The Internal Market has been the focus of much political attention, efforts from lawmakers and commentaries of all sorts. At the occasion of the tenth anniversary of the Internal Market in 2002, the benefits of this extraordinary reform programme were outlined: wider choice, higher quality, lower prices, 1 million cross-borders students thanks to the Erasmus programme. In economically measurable terms, the internal market was estimated to translate into 1.8% additional GDP, 2.5 million jobs created and an extra prosperity of €5,700 per household delivered on average.
Beyond these numbers, the Internal Market is a fantastic political achievement acknowledged around the world the successful outcome of one of the most comprehensive and ambitious programmes of structural reform.
Is this mission accomplished? No, it would be wrong to believe that the internal market is achieved. Professional accountants assisting enterprises of all size know by experience that, in practice, many obstacles remain and further harmonisation and simplification will be essential to enable business seize the opportunities of the Internal Market. This is especially true for SMEs, i.e. the vast majority of enterprises in the EU, more than 90%.
The Internal Market is also SMEs' best asset to compete on global markets: it provides them with access to the necessary critical mass of consumers and sources of input, including capital, or it should. In this respect, it is interesting to take a closer look at what forms the infrastructure of the Internal Market for business, the basic foundation on which all other policies can prosper: company law.
A simple legal framework is essential to enable SMEs to seize the opportunities that the internal market is expected to deliver; it also contributes to enhancing legal certainty and reducing administrative costs. In the framework of the consultation on the European Private Company carried out in 2007, the Commission carried out a European Business Test Panel revealing that 56% of the companies participating thought that uniform company rules in the European Union would be useful. Harmonisation is essential to facilitate access to the Internal Market, make it easier to apprehend for companies irrespective of their size and to level the playing field.
Society is going through an unprecedented crisis affecting finance, economics and politics. Much of the focus has been on the banking industry and on other capital markets participants. In this context, it should be kept in mind that SMEs play a key role in the resilience of our economy and the dynamics of the job market. Many SMEs are integrated in the supply chain of larger business of which they form an essential element and to which they provide flexibility, innovation and cost efficiencies; however, SMEs often suffer more rapidly and more radically from a shrink in demand or a credit crunch. It is urgent to help SMEs make efficiency gains and secure their liquidity and access to finance. To this end, transparency and reliability of financial reporting is instrumental.
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