Call for programme to help SMEs in euro change-over

Date: 23/01/1997

By Tim Jones

CHRISTIAN Democrat MEPs are calling for a new programme to help small and medium-sized enterprises through the trauma of the change-over to the single currency.

“The European People's Party thinks it is vital to help SMEs, who generally do not have the staff to prepare for such a big project. Many of them will need external consultants,” said Martin Novak, secretary-general of the EPP's Economic and Independent Business Association.

To address this problem, EPP representatives will call on the European Commission and national authorities to establish a programme at a conference next week on SMEs and the euro.

This would ensure that a certain percentage of an accountant or consultant's fee would be reimbursed by the authorities, or revised software packages could be provided to help with the transition.

The SMEs' case is helped by the apparent willingness of governments to offset some of the commercial banks' euro transition costs, allowing them to write off exceptional change-over expenses.

“We see no reason why they should not pay,” said Garry Parker, of the small-business lobby UEAPME. “If they can do it for banks, which have very deep pockets, then they should help out with SMEs.”

All European businesses will have to adapt to the formation of a monetary union, but SMEs will have to deal with specific issues.

Some such as software providers, legal advisers or accountants will have to adjust early on, while others will be led by the demands of their suppliers and clients.

“As a European party, we do feel especially responsible for SMEs,” said Novak. “We think not enough has been done by other organisations.”

This reflects the feelings of the small-business lobby. UEAPME has been frustrated at the snail's pace of negotiations over some aspects of the euro information campaign for SMEs.

Following the much-touted round table on the euro in January last year, SME organisations have been involved in seminars for members funded by the Directorate-General for SMEs (DGXXIII). But it has yet to produce a Europe-wide booklet explaining what the euro means to small companies.

“If it does not hurry up with its approval for this programme, then people will not be informed about these changes in time,” said an industry official.

The EPP says SMEs should start collecting information on transitional preparations as soon as possible, even if they do not intend to switch their operations immediately into euro from January 1999.

The party believes that every company should establish a euro working group, including experts in finance and information systems, to oversee all the major changes that will need to be made.