Approval of an EU Charter setting out policy priorities for enterprise could spur improvement in the regulatory environment for small businesses across Europe.

While critics might ask whether a non-binding Charter littered with 'could and should' statements is really the best the EU can offer, it is difficult to disagree with its fundamental principle - essentially, the need to recognise, applaud and reward successful enterprise.

Issues raised include the simplification of regulations on business, better access to finance, the promotion of technological capacity and the use of e-business models.

The question of facilitating start-ups also figures prominently.

This is not surprising given that setting up a business in the EU is three times as costly as in the U.S.

Most importantly, perhaps, reference is made to the need to review bankruptcy legislation and tax regimes to ensure that success is rewarded and risk-taking is not penalised.

On none of these matters does the Charter clearly identify the division of responsibilities between European institutions and member states.

The omission of deadlines for specific aims is striking.

But it would be unfair to be overly critical.

The Charter ought to be viewed in the framework of the EU's concerted effort to ensure the impact on enterprise is fully taken into account in the preparation of all new legislation.

'Think small first' has become the informal rule in EU policy-making with the objective of avoiding undue burdens on small enterprise.

In the past, the Commission really only dabbled with simplifying existing legislation through programmes such as SLIM (Simpler Legislation for the Single Market Initiative) and BEST (Business Environment Simplification Task Force).

In Brussels, it is now widely accepted the principles behind these programmes have to be implemented far more broadly.

The Charter's most important feature, however, is it provides the first European political benchmark against which the policies of the European institutions and those of national governments can be assessed, judged and openly criticised for the effects they have on small enterprises.

The Commission's enterprise department alone cannot tackle the many hurdles which exist to an improvement in the European business environment.

This requires a broader political consensus and commitment - and the Charter goes some way to demonstrating this.