The EU Inc. proposal could transform company creation in Europe. Read our factsheet to understand the key details
We wrote to Commissioner McGrath with practical recommendations to strengthen the EU Inc. legal framework for growth, investment and cross-border activity.
On 1 July, Ireland took up the rotating Presidency of the Council of the European Union (Council) until 31 December 2026. Operating under the banner of ‘strength with unity,’ Dublin is kicking off a new ‘trio presidency’ alongside Lithuania (early 2027) and Greece (late 2027) to keep Brussels focused on long-term objectives.
To navigate a challenging global environment, the Irish Presidency will focus on three interlocking pillars: competitiveness, values, and security. But what is in store for SMEs?
The new Presidency will prioritise a timely agreement on the 2028-2034 Multiannual Financial Framework (MFF) and intends to place smaller economic players at the heart of the EU competitiveness agenda through three main avenues:
With SMEs accounting for 99.8% of all EU enterprises, what does the hard data say about their economic impact? The European Commission’s (EC) Annual Report on European SMEs 2025/2026 reveals a solid economic performance.
Following a robust 2025, where SMEs’ real value added grew by 2.5% and employment by 1.0%, 2026 forecasts point to a moderate expansion:
Micro-enterprises lead the expansion, with sectors like construction accounting for 38% of total real value added. The bottom line? Despite geopolitical headwinds, all Member States are projected to achieve positive SME growth by the end of this year.
What happens when millions of SME owners retire without a successor? The European economy risks losing jobs, local know-how, and strategic firms to foreign buyers. The EC has launched a new Recommendation on business transfers to tackle this challenge.
Updating its 1994 framework, the guidance protects business continuity via:
A new EC and European Investment Bank (EIB) Group agreement is pumping €22 billion in strategic financing under the InvestEU programme, aiming to mobilise €70 billion by the end of the MFF.
This new funding initiative:
This integration lays the groundwork for the forthcoming European Competitiveness Fund, making capital access both faster and less compliance-heavy.
René Repasi (S&D/Germany), the European Parliament’s (EP) rapporteur for the ‘EU Inc.’ 28th regime, has introduced new safeguards to the proposal. While the EC promised 48-hour, €100 online setups, Repasi’s draft report allows registration extensions to investigate fraud and excludes low-innovation sectors like construction, transport, and hospitality. Additionally, the report:
The Legal Affairs (JURI) Committee will hold an initial exchange on the file in mid-July.
Commissioner Dombrovskis presented the communication on ‘A simpler, clearer and better enforced EU rulebook’ to the EP JURI Committee. Curious about how the EC plans to clean up the EU rulebook? Check out the full communication.
The commissioner addressed the key operational shifts to be achieved:
When MEP Jörgen Warborn (EPP/Sweden) pushed for a ‘one-in, two-out’ simplification rule, Dombrovskis countered that the EC’s targeted simplification approach delivers more ambitious and flexible relief.
Remember our previous update on the provisional EU-US trade deal? Following the European Parliament’s (EP) recent plenary approval, the Council has formally adopted the two tariff regulations implementing the August 2025 joint statement.
The main regulation eliminates tariffs on US industrial goods, but the EP has secured robust safeguards to protect EU industry:
The regulations enter into force immediately following their upcoming publication in the Official Journal.
Are the EU institutions on track for a fully integrated Single Market by 2027? The June 2026 Progress Review for the Joint Declaration on the EU legislative priorities for 2026 and the ‘One Europe, One Market’ roadmap show momentum.
Since March, the EC has launched 5 key proposals, including the EU Inc. (28th Regime) for innovative companies. Meanwhile, the EP and Council obtained 10 negotiating mandates and clinched 12 agreements, including the Omnibus IV on small mid-caps.
Delivery is accelerating across priority areas, with:
EP and Council negotiators have reached a provisional agreement to create a new company category, the Small Mid-Cap enterprises (SMCs) and extend existing SME exemptions to them.
Currently, when a company outgrows its SME status, it faces a drastic spike in regulatory obligations. Why let growing EU businesses fall off this cliff-edge?
The provisional agreement bridges the gap before large-enterprise rules kick in, shielding scaling firms that have:
SMCs will inherit SME exemptions to slash red tape across several laws, including:
Both institutions must now formally adopt the text.
The Council has adopted its partial negotiating position on the new European Competitiveness Fund (ECF), a central pillar of the 2028-2034 EU multi-annual budget. Did you miss the ECF launch or just need to know the basics?
The Council’s position locks in a specific focus on SMEs through dedicated work programmes and tailored funding calls. To maximise impact, the ECF will:
This positions hands the Councils its mandate to kickstart negotiations with the EP to shape the final legislation.
How do smaller businesses navigate sustainability reporting for the first time? To provide real-world answers, EFRAG has released 9 testimonial videos featuring European SMEs that trialled the Voluntary Sustainability Reporting Standard (VSME). The clips highlight practical challenges and lessons learned across various sectors.
To build on this, EFRAG is inviting SMEs that used the VSME standard for 2024 or 2025 to submit their reports by 31 July 2026. These insights will shape the VSME Ecosystem 2026 initiative, with key findings to be published in Autumn 2026.
At the European Bank for Reconstruction and Development (EBRD) Annual Meeting in Riga, the EU and EBRD announced major financial expansions to some of its programmes.
Small and medium practices (SMPs) currently face intense competition for finance and accountancy talent. To address this, ACCA has launched a two-part toolkit as part of its UN MSME Day 2026 campaign.
Grounded in its Global Talent Trends 2026 survey of 11,389 respondents across 160 countries, the resources assist practice leaders in attracting, developing, and retaining staff in SMPs.
The UK Government has commissioned a new industry group, the Small Business Regulatory Taskforce, to slash the administrative burden on SMEs and micro-businesses.
Operating under a government target to reduce administrative burdens by 25%, the taskforce, which includes representation from ICAEW (an Accountancy Europe member), aims to root out regulatory complexity and administrative costs for SMEs. To achieve this, the government expects the group to prioritise:
The taskforce is scheduled to deliver its findings and recommendations to the government by Autumn 2026.
EUROCLUSTERS
RESIST II Product Innovation open call 2026
SMEs operating within the mobility, transport, and automotive ecosystems can receive up to €30,000 in funding and support to improve their products' overall environmental performance (apply before: 13 July)
European Commission
Advanced digital skills – Digital Europe Programme
EdTech start-ups and SMEs can access funding to transform innovative concepts into market-ready products. The initiative targets tools that use GenAI, robotics, or extended reality, helping to integrate these technologies into schools and universities (apply before: 1 October)
OECD
Rethinking Professional Services Regulation: New evidence from the OECD Product Market Regulation Indicators
UK Parliament
Commercial Payments Bill debated in the Lords
Cyberstand.eu
EU-funded survey seeks SMEs insights on Cyber Resilience Act standards to support real-world compliance
TRUST
EU-funded TRUST project launches survey to shape AI compliance tools for SMEs
