDD

Abstain (1)

1

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2

Czechia EFDD

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1
icon: NI NI
9

France NI

2

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1

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1

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2

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1

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icon: ALDE ALDE
59

United Kingdom ALDE

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1

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4

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3
icon: PPE PPE
181

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3

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5

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1

A8-0248/2016 - Zdzisław Krasnodębski - § 17/3 #

2016/09/15 Outcome: +: 576, -: 52, 0: 23
DE IT FR ES GB PL RO PT EL HU AT SK IE SE BE BG DK SI HR CZ MT FI LV CY LU LT NL EE
Total
89
67
64
45
57
44
28
19
17
17
18
13
10
16
19
15
10
7
9
19
6
9
6
5
6
9
20
6
icon: PPE PPE
182

Denmark PPE

For (1)

1

Finland PPE

For (1)

1

Latvia PPE

2

Cyprus PPE

1

Luxembourg PPE

3

Lithuania PPE

1

Estonia PPE

For (1)

1
icon: S&D S&D
170

Ireland S&D

For (1)

1

Denmark S&D

2

Slovenia S&D

For (1)

1

Croatia S&D

For (1)

1

Czechia S&D

3

Malta S&D

3

Latvia S&D

1

Cyprus S&D

2

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For (1)

1

Netherlands S&D

For (1)

1

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icon: ECR ECR
67

Italy ECR

2

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1

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2

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1

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2
2

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1

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icon: GUE/NGL GUE/NGL
49

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1

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3

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1

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1

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2

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3
icon: Verts/ALE Verts/ALE
45

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4

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1

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3

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2

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icon: ENF ENF
32

Germany ENF

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1

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1

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1

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2
icon: EFDD EFDD
36

Germany EFDD

Abstain (1)

1

France EFDD

1

Poland EFDD

1

Sweden EFDD

2

Czechia EFDD

Abstain (1)

1
icon: NI NI
9

Germany NI

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2

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2

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1

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1

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1

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2
icon: ALDE ALDE
60

United Kingdom ALDE

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1

Romania ALDE

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3

Austria ALDE

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1

Ireland ALDE

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1

Bulgaria ALDE

3

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1

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1

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1

Finland ALDE

2

Latvia ALDE

1

Luxembourg ALDE

Against (1)

1

Estonia ALDE

3

A8-0248/2016 - Zdzisław Krasnodębski - § 31/2 #

2016/09/15 Outcome: +: 461, 0: 108, -: 83
DE FR RO ES GB PL IT HU PT AT BG BE SE NL SK LT CZ HR SI EL LU EE LV FI DK MT IE CY
Total
90
64
28
45
57
44
68
17
19
18
15
19
16
20
13
9
19
9
7
16
6
6
6
9
10
6
10
5
icon: PPE PPE
183

Lithuania PPE

1

Luxembourg PPE

3

Estonia PPE

For (1)

1

Latvia PPE

2

Finland PPE

For (1)

1

Denmark PPE

For (1)

1

Cyprus PPE

1
icon: S&D S&D
171

Netherlands S&D

For (1)

1

Czechia S&D

3

Croatia S&D

For (1)

1

Slovenia S&D

For (1)

1

Luxembourg S&D

For (1)

1

Estonia S&D

For (1)

1

Latvia S&D

1

Denmark S&D

2

Malta S&D

For (1)

Abstain (2)

3

Ireland S&D

For (1)

1

Cyprus S&D

2
icon: ALDE ALDE
60

Romania ALDE

3

United Kingdom ALDE

1

Austria ALDE

For (1)

1

Bulgaria ALDE

3

Croatia ALDE

For (1)

1

Slovenia ALDE

For (1)

1

Luxembourg ALDE

For (1)

1

Estonia ALDE

3

Latvia ALDE

1

Finland ALDE

2

Denmark ALDE

1

Ireland ALDE

For (1)

1
icon: Verts/ALE Verts/ALE
45

United Kingdom Verts/ALE

4

Hungary Verts/ALE

1

Austria Verts/ALE

3

Belgium Verts/ALE

2

Netherlands Verts/ALE

2

Lithuania Verts/ALE

For (1)

1

Croatia Verts/ALE

For (1)

1

Luxembourg Verts/ALE

For (1)

1

Estonia Verts/ALE

For (1)

1

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1

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For (1)

1

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For (1)

1
icon: NI NI
9

Germany NI

2

France NI

2

United Kingdom NI

Abstain (1)

1

Poland NI

Against (1)

1

Hungary NI

2

Greece NI

1
icon: ECR ECR
67

Romania ECR

Abstain (1)

1

Italy ECR

2

Bulgaria ECR

2

Netherlands ECR

2

Slovakia ECR

Against (1)

Abstain (1)

3

Lithuania ECR

Abstain (1)

1

Czechia ECR

2

Croatia ECR

Abstain (1)

1

Greece ECR

Against (1)

1

Latvia ECR

Abstain (1)

1

Finland ECR

2
icon: ENF ENF
32

Germany ENF

Against (1)

1

United Kingdom ENF

Abstain (1)

1

Poland ENF

Against (1)

1

Belgium ENF

Against (1)

1

Netherlands ENF

2
icon: EFDD EFDD
36

Germany EFDD

Against (1)

1

France EFDD

1

Poland EFDD

1

Sweden EFDD

2

Czechia EFDD

Abstain (1)

1
icon: GUE/NGL GUE/NGL
48

United Kingdom GUE/NGL

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1

Italy GUE/NGL

3

Portugal GUE/NGL

Abstain (1)

3

Netherlands GUE/NGL

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3

Finland GUE/NGL

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1

Denmark GUE/NGL

Against (1)

1
4

Cyprus GUE/NGL

2

A8-0248/2016 - Zdzisław Krasnodębski - § 68/2 #

2016/09/15 Outcome: +: 527, -: 117, 0: 6
DE PL RO GB FR ES AT IT BE BG PT SK HU SE CZ NL LT HR FI SI LU EE MT LV DK EL IE CY
Total
90
44
28
57
64
45
18
68
19
15
19
13
17
16
19
20
9
9
9
7
6
6
6
5
10
15
10
5
icon: PPE PPE
182

Lithuania PPE

1

Finland PPE

For (1)

1

Luxembourg PPE

3

Estonia PPE

For (1)

1

Latvia PPE

1

Denmark PPE

For (1)

1

Cyprus PPE

1
icon: S&D S&D
171

Bulgaria S&D

Abstain (1)

3

Czechia S&D

3

Netherlands S&D

For (1)

1

Croatia S&D

For (1)

1

Slovenia S&D

For (1)

1

Luxembourg S&D

For (1)

1

Estonia S&D

For (1)

1

Malta S&D

3

Latvia S&D

1

Denmark S&D

2

Ireland S&D

For (1)

1

Cyprus S&D

2
icon: ECR ECR
67

Romania ECR

For (1)

1

Italy ECR

2

Bulgaria ECR

2

Czechia ECR

2

Netherlands ECR

2

Lithuania ECR

1

Croatia ECR

For (1)

1
2

Latvia ECR

For (1)

1

Greece ECR

Against (1)

1
icon: ALDE ALDE
60

Romania ALDE

3

United Kingdom ALDE

1

Austria ALDE

For (1)

1

Bulgaria ALDE

3

Croatia ALDE

For (1)

1

Finland ALDE

2

Slovenia ALDE

For (1)

1

Luxembourg ALDE

For (1)

1

Estonia ALDE

3

Latvia ALDE

1

Denmark ALDE

1

Ireland ALDE

For (1)

1
icon: Verts/ALE Verts/ALE
45

United Kingdom Verts/ALE

4

Austria Verts/ALE

3

Belgium Verts/ALE

2

Hungary Verts/ALE

1

Netherlands Verts/ALE

2

Lithuania Verts/ALE

For (1)

1

Croatia Verts/ALE

For (1)

1

Finland Verts/ALE

For (1)

1

Luxembourg Verts/ALE

For (1)

1

Estonia Verts/ALE

For (1)

1

Latvia Verts/ALE

1

Denmark Verts/ALE

For (1)

1
icon: NI NI
9

Germany NI

2

Poland NI

Against (1)

1

United Kingdom NI

For (1)

1

France NI

Against (1)

2

Hungary NI

2

Greece NI

1
icon: ENF ENF
32

Germany ENF

Against (1)

1

Poland ENF

Against (1)

1

United Kingdom ENF

Against (1)

1

Belgium ENF

Against (1)

1

Netherlands ENF

2
icon: EFDD EFDD
36

Germany EFDD

Against (1)

1

Poland EFDD

1

France EFDD

1

Sweden EFDD

2

Czechia EFDD

Against (1)

1
icon: GUE/NGL GUE/NGL
47

United Kingdom GUE/NGL

Against (1)

1

Italy GUE/NGL

3

Portugal GUE/NGL

3

Netherlands GUE/NGL

3

Finland GUE/NGL

Against (1)

1

Denmark GUE/NGL

Against (1)

1
4

Cyprus GUE/NGL

2

A8-0248/2016 - Zdzisław Krasnodębski - Résolution #

2016/09/15 Outcome: +: 553, -: 69, 0: 24
DE FR IT PL RO GB ES BE AT HU BG NL PT SE CZ SK LT HR FI SI LU LV EE DK MT EL IE CY
Total
90
64
68
44
28
57
44
19
18
17
15
20
18
16
19
13
9
9
9
7
6
6
6
10
5
13
10
5
icon: PPE PPE
182

Lithuania PPE

1

Finland PPE

For (1)

1

Luxembourg PPE

3

Latvia PPE

2

Estonia PPE

For (1)

1

Denmark PPE

For (1)

1

Cyprus PPE

1
icon: S&D S&D
169

Netherlands S&D

For (1)

1

Czechia S&D

3

Croatia S&D

For (1)

1

Slovenia S&D

For (1)

1

Luxembourg S&D

For (1)

1

Latvia S&D

1

Estonia S&D

For (1)

1

Denmark S&D

2

Malta S&D

2

Ireland S&D

For (1)

1

Cyprus S&D

2
icon: ECR ECR
67

Italy ECR

2

Romania ECR

For (1)

1

Bulgaria ECR

2

Netherlands ECR

2

Czechia ECR

2

Slovakia ECR

Against (1)

3

Lithuania ECR

1

Croatia ECR

For (1)

1
2

Latvia ECR

For (1)

1

Greece ECR

Abstain (1)

1