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OPINION (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

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Committee on the Internal Market and Consumer Protection · Rapporteur: Cynthia Ní Mhurchú

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The Committee on the Internal Market and Consumer Protection gives its opinion on the proposed directive extending certain SME mitigating measures to small mid-cap enterprises (SMCs) and further simplifying rules. It proposes amendments to the recitals and articles, including a definition of SMCs and a review clause. The opinion supports extending selected SME measures to growing enterprises to avoid a regulatory cliff edge, but warns that overly ambitious threshold increases could dilute SME policy. It proposes defining SMCs as enterprises that are not SMEs, employ fewer than 1000 persons, and have an annual turnover not exceeding EUR 200 000 000 or an annual balance sheet total not exceeding EUR 172 000 000. It also proposes a separate definition in Directive (EU) 2022/2557 for SMCs employing fewer than 750 persons with a turnover not exceeding EUR 150 000 000 or a balance sheet total not exceeding EUR 129 000 000. The opinion adds a review clause requiring the Commission to evaluate the amended directives every three years and every five years thereafter, focusing on administrative burden, competitiveness, SME growth and consumer protection.

Committee position. The Committee on the Internal Market and Consumer Protection proposes amendments to the Commission's proposal, including a definition of SMCs, a review clause, and safeguards to ensure support for SMCs does not undermine SME support.

Key points

  1. The opinion welcomes the Commission's proposal to extend selected SME measures to growing enterprises and calls for a calibrated adjustment of thresholds to provide continuity during scale-up.
  2. It warns that overly ambitious threshold increases could dilute the targeted nature of SME policy and weaken protections for smaller firms.
  3. It amends Recital 2 to state that Union legislation should achieve its objectives without imposing unnecessary costs and to commit to reducing administrative burdens by 25% and 35% for SMEs.
  4. It adds a new recital stating that support for SMEs should remain a key priority and that promoting growth for SMCs should not challenge support and resources allocated for SMEs.
  5. It adds that measures for SMCs must not confer disproportionate advantages over SMEs, particularly micro and small enterprises, and must uphold fair competition, non-discrimination, consumer protection and Internal Market integrity.
  6. It adds that mitigating and simplification measures for SMEs should be extended to SMCs and other enterprises where appropriate, in a proportionate and balanced manner without weakening key regulatory obligations.
  7. It amends Recital 5 to state that a number of existing acts should be adjusted to facilitate growth and scaling, reduce the regulatory cliff-edge and strengthen support for the internal market, with a focus on SMCs.
  8. It amends Recital 7 to define SMCs as enterprises that are not SMEs, employ fewer than 1000 persons, and have an annual turnover not exceeding EUR 200 000 000 or an annual balance sheet total not exceeding EUR 172 000 000.
  9. It adds a review clause requiring the Commission to evaluate the amended directives by three years from entry into force and every five years thereafter, reporting to Parliament and the Council, with a possible legislative proposal.
  10. It adds that the creation of a new category of enterprises must not come at the expense of support for SMEs and that exemptions should not create regulatory gaps or loopholes.
  11. It amends Recital 8 to extend the specific conditions for SME growth markets under Directive 2014/65/EU to include SMCs and other enterprises within the scope of the directive.
  12. It amends Recital 9 and Article 4(2)(h) of Directive (EU) 2022/2557 to extend the scope of facilitating measures for critical entities to SMCs and other enterprises within the scope of the directive.

Who is affected

  • Small mid-cap enterprises (SMCs): would benefit from extended SME mitigating measures and a new definition.
  • Small and medium-sized enterprises (SMEs): support should remain a key priority and not be undermined by support for SMCs.
  • Member states: would need to include facilitating measures for SMCs in their resilience strategies for critical entities.
  • The Commission: would need to carry out evaluations and report to Parliament and the Council every three years and every five years thereafter.

Figures and deadlines

  • 25% and 35% for SMEs: administrative burden reduction commitment in amended Recital 2.
  • EUR 200 000 000: annual turnover threshold for SMCs in the proposed definition.
  • EUR 172 000 000: annual balance sheet total threshold for SMCs in the proposed definition.
  • EUR 150 000 000: annual turnover threshold for SMCs in Directive (EU) 2022/2557 definition.
  • EUR 129 000 000: annual balance sheet total threshold for SMCs in Directive (EU) 2022/2557 definition.
  • three years from entry into force and every five years thereafter: evaluation and reporting deadline for the Commission.