Small businesses could be the key to ending the current economic malaise, it has been claimed.
According to Tina Sommer, EU and international affairs chairman for the Federation of Small Businesses (FSB), SMEs can make a big difference, but only if red tape is relaxed.
She said: "Small businesses will make a vital contribution to bringing Europe out of its economic gloom, but the EU must release them from their administrative shackles and allow them to fulfil their potential."
Because of this the Small Business Act, which will be published by the EU tomorrow, should offer regulatory exemptions to very small firms and a consolation period of at least 12 weeks for any changes to the law, she added.
The FSB also wants to see common commencement dates for future EU regulations and a body to assess the impact of new rules on small firms.
While the body believes that these are likely to feature in the document, it fears there will be too many caveats.
Yesterday, a survey by the FSB found that 92 per cent of people believe government policy is increasing the burden of rising costs has on business.
