Vigenin: European rules help business when they are smart and workable

„The real problem for small and medium-sized enterprises is not that Europe regulates too much, but that rules are created which do not take account of the real capacity of business to apply them.“ This was stated by the Bulgarian MEP from the Group of the Progressive Alliance of Socialists Kristian Vigenin during a forum organised by SME Connect, one of the most active European platforms for dialogue between the institutions and small and medium-sized business. The event brought together MEPs from various political groups, representatives of the European Commission, European business organisations and entrepreneurs from across Europe.

During the discussion Vigenin presented his work as co-rapporteur of the European Parliament on the Omnibus IV package, whose aim is to simplify requirements and reduce regulatory obstacles for European enterprises. He stressed that small and medium-sized enterprises are among his leading priorities in the European Parliament, since they are the foundation of the European economy and a key factor for employment and innovation.

Dialogue between institutions and business

As a member of the board of SME Connect, Kristian Vigenin emphasised the importance of constant and substantive dialogue between the institutions and business, based on the real experience of companies. „I must point out that numerous national rules are often added to the European requirements, which turns even well designed policies into a source of uncertainty and additional costs“, he commented.

Vigenin noted that instead of investing, hiring new staff or developing innovation, many entrepreneurs are forced to put significant resources into finding their way through complex administrative procedures. In his view the answer to this challenge is not lowering standards, a position the socialists firmly defend.

Different rules for different businesses

„Rules have a very different effect depending on the size and the capacity of the enterprise. This is felt most strongly at moments of transition, when a company grows, crosses a regulatory threshold or starts operating in another member state“, Vigenin stressed.

He also drew attention to the risk of applying identical requirements to micro-enterprises and to significantly larger companies, which in practice can put the smallest in an even more unfavourable position. „The right balance lies not in weakening the rules but in smarter lawmaking, the kind that finds the right balance between obligations and support, in line with the real capacity of business“, the MEP stressed.

It is precisely this approach that Kristian Vigenin defends in his work on the Omnibus IV package, including through the introduction of a new category of small mid-caps, which is to provide smoother growth and fewer administrative shocks for companies in the process of development.