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Poll: HN EU readers, should we start lobbying the EU?
In the latest poll [1] we saw that there are a lot of Europeans on HN, and I guess many of them from the EU. I also noticed a comment [2] from davedx from the Netherlands that said "not being based in the US comes with lots of disadvantages, such as terrible payment gateways, unfriendly tax and small business legislation, and smaller networks of entrepreneurs", and started wondering if in the EU we could, and should, start lobbying the EU Parliament and Commission to get a better environment for (especially web, but not only) startups: eg for payment gateways, only a more harmonized system could make them easier to create. To do so, we would also (need to) build bigger networks of entrepreneurs.
[1] http://news.ycombinator.org/item?id=3298905
[2] http://news.ycombinator.org/item?id=3300204
So, the question is: Should we start lobbying the EU Parliament and Commission to create a better business environment for startups?
- davedx 15y agoPersonally I have very little faith in the political process for citizens. Lobbying only works if you can throw the kind of money the MPAA etc. have at it. At least, this is the impression I get from the US - I've not paid as much attention to EU-level politics. I did try engaging my local MP when I lived in the UK, which was a complete failure - he didn't ever reply to any of my letters. Personally I'm more inclined to start my next company in the US instead.
- czzarr 15y agothis kind of thinking is exactly why the US startup scene thrives and the EU startup scene is so fragile. There are so many untapped opportunities in Europe and so much less competition in EU markets and I think that makes up largely for the european drawbacks.
- danmaz74 15y agoTo be heard, you need to organize. Did you try to contact your MP individually, or with the backing of a group? That makes a lot of difference...
- mooism2 15y ago(Repost from original thread.) Tax legislation is the domain of national parliaments, not the EU (except for aspects of VAT, anything else?). Tax harmonisation requires a treaty change and agreement from all 27 member states. On unfriendly legislation --- is this national legislation or EU-wide legislation? On terrible payment gateways --- why do you think that is? Imperfect implementation of the common market (e.g. unharmonised regulations)? Insufficient competition generally? Something else?
- danmaz74 15y agoTerrible payment gateways: AFAIK, based on many comments by the newest providers in the US, the biggest problem is exactly that of different regulations for different EU countries. Creating better options requires different solutions for each country, so it is very expensive. With a harmonized system, you would be able to create a solution for 500 million potential users - it would be worth the effort. Unfriendly legislation: The EU parliament can force national legislations to become friendlier, and especially to make it easier for a startup to operate in the whole EU. Tax legislation: I'm not thinking about revenues taxation, but registration fees and mechanism and controls and the likes. There could be interventions from the EU Parliament to harmonize them, I think, and if that's impossible now - we could at least start to lobby to make it possible.
- Xixi 15y ago> unfriendly tax and small business legislation In France though the tax situation and small business legislation is far from ideal, it has gotten much much better over the last few years, with things like the JEI (Jeune Entreprise Innovante), or the auto-entrepreneur status. Not perfect though, and something coming from Bruxelles could certainly do much better. > terrible payment gateways There you are. I have no idea how to fix this other than creating my own company and start doing it right. Except that I'm doing something else, so I don't have time (or ressources) to scratch this itch. But it's itching enough that I'm seriously contemplating spawning a LLC in the United States.
- danmaz74 15y agoBut it's itching enough that I'm seriously contemplating spawning a LLC in the United States. I'm in a very similar position... By the way, trying to act at the European level doesn't mean that on a national level things can't be improved faster, or that we shouldn't lobby at that level; for example in Italy I'm suporting this: http://srlfacile.org/ http://srlfacile.org/
- BSousa 15y agoI voted no, I don't want more legislation. More and more, the EU is taking away liberties of people and countries in name of a 'common good' and a 'better europe'. A good example is the now credit crisis which was mostly a problem with EU interfering with countries. For example production "Ok, you stop producing X and we will pay you Y for you to buy X from us" which short sighted politicians were all too happy to accept since it meant money coming to countries and reelection was easier. It is hard to get payment gateways ala feefighters and others, sure, but you can go to a normal bank, get a merchant account and accept those payments yourself. About taxes, it isn't that complicated to be honest. VAT is charged at the rate your business as a presence in (usually your home country) when selling to someone in EU. Corporate taxes is dependent on country but UK isn't that bad. Most countries that have bad corporate tax structures are usually riddled with corruption. Most countries now are also trying to offer a better environment for new companies. UK is lowering taxes for small business if I'm not mistaken. Portugal decreased the minimal capital from 5000 euros to 1 euro. Some countries are decreasing taxes to companies that export alot(by giving them tax incentives) Most EU small business have access to programs that offer them line of credit and sometimes free money for projects (in portugal it is called QREN no idea what is called elsewhere) that comes from EU. And maybe it is just me, but whenever I see lobbying mentioned, I shriek! Trying to do this on the EU scale would probably involved a lot of money under the tables.
- jvandenbroeck 15y ago" A good example is the now credit crisis which was mostly a problem with EU interfering with countries. " This is completely untrue, if the EU had more power the crisis would be much easier to solve. For example with one interest rate for the whole Euro zone instead of a different one for each country.
- BSousa 15y agoPlease note I mentioned an example that wasn't the response in 2009-2010 to the crisis, but what happened before causing part of the crisis. Easy influx of money, both in interest rates by joining the Euro (more borrowing but not fault or EU per se) and influx of money from EU to close specific industries and/or production of goods (Agriculture for example) was a problem. Also, at least in Portugal, during this crisis there were incentives to buy new cars that were influenced by EU. This benefited some countries but countries that do not have an auto industry were screwed. Also for example, there were added taxes from pakistan on textile products. When the floods hit, EU wanted to lift those taxes as a whole, hurting a lot of countries that have a good amount of people employed in those industries. These are the examples I mention with interfering. A central parliament where the members are payed an enormous amount of money to be there (yes, I also have a problem with the money and benefits they get there), deciding for the whole EU where individual countries get shafted because some countries (UK, Germany, France and Italy together get more than 50% of votes) can get a majority easily and can look after their own interests.
- wisty 15y agoYou could lobby the EU for a productivity report. I'm an Aussie, not an EU citizen, but we have a group called the "Productivity Commission". They basically write reports on how the government can improve business conditions, by reducing red tape, reforming tax, and lowering barriers to entry. The important thing is to get the write part of the EU to act. If the wrong agency (or whatever the name is for EU appendages) gets involved, you'll have a bunch of soul-sapping incubators run by eurocrats, which will only sponsor 40-year-old guys with detailed business plans, and good PowerPoint decks. The right agency will give ammunition to the legislators who want to reduce paperwork, not jobs to people who want to write business plans. You can't lobby the EU with a specific plan, though. You tell them there's a problem, and they tell you the solution. They are politicians, or answerable to politicians, so they want to be seen to be do the right thing, not doing the right thing. You can try to frame it in a way that the right agency gets the ball, though.
- danmaz74 15y agoYou can tell them what the problem is, but you can also tell what a good solution would look like, so that if they implement a bad solution you can tell so. Otherwise, they can say "ok we solved it" and it would be difficult to say it isn't true.
- wisty 15y agoOK, but you aren't dealing with a monolithic entity, and they don't care about you, but about all the people who care about the problem. Whoever you lobby (say, the politicians) need a solution. "Cut red tape, federate payment gateways" is not a solution they can implement. They can either legislate, or handball the problem to "the relevant authority". Assuming legislation is infeasible (which seems to be the case) you have to make sure it goes to the right authority. Productivity commisions will come up with a clear plan, which will feed back into further decisions. It's not an elegant solution, but you are talking about steering a ship with a lot of inertia.
- Atropos 15y agoRegarding payment gateways: The EU is already on it, see the SEPA project: http://www.ecb.europa.eu/paym/sepa/html/index.en.html http://www.ecb.europa.eu/paym/sepa/html/index.en.html However like anything in the EU it moves very slow, I believe the target is to phase the first national systems out in 2013/2014, but delays are not unlikely...
- 0x006A 15y agoLobby for the abolishing of software patents and copyright policies that allow internet services to operate without fear of getting taken down by rights holders. Those are bigger hurdles in starting web businesses than tax or payment gateways. On a more general note, if you want to lobby for something on the EU level, lobby for more democracy and transparency, the current system is only catering to large lobby organizations and not held accountable for its actions.
- danmaz74 15y agoOn a more general note, if you want to lobby for something on the EU level, lobby for more democracy and transparency, the current system is only catering to large lobby organizations and not held accountable for its actions. More democracy and transparency are certainly good, but interest groups are everywhere and aren't going away anyway. So, why not organizing an interest group for (web) startups?
- OliverM 15y agoI'm not at all convinced the EU would be the best target for this kind of lobbying. Startup company supports vary widely by member country, and even by region within those countries. Certainly in my case (Ireland) lobbying agencies like Enterprise Ireland or the local county enterprise board gives much more return in much smaller periods of time. These agencies effectively navigate the EU thicket of regulations for you. But I can see how that would vary widely, depending where you're from. The payment gateway issue is a real one but separate to startup supports. Big business would love to see this resolved too, surely?
- masklinn 15y ago> Big business would love to se this resolved too, surely? Big business already have everything in place to handle each country, so while smoothing out payment across the EU may reduce their own costs, it would also make the market that more interesting to enter: instead of having to deal with 27 countries individually, of 5 to 80 million potential clients, you'd have a prospective market of 500 million in a single swoop. Startups and the like would be much more likely to invest in EU-wide support early rather than start from US-only and then maybe enter a pair of EU market (UK, Germany, France) once they've grown enough to think of broadening their aim. This would increase competition risks in EU markets, which big businesses do not want.
- OliverM 15y agoTrue. I'd forgotten how incumbent 'big' business sets barriers to competition in the manner you describe. Though this kind of barrier still leaves them susceptible to competition from other, non-incumbent, big players (if any remain?).
- giulivo 15y agoyou may also want to give a look at the EBN network (european business network) which via BICs (business innovation centre) pursue the following: > All funds available to the Association will be devoted to the pursuit of the Association’s aims and objects. Its main object is to promote the growth of Business and Innovation Centres both within and outside the European Union (EU), the aim of which is to set up new small or medium-sized enterprises (SMEs) and/or new activities within existing SMEs based on new ideas with growth potential. It will mobilize any system, service or activity, which may directly or indirectly assist its members in achieving their objectives with optimum professionalism and efficiency. http://www.ebn.be/DisplayPage.aspx?pid=5 http://www.ebn.be/DisplayPage.aspx?pid=5
- danmaz74 15y agoThey should be interested in this kind of action too. Thanks for the link!
- digitalengineer 15y agoLobbying won't make a difference at all. The situation is FUBAR by design. Big companies hate competition and the EU rules (they pay for) make sure competition is limited. Wish to change this? DISRUPT with a great startup and don't sell it to (old school) companies if you're successful.
- jvandenbroeck 15y agoI think the problem is that most of these laws / incentives are country based. You should lobby in your home country or vote for a stronger EU.
- danmaz74 15y agoI already do both, but I also think that also lobby at an European level can only help.
- deleted 15y ago[deleted]
- perfunctory 15y agoThe bigger problem for European web services is a diversity of cultures and languages. This is not something the lobbying can solve.
- danmaz74 15y agoAgreed. But having "more european" startups would already help, even at that level.
- deleted 15y ago[deleted]
- danmaz74 15y agoJust to clarify (I'm the OP): Why are you talking about American influence? What I meant was a harmonization/simplification of EU states legislation. Some harmonization could also work with the US, but that's not necessary (and it looks very difficult to me).
- dclaysmith 15y agoSorry, misread the original post. Read it as "Should the US lobby Europe to make it more startup friendly" (No). Deleted my response as it's not that relevant having re-read the question. I think that the main point of the EU (for better or worse) is this harmonization/simplification. The goal is to make the EU competitive against the US through economies of scale. As an ex-Pat living in Ireland, I'd say careful what you ask for--you might get it. Pro-Startup becomes Pro-business which becomes Pro-big business which becomes Anti-social programs. I don't think I'd ever move back to the US because the direction it is headed. I hope that a "strong" EU does not mean an "American-style" EU...
- danmaz74 15y agoNo problem; I see your point, but from the US there are for sure good parts I would take. Others... not at all :)
- davidw 15y ago> Pro-business Every country is "pro business" when it comes to their Fords and their Fiats. Where it really does change is in the rules for new and small businesses.
- stfu 15y agoIt depends on the level of lobbying. To achieve both you need massive members AND decent money resources (i.e. a full time in-person representation in Brussels). Petitions and other "virtual" protests forms are certainly nice, but it is nothing in comparison to having an ex-parliament member going from door to door explaining the issue to his former colleagues. One way I could see this working is creating an organization that is largely focused on member size while cooperating issue-based with existing money strong lobbying efforts for example of Google. Joining forces could bring benefits to both parties by pairing money with democratic representation. Also I like the idea of focusing just on the EU and not regional issues. The EFF partner organization in Europe ( http://www.edri.org/ http://www.edri.org/ ) is in my opinion largely ineffective because of their way to fractioned member organization system.
- danmaz74 15y agoI agree that we should start thinking European on many issues. It isn't easy, but we should start somewhere, and this looks to me like a very good place to start.
- jamalah 15y agoYes: lets become self-confident!
- Iv 15y agoI am from EU, I have been involved with the pirate party, I think this is a good way to petition the EU : get MPs elected. Currently 3 are in the EU parliament.
- netrus 15y agoAre better conditions for entrepreneurs and small companies part of the profile of the Pirate Party? (Honest Question)
- Iv 15y agoSorry for the late answer. Depends. In my case (freelance IT entrepreneur) I know that software patents and silly copyright laws are really dangerous for my business. The day IBM decides to send patent lawyers because I happened to solve a problem with the same obvious solution they have patented in 1999, I am done for. So yes, I would say they promote better conditions. Another thing they like pushing is the possibility to go through administrative tasks online, in a secure way. I must say that it would be a relief if I could do everything through email (though France has made a lot of efforts these last years). Other than that, I don't know the specifics of their economics program. It is adapted locally from what I understand, only the copyright/patent/net neutrality/privacy platform is international. If you have a specific issue you want to defend locally, go make your voice heard in your national pirate party !
- Loic 15y agoI am French, living in Germany with a company in UK. I can tell you, business is easy in Europe. It is extremely easy to take the good of each country and leave the bad. You can setup a company in any EU country and run it from any other country. This means an insane level of flexibility at the regulations level (if you are looking at regulations loop holes) or ease of management (if like me you go for where you have the minimum of paper work and do not care about tax level). EU is working very well for businesses, have you created a company in EU? I recommend you start to look at where you can influence to solve your real problems this will avoid you losing your time on big lobbying plans for little results.
- ashconnor 15y agoThis can't be said for all of the EU. In the UK if you direct a foreign company but are UK based then HMRC will consider it a UK company for tax purposes. I looked at incorporating in Ireland because A. We wanted good Euro banking which the UK doesn't have and B. The corporate tax rate is a mere 12.5%.
- Atropos 15y agoRegarding taxes the rule would probably be the same everywhere in Europe. However nothing would (legally) stop you to base your company in Ireland or Estonia etc... The EU flexibility rather concerns other aspects. For example in Germany if you wanted to have a limited liability company (GmbH), you needed to have 20,000€ capital. The british limited had a lower requirement so lots of small german businesses incorporated as a Ltd. Now there is a new limited liability company in Germany called the "UG" without the minimum capital, which otherwise would never have happend or at least not as fast.
- Loic 15y agoAs said before, in my case, I do not try to escape the taxes, I try to get the simplest setup to focus on my work and not on paper work. If your really want to limit your tax footprint, ask a good accountant, in UK with the City, you are packed with accountants specialized in tax optimization. But again, I am a small startup, so no ideas about all these options.
- ergo14 15y agoNo, i'm in EU, and it's not the same here as in Netherlands and i dont want any legislation. There are payment gateways for me to choose from, no problems on any of those fields.
- bitcracker 15y agoYes: I am from EU and know that lobbyism works. I participated in a lobbyism against EU wide software patents some years before. Serious lobbying works in the sense that you contact EU people and tell them your complaints with solid facts in a respectful way. Then they get serious and pay attention to you. Without the massive lobbying of many small and medium sized companies and freelancers against Software patents the EU would have invented them already years before.
- danmaz74 15y agoThat's a very good example we should look at.
- jkant 15y agoYes: I'm from the EU and I think that lobbying the EU Parliament and Commission is a good idea.
- blumentopf 15y agoRegarding payment gateways: SEPA is fast, cheap and rolled out in a large portion of Europe. I don't see much room for improvement there, quite frankly.
- tomelders 15y agoYes. The EU represents the worlds largest economy, dwarfing the US by about USD$7 trillion. Yet the potential is locked up in bureaucracy and petty nationalism. Another bitter truth that people in the EU need to acknowledge is that English needs to be spoken by the majority. Not as a first language, but to the level of countries like the Netherlands or Norway. That's easy for me to say, I'm British, but this isn't national pride in my language. Only 4% of English speakers are English. English is a necessity in the world we live in, and Europe's diverse mix of languages is holding it back in a lot of ways.
- danmaz74 15y agoI think that among young Europeans English is already very very common.
- ajuc 15y agoI live in Poland, and every programmer I've met speaks English at least good enough to read documentation.
- kokey 15y agoI'm really impressed with the good level of English spoken by younger people in Poland, Czech Republic and Hungary. I believe this will give them an edge in technology over people from countries like Austria, Italy and Spain.
- bad_user 15y agoWhat baffled me when I visited Spain was that everything was translated - for instance I went to a cinema and all the movies had voice doubling in Spanish, whereas in my country the norm is showing subtitles, but leaving the audio unaltered. And this happens at all levels; for instance cartoon characters that are called like Pedro Picapiedra instead of Fred Flinstone, or El Pato Lucas (or something) for Daffy Duck. Also the doubled voices are terribly bad. In all seriousness, movie makers should sue for copyright infringement. My road took me through Barcelona and I couldn't get by with English. Maybe it was just my luck, however I met more people that understood some Romanian or Italian, rather than English. In Italy, I happened to travel to Livorno, staying there for a whole month. Again, all movies are voice doubled. But at least in Italy educated or younger people seem to understand English a little and a couple of them spoke it fluently. However while I stayed there I found it easier to learn some Italian instead, instead of bothering with English. (I'm from Romania)
- alexchamberlain 15y agoSorry, but as a "petty" nationslist, I would rather see the EU disappear than more legislation.
- arethuza 15y agoOut of interest, which part of the EU are you from? And if you are from the UK, which part? I ask because as a Scot, and therefore in a country that is already part of a fairly succesful Union, I'm fairly certain that having an even wider and deeper European Union would bring many of the same advantages that being part of the Union brought to Scotland. Obviously there are many of my compatriots who don't see things this way but to me if you are in favour of the UK (which I am) it seems like a logical step to be in favour of the EU.
- alexchamberlain 15y agoI'm English, and a southerner at that... Let's just say I'm quite a fan of Alex Samond. Don't get me wrong... There are many advantages to the Union, but I believe that a lot of them could exist without it. Free trade, for instance, doesn't require a union, whilst it removes our obligation to fund other regions (of whichever Union...)
- arethuza 15y ago"whilst it removes our obligation to fund other regions (of whichever Union...)" Of course, it is worth pointing out that if Scotland had been independent we'd probably be as rich as the Norwegians by now...
- alexchamberlain 15y agoReasoning?
- arethuza 15y agoAs Mr Salmond used to argue, "It's Scotland's Oil". Of course, we pumped it out as fast as possible to help keep the UK economy afloat during the 80s.
- davidw 15y agoOne thing that ought to happen is this: http://en.wikipedia.org/wiki/European_Private_Company http://en.wikipedia.org/wiki/European_Private_Company If done correctly, it could be an excellent way of forming companies for startups, and might be able to get around some of the crap that you have to go through to form a company in places like Italy (thousands of Euros and tons of paperwork).
- danmaz74 15y agoThat would definitely be a great help - as long as they don't set high fees and capital requirements in order to lower the competition to "national" alternatives. So, having this kind of EPC with very low initial fees and capital requirements would certainly be something worth lobbying for. How do we start? ;)
- gurkendoktor 15y agoI am German and voted for lobbying, but it always seemed to me that our problems were domestic. The 'Abmahnwesen' was terrible when we were a tiny web service shop. Basically, if you violate any of a changing set of rules, e.g. you don't properly label the 'Imprint' link of your website, competitors or vampiric lawyers can directly bill you a few k€. Even when we felt safe about it, smaller clients were scared of the internet as a whole. The 'Störerhaftung' is terrible too. If somebody downloads crap on a coffeeshop's WiFi, the coffeeshop owner is liable (with some exceptions). Consequently, free WiFi is a very rare sight. But this is more of a lifestyle problem, I am not sure if it really inhibits hacker socializing in the wild.
- danmaz74 15y agoBut the point is that some domestic problems (not all, of course) can be solved at a European level, with the right legislation that national parliament are then forced to adapt to...
- ajb 15y agoYes. In particular, we need to prevent the european 'unitary patent' project from allowing software patents in the EU. Recently, this project achieved the nect step, the EU parliament voted to open negotiations with the national governments. So both the EU and national governments need to be lobbied about this.
- danmaz74 15y agoI don't know where (if) we can go from here, but for those interested I just created a google group to discuss this further: http://groups.google.com/group/eu-startup-interest-group http://groups.google.com/group/eu-startup-interest-group eu-startup-interest-group@googlegroups.com HN isn't best for longer discussions...
- kmfrk 15y agoI think it is less relevant what is good for entrepreneurs compared to what is good for business angels. In my country, start-ups feel like a bit of a cargo cult, because the concept of traction is so vague, when you can't say that you have backing from angels or Andreesen/YC/Sequoia, etc. I don't get an impression that there's an endgame like flip/IPO here. An "Ask the Angels/VCs" to get an impression of what might make certain countries and their entrepreneurs more appealing would probably be more elucidating. The EU as a union has not really imposed any counter-entrepreneurial measures that I can recall, which is more than I can say about the local politicians who tax everything, everyone, and their dog.