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A new study by the European Commission’s (EC) Joint Research Centre (JRC), partially based on JRC data, sheds light on the impact of coastal, flash, and river floods on SMEs’ loan default risk.
The analysis reveals that flood events significantly increase SME loan default probabilities in countries such as Spain and France. However, this effect is notably reduced in regions with strong infrastructure or effective support mechanisms.
The EC, the European Parliament (EP) and the Council have agreed on a joint roadmap with timelines for completing a set of legislative initiatives to further integrate the EU Single Market.
This is a strong signal from the institutions, as they are the ones to determine when EU legislation is finalised. Among the highlights, the institutions agreed on the following timelines for concluding the following legislative proposals:
All of these proposals, as well as the other ones listed in the roadmap, are explicitly designed to improve the Single Market, particularly for SMEs, while reducing administrative burdens.
The EC published its Better Regulation Communication, which contains several actions and commitments through which it will seek to improve impact assessment, enforcement, stakeholder consultation and other aspects of the EU legislative process. Accountancy Europe also contributed to this initiative by responding to the relevant Call for Evidence.
A central commitment is the new “simplicity by design” principle aimed at making future EU legislation easier to understand, implement and comply with. Measures include greater use of fully harmonised regulations (rather than directives) to limit fragmentation and gold-plating, alongside realistic implementation timelines, phased obligations and stronger consideration for SME needs under the “think small first” principle.
On existing rules, the EC is also launching a Regulatory Deep Cleaning Action Plan covering 12 priority sectors, including financial services, digital and energy. The initiative aims to remove overlaps, reduce reporting obligations and cut compliance costs, building on simplification efforts expected to deliver at least €15 billion in recurring savings.
Enforcement measures are set to become more robust as well. The EC will accelerate infringement procedures, limit deadline extensions for Member States, and increase financial penalties for non-compliance. A stronger focus on key Single Market barriers and the use of AI tools to monitor national implementation aim to ensure faster and more consistent application of EU law.
Finally, new measures to tackle gold-plating, improve consultations, and streamline impact assessments aim to create a more predictable and SME-friendly regulatory environment.
The EC released draft final versions of revised European Sustainability Reporting Standards (ESRS), alongside a voluntary reporting standard for smaller companies, for a one-month consultation period.
According to the EC, the revised ESRS reduce mandatory datapoints by more than 60% and total datapoints by over 70%. The standards are also intended to be shorter, clearer, and more flexible for companies, while simplifying the materiality assessment used to determine reporting obligations. Overall, the EC estimates that these changes could reduce reporting costs per company by more than 30%.
The package also includes a voluntary reporting standard for companies with fewer than 1000 employees, including SMEs. Although voluntary in nature, the standard carries legal bearing, as CSRD in‑scope companies cannot require value‑chain partners with 1000 employees or fewer to provide information beyond what is set out in this standard.
The EP’s JURI Committee held a first public hearing on the 28th regime proposal (see our March 2026 SME update). Commissioner McGrath, responsible for the file, took part in the discussion.
The hearing offered an opportunity to hear the first reactions from MEPs, who will need to form a position on the EC proposal and eventually reach an agreement with the Council on its final form. MEP Rene Repasi (S&D/Germany) and Axel Voss (EPP/Germany) are among the ones leading the EP’s work on this.
Commissioner McGrath presented the proposal as a comprehensive corporate legal framework to address fragmentation in the Single Market. He highlighted that companies face over 60 different legal forms across Member States, and stated that EU Inc. would provide a harmonised alternative to support competitiveness and growth. He also underlined that the proposal does not affect labour law, taxation or AML rules, and confirmed that employee participation follows national systems. He also noted that this measure forms the core element of a broader 28th regime, implying that further related proposals may follow.
MEP Repasi broadly welcomed the proposal as a positive starting point, describing EU Inc. as a potential “seal of quality” for investors and talent. However, he warned that stronger safeguards are needed to prevent risks linked to forum shopping, money laundering, and tax optimisation risks, while maintaining high EU standards.
MEP Voss expressed strong support, arguing that concerns over misuse should not delay necessary legislative process and emphasised the need to modernise EU company law.
MEP Pascale Piera (PfE/France) asked the Commissioner whether the ‘once only principle’ could not be expanded to other companies, not just EU Inc. ones. Commissioner McGrath suggested that this might be explored as part of future consolidated company law initiatives.
The European Union Intellectual Property Office (EUIPO) published its long anticipated ‘IP-backed finance in Europe’ report, examining how IP can be better used as a financial asset to support innovation, growth and competitiveness.
The report finds that while Europe generates world-class research and entrepreneurial talent, it continues to struggle to scale and commercialise innovative firms. A key constraint is the limited ability to finance IP-rich companies, which slows productivity growth and weakens global competitiveness. Moreover, the SME credit gap in the EU is estimated at up to €365 billion annually, of which €70-150 billion relates to IP-intensive firms. With the right financial infrastructure, IP-backed finance could mobilise €30-120 billion per year in new financing flows.
However, financial institutions often struggle to assess IP assets due to information asymmetries, valuation uncertainty, lack of comparable data, and dependence on firm-specific knowledge. As a result, IP is frequently excluded from lending decisions or treated conservatively. These challenges are compounded by underdeveloped secondary markets, fragmented legal frameworks, and limited recognition of intangible assets in accounting systems..
To address these barriers, EUIPO calls for a coordinated policy response built around five priorities: making IP visible, assigning credible value, enabling lending through risk-sharing instruments, building a robust data foundation, and reinforcing coordination across stakeholders.
On accounting, it proposes to introduce a voluntary comprehensive disclosure framework on financing, screening and valuation to provide a structured way for companies to share information about their IP, and intangible assets in a clear, consistent and usable format for financial actors. It should complement existing reporting standards, without creating new reporting obligations or interfering with accounting or sustainability standards.
EUIPO’s next ‘train the advisor’ webinar will take place on 20 May 2026 and will focus on IP’s monetisation.
Participants will learn how to make IP work for businesses, and uncover opportunities such as licensing, co-branding and franchising as a means to generate income.
The European Investment Bank (EIB) and European Investment Fund (EIF) have launched an upgraded online tool that helps innovative SMEs suitable financing.
The TechEU Investment Readiness Checker is a free tool that enables SMEs to identify banks and finance providers in their country that support innovative businesses. Originally designed for tech-focused SMEs looking for equity finance options, the tool has now been upgraded to include debt financing providers under the EC’s InvestEU programme.
Interested SME owners or representatives must answer a set of questions about the company and its financing needs, and the tool then shows banks or other finance providers that may be a good fit. In addition to equity, it also covers loans and leasing providers, including those supported by the EU’s InvestEU Innovation & Digitalisation guarantee.
Interested SMEs can create a profile on the website for free, answer a few questions that should take no more than 10–15 minutes, and then get matched with relevant finance providers.
