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Call for concrete actions to improve SMEs competitiveness

22 October 2024
by smeunited -- last modified 22 October 2024

SMEunited calls for concrete actions at all levels to improve SME competitiveness and appreciates the continued attention paid by Member States. In April, Heads of State and Government called to apply the “Think Small First” principle. Policies and upcoming legislation must now reflect this commitment to ensure the key role of SMEs in the European economy.


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"The European Union must act now to ensure prosperity in Europe and further strengthen the competitiveness and the single market of the European Union", states SMEunited President Salminen. Europe's economy is lagging behind. The reasons are many-fold: geopolitical shifts, regulatory burden hampering innovation and business focus, climate and demographic changes, high energy prices, unfair competition and dependencies on raw materials from third-countries with the risk of supply chain disruptions. "Our choice is either falling further behind or tackling Europe's problems and shortcomings," he continued.

Taking into account the economic fabric of the Union, the European Council conclusions in April 2024 insisted on the "Think Small First" principle to be applied by the Commission when designing new legislation. To foster SME competitiveness, SMEs demand a reduction of regulatory burden, including administrative and reporting requirements. SMEunited worked in the Fit for Future Platform on a methodology to avoid piling up reporting obligations, putting forward 6 concrete suggestions for action. Member States, the Commission and stakeholders must work together to achieve tangible results. 

Building on the Letta and Draghi reports, EU institutions, together with stakeholders, must work towards developing a functioning single market. Barriers must be tackled in a structured approach. Policy-makers must ensure a level playing field – among the business community and in particular with regard to competition with third-countries. Moreover, EU Institutions must ensure the diversification of supply chains when it comes to energy and raw material markets. This should come with effective support measures at all levels to foster innovative SMEs.

"It is crucial to acknowledge the role of crafts and SMEs in our economy, as well as for social resilience and stability", concluded Mr Salminen.

SMEunited, formerly known as UEAPME, is the association of crafts and SMEs in Europe with around 70 member organisations from over 30 European countries. SMEunited is a recognised employers' organisation and European Social Partner and acts on behalf of crafts and SMEs in the European Social Dialogue and in discussions with the EU institutions.

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