Finland's Presidency of the EU, which begins in July, means numerous opportunities for business life. The Confederation of Finnish Industries (EK) has compiled the most important policies for the term into one file. The leading theme will be innovation policy.

"Innovation policy as the main part of the competitiveness strategy will be the natural main theme for Finland during the Presidency. We are uniquely placed to bring the need for an all-embracing innovation environment into the spotlight and to boost an exchange of information about the best practices," says Ulla Sirkeinen, EK's head of the Brussels office.

In addition to sufficient research and development, successful innovation activity requires open markets, effective competition and an operating framework that supports regeneration and risk-taking on a wide scale.

"Other policy sectors must support innovation and not set up any obstacles to it. Innovation policy must be made more demand-responsive. It must be expanded to affect funding, entrepreneurship, the development of business operations, networking and services, and matters concerning education and training," Sirkeinen adds.

During the Presidency term all the decisions concerning the framework programme for the seventh research and development activities will have to be made as will a decision on the competitiveness and innovation programme. These will have to support top-level achievements. Corporate participation must be made easier by simplifying procedures and ensuring that industrial rights are protected effectively.

Growth in entrepreneurship and SMEs

EK says that promoting the growth of entrepreneurship and SMEs is necessary both nationally and in the EU. "There are 23 million SMEs in the Union and they employ 75 million people," Sirkeinen points out.

Business life must encourage companies in their desire to grow and increase risk-taking. Start-up companies' and growth companies' scope for funding must be developed and increased. In the promotion of entrepreneurship taxation systems that encourage companies to expand and invest are important.

Better regulation and reduced bureaucracy will improve SMEs' operating potential. In order to promote market penetration EK feels that it is important for the public sector to be opened up to competition and cross-border trading.

"An enormous number of growth opportunities that should be exploited are lying latent in a large number of SMEs. If risk-taking is to increase, risk-financing instruments and advisory and innovation services should be improved," Sirkeinen stresses.

Training in entrepreneurship must be increased at all levels of education. The Commission has an important role to play in spreading the best practices in this area.

Services Directive expanded

At the beginning of April the Commission issued a proposal amended in 2006 concerning the Directive on Services proposal issued more than two years earlier. The target is to open up the EU's services market and improve its functioning. The Directive endeavours to make it easier for services permanently located in another Member State and for the temporary provision of services from one Member State to another.

In the proposal the area of application in the Directive was restricted by the omission of transport services, port services, hired labour services, health services, security services and social services relating to dwelling, child care and family assistance.

"The amendment did not come up to the expectations of business life. In our opinion, the Directive must aim for as wide an application area as possible, because omitting areas from it will eliminate the obligation for Member States to examine the administrative procedures applying to them," Sirkeinen says.

"To ease the problem we propose that a demand be added to the Article that Member States notify the Commission of laws, regulations and administrative requirements which restrict the freedom to supply services. Furthermore, a public register of these national requirements should be made, and it should be easily available for a service provider."

Other important projects for business life in Finland's EU Presidency

• Climate and environmental policy

• Company law

• Competition law and state assistance

• Education policy

• Energy policy

• Growth and employment strategy

• Immaterial rights

• Immigration policy

• Improved regulation

• Industrial policy

• Information Society

• Internal market

• Labour law

• Logistics

• REACH Regulation

• Taxation policy

• Trade policy and international relations

• Waste strategy and directive