The European Commission has several plans to support small and medium-sized businesses, as Commission President Ursula von der Leyen’s speech at the State of Union shows. The State of Union opens the political year of the European Commission.
Von der Leyen presented the “SME Relief Package”, which aims to reduce the pressure on small and medium-sized businesses. One of the priorities of the package is to reduce the European regulatory burden. The speech also announced that proposed regulations will be more rigorously assessed for their feasibility for small and medium-sized enterprises on a broad basis and that there will be more room for experimentation for innovative companies.
In her speech, Von der Leyen expressed concern about Europe’s competitiveness. In fact, Asia and the USA are increasingly strengthening their position as global players. In order to ensure competitiveness, it has now been announced, among other things, that every new (European) legislative proposal must be subjected to a competition test.
It has also been argued that the climate agenda should also be an economic agenda, as climate solutions must come partly from businesses. It should also be made easier for entrepreneurs to do business across borders. In fact, the European Commission is planning to force companies with a branch in another Member State to tax their profits in their home country, but at the tax rate of the country of the foreign branch. The tax authority of the home country will then pay the profit tax to the country with the foreign branch. This reduces the administrative burden for entrepreneurs.
This translated article previously appeared on FashionUnited.be