The topic was discussed by the speakers during the second panel “Completing the EU Single Market and Reducing the Administrative Burden” of Green Transition 5.0
Europe must focus on investing in innovation and reducing overregulation and bureaucracy in order for business to be more efficient and the EU to be more competitive. This opinion was shared by the participants in the second panel of the fifth edition of the Green Transition Forum, which was on the topic “Completing the EU Single Market and Reducing the Administrative Burden”.
The largest transformation event in Central and Eastern Europe is taking place from June 16 to 20 at the Sofia Event Center. The organizers are Green Transition Forum, Dir.bg and 3E-news.net.
The discussion focused on identifying and eliminating excessive bureaucratic complexities that hinder business efficiency, regulatory support for innovation as a key to competitiveness, productivity, sustainability and a better standard of living, adapting regulatory frameworks to facilitate the growth and competitiveness of small and medium-sized enterprises, and the importance of stock exchanges in Central and Eastern Europe. The panel was moderated by Kostadin Sirleshtov, Head of Energy and Climate Change at CMS, and the following participants took part in the discussion: Prof. Manyu Moravenov, CEO of the Bulgarian Stock Exchange; Alexander Peev, General Manager Corporate and Social Responsibility at KBC Group in Bulgaria; Anna Pietikäinen, Head of Regulatory Policy at the OECD; Evgeni Angelov, Chair of the Bulgarian Private Equity and Venture Capital Association; Ioanna Konstantinopoulou, Vice President of the Hellenic Investors Association; and Tsvetelina Kuzmanova, Senior Project Manager at the Cambridge Institute for Sustainability Leadership.
At the beginning of the discussion, the moderator gave the floor to Prof. Manyu Moravenov, who said that the idea that capital markets in Europe could be unique and independent is utopian.
“The financial industry and small markets are some of the most regulated industries in Europe, and not only in Europe. Scale is very important. Currently, we have several regional stock exchanges, some of them are quite large on a European scale. We also have more than 10 very small stock exchanges. There are no interconnections between them. The idea that capital markets in Europe could be unique and independent is utopian. We have different economies, different countries,” Moravenov commented.
According to him, all companies need capital, but at the same time they are not big enough and cannot access the large stock exchanges.
“Small stock exchanges provide the opportunity for such access, otherwise it is difficult not only due to lack of connectivity, but also due to scale,” added Moravenov.
And he emphasized that they need to adapt their way of working so that they can list smaller companies and invest in their development.
After him, Alexander Peev from KBC Group Bulgaria took the floor, who set three key focuses that can help enterprises be more competitive.
“Banking activities – we support the activity through financing. We also have insurance companies and risk management. And the third activity – investments in innovations and supporting enterprises in this direction,” Peev explained.
According to him, education is one of the main pillars when it comes to increasing society’s knowledge regarding the sustainability we strive for.
“In order to be better in a highly competitive world, we support business,” Peev emphasized.
The floor was then given to Evgeni Angelov, who said that he had never been more optimistic about Europe than he is now.
“We have already gone through several crises. Now it is time for Europe to act together and become a much more important player on the world stage. We need to turn intentions into actions so that everyone can do what is needed,” Angelov said, but stressed that in his opinion there is not enough sense of urgency for action.
“The big challenge for Brussels is to change the way it works – to reduce bureaucracy, overregulation and fragmentation. Because of this, it is easier for companies to scale up in the US, rather than in Europe. Investments are not made in Berlin, in Paris, but directly in the US. It is important to clearly state that deregulation is necessary. Nothing terrible will happen, but we need to work more efficiently,” Angelov added, highlighting the need for a functioning single market.
Angelov also commented that the savings of European citizens should also be mobilized, because they do not prefer to have their savings invested.
“In my opinion, we need to think about working mechanisms to support this investment and for these institutional investors to enter the market,” said Evgeni Angelov.
Ioana Konstantinopoulou presented three different ways to achieve results regarding investments in innovation and competitiveness. The first is to free enterprises from the burden of bureaucracy.
“Small enterprises are forced to follow the same procedures as large ones. Reporting needs to be simplified. It is too complicated and too expensive,” explained Konstantinopoulou.
The second step, according to her, is the creation of a European point for requirements – a digitalized platform that would also provide better access for companies abroad.
According to Konstantinopoulou, it is also necessary to create a digital platform for investments that would provide all the information to companies.
“Reducing the burden does not only mean reducing bureaucracy – the system must be more transparent and more accessible to all who need it”, was categorical Ioanna Konstantinopoulou.
For her part, Tsvetelina Kuzmanova said that there is a lot of talk in Brussels about competitiveness, but “if we want to be that way, we must be more self-confident”. According to her, the Bulgarian market will benefit from the deepening of the banking union in Europe.
“There is enough money in Bulgaria through the various funds, but what we lack through the language of Brussels are viable projects, ready for implementation, to which banks will grant loans. If there is a demand for such projects, we will see that there will be more funds to be allocated for them”, added Kuzmanova.
“Europe should not be afraid of regulation – in fact, it is our strength, unlike the US, China or the UK. We are well ahead in Europe when it comes to green policies and investments. But I am not saying that Europe does not have problems with regulation,” Kuzmanova added.
“Bulgaria follows policies, not creates them. And it is high time that our companies, our financial sector, our politicians use the opportunities of joining the eurozone – not so much from an economic point of view, but from a regulatory point of view. There are very big advantages to being on the front line or in the center of events. Regulation can be applied better, but it is applied better when we all participate equally, including Eastern Europe and Bulgaria in particular. Let’s try to get ahead of events – to be the first, not the last,” said Kuzmanova.
After her, the floor was given to Anna Pietikäinen, who joined the discussion online. She also emphasized innovation and simplification of regulations.
“The existing regulatory requirements are too burdensome, so those who create policies need to ask themselves what is not done right, that policies do not need to be simplified all the time,” Pietikäinen said.
According to her, it is possible that the toolkit no longer meets the set goals.
According to her, rules must be created without jeopardizing innovation, and that regulatory institutions of the future must be created.
“States must improve their legislation, use new technologies, including artificial intelligence, this will enable more innovation and more accessibility,” Pietikäinen noted.
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Note: Green Transition Forum 5.0 is establishing itself as a large and important platform for dialogue between the European Commission, national governments, experts, companies and the media. With its fifth edition, the forum positions Bulgaria as an active part of the conversation about the future of green policies in Central and Eastern Europe and even as an initiator of this debate in the region.
Illustrative Photo by Olha Ruskykh: https://www.pexels.com/photo/crop-woman-with-dry-leaf-and-plant-seedling-7215472/
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First published in this link of The European Times.
