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As highlighted in the March edition of the SME update, the European Commission (EC) has launched a new, free helpdesk to support SMEs with navigating the EU sanctions regime.
To maximise the impact of this initiative, the EC is hosting a dedicated webinar on 29 April from 11:00 to 12:30 CEST.
The session will explore the need for the helpdesk, outline support initiatives for SMEs, and showcase how partners and stakeholders can contribute to strengthening SMEs in their sanctions’ compliance. It will also offer strategies to help businesses navigate complex sanctions.
During a recent event organised by EFRAG on the voluntary SME sustainability reporting standard’s (VSME) future considering the sustainability omnibus, DG FISMA’s Sven Genther shed light on the EC’s approach to the VSME.
As a first step, EFRAG’s VSME will be adopted by the EC as a recommended guidance by June 2025, with only ‘minor’ changes. As a second step, the omnibus VSME will be developed after the legislative negotiations are complete – particularly in regard to the setting of the value chain gap and the employee threshold. Once agreed, the omnibus VSME would be subject to the usual due process for EU delegated acts – 3 months for the European Parliament (EP) and the Council to consider, reject or approve.
The discussion revealed significant concern, uncertainty and questioning in the room about the impact of the omnibus. A key issue raised was that the EFRAG VSME may be unsuitable for companies with more than 250 employees. Several participants proposed the addition of new modules to address this, though there were also warnings that making the VSME more suitable for larger companies could reduce its value as a value chain cap for SMEs.
With protectionism on the rise globally, Commission’s Executive Vice-President for Prosperity and Industrial Strategy, Stéphane Séjourné, underlined the need to strengthen the internal market during a recent session of the IMCO Committee in the EP. He announced that a new single market strategy will be unveiled in the next weeks (21 May), including an action plan to this end. In this regard, Séjourné stated his goal is to seek more free movement across the single market by removing existing barriers.
Séjourné also referenced the future omnibus on small mid-caps, which is likewise scheduled for release on 21 May. This omnibus will create a definition of small mid-caps, enabling them to benefit from legislative exemptions in certain cases. He explained that a key aim of this omnibus is to simplify administrative procedures.
Turning to the proposed Late Payment Regulation, Séjourné underlined the urgency of progressing the file, particularly given the record number of insolvencies. While late payments may not always be the main problem, they add to companies’ difficulties, Séjourné explained. There has been an exponential growth in late payments, especially for SMEs, over the past few years. He reaffirmed the EC would do its utmost to get this file moving and encouraged Member States to actively support this initiative. According to Séjourné, there is now a degree of momentum on the matter that should be capitalised on.
SMEunited has published its periodic SME Business Climate Index which measures the business environment of the EU’s SMEs. According to this latest edition, the index decreased to 70.6 in spring 2025, remaining just above the recession threshold of 70. This indicates that the activities of SMEs in Europe are stagnating. Moreover, the gap between Northern and Southern European countries is widening again due to volatile energy prices weighing particularly on northern countries. The turnout for employment is less favourable than for turnover, which may indicate that SMEs still have difficulties to recruit, or they have stopped labour hording because of lost hope for recovery, according to the paper.
Looking ahead to spring 2025, the outlook remains largely negative. Increasing uncertainty and current geopolitical tensions make SMEs expect a significant decline in the overall situation. Additionally, investments and turnover are all projected to decline. The price indicator is projected to nearly double, meaning that price pressure persists. Despite all these expected challenges, employment is expected to remain relatively stable.
