The values of enterprise

“If conditions of peace and development are not created in the countries of North Africa, if we fail to give any hope to these young people, we will increase the risks for the whole Mediterranean region. Other peoples will be threatened; new mass exoduses of migrants created and the dangers linked to terrorism increased. Religious freedom could also feel its effects”, says Antonio Tajani, Italian Commissioner for Industry and Entrepreneurship, who is following from hour to hour, together with other members of the Barroso Commission, the dramatic events in Libya and in other nations in ferment along the southern seaboard of the Mediterranean. Journalist, MEP since 1994, Tajani was nominated Vice-President of the EU Executive with the transport portfolio in 2008. Then, in February 2010, he assumed a new portfolio within the Barroso Commission. His commitment as Commissioner for Industry and Entrepreneurship is especially aimed at some priority issues, such as small and medium enterprises, innovation, and employment. And for all this, as he explains to Gianni Borsa, SIR Europe correspondent from Brussels, it’s essential to keep one’s eye fixed on the global situation.Commissioner Tajani, let’s start out from current affairs. The southern Mediterranean is in upheaval and the European Council of 11 March was devoted just to this crisis. What action needs to be taken, in your view?“First of all we mustn’t leave the peoples of Libya, Egypt, and Tunisia abandoned to themselves. We must implement immediate measures to help them, such as humanitarian aid, the installation of tent cities and the acceptance of refugees, all this through action at the EU level. But we must also give proof of a more comprehensive view of the situation that does not exclude a possible military option in the framework of a resolution of the international community. Above all we already need to think of the future, and lend our support to a new process aimed at the promotion of democracy, development and human rights in the region. To this end, it is indispensable to forge relations with reliable local partners. But it’s also essential to define a ‘Marshall Plan’, aimed at accompanying the new process. Aid for economic and social reconstruction is needed, and Europe, which is trying to become a global player, must be in the front ranks in this effort”.Your portfolio specifically regards industry. The activity of businesses is placed in the wider context of the world economy that, over these last three years, has been marked by a deep crisis. What’s the situation today?“The crisis has been really severe, but we can say that at the financial and macroeconomic level we are now well on the road to recovery. In other words, we can already see signs of the overcoming of the crisis, though we now find ourselves having to tackle the employment and social aspects of the crisis itself, with its knock-on effects on incomes and consumption. For this reason we cannot lower our guard, also in relation to possible new ‘surprises’ linked to instability in the Mediterranean area. We only need to think of the costs of energy… Now’s the time to revive investments, and support production and trade”.So the “real economy”.“Exactly. That explains our decision, which is political as well as economic, to support small and medium-sized enterprises (SME), which represent a mainstay of our production system. And when we speak of SME, we are brought face to face with such essential business aspects as competitiveness, single market, presence on world markets, innovation. Big industry undoubtedly has a strategic role in some sectors of the European economy. But micro-enterprises, just like small and medium-sized ones, are myriad in character, active in the most varied fields, diversified in the products they make and in their commercial outlets. Such enterprises must however be modern; they must know how to innovate, and need a favourable legislative framework and a rapid bureaucracy. They must know how to train their workforce and be able to explore new markets. The Centre we have opened in Beijing moves in this direction: it’s not the usual bureaucratic office, but represents instead a point of reference, a portal open to the huge Chinese market”.The various initiatives taken by the Commission in the industrial field include the Union for Innovation, the Small Business Act, the promotion of enterprise clusters and networks, and the question of access to credit. It would seem an all-round activity. Is that the case?“I think the Commission is working in this direction, because the challenge is global. Let’s take for example the question of access to credit, which has become a problem for businesses especially as a consequence of the financial crisis. Here what’s needed is a comprehensive strategy to promote a network between SMEs themselves, the banks and the world of finance. The same can be said of clusters: when we forge an alliance between firms, local authorities, universities and the world of research, not only do we do business, but we develop know-how, boost resources and services, and in this way promote the growth of a territory”.The crisis of recent years has had a punitive effect on businesses and as a consequence on the labour market. Does the industrial policy of the EU as a whole take this situation into consideration?“I would say that labour is one of our major objectives. If we have sound, modern and competitive businesses, these can create employment and hence support family incomes, provide a better future to youth, and promote territorial development. An enterprise consists not just of capital and machinery, but also of labour, the generation and dissemination of wealth and applied knowledge. And, with regard to youth, I would like to add a further remark”.Please do.“I’m convinced we need to help the young to understand that they themselves can become entrepreneurs: by creating their own business, taking a risk, gambling on their own creativeness and being willing and able to take things into their own hands. They can start up their own small firm, earning a livelihood for themselves and at the same time giving work to others. Not least for this reason we set up the Erasmus programme for young entrepreneurs”.Let’s speak of research, another key element for economic development. According to the European Union, member states ought to invest 3% of their gross domestic product in this field, but that isn’t happening. Has perhaps too ambitious a target been set?“In politics, as in life, we need to set ourselves ambitious objectives, otherwise we won’t get anywhere. Research is more than ever essential today, in every field. It’s needed for the protection of our health, for the defence of our environment and for the promotion of economic activity. EU countries ought to focus on research with greater determination, also because our international competitors, from the USA to China, India and Japan, are banking on research to enable them to keep abreast of the times, gain an edge over their competitors and win new markets”.Tourism also forms part of your portfolio. It’s an economic sector and also an opportunity to bring the peoples of Europe closer together. Do you agree?“The tourist sector is an important branch of the global economy and for some European countries is one their primary sources of income and employment. The Barroso Commission has launched a series of initiatives in this sense. But, as you say, travel and tourism both at home and abroad are also an important source of leisure, culture, promotion of the artistic heritage, and mutual understanding between peoples. I would go further: tourism should be seen as a means of fostering the diversity of Europe and thus helping to promote the growth of European integration. Those who travel abroad can better understand the history of the continent, grasp the values that unite us, use other languages, and experience the beauty of other regions and countries. One of the great factors for the promotion of the unity of Europe can be, for example, religious tourism and that’s why we are helping to promote the heritage of art and of faith throughout Europe. It’s no accident that we are supporting the rediscovery of the ancient pilgrimage routes, such as the Via Francigena to Rome or the pilgrims’ way to Santiago de Compostela. These are all factors of unity”.A final question to Commissioner Tajani, who is also a journalist. In your view, do the mass media adequately inform citizens on EU policy? “I think that the press and TV only inform citizens in part about what decisions are being taken and what is being done in EU decision-making centres. Too often what happens in Brussels is seen as part of foreign policy, but that’s not so. Brussels is not Moscow, Washington or Addis Abeba. What is done at the level of the EU has a direct impact on the life of citizens in the 27 member states, with real and visible effects. The mass media ought to give more scope to European issues, and avoid dealing with the EU only when minor disputes arise. At the same time the institutions of the Union have the duty to improve their own communication, with open, transparent and pro-active information”. FACT FILEThe second phase of the Small Business Act23 million small and medium-sizes enterprises (SME) are present in the EU; they employ 67% of the work force of the private sector and provide employment to almost 90 million employees. The Commission recently launched the second phase in the implementation of the Small Business Act (SBA), adopted in 2008, which is aimed precisely at the SME. “The Small Business Act defines – according to Commissioner Tajani – the guidelines for action that the EU intends to follow with a view to the promotion of the SME, their development and their ability to create new jobs”. Between 2008 and 2010 the Commission and member states “have implemented, in the framework of the SBA, a series of measures aimed at reducing administrative costs, facilitating the access to credit of SMEs and promoting their access to new markets”. According to Tajani “much has been achieved, but a lot still remains to be done” and the SBA is inserted in the wider context of responses to the recession and the implementation of the Europe 2020 Strategy for growth and employment. To fulfil the aims of the SBA, which has hitherto met with a differentiated application (and mixed results) from one country to another, the Commission indicates some priority objectives: first, “easier access to credit”; and second, “intelligent regulation to permit the SME to concentrate on their primary activities” (improvement of European legislation, simplifying or streamlining administrative procedures, reducing business start-up costs). Other measures include measures to facilitate the recovery of credits, both from the public administrations and in international transactions.