“The European Commission must ensure that SMEs are given a clear direction for their sustainability instead of being left wandering without direction”, commented Véronique Willems, SMEunited Secretary General, on the European Commission Work Programme for 2025.
“The Competitiveness Compass must be used as a true guide for small businesses, not a maze of regulations that leaves them lost at every turn”. While the Commission Work Programme acknowledges the need for simplification, its Omnibus must have a stop for SMEs, making compliance easier and allowing SMEs to focus on what they do best – driving Europe’s economy and transition forward.
Navigating access to finance
The Savings and Investment Union sets a course for SME financing, even though our concerns about the political will with Member States remains. While venture capital and funding diversification are on the map, financial instruments for riskier projects from SMEs having no access to capital markets still lack a clear route. Affordable insurance for climate risks also remains uncharted.
Single market and simplification: clearing the fog of regulation
Following the first Omnibus focusing on sustainability reporting, SMEunited welcomes the plans from the European Commission to look into other areas for simplification, such as digital laws and cybersecurity. Moreover, the Consumer Agenda should be developed with the aim of simplification in mind, reducing burden on companies that does not serve any purpose for consumers. Based on an improved governance, the Single Market Strategy should ensure every company can reap benefits from the single market, those going cross-border having simple and easy to apply rules and those active locally having the freedom to stay and contribute to their own community.
Balancing the Green Deal route
The Clean Industrial Deal and Affordable Energy Action Plan indicate to support greener industry, however high energy costs also slow SMEs down. Instead of a narrow focus on bigger industry, measures should be taken to keep all on board. The revision of the REACH Regulation presents both opportunities and challenges for SMEs in the chemicals and manufacturing sectors. Simplification is the guideline in that topic as well. Fostering water resilience, circular water systems and resource-efficient technologies will help navigate SMEs through increasing water stress. However, facing an unprecedented wave of secondary European Green Deal legislation, SMEs still risk drowning in regulatory seas.
Addressing skills gaps in SMEs
The Union of Skills provides an umbrella for different initiatives to be developed in the current Commission’s mandate, and SMEs expect measures that will seriously increase the excellence and attractiveness of vocational education and training (VET) in the Member States. Without a strong VET, European SMEs lag behind and will not be able to fully develop their green and digital transformation. SMEs ask for quality and responsive VET in the current fast-paced labour market.
Driving the transition for SMEs in different sectors
Targeted sectoral approaches support SMEs to successfully navigate the green and digital transformation. SMEs in the food sector must be protected from unfair trade practices and given more dedicated attention in the ‘Vision for Agriculture and Food’. In the transport sector, the Sustainable Transport Investment Plan should address the challenges of decarbonisation for SMEs by promoting green mobility solutions. In addition, the European Affordable Housing Plan should take into account heritage conservation and the local skills of SMEs to improve access to affordable housing.
Directions ahead
The European Commission is following the directions of the Competitiveness Compass, but the pace of implementation is critical. If relief measures arrive too late, SMEs will struggle to stay on course. To secure Europe’s economic future, entrepreneurs ask for urgent action, not just a map. They need real road signs leading to immediate solutions.
