Press Release

24/06/2008

European Private Company: New chance for job engine SMEs. Klaus-Heiner Lehne MEP

Commission finally presents proposal on European Private Company / Demanded by EP in February 2007 / EU-wide standard type of business ownership

In the future, there is to be a standard type of business ownership for private companies, such as limited liability companies, throughout the EU. To this end, the European Commission presented its proposal today on the European Private Company (Societas Privata Europaea, SPE) thereby meeting the demand of the European Parliament. "I am glad that the Commission itself is finally convinced now about the usefulness of its SPE proposal for the Common Market. We are making the EU market yet again more attractive for medium-sized companies", said the EPP-ED Group's Coordinator on the Legal Affairs Committee, Klaus-Heiner Lehne, author of the Parliament Resolution.

In February 2007, MEPs had in an initial legislative report asked the Commission to finally make a proposal to European medium-sized companies about a standard type of business ownership - a European Private Company - and had to this end set detailed specifications. According to Article 192 of the EC Treaty, the Commission was obliged to present a corresponding legislative proposal.

"I welcome the proposal. It comes late, but not too late. After a first revision, it seems that the Commission has to a large degree met the Parliament's demands. It is crucial that, if possible, it does not contain any references to national law in order to avoid legal fragmentation", Lehne stated.

We will now look at the text in detail and offer the Commission our support in the legislative procedure. The Parliament will efficiently deliberate on the proposal. I just hope that the Council does not block the procedure. We have already had a bad experience, in the case of the European joint stock company. However, in the case of the European Private Company I do not really see any probability of finding fundamental opposition in the Council. If the Parliament and the Commission want to promote small and medium-sized enterprises as EU job engines, the national governments cannot be against that."

For further information:
Klaus-Heiner Lehne MEP, Tel: +32-2-2847047
Thomas Bickl, EPP-ED Press Service, Tel: +32-478-215372

Notes to Editors:
The EPP-ED Group is the largest political group in the European Parliament with 288 Members from all 27 Member States.