The report said ‘insurmountable problems’ faced SMEs, which wished to integrate their businesses into the EU, included competing legal and regulatory frameworks – this sector accounts for 70% of all businesses in Europe.
The result was that businesses and customers were losing the benefits of a wider range of better and cheaper services, and reduces job creation potential.
According to the report, the problem affects all service sectors where SMEs operate including consulting, employment, property and engineering. There were also knock-on effects from one sector to the other.
Partner at mid-tier firm PKF, Nick Winters, commenting on the report, said the ‘lack of a properly integrated market’ left businesses facing ‘different local laws and regulations’.
‘This adds to the cost of advice, leads to changes in business plans being necessary and delays planned expansions. This has significantly reduced the ability of and speed by which businesses are able to expand across the EU,’ he added.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements