MEMO/08/152

Brussels, 10 March 2008

European Commission proposals for fast track administrative burden reductions in 2008

The European Commission has today presented its list of eleven new fast track actions to reduce administrative burdens for companies, in order to enhance economic growth. They are the second package of such fast track actions and form part of the overall programme to reduce the administrative burdens for entrepreneurs, by 25 percent in 2012. These immediate measures are likely to generate significant benefits of around 1 Billion Euro through technical changes in existing rules (e.g. reporting obligations).

Before finalising the list of 2008 Fast Track Actions, the Commission has sought the opinion of the newly established High Level Group of Independent Stakeholders on Administrative Burdens. The opinion adopted on 26 February 2008 and the comments received from other sources expressed general support for the 2008 fast track action package.

Among the new proposals for quickly simplifying legislation hampering the success of businesses are:

• Fewer translations when opening branches in other Member States: the need to have translations certified by several Member States will no longer be required when the same language is practiced. The proposal contributes to lowering the cost of establishing new branches of companies and thereby gives a very concrete positive signal to European businesses.
• The requirement for companies to explain in the accounts formation expenses and to break down the net turnover into categories of activity and geographical markets are clearly excessive for Small and Medium Sized Enterprises (SMEs) and should therefore be abolished for them.
• Facilitating the market introduction of new radio and telecommunication equipment: Producers should notify new products for all Member States only once. This will reduce the costs caused by the existence of different rules in the Member States.
• Reduce paperwork for companies placing medicines on the EU market. Coping with different rules in the Member States mobilises more than 60% of the resources of companies’ regulatory departments. This simplification will make it easier to change rules for packaging or the production process without jeopardizing patient’s safety.
• Reducing the statistical reporting duties of SMEs (Intrastat): The Commission intends to further reduce the number of companies which have to report on intra-community trade.
• Differences in definitions for “volatile organic compounds” create some confusion and complicate compliance. Aligning different definitions of the same subject will reduce paper work of stakeholders.
• Batteries lawfully placed on the market before 26 September 2008 will not have to be withdrawn for new labelling . A possible misunderstanding will be clarified.
• Reducing the paperwork for operators reprocessing agricultural starch products.
• Duty to pay double to disclose the business information abolished: Companies have to disclose the same details in electronically available commercial registers and in the official journal/national gazette. In the future they will only pay once.

It is already clear that the measures envisaged for batteries, disclosure of business information and statistical reporting are very significant. The latter one alone would exempt 190 000 companies from report on intra-EU trade. The total benefits of these measures is estimated as at least 1 Billion Euro.

Ten fast track actions were tabled in 2007, with estimated savings of € 1,3 billion for EU businesses. 5 of the 10 actions have been formally adopted, thereby cutting administrative burdens by approximately € 500 million (see MEMO/08/63). The European Parliament and the Council are likely to adopt the remaining proposals in the first part of 2008.

Full list of proposals

More information

http://ec.europa.eu/enterprise/admin-burdens-reduction/admin_burdens_en.htm