Reducing Administrative Burden for Independent Professionals and The Self-Employed - EFIP Common Position Paper -
General Considerations The European Forum of Independent Professionals (EFIP) believes the EU should continue modernising labour markets by simplifying employment legislation and developing flexible work, including self-employment and independent working arrangements. According to the Flash Eurobarometer FL354 "Entrepreneurship in the EU and beyond", in 2012, 37% of Europeans surveyed expressed a preference for self-employment over being an employee, and there is a lot of supporting evidence to suggest that job satisfaction is very high among the selfemployed. However, only 14% of Europeans actually are self-employed. Such a gap between aspiration and reality exists because of 79% of respondents see complex administrative process and lack of information as a barrier to start on their own. Representing the smallest of small businesses and the fastest growing segment of the European labour market, EFIP believes it is vitally important for independent professionals and the selfemployed that regulation is clear, accessible and not unduly burdensome. Red tape should be eliminated or reduced wherever possible particularly for one-person enterprises, who are exceptionally vulnerable to the burdens of bureaucracy due to their very small size and limited human and financial resources. Independent professionals are work creators, part of the burgeoning micro business sector and as such they are included in the European SME definition under the micro enterprise category (1-9 employees). Individually, their impact on traditional economic measures may be limited, but taken together they are reshaping a people-powered EU economy. Yet public policy either ignores these individuals or subjects them to the same rules and regulations as larger SMEs. Policymakers must not only acknowledge the economic power of micro business, but also adapt public policies to support and promote them, starting by recognising independent professionals and the self-employed as a separate category than the micro enterprises of the European SME definition.
Policy Recommendations The flagship initiative of the Europe 2020 Strategy, entitled “An Agenda for New Skills and Jobs�, acknowledges that self-employment is a major factor in job creation, requiring Member States to eliminate measures that act as disincentives to self-employment. Nevertheless, the overall aim of a European SME policy should not only be that SMEs have to grow in number of employees and create jobs. It is the general framework conditions for SMEs that needs to be improved, as already stated in the European Charter for Small Enterprises, which aimed at “creating the best possible environment 1|P a g e
for small enterprises”. Within the broader European micro enterprise and employment legislation, EFIP believes the EU must give special consideration to how regulations will affect independent professionals. Specifically the EU should:
Recognise the differences between micro, small and medium-sized enterprises and take that into account when applying the “SME Test”, and, where appropriate, envisage specific measures such as reduced fees or simplified reporting obligations for independent professionals and the self-employed.
Use the forthcoming Inter-Institutional Agreement on Better Law Making, included in the Commission Work Programme 2015, for the compulsory application of a micro-SME test that needs to become an integral part of impact assessments for all legislative and non-legislative proposals, including delegated acts and implementing measures.
Consult with independent professionals and self-employed representative groups before introducing regulation and fiscal regimes at an early stage and during the whole decision making process, at EU level as well as at national, regional and local level. This should apply to all policies affecting SMEs, including delegated acts, and not only to burdensome ones.
Create specific performance indicators (measuring compliance costs as well as the costs of non-regulation) and carry out post-implementation impact assessments estimating the costs and burden on independent working.
Create a central portal, within which all employment, industry and internal market regulations in the EU member states impacting independent professionals and the self-employed are visible (possibly integrated in the Enterprise Europe Network contact points at national level).
Allow independent professionals and the self-employed to be represented within the EU institutions by a dedicated Envoy (not dissimilar from the SMEs Envoy) that should act as a conduit for the voice of “businesses of one” in the EU and make recommendations to simplify legislation for them, including the enforcement of national implementing measures.
Move forward with the establishment of a new High Level Group on better regulation under the responsibility of the responsible Vice-President in the EU Commission. EFIP believes this new group should develop and consolidate best practice in areas such as legislative planning and impact assessments, paying specific attention to how legislation affect independent professionals and the self-employed.
Streamline administrative procedures in line with eGovernment as to bring down burocratic costs and burdens, increase productivity, efficiency, transparency and policy effectiveness. EFIP believes that a simplified EU wide licensing system should promote the following: “one person businesses should require only one day and one Euro to set up”.
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About the European Forum of Independent Professionals (EFIP) EFIP is a European not-for-profit collaboration of national associations which represents over 11 million of independent professionals at EU level through targeted research and advocacy. Independent professionals (often referred to as freelancers or contractors) are highly-skilled selfemployed workers without employers nor employees. They offer specialised services of an intellectual and knowledge-based nature and work on a flexible basis in a range of creative, managerial, scientific and technical occupations. With a 45% increase since 2004, they are the fastest growing segment of the EU labour market. EFIP mission is to strive for European policy, business and social environment to become more conducive to the independent and self-employed way of working, in both the private and public sectors. More information about EFIP is available on our Website, our Manifesto and our Campaign.
Contact Marco Torregrossa Secretary General European Forum of Independent Professionals Avenue de l’Opale 124 box 6 B-1030 Brussels (Belgium) +32.486.71.30.26 marco.torregrossa@efip.org www.efip.org EU Transparency Register N.: 823591710024-95
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