Small and mid-cap companies: new measures from the European Parliament to boost growth
The aim of these simplifications is to prevent companies from being overwhelmed by red tape once they outgrow their SME status
by Anna Mulassano
Key points
Access to growth markets for small and medium-sized enterprises (SMEs) and simplified disclosure rules, data processing in accordance with the GDPR where sensitive information is not involved, procedural simplifications and access to a dedicated SME helpdesk in anti-dumping and anti-subsidy investigations. These are some of the measures set out in the provisional agreement reached on Tuesday 9 June 2026 by the European Parliament and Council negotiators to strengthen the competitiveness of European small and mid-caps (SMCs). Furthermore, the concessions already provided for SMEs will also be extended to SMEs.
SMC requirements
It is the agreement itself that sets out the requirements for a company to be considered a true SME: employing fewer than 1,000 staff; having a turnover of up to €200 million or, alternatively, holding assets worth up to €172 million. The Commission’s proposal, however, had adopted stricter criteria: a maximum of 750 employees; a turnover of €150 million or assets of €129 million. The ultimate aim is to prevent companies from being overwhelmed by obligations once they exceed the SME threshold, thereby supporting their growth.
Introducing measures – including the adoption of the Critical Infrastructure Resilience Directive and the MiFID Directive – to support small and mid-cap companies was one of the recommendations made by report on European competitiveness by Mario Draghi and in Enrico Letta’s report on the future of the single market.
The agreement must now be formally adopted by both the European Parliament and the Council before it can become law. Following formal adoption and publication in the Official Journal of the European Union, it will take 20 days for the regulation to enter into force. At that point, Member States will then have 15 months to transpose the directive into their national legislation. Five years after the law comes into force, the Commission will draw up a report on the SME threshold and its impact on administrative burdens for businesses.
