Accounting Directive will boost SMEs by reducing admin burden
Irish Presidency secures agreement on key remaining part of Single Market Act I. This Directive will cut red tape for SMEs and increase transparency with inclusion of “country-by-country” reporting.
The agreement secured today in Brussels by the Irish Presidency on the Accounting Directive is another major step in reducing red tape for European SMEs, according to Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, current chair of the Competitiveness Council. The Directive is one of the final outstanding parts of the Single Market Act I.
Minister Bruton - At the heart of this Directive is the drive to cut red tape and reduce the administrative burden on SMEs. That is why this agreement is so important.
One of the Directive’s key proposals is the simplification of accounting rules for SMEs. Among the measures contained in the draft Directive are the reduction of reporting requirements for SMEs and the introduction of an exemption from preparing consolidated financial statements for small groups.
Minister Bruton commented:
“The priorities of the Irish Presidency are stability, jobs and growth. At the heart of this Directive is the drive to cut red tape and reduce the administrative burden on SMEs. That is why this agreement is so important. The more we can reduce red tape, the more we free up business to grow and create jobs.”
Minister Bruton - Already the Irish Presidency has signed off on the Unified Patent Court Agreement. I will continue to push for progress on the remaining SMA I measures because full implementation of these measures has massive potential to boost economic growth and create jobs.
“The Irish Presidency has prioritised the implementation of the outstanding pieces of Single Market legislation. Already the Irish Presidency has signed off on the Unified Patent Court Agreement. I will continue to push for progress on the remaining SMA I measures because full implementation of these measures has massive potential to boost economic growth and create jobs.”
The Directive also incorporates a number of measures designed to enhance financial transparency. The provisions made for Country-by-Country Reporting will dramatically increase the transparency of payments made to governments by European companies involved in the extractive industries. The Reports will assist the citizens of resource-rich countries in holding their governments to account for the use made of payments received from EU undertakings active in the extractive industries or in the exploitation of primary forests.
The agreement reached today will require final approval by the Committee of Permanent Representatives.
Notes for Editors
During the Irish Presidency of the Council of the EU, Minister Bruton is responsible for chairing or co-chairing meetings of the Trade, Competitiveness and EPSCO (Employment and Social Policy) Councils.
As well as chairing five formal Councils, Minister Bruton is involved in hosting three Informal Ministerial Council meetings in Dublin during the Presidency. The EPSCO Informal on 7-8 February was the first of these and will be followed by a Trade Council Informal in Dublin on 17-18 April and a Competitiveness Council Informal on 1-3 May.