EC demands less 'red tape' for SMEs

Small to medium enterprises (SMEs) are caught up in too much "red tape", it has been claimed.

A European Commissioner has called on the member states of the EU to reduce the administrative burden that many small businesses face, saying that in the current economic climate it is too easy to overlook the importance of SMEs.

Administrative procedures for company law in areas such as divisions and mergers have already been streamlined, but one Commissioner believes more should be done.

"All the talk in the press is about banks, the big financial institutions, [and] the mortgage lenders," said the Commissioner for the Internal Market and Services, Charlie McCreevy.

"What we must not forget is that for small businesses, life goes on."

He added that SMEs were "the backbone of the European economy", and could not be overlooked.

Small businesses have until 31 October to file their paper self-assessment tax return, or 31 January for those filing online.