Measures for the competitiveness and resilience of SMEs

• The European Commission designed measures to provide short-term support, boost long-term competitiveness and promote fairness in the single market

At the end of 2023, the European Commission approved a new series of initiatives aimed at addressing the needs of small and medium-sized enterprises (SMEs) in the current economic context, which recognize the crucial role that SMEs play in the European economy.

For this reason, it designed a series of concrete measures to provide short-term support, boost long-term competitiveness and promote fairness in the single market.

Legislative measures

The proposed measures are contained in a directive on support for SMEs, which offers a series of non-legislative initiatives aimed at supporting them across Europe. Furthermore, on the other hand, they also announced new legislative proposals for a Regulation on late payment in commercial operations and a Directive to establish a tax system based on the registered office for SMEs.

One of the key measures is the new Regulations to address payment delays in commercial operations, a practice that significantly affects the cash flow of SMEs and hinders their competitiveness and resilience. This regulation introduces a maximum payment limit of thirty days and guarantees the automatic payment of accrued interest and compensation fees, thus offering greater protection to companies against bad payers.

Another important initiative is the Proposed tax system based on registered office for SMEs, which will allow companies with cross-border activities to interact with a single tax administration, thus reducing compliance costs and market distortions.

Non-legislative measures

In addition to these legislative measures, the Commission has also proposed a number of non-legislative measures to support SMEs:

• Improvement of the regulatory framework through the appointment of a new EU representative for SMEs. This figure will advise the European Commission on the needs of these companies in order to propose new regulatory measures for the sector.
• Simplification of administrative procedures through the “once only” technical system that will allow SMEs to complete administrative procedures throughout the single market, without the need to resubmit documents.
• The promotion of investments available for SMEs within the framework of a new specific axis of action of the Strategic Technologies Platform for Europe (STEP) from InvestEU. Which would enable SMEs to access sustainable financing.
• Allow the development of a skilled labor for SMEs within the framework of the European Pact for Skills.
• Support the growth of SMEs by reviewing the thresholds by which SMEs are defined, or by using support measures for SMEs throughout its entire business life cycle.

These measures are framed in the context of the "EU SME Strategy for a Sustainable and Digital Europe 2020" and reflect the Commission's commitment to supporting SMEs in their role as drivers of the green transition and digital Europe.

With a total of more than €200 billion available in funding programs until 2027, these measures are expected to boost the resilience, sustainability and digitalisation of SMEs across Europe.

You can consult more information about this plan and how this aid to SMEs will be developed here.