SMEs require targeted measures to survive energy crisis

19 October 2022
by smeunited -- last modified 19 October 2022

SMEunited calls on all EU Member States to immediately act and implement targeted measures for SMEs that need help during the energy crisis. The emergency regulation already provides the necessary instruments. Furthermore, SMEs ask for a swift prolongation and extension of the State aid crisis framework.

Petri Salminen, SMEunited President, emphasised at the Tripartite Social Summit that more and more SMEs are reporting that their fixed-price energy contracts are coming to an end. They have to conclude new contracts with price increases of up to ten times. This leads to unpayable energy costs, and SMEs decide to reduce or stop production.

SMEunited welcomes the recent measures to cap prices for inframarginal electricity producers and protect the competitiveness of European companies. "Now Member States have to use these instruments to provide support to those SMEs which are not able to cover their energy bill," insisted Mr Salminen.

SMEunited reiterates that the EU has to use all available energy and electricity sources to increase energy supply and reduce price pressure. At the same time, Europe has to facilitate a transition to more sustainable energy sources. Those already over-indebted due to the pandemic should receive support for upfront investments.

On the current debate about further market measures, the President stated: "We are aware of how sensitive interventions on the wholesale market are. However, if it can be done in a way, which ensures the security of supply without unintended increases of demand, Europe should take this road to reduce the dramatic volatility of gas and electricity prices."

On the cost of living, social partners should negotiate wages responsibly to avoid a dangerous wage/price spiral. Otherwise, inflation would create major economic burdens on SMEs and lead to the closure of many of them. SMEunited also urged Member States to pay attention to entrepreneurs facing difficulties and set up Early Warning Mechanisms: this way, SMEs can get impartial advice on the necessary actions and save jobs. Entrepreneurs who face bankruptcy should receive guidance on how to start a new career. Finally, SMEunited recommends combining short-time working schemes with upskilling and reskilling to tackle the skills mismatch for digital and green transitions.

SMEunited is the association of Crafts and SMEs in Europe with around 70 member organisations from over 30 European countries. SMEunited represents national cross-sectoral Craft and SME federations, European SME branch organisations and associate members. Combined, they represent more than 12 million enterprises with around 55 million employees across Europe. SMEunited is also a recognised employers' organisation and European Social Partner. SMEunited was formally known as UEAPME.

SMEunited