20. The Business Environment Simplification Task Force has identified ways to improve the business climate for entrepreneurs and promote entrepreneurship.The Commission is invited to draw up a Timetable for action, in the light of the recommendations in the BEST report, to assess the extent to which current policies encourage entrepreneurship.

21. Access to capital is a key factor in encouraging entrepreneurs and smaller business to achieve their full potential.The European Council welcomes the Commission's report on the promotion of risk capital in the EU and calls on the Council and Member States to consider its recommendations, including its proposed Action Plan.

22.The Commission report "Legislate Less To Act Better: The Facts" shows the importance of subsidiarity and better regulation.This is a shared responsibility which requires the institutions and the Member States to work together.

23. The European Council welcomes the Commission's establishment of a pilot test panel of businesses to improve consultation on new regulatory proposals, and encourages it to develop its business impact assessment system.

24. It invites the Commission to press ahead with its Simpler Legislation for the Internal Market (SLIM) initiative in all areas of single market legislation.The Commission is also requested to co-ordinate the sharing of best regulatory practice on the basis of contributions by the Member States.

25.The Commission is invited to report before the Vienna European Council on progress in all these areas.

26. Innovation is crucial to promoting enterprise.The European Council welcomes the progress made by the Council on the Fifth Research and Development Program, and calls for it to be adopted in good time before the end of 1998.

IV.BRINGING THE UNION CLOSER TO PEOPLE

27. A sustained effort is needed by the Member States and all the institutions to bring the Union closer to people by making it more open, more understandable and more relevant to daily life.The European Council is therefore particularly concerned to see progress in policy areas which better meet the real concerns of people, notably through greater openness, and progress on environment and justice and home affairs.

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