The European Commission seeks in a report wherever possible to exempt micro-enterprises from EU legislation or introduce special regimes so as to minimise the regulatory burden on them. The aim is to ensure that the EU responds better to the needs of small businesses.

Micro-enterprises and small and medium-sized enterprises (SMEs) could benefit to the formulation of new EU initiatives. The Commission seeks wherever possible to exempt micro-enterprises from EU legislation or introduce special regimes so as to minimise the regulatory burden on them. In particular, as of January 2012 the Commission proposes in a report will further step up the search for exemptions or lighter requirements for micro-enterprises in existing and new EU legislation; strengthen the processes by which micro-enterprises and other SMEs are consulted when reviewing existing EU regulation and preparing new EU laws; produce annual scoreboards to evaluate the real benefits for businesses and to ensure a continuing focus on their needs and interests.

The report with these initiatives has been elaborated by the European Commission to be presented to the Council and Parliament for approval. According to José Manuel Barroso, President of the European Commission, the smallest enterprises have a central role in economic recovery, but at the same time they are the most vulnerable. Mr Barroso also added that for them, complying with regulation can be ten times more expensive than for large companies. The Commission therefore wants to lend them a helping hand and reduce the regulatory burden to a minimum so that their growth potential is fully unleashed for the benefit of the European economy.

The new initiatives presented are part of the 'Single Market Act' and the revised 'Small Business Act' with its 'Think Small First' principle strategies, which clearly underline the Commission's commitment to support the development of the European SMEs. Around 200 legal acts that bring substantial benefits for businesses have already been adopted with the "Simplification Rolling Programme". With the Action Plan for Administrative Burden Reduction, the Commission has tabled reduction proposals for 39 billion Euros for enterprises.