The largest lobby group representing the interests of small and medium-sized companies in Brussels goes under the awkward acronym of UEAPME. With the exception of its exclusion from the EU Social Dialogue, the group has »no complaints«1 about its access to European decision-makers. Surprisingly, UEAPME embraces many of the same goals as do transnational lobby groups like the ERT and UNICE, such as increased competitiveness through bodies like the WTO and European Monetary Union.
The representation of Small and Medium-sized Enterprises (SMEs) in Brussels has changed dramatically over the past few years. In the early 1990s there were at least 15 organizations in Brussels which claimed to represent SMEs. Now most of them have merged into one organization which the EU views as the SME representative: UEAPME (European Union of Craftspeople and Small and Medium-sized Enterprises).2 In recent years, UEAPME has also been allowed to enter the European Commission's network of consultative and advisory bodies.
UEAPME represents 5.5 million enterprises in the EU with a total of 27 million employees. The secretariat in Brussels employs some 15 to 20 people.
»We have no complaints. The Commission has really realized that SMEs are important,«3 says Hans-Werner Müller, UEAPME's Secretary-General since 1992. This, however, was not always the case. Müller, a former Christian Democrat member of the German Parliament, explains: »UEAPME has existed since 1979, but until recently it was nothing.« When he took over as Secretary-General four years ago, »the first objective was to clean up. There were 15 SME organizations and a coherent SME policy was not possible.« At that time, each SME organization received some 200,000 ECU per year from the European Commission. Müller told the responsible Commissioner that »for some of these organizations, the only reason to be there was the money.«4
“In the Europe of the fifteen, there are some 13,000 big businesses which, during 1992/1993 axed some 1 million jobs. SMEs, on the other hand, created 2.6 million jobs between 1988 and 1993. Actually, SMEs employ more than 70 million people at the heart of the European Union, that is to say 70% of the working population. Micro-enterprises (between 0-9 employees) employ more people than does big industry”5
The situation was resolved to Müller's favour with various mergers, and he claims that SMEs enjoy improved access to European decision-making structures as a result.
“It was not easy to convince the Commission that we had to be present, but that was not o nly the fault of the Commission. Now it is clear who represents the SMEs.”6
UEAPME spreads itself carefully through the decision-making structure:
“We try to be represented in the consultative bodies of the European Commission, the Parliament and other in stitutions which are relevant for us. There are perhaps 300 to 350 of them, of which 45-60 are very important for us.”7
Still, the biggest hurdle to EU access for SMEs has not yet been overcome. »We have no problems, with the exception of the Social Dialogue,« Müller explains. »The Social Dialogue was established at a time when we did not have the right structure. The Social Dialogue can now make European laws, and we say that it is not possible to decide on things like parental leave or flexibility without us. The others want to maintain the exclusivity.«8 The Social Dialogue currently consists of UNICE, the employers federation, ETUC, the trade union federation and CEEP, the public sector union. Entering this body is UEAPME's greatest ambition - even more than joining the influential Competitiveness Advisory Group. When questioned about whether UEAPME is present in this high-level body, Müller replies: »I'm not sure. It is perhaps not so important for us.«9
Apart from longings to be part of the Social Dialogue, UEAPME has a smooth relationship with UNICE. »There is no struggle,« says Müller. »We all have the same problems to solve. I meet with Tyszkiewicz very often, and there is a very good relationship.« When asked about contacts with the highly influential yet secretive ERT, Müller responds: »What is that? It is not significant. I do not know that.«10
Rather than participating actively, UEAPME merely »observes«11 the treaty revision process. Müller explains: »We want to see SME policy implemented in the treaty, in a separate chapter. But now we have to prepare for the introduction of the Euro. That is the main thing.« UEAPME has no worries about the effects of European Monetary Union on its membership. »We have not heard anybody from our SME family who is against it,«12 says Müller. »The Maastricht criteria, low interest rates, are good for SMEs.«13 UEAPME also follows negotiations on the World Trade Organization. According to Müller: »We, the SMEs, also depend on that process. We have signed a lot of papers, for instance a memorandum of understanding on globalization.«14
These positions suggest that UEAPME has no major political disagreement with the ERT and UNICE, which leaves us with the question of what, in fact, SME policy is. Currently, UEAPME's most prominent demand is a proposal launched in early 1997: a reduced VAT (value-added tax) on labour intensive services. This proposal has attracted some media attention. Müller also mentions the European standardization process -- the establishment of European harmonized standards for an endless number of products is part of the creation of the Internal Market -- as an example of where SMEs have different interests than TNCs. Says Müller: »We have decided that the EU has to help us to influence this process. It is never neutral, and the large TNCs influence these standards.«15 To this end, UEAPME has created an institute, dubbed NORMAPME, with EU subsidies.
Although the UEAPME chairman claims not to be familiar with the ERT, the ERT is very much aware of the potential gains to be had by large corporations from SMEs. In its demands for the 1994 Essen Summit, the ERT stated: »Positive policies to improve the viability of small and medium-sized businesses are supported by all large firms, which need to focus on their core business and to an ever-increasing extent depend on a large number of subcontractors.«16 In the lean production formula pursued by TNCs, large parts of the production are subcontracted to SMEs. The TNC controls the strategic part of the production, as well as research and development, and pressures the subcontractors to provide cheap and just-in-time deliveries. SMEs have to struggle to compete, and in order to survive, must demand lower taxes and wages as well as flexible rules for working hours, salaries and employment from their workers. A downward competitive spiral emerges, which ultimately makes the difference between ERT and SME policy negligible.
In today's Europe, industry of all sizes must champion anti-social, anti-environmental competitive neoliberal policies if they wish to survive.
1. Personal interview with Hans-Werner Müller, Brussels, 20 February 1997. |back to text|
2. Union Européenne de l'Artisanat et des Petites et Moyennes Enterprises. |back to text|
3. Personal interview with Hans-Werner Müller, Brussels, 20 February 1997. |back to text|
4. Ibid. |back to text|
5. UEAPME, Our Vision - A Europe for Craft and SMEs. |back to text|
6. Personal interview with Hans-Werner Müller, Brussels, 20 February 1997. |back to text|
7. Ibid. |back to text|
8. Ibid. |back to text|
9. Ibid. |back to text|
10. Press spokesman Garry Parker added: »They sent two people to a lecture by John Major at the European Policy Forum. They are not so important. We got a letter, send us 30-35 people, and we did. We are able to find such people.« |back to text|
11. Personal interview with Hans-Werner Müller, Brussels, 20 February 1997. |back to text|
12. Ibid. |back to text|
13. Ibid. |back to text|
14. Ibid. |back to text|
15. Ibid. |back to text|
16. ERT, European Competitiveness: The Way to Growth and Jobs, 1994, quoted from Mikael Nyberg, Green Capital -- a report on large corporations and the environment, (to be published by Friends of the Earth Sweden). |back to text|