Plan to set up pan-European private firms

Date: 02/11/00

By Renée Cordes

THE European employers federation UNICE is preparing to unveil proposals for new rules to make it easier for private companies , especially small and medium-sized enterprises (SMEs), to do business in more than one member state.

The federation, along with its French member organisation, has drafted a Union-wide law which would allow non-listed firms to establish themselves as Europe-wide companies. The proposals are intended to supplement planned EU legislation drawn up by the European Commission which would lay down similar rules for publicly-traded firms.

"In the case of smallercompanies, it would make it easier for those in border areas to conduct business across some borders," said director of company affairs Fiona Marcq. "It is not a matter of covering the whole of Europe, but being able to operate across borders in the shape of a company structure valid in all member states."

UNICE plans to unveil details of its proposal later this month. Its officials say they hope progress can also be made on plans for a similar statute for publicly-traded firms which have been deadlocked for three decades as governments continue to argue over the details of the proposal.

Member states are still trying to find a way to resolve the problem of how to protect employees who are entitled under national law to participate in their companies' management without imposing new rules on firms in countries where such laws do not exist.

The EU's small-business lobby group UEAPME remains sceptical about the need for a new statute specifically targeting smaller companies, arguing it is more important to tackle other obstacles to business such as harmonising competition rules, cross-border payments and taxation principles. But spokes-man Garry Parker conceded that it "might be good" for medium-sized companies.

The European employers federation UNICE is preparing to unveil proposals for new rules to make it easier for private companies, especially small and medium-sized enterprises (SMEs), to do business in more than one Member State.