94. Points out that it is necessary to be aware of, and remove, obstacles that hinder micro-enterprises from growing into SMEs and SMEs from growing further;

1. Welcomes the Commission’s initiative to reflect on the best regulatory framework for the future of the internal market; stresses, however, that the internal market must in future operate within a set of necessary and appropriate common rules; underlines, therefore, the importance of improving the quality and availability of provisions in an effort to achieve a well-functioning internal market, in particular in the area of services, including retail financial services; points out that the post-entry growth performance of EU firms can be improved by addressing, through non-legislative initiatives or, where necessary, through legislative instruments, the ...[+++]remaining barriers affecting their growth, such as imperfect financial markets which result in lower financial potential, higher administrative costs at entry and post-entry that affect the expansion of firms in their initial years, and tight hiring, firing and other social restrictions;

The Commission therefore has launched a series of sectoral reviews to identify obstacles inhibiting growth and innovation in key sectors, with a particular view to SMEs.

Access to finance in this context is often difficult, thus creating an obstacle to growth and job-creation.

However, the sustained growth slowdown and the insufficient implementation of labour market reforms are expected to have pushed up unemployment to 8% in 2003 - up from 7.7% in 2002 - and contained employment growth.

Bearing in mind the implementation of planned and existing automatic stabilisers, I think the objectives set in the Stability and Growth Pact should not be presented or seen as obstacles to growth or the need to respond – politically too – to the consequences of a downturn in the economic climate like the one we are now going through.