“If the EU is serious about sovereignty, security, and prosperity, ‘Think Small First’ must guide every political choice”, stressed Davide Galli, SMEunited President, ahead of the informal EU leaders’ retreat on competitiveness on 12 February.
Europe’s 26.1 million crafts and SMEs provide 65% of employment, as well as unique know-how and training opportunities, making them indispensable for innovation, resilient supply chains, and vibrant communities across rural and metropolitan areas. “Our SMEs drive local prosperity and underpin Europe’s presence worldwide”, President Galli added. “Yet many continue to struggle with complex regulations, fragmented markets, high energy costs, unfair competition, and limited access to finance”.
SMEs ask concrete relief from regulatory simplification and legislative restraint to prevent new burdens from emerging. At the same time, legal certainty and a level playing field must be preserved. “Legislation must be designed with SMEs in mind from the start, with proportionate requirements, realistic timelines, and clear guidance”, Mr Galli explained. Member States must avoid gold-plating and ensure consistent implementation and enforcement. Finally, authorities should trust entrepreneurs to achieve policy objectives without prescribing every action in detail.
Secondly, the EU must fully mobilise the Single Market as a driver of competitiveness and resilience. “SMEs should have the freedom to operate across borders if they wish, while having the right framework to also thrive locally”, stressed Mr Galli.
Ensuring fair competition is equally essential: EU openness should not undermine the viability of European enterprises but guarantee a level playing field between European SMEs and non-EU operators, particularly on digital platforms.
Fourth, energy resilience and affordability, alongside improved access to finance and skilled staff, remain decisive levers for SME competitiveness. “Europe cannot expect SMEs to invest and grow while energy costs are volatile and unpredictable”, Mr Galli said. At the same time, digital sovereignty must be achieved in a way that works for SMEs, enabling secure access to data, infrastructure and digital tools without disproportionate administrative burdens.
Finally, to foster preparedness and resilience among SMEs, we should set-up the right tools and support mechanisms to safeguard business continuity. “Resilient SMEs mean a resilient Europe,” stated President Galli.
“Europe’s future will be defined by today’s decisions – and SMEs must be recognised as a strategic priority”, concluded President Galli.
SMEunited addressed this letter to the EU Leaders and Heads of State and Government ahead of the Informal meeting of the Heads of State and Government concerning competitiveness on 12 February.
