"If we want European businesses to reap the full benefits of the
single market, we must provide them with the most appropriate
means," said McCreevy.
McCreevy has proposed the creation of the European Private
Company Statute which would provide a form for companies to take
which would apply across Europe. He has launched a consultation
process to determine whether there is demand for the move amongst
European businesses.
"The European Private Company may be the right way forward. But
first we need to have a clear picture of the obstacles companies
still face in the single market and to find out whether a possible
Statute could be a viable solution. So I encourage all interested
parties, and in particular SMEs, to give us their views," he
said.
The proposal is part of a wider action plan undertaken by the
Commission to modernise company law.
In a study published as part of an earlier proposal, the
Commission listed the arguments for and against the plan country by
country. The UK was thought to be likely to benefit from it because
its small and medium sized enterprises (SMEs) were described as
"dynamic and organised", the economic system was liberal, the
English language is the lingua franca of business worldwide, and
the UK is already economically powerful.
Reasons why the UK might not benefit were listed as the fact
that 45% of the workforce works in large organisations, and the
fact that the country has not adopted the euro, so is likely to lag
behind in European business integration.
"The objective is to make it easier for European SMEs to conduct
cross-border business by providing them with a European legal form,
uniform in each Member State," said a Commission statement.
"Considerable support for this initiative was confirmed in the
public consultation on the future of the Company Law and Corporate
Governance Action Plan."
"In February 2007 the European Parliament adopted a resolution
requesting the European Commission to draw up a uniform Statute for
a European Private Company," it said.
The consultation is open until 31st October.
