European Union’s 28th Regime needs to focus on regulatory alignment to boost small business sector

Small businesses in the European Union (EU) need a more supportive regulatory regime that will enable them to develop new markets and grow cross border trade.

According to leading global accountancy body ACCA, the key task of the European Commission (EC) is to ensure the lightest possible burden is placed on businesses.

In its response to the EC's consultation on the 28th Regime - The European Innovation Act an optional EU-wide framework that would harmonise rules for innovative businesses - the accountancy body welcomes the idea of the EC working hard to achieve as much regulatory alignment as possible.

Vikas Aggarwal, Regional Head of Public Affairs, ACCA, said: 'For the EC to meet its desired objectives from the 28th regime, the framework must ultimately instil confidence and service the needs of business. It should foster consistency and coordination between member states, including facilitating a financial system that provides confidence and services the needs of businesses when transacting with each other.

An urgent task facing the EU in ensuring a healthy and dynamic small and medium sized business sector (SME) is to work with businesses helping them investing in skills development and training to promote the crucial green and digital transitions.

An issue that the EC could address which would help doing business across the EU to tackle the skill shortage - which many enterprises face - is to reduce the administrative burden imposed by member states on training and mutual recognition of qualifications.

Joe Fitzsimons, Regional Lead Policy and Insights, EEMA, ACCA said: 'A 28th Regime must complement initiatives such as the EU Startup and Scaleup Strategy which are already underway. To reduce the skills shortage - which ACCA has highlighted in our global Talent Trends Survey - is for the EC to promote cross-border recognition of qualifications through disseminating guidance and best practice examples.'