A report from the authority claims UK small companies underperform in productivity, growth and innovation compared to their US counterparts, but could be helped by more supportive legislation.

The European parliament highlights ten guidelines laid out by the commission last year, which aim to bridge this performance gap, and calls for them to be implemented at European and national level.

One key element of the suggestions is creating a universal time limit for payments, to reduce late settlement of invoices and boost cashflow in firms.

Also included in the plans is a reduction in taxes when transferring ownership of a family businesses and support for small firms to find out their intellectual property rights.

In addition, the group calls for more focus on the benefits of business, entrepreneurship, business culture awareness and self-employment in member states’ national curriculums.

Czech deputy prime minister for European affairs Alexandr Vondra, speaking ahead of the European Council meeting later this month, says ‘the top priority now is the restoration of credit flows to the economy’ in order to help prevent any future crisis.