Better regulation for SMEs : the case of REACH

Abstract

The Lisbon Agenda aims at making the European Union (EU) the most dynamic and knowledge-based society to live, work and invest in. Small and Medium Sized Enterprises (SMEs) play an important role in Europe's economy, as a major source of entrepreneurial skills, innovation and contributors to social cohesion. This is why the European Commission has started initiatives for more pragmatic, comprehensive and inclusive policies for SMEs, what is also called as the "Think Small First Principle". This initiative has been mainly launched through Better Regulation, through which the Commission is committed to simplifying regulations and to ensuring that the forthcoming legislation does not inhibit SMEs' growth and innovation potential, to reduce the information gap and increase consultation with SMEs stakeholders and to provide a single and coherent policy framework. The Better Regulation strategy covers policy making from conception stage through to implementation and up to enforcement. The Commission has been very clear that in order to be successful, this initiative needs the full collaboration of the Member States and local administrations. Better Regulation focuses on six main principles: Necessity, Effectiveness, Proportionality, Transparency, Accountability and Consistency. These six principles have been identified as being the basis of good, efficient and non cumbersome policy making. These principles have in turn been accompanied by six measures: Simplification, Codification, Improved Transposition, Impact Assessments, Reduction in Administrative Burdens, and Consultations. These measures were decided on after several studies and consultations with SMEs stakeholders, all of these have proven to be factors that hinder SMEs' growth. By improving policies in these areas Europe will be helping businesses to save billions of Euros and much precious time, both elements which the majority of SMEs lack.