Plan to reduce red tape would allow businesses to save €40 billion in total

European Industry Commissioner Günter Verheugen who, on Thursday 22 October, presented progress made in implementing the programme aimed at a 25% reduction in administrative costs imposed on EU businesses by EU legislation by 2012, called on EU member states and the European Parliament to approve the latest measures put forward by the Commission for completing its programme proposed in 2007.

In total, measures already proposed and those under preparation should, according to the Commission, allow European businesses to save nearly €40.4 billion from €123.8 billion on red tape stemming from 72 EU texts and measures that transpose and implement them in the member states.

Reduction measures put in place or proposed by the Commission and already adopted could bring a reduction of €7.6 billion, to which should be added €30.7 billion if co-legislators can ensure businesses can “feel the difference on the ground”, the Commission states in a press release. Also, further work with a view to more reductions of administrative costs could lead to more measures amounting to at least €2.1 billion.

The new measures include two key proposals presented early 2009:

-one on VAT intended to facilitate electronic invoicing, for savings of €18 billion, and the other on corporate law, aimed at exempting micro-entities from accounting obligations, for savings of €7 billion.

All member states have set themselves ambitious national targets. “The Commission is fully on track to deliver on its goals to reduce red tape for businesses. But better regulation is a job that never ends. It is not just about changing bad rules, but making good rules work better, using new technologies and new innovation. The next Commission' will work on promoting the “sustainable economic recovery”.