The EU unveiled plans Wednesday to cut red tape for medium-sized companies and abolish barriers for businesses to sell goods across the bloc as part of its efforts to catch up with China and the United States.
The European Union wants to make doing business in the 27-country bloc easier and attract investment, as US President Donald Trump pushes an America First policy.
The latest raft of proposals comes after the EU said earlier this year it would simplify environmental rules for farmers and businesses to boost economic growth.
Brussels wants medium-sized businesses to benefit from some of the same exemptions — including on data protection rules — previously enjoyed only by smaller firms, to reduce their administrative burden.
In a statement, Malta’s business lobby group in the EU, the Malta Business Bureau, welcomed the initiative but added that the successful implementation of the EU plans will rely on the political will of member states.
“The aim is to help small and medium-sized businesses grow,” EU industry chief Stephane Sejourne said.
The changes create a new category of companies, “small mid-caps”, which have between 250 and 750 employees, and either up to 150 million euros ($170 million) in turnover or up to 129 million euros in total assets, the European Commission said.
There are nearly 38,000 firms that meet the criteria in the EU, it said.
The proposals will need to be approved by the EU parliament and member states.
“This package will cut a further 400 million euros from the cost of doing business in the EU,” the bloc’s economy tsar Valdis Dombrovskis said.
Confronted by sluggish economic growth, two landmark reports by former Italian prime ministers last year raised the alarm that Europe needed to fix its fragmented single market to fully reap its economic benefits.
On Wednesday Brussels also announced plans to make it easier for EU citizens to work in different states through the faster recognition of professional qualifications, and allowing firms to submit paperwork online.
The EU also wants to establish common labelling so companies can sell the same product in EU states without the need for different labels.
Manufacturers will also be able to get rid of paper manuals for products and direct customers to digital versions instead.
‘Commission strategy ambitious and well-grounded’- Malta lobby
Reacting to the news the Malta Business Bureau said the Commission’s strategy is ambitious and well-grounded, its success will ultimately depend on whether Member States match that ambition with the political will to deliver.
The MBB The od EU business advisory organisation of The Malta Chamber of Commerce, Enterprise and Industry, and the Malta Hotels and Restaurants Association.
The organisation’s CEO Mario Xuereb said the EU Single Market “enables businesses to grow, consumers to benefit from greater choice and lower prices, and allows the EU to leverage its market globally.”
“A unified and determined political effort is essential to ensure that rules are applied uniformly across the EU to foster business growth,” he added.
The MBB said it is the right time for the adoption of an economic framework that strengthens the Single Market, which is central to European competitiveness.