Select Committee on European Scrutiny Thirty-First Report


ENTREPRENEURSHIP, ENTERPRISE AND COMPETITIVENESS


(a)
(21814)
13002/00 ADD1, ADD2
SEC(00) 1825 VOL 1 and 2

(b)
(21813)
13386/00
SEC (00) 1942

(c)
(21815)
13003/00
SEC(00) 1823

(d)
(21816)
13046/00
SEC(00) 1841


Report on the implementation of the Action Plan to promote
entrepreneurship and competitiveness.




Commission staff working paper: "Better, but not the Best.
Enterprise policy action to improve Europe's competitiveness".



Commission staff working paper on the competitiveness of European
industry — 2000 Report.



Commission staff working paper on benchmarking enterprise policy
— first results from the scoreboard




Legal base:
Document originated: (a) 27 October 2000
(b) 9 November 2000
(c) 30 October 2000
(d) 31 October 2000
Forwarded to the Council: (a) 30 October 2000
(b) —
(c) 30 October 2000
(d) 3 November 2000
Deposited in Parliament: (a) 23 November 200
(b) —
(c) 23 November 2000
(d) 23 November 2000
Department: Trade and Industry
Basis of consideration: (a) EM of 22 November 2000
(b) EM of 22 November 2000
(c) EM of 24 November 2000
(d) EM of 24 November 2000
Previous Committee Report: None; but see (19467) 11772/98; HC 155-xxxix (1997-98), paragraph 7 (4 November 1998)
To be discussed in Council: 5 December 2000
Committee's assessment: (All) Politically important
Committee's decision: (All) Cleared

Background

21.1  The Business Environment Simplification Taskforce (BEST) was set up in 1997, at the invitation of the Amsterdam European Council. It was asked to consider "simplification of existing and new legal and administrative regulations in order to improve the quality of Community legislation and reduce its administrative burden on European business". However the BEST report also considered wider issues which were affecting the capacity of small and medium-sized enterprises (SMEs) to compete. Its report was considered at the Cardiff European Council in June 1998 which invited the Commission to draw up a timetable for action in the light of the report's recommendations.

21.2  In November 1998, we reported on a Commission Communication on Promoting entrepreneurship and competitiveness, in which the Commission set out its response to the BEST Report.[52] In its Communication and Associated Plan the Commission drew together measures from the BEST Report and other policy initiatives into a comprehensive framework. The Commission committed itself to making regular reports on progress in implementing the BEST recommendations, as reflected in the Action Plan. It also proposed to establish annual reports by the Commission and Member States to assess progress in promoting enterprise in the SME context in particular.

21.3  In November 2000, we reported on a proposal for a multi-annual programme for enterprise and entrepreneurship (2001-2005) to succeed the third multi-annual programme for SMEs (1997-2000).[53] We noted that the Commission regarded the multi-annual programme as a major instrument for achieving key goals over the next five years for a competitive and dynamic EU economy. It identified five objectives which, it believed, would translate broad policy aims into a specific programme of activity, tailored to the needs of SMEs.

21.4  In March 2000, the Lisbon European Council asked the Council and Commission to undertake a number of benchmarking studies to map progress towards the Lisbon goal of building a competitive dynamic knowledge-based economy. They were asked to present the first results of a benchmarking exercise by December 2000.

The documents

21.5  All the documents on which we now report will be taken at the Energy/Industry Council on 5 December in its debate on the innovation and competitiveness of European industry. That meeting will be asked to adopt a Council Decision on the multi-annual programme for enterprise and entrepreneurship (2001-2005) which we cleared on 22 November. It will also be asked to adopt the report on the implementation of the Action Plan to promote entrepreneurship and competitiveness (document (a)).

21.6  Document (a) covers the Action Plan areas of:

    —  education for entrepreneurial society;

    —  access to finance for smaller enterprises;

    —  access to research and innovation;

    —  improving visibility of support services;

    —  improving public administration;

    —  improving employment and working conditions. It includes a number of conclusions and recommendations as to where improvements may be introduced.

21.7  Document (b) is a Commission Staff Working Paper which is particularly relevant to the proposal for a multi-annual programme for enterprise and entrepreneurship. It sets out the tasks for the Union in meeting its strategic goal of becoming the most competitive and dynamic knowledge-driven economy in the world. The overall message is that the Union is doing well, but against its major competitors, and particularly the United States, not well enough. The main problem is perceived to be lack of dynamism. It sets out areas where progress can be made at European and Member State level and highlights the BEST process as a central mechanism for the development of enterprise policy. That approach, and related programme priorities, will be implemented through the new multi-annual programme.

21.8  Document (c) is the Commission's annual report on the competitiveness of European industry. It aims to provide an analytical contribution to the policy debate on making the Union more dynamic and competitive. It includes overall comparisons with the US and Japan and provides analysis of the factors underlying relative success.

21.9  Document (d) is a Commission working paper on benchmarking enterprise policy, as requested by the Lisbon European Council earlier this year. It provides an Enterprise Policy Scoreboard, which purports to be a diagnostic tool that attempts to identify issues, both problem areas and best practices, through cross-country comparison. It comprises categories of indicators under the headings of entrepreneurship, keeping dynamic, innovative capacity, progress towards the knowledge-based economy, and market access.

The Government's view

21.10  In her Explanatory Memorandum of 22 November 2000, the Minister for Energy and Competitiveness in Europe (the Rt. Hon. Helen Liddell) says that document (a):

    "will be a useful tool in the development of enterprise policy in the EU over the coming years. The report highlights areas where good practice is in place... and also includes a number of conclusions and recommendations where improvements may be introduced. In this sense, the report fits very neatly into the new BEST procedure of the Multi-Annual Programme for Enterprise and Entrepreneurship (2001-2005), where the emphasis is on policy development through the identification and exchange of best practice. The UK will take a close look at the content and recommendations of the report and enter into full discussion with our European partners ... The Member States and the Commission can then decide what action may be taken..."

21.11  As regards document (b), the Minister says that the conclusions drawn in the paper are consistent with other developments, such as the European Charter for Small Enterprises and the proposed multi-annual programme for enterprise and entrepreneurship. She regards the papers as a useful contribution to enterprise policy in the EU.

21.12  Ministerial Explanatory Memoranda have not been provided on the other two documents.

Conclusion

21.13  We have reported on these four documents because they are all contributions to the debate on enterprise and entrepreneurship to be held at the Energy/Industry Council on 5 December. They are, in particular, relevant to the consideration of the multi-annual programme for enterprise and entrepreneurship (2001-2005) on which it is hoped to reach a Common Position at that meeting. But we have no questions to raise on the documents and clear them accordingly.


52  (19467) 11772/98; see headnote to this paragraph. Back

53  (21202) 8134/00; see HC 23-xxviii (1999-2000), paragraph 12 (22 November 2000). Back


 
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