EU Commission must speed up plans to cut the 124 billion Euro cost of red tape

Birmingham Liberal Democrats <info@birminghamlibdems.org.uk>

EU Commission must speed up plans to cut the 124 billion Euro cost of red tape - Liz Lynne

February 27, 2010 10:53 AM
Originally published by Liz Lynne MEP

Liz Lynne MEP and John Wright from the Federation of Small Businesses are campaigning to scrap pointless red tape.

Liz Lynne MEP and John Wright from the Federation of Small Businesses campaigning to scrap red tape.

The European Commission must accelerate progress on stripping away unnecessary red tape for small businesses which is seriously hampering efforts to beat the recession, says Midlands Euro MP Liz Lynne.

The Lib Dem MEP for Birmingham and the West Midlands region, who is also Vice President of the Employment and Social Affairs Committee, met campaigners from the Federation of Small Business and the European Small Business Alliance at the European Parliament in Brussels earlier this week.

In January 2007, the Commission launched a far-reaching Action Programme to cut the administrative burden of red tape on European businesses by 25 per cent by 2012. But despite warm words progress on actually scrapping unnecessary or over-complicated regulations has been painfully slow. The overall cost of administrative burden on businesses in the EU is estimated at 123.8 billion Euros or 3.5% of GDP.

Liz Lynne said: "Red tape is always a burden but in a recession it can be the difference between staying afloat or bankruptcy for small firms in particular."

"I back this campaign and will be stepping up the pressure on Commission President Barroso to speed up progress in simplifying or getting rid of unnecessary regulations."

"For years I have demanded comprehensive independent impact assessments on all proposed laws and for these to take into account the views of small business. I have also called for sunset clauses in all new legislation."

"I will continue to push my committee to look at past legislation to see how it works in practice. If a law is not working, then it must be repealed or changed."

"I agree with the Small Business Alliance's view that firms with less than 10 staff should be exempt from complex accounting rules - this move alone could save 6 billion euros."

"It is perfectly possible to have sensible rules for a level playing field for business and no unfair discrimination, but with all procedures simply and clearly expressed so they won't cost the earth to administer. The Commission needs to listen to expert advice and make progress."

With so much labour market law now originating from the EU, Liz said it was vital for MEPs and business representatives to work together.

Liz said: "I have long worked closely with the FSB and the European Small Business Alliance to try and protect small business from unnecessary or unworkable EU regulations."

"We have had some success such as the adoption of the Small Business Act at European level, something I have long campaigned for, but we must now implement this Act effectively, and ensure the promised 25% cut in administrative burdens is reached."