The Federation of Small Businesses (FSB) has appealed to the European Commission (EC) to give more support to small and medium-sized enterprises (SMEs).

Concerned about the "one size fits all" approach detailed in the EC's new Green Paper on EU labour law, the FSB claimed that SMEs would suffer from a lack of flexibility under the new proposals.

FSB employment chairman Alan Tyrell said that creating jobs within SMEs could help wipe out unemployment across Europe.

He commented: "The current Green Paper misses an opportunity to slash unemployment in the EU.

"Diversity in labour markets in different EU member states is not a 'problem' to be fixed in Brussels. It is a strength from which each country benefits."

Mr Tyrell welcomed the EC's plan to help cut the "administration burden" of red tape across the 27 member countries, but emphasised that quick action is needed on the issue.

The FSB announced last week that John Wright would take over the post of chairman from Carol Undy, who held the position for three years.