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REPORT (COM(2025)0502 – C100093/2025 – 2025/0131(COD))

On the proposal for a directive of the European Parliament and of the Council amending Directives 2014/65/EU and (EU) 2022/2557 as regards the extension of certain mitigating measures available for small and medium sized enterprises to small mid-cap enterprises and further simplifying measures

A-10-2026-0034

Committee on Economic and Monetary Affairs Committee on Civil Liberties, Justice and Home Affairs · Rapporteur: Mariateresa Vivaldini, Kristian Vigenin

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Parliament's amended version of a Commission proposal for a directive amending Directives 2014/65/EU and (EU) 2022/2557. It extends certain mitigating measures for small and medium-sized enterprises (SMEs) to small mid-cap enterprises (SMCs) and adds further simplification measures. It defines SMCs by market capitalisation for Directive 2014/65/EU and by staff and turnover or balance sheet for Directive (EU) 2022/2557, and requires member states to describe facilitating measures for SMCs in their resilience strategies. It adds safeguards for SME funding and the 'think small first' principle, calls for complementary support measures, and requires the Commission to inventory SME derogations and to evaluate the amended directives every five years.

Committee position. The committees adopt Parliament's position at first reading with amendments to the Commission proposal, extending certain SME mitigating measures to SMCs, adding definitions and safeguards, and requiring an inventory of SME derogations and five-yearly evaluation reports.

Key points

  1. The directive extends certain mitigating measures available to SMEs to small mid-cap enterprises (SMCs) and further simplifies rules, while ensuring Union measures dedicated to SMEs are not affected or reduced.
  2. It states that SMCs grow faster and innovate and digitise more than SMEs but face similar administrative burdens, and that the cliff-effect when firms outgrow the SME category should be addressed coherently.
  3. It requires that the 'think small first' principle continue to apply to SMEs, especially micro-enterprises, with adequate protection and targeted support, and that disincentives to growth be avoided.
  4. It calls for complementary measures supporting SMEs and SMCs, including reducing administrative burden, fiscal incentives, access to talent and skills, and adoption of innovative technologies.
  5. It states that challenges small European companies face in scaling up within the Union threaten the internal market and should be addressed as a priority.
  6. It requires a definition of SMCs to be introduced in the amended acts where appropriate, and calls for a complete inventory of existing SME derogations, simplifications, exemptions and preferential treatments across Union legislation.
  7. It extends the scope of Directive (EU) 2022/2557 so that member states include in their resilience strategies a description of facilitating measures for SMCs identified as critical entities, without undermining minimum resilience requirements.
  8. It defines SMCs for Directive 2014/65/EU as companies with an average market capitalisation of at least EUR 200 000 000 and below EUR 1 000 000 000 based on end-year quotes for the previous three calendar years.
  9. It defines SMEs for Directive (EU) 2022/2557 as enterprises employing fewer than 250 persons with annual turnover not exceeding EUR 50 million or balance sheet total not exceeding EUR 43 million.
  10. It defines SMCs for Directive (EU) 2022/2557 as enterprises that are not SMEs, employ fewer than 1000 persons, and have annual turnover not exceeding EUR 200 million or balance sheet total not exceeding EUR 172 million.
  11. It requires the Commission to evaluate the amended directives and report to Parliament and the Council every five years, focusing on administrative burden, competitiveness, economic, social and environmental aspects, and SME growth, and on whether SMC thresholds need review.
  12. It calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal.

Who is affected

  • Small mid-cap enterprises (SMCs): gain access to mitigating measures previously available only to SMEs.
  • Small and medium-sized enterprises (SMEs): keep existing protections, with the 'think small first' principle and dedicated funding preserved.
  • Member states: must describe facilitating measures for SMCs identified as critical entities in their resilience strategies.
  • The Commission: must inventory SME derogations and report on implementation every five years.

Figures and deadlines

  • EUR 200 000 000: minimum average market capitalisation for SMCs under Directive 2014/65/EU.
  • EUR 1 000 000 000: upper limit of average market capitalisation for SMCs under Directive 2014/65/EU.
  • 250 persons: maximum staff for SMEs under Directive (EU) 2022/2557.
  • EUR 50 million: maximum annual turnover for SMEs under Directive (EU) 2022/2557.
  • EUR 43 million: maximum annual balance sheet total for SMEs under Directive (EU) 2022/2557.
  • 1000 persons: maximum staff for SMCs under Directive (EU) 2022/2557.
  • EUR 200 million: maximum annual turnover for SMCs under Directive (EU) 2022/2557.
  • EUR 172 million: maximum annual balance sheet total for SMCs under Directive (EU) 2022/2557.

Legal basis: Article 294(2), Article 53(1) and Article 114 of the Treaty on the Functioning of the European Union.