On October 19th, during a meeting between CONFAPI (Italy) and BVMW (Germany), in Bolzano, South Tyrol, the Bolzano Appeal was launched. This initiative united two prominent business associations to urge the new European Commission to prioritise key areas necessary for creating essential change in the economy. Notably, the Secretary General of INSME, Prof. Giovanni Zazzerini, and the Secretary General of CEA-PME, Mr. Stefan Moritz, also joined the appeal. Given that SMEs represent 99% of all businesses in the EU and employ around 100 million people, the appeal emphasizes the urgency of implementing significant policy reforms to support these vital economic players.
A primary focus of the Appeal is on reducing bureaucratic burdens. Compliance costs for SMEs in Europe currently amount to approximately €320 billion annually. To alleviate this financial strain, the Appeal proposes a “first-two-out, then-one-in” principle for EU regulations, mandating that two existing regulations be removed before introducing a new one. Concretely, this approach could potentially save up to 50% in compliance costs, freeing up €160 billion for innovation and expansion. Such savings would account for 20% of the estimated €800 billion investment gap identified by Mario Draghi, enabling SMEs to redirect resources to more productive endeavours.
Another crucial aspect is enhancing trade and market access. With 40% of Europe’s GDP reliant on exports, the appeal emphasizes the need for reducing trade barriers and finalising free trade agreements with Mercosur, Australia, and Canada. Increasing exports by just 5% could generate an additional €240 billion for Europe. Additionally, the Appeal calls for avoiding tariffs on Chinese electric cars, advocating instead for improved cost competitiveness through lower bureaucracy and taxes. These measures are essential for allowing European SMEs to compete effectively on a global scale.
Finally, the Appeal addresses labor shortages and sustainability goals. The current shortage of skilled labor costs the EU approximately €200 billion annually, necessitating urgent investments in vocational training, particularly by reallocating 20% of Erasmus+ funds to these initiatives. The Appeal also argues for realistic environmental targets, proposing a revision of the EU’s CO2 reduction goal from 90% to a more attainable 75%. By aligning sustainable finance measures with the needs of SMEs and implementing these reforms, the Bolzano Appeal envisions a supportive framework that fosters economic stability, innovation, and sustainable growth, ultimately strengthening the EU’s competitiveness in the global market.
Read the official appeal here.
Source: INSME Secretariat