PIMEC calls Europe regains its economic leadership based on social cohesion and placing SMEs at the center on the occasion of the EU Competitiveness Council

PIMEC also calls for the implementation of the recommendations from the reports of Mario Draghi and Enrico Letta and regrets that both studies overlooked the impact of late payments on competitiveness and business viability Brussels, September 25, 2024.  In light of the Competitiveness Council of the European Union, which tomorrow will discuss the future of European competitiveness and the challenges facing industry and companies in the single market, PIMEC has claimed -among other issues- the need for administrative simplification through the reduction of bureaucracy. In relation to the report “The future of  European competitiveness”, which the economist and former director of the European Central Bank Mario Draghi will present tomorrow at the Council, the Catalan employers’ association recalled that the study “Much more than a market ” by the former Italian Prime Minister and president of the Jacques Delors Institute, Enrico Letta, also acknowledges that European SMEs are facing significant regulatory and administrative hurdles which, among other factors, hinder their growth. For this reason, PIMEC has insisted on the need for a more conducive environment for business investment and innovation and, in this sense, it welcomes the appointment of a commissioner for implementation and simplification in the new European Commission 2024 – 2029. On this issue, PIMEC hopes that the new commissioner will coordinate efforts with national administrations to prevent them from adding new obligations to companies –goldplating– when transposing European directives. Additionally, in reference to Draghi’s report, PIMEC agrees on the importance of increasing productivity to promote long-term growth through social inclusion. In the same way, it highlighted the lengthy procedures for obtaining permits to develop business projects, proposing the extension of administrative silence in more cases in order to speed up these processes, as outlined in PIMEC’s proposals for the new European mandate. On energy costs, both reports warn of the negative effects of high prices, which is why PIMEC welcomes the fact that a European-wide reduction in energy rates is being pursued, along with reforms to the framework regulating price-setting, including decoupling energy prices from fossil fuel prices, a position PIMEC has long advocated. On the other hand, PIMEC has warned that Draghi advocates exempting SMEs from regulations that only large companies can comply with, which may prevent them from adapting to the green and digital transitions. PIMEC urges the legislation be addressed under the principle of legislating thinking first about the smallest, the SMEs, as urged by the Heads of State and Government to the European Commission and at the European Council. Finally, PIMEC regrets that both reports do not consider the importance of tackling late payments for business competitiveness, as highlighted by INTRUM’s “European Payment Report 2024”, and calls for the approval of the review of the current European Late Payments Directive.