The Forum of Private Business (FPB) has welcomed an EU proposal to improve the enforcement of mutual recognition.

Mutual recognition legislation acts to ensure that members of the union recognise the product standards of other members and will make it easier for businesses to trade goods within the union without having to examine differing regulatory requirements.

"The internal market is our biggest asset in view of promoting growth and jobs in the EU," said Gunter Verheugen, vice president of the European Commission.

"I'm proposing to unburden industry by placing more responsibility on the authorities of member states and encouraging dialogue and cooperation," he added.

According to the FPB, mutual recognition enforcement will not only affect businesses that trade within the EU, but also domestic businesses which source materials from any countries within the union.

Among the vice president's key policies, include improving regulation and innovation.