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REPORT (COM(2025)0501 – C100092/2025 – 2025/0130(COD))

On the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2016/679, (EU) 2016/1036, (EU) 2016/1037, (EU) 2017/1129, (EU) 2023/1542 and (EU) 2024/573 as regards the extension of certain mitigating measures available for small and medium sized enterprises to small mid-cap enterprises and further simplification measures

A-10-2026-0041

Committee on Economic and Monetary Affairs Committee on the Environment, Climate and Food Safety Committee on Civil Liberties, Justice and Home Affairs · Rapporteur: Mariateresa Vivaldini, Niels Flemming Hansen, Lukas Mandl

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✦ In short · AI summary of this text, generated 25 Sept 2026

Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

Parliament's amended version of the Commission proposal extends certain SME relief measures to small mid-cap enterprises (SMCs) and adds simplification measures across six Union regulations. It sets a harmonised SMC definition: enterprises that are not SMEs, employ fewer than 1000 employees, and have annual turnover not exceeding EUR 200 million or a balance sheet total not exceeding EUR 172 million. It eases data-protection record-keeping for micro, small and medium-sized enterprises, SMCs and organisations employing fewer than 1000 persons, except for high-risk or core processing activities, and keeps the obligation for public authorities. It extends the battery due-diligence exemption to SMCs, moves the due-diligence report review to every five years or after a significant change, and allows a single consolidated report. It limits F-gas Portal registration to imports and exports subject to reporting or export limits, and requires the Commission to review the SMC thresholds every five years.

Committee position. The committees adopt Parliament's first-reading position amending the Commission proposal to extend selected SME relief measures to SMCs, introduce a harmonised SMC definition, and add simplification measures across the six regulations.

Key points

  1. The amended recitals state that the Commission committed to reduce administrative burdens by 25% and 35% for SMEs, and that support for SMCs must not give them disproportionate advantages over SMEs.
  2. The text says SMEs are 99% of all Union companies and that around 20% of all small mid-cap enterprises were SMEs three years earlier.
  3. A horizontal definition of SMCs is to be laid down in the amending Regulation, building where appropriate on existing SME definitions, without reducing SME-specific measures or budgetary allocations.
  4. The record-keeping derogation in Article 30(5) of Regulation (EU) 2016/679 is extended to micro, small and medium-sized enterprises, SMCs and organisations employing fewer than 1000 persons.
  5. The derogation does not apply where a specific processing activity is likely to result in a high risk or constitutes a core activity under Article 37(1), points (b) or (c); then only that activity must be recorded.
  6. Public authorities and bodies must still keep records of processing activities, and employment-related special-category processing does not as such require records unless assessed as high risk.
  7. The SME Helpdesk for trade defence must provide standard forms for statistics and questionnaires, and its reports must evaluate its capacity to serve SMEs and SMCs.
  8. The Commission should develop a streamlined complaint format for SMEs and SMCs and promote financial and legal technical assistance and paperless submission in trade defence cases.
  9. Prospectus exemptions for securities issued in resolution are limited to offers or admissions carried out within a resolution action or the exercise of write-down or conversion powers.
  10. The EU Growth issuance prospectus is extended to SMCs and other enterprises, and its application is deferred to 5 March 2026.
  11. The battery due-diligence exemption applies to operators with net turnover below EUR 200 million, and the due-diligence report must be reviewed at least every five years or after a significant change.
  12. F-gas Portal registration is required only for imports subject to reporting and exports subject to export limits, with the Commission to monitor illegal trade and review SMC thresholds every five years.

Who is affected

  • Small mid-cap enterprises: gain access to SME relief measures and a harmonised definition across the amended regulations.
  • Micro, small and medium-sized enterprises: keep existing support and gain simplified record-keeping and trade defence help.
  • Public authorities and bodies: remain subject to record-keeping obligations under Regulation (EU) 2016/679.
  • Battery economic operators: face a EUR 200 million turnover threshold for the due-diligence exemption and a five-year reporting cycle.
  • Importers and exporters of fluorinated greenhouse gases: face registration only for imports subject to reporting and exports subject to export limits.

Figures and deadlines

  • 25% and 35% for SMEs: administrative burden reduction targets cited in the amended recitals.
  • 99% of all Union companies are SMEs.
  • Around 20% of all small mid-cap enterprises were SMEs three years earlier.
  • Fewer than 1000 employees: threshold for the record-keeping derogation and for the SMC definition.
  • EUR 200 million annual turnover or EUR 172 million balance sheet total: SMC definition thresholds.
  • EUR 200 million: net turnover threshold for the battery due-diligence exemption.
  • Every five years or more often if a significant change occurs: battery due-diligence report review cycle.
  • 5 March 2026: deferred application date for the EU Growth issuance prospectus amendments.

Legal basis: Article 294(2) and Article 16, Article 114, Article 192(1) and Article 207(2) of the Treaty on the Functioning of the European Union.