The recommendations for immediate measures announced yesterday within the European Union plan focus mainly on two objectives: promoting employment and promoting business. To do this, it proposes ten specific actions.
PRIVATE CUSTOMERS
– Accelerate funds for 'flexicurity'. Expedite the procedures so that countries have the 1.800 billion allocated for 2009 by the European Social Fund to strengthen employability through training, career guidance, subsidies and aid to entrepreneurs. The programs will focus on the most vulnerable sectors.
– Reduce contributions to Social Security and VAT. States should consider reducing social charges (Social Security contributions, for example) to promote the hiring of workers with low specialization. In addition, Brussels will propose that a reduced VAT be applied for labor-intensive services.
COMPANIES
– Loans for small businesses. The European Investment Bank (EIB) has established a package of 30.000 billion for loans to SMEs, a third more than usual and another 1.000 billion more per year for medium-sized corporations. In addition, States will be allowed to facilitate companies' access to financing.
– Eliminate administrative expenses for entrepreneurs. Throughout the EU it should be possible to open a business in less than three days and without costs. In addition, microenterprises will be exempt from submitting annual accounts (7.000 million would be saved) and their mandatory initial capital will be reduced to one euro. Reduction of up to 75% in fees for patents and 50% for trademarks.
– Approval of a European public limited company statute. Accelerate its approval by early 2009, to facilitate cross-border business, thanks to actions with common rules throughout the EU.
– Accelerate the payment of invoices by Administrations. Public authorities should pay invoices to their suppliers in less than a month, to promote their liquidity, as well as accept electronic invoices. They estimate that 18.000 million euros would be saved.
INFRASTRUCTURES
– Intensify investments in infrastructure. Mobilize 5.000 billion euros over the next two years for trans-European energy interconnections and infrastructure. To do this, a financial framework will have to be agreed. In addition, accelerate access to structural funds to prevent countries from slowing down public investment. The EIB will provide financing.
– Less VAT for 'green'. Increased funds for initiatives against climate change and that promote energy efficiency. VAT reduction for 'ecological' products.
INNOVATION
– Promotion for R&D. Tax incentives, subsidies and support for education to promote Research and Development.
– 'Green' cars, efficient buildings and technology. Collaboration between the public and private sectors to help the automotive, construction and manufacturing industries. For the first, a joint action of 5.000 billion is proposed to provide cheap loans for innovative and environmental measures, such as electric cars; and reductions in rates for vehicles with lower emissions. The promotion of ecological construction materials and aid to modernize the technology of the manufacturing industry and improve its competitiveness are also requested.
– Fast Internet for everyone. It is proposed to promote Internet access, so that broadband is 100% accessible in 2010. Support is requested for investment in fiber optics and wireless connection.