Barroso to propose small firms law

The European Commission President is to bring forward a small business act in June to reduce legal and administrative red tape.

Addressing an Ibec breakfast in Dublin this morning, José Manuel Barroso said he would bring forward the act to remove obstacles to growth faced by small and medium sized businesses. The aim, he said, was to try and provide the right business environment by "cutting red tape".

He also moved again to reassure the business community that Ireland's corporate tax rate of 12.5 per cent would not be threatened by tax harmonisation if the Lisbon Treaty was passed.

There was "nothing to fear" from the treaty, Mr  Barroso said, adding that "we are not about to propose anything that would be damaging to Ireland".

"I can only repeat what I have been saying very clearly: the possibilities of getting decision on taxation matters in the European Union against Irish interests is zero point zero zero because the rule of unanimity is confirmed by the Lisbon Treaty," Mr Barroso insisted.  

Ireland;s economic performance has acted as a stimulus for the rest of Europe and it was frequently help up as an example, particularly by new member states, he added.

"Europe as a whole has learnt from Ireland, about the benefits of openness, of seeing the internal market as a real opportunity . . . In that sense Ireland has shown the rest of Europe how best to benefit from Europe."

He noted that since joining the EEC in 1973,  one million extra jobs have been created in Ireland as it has moved from being one of the poorest to one of the richest member states.