REPORT 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[...]

Text proposed by the Commission

Amendment

(2) The Commission's better regulation agenda4also supports the competitiveness of Union enterprises by aiming to ensure that Union laws deliver on their objectives at a minimum cost. In 2023, the Commission identified the need to rationalize and simplify reporting requirements for enterprises and administrations5and committed to reduce administrative burdens by 25%.

(2) The Commission's better regulation agenda4also supports the competitiveness of Union enterprises by aiming to ensure that Union laws deliver on their objectives at a minimum cost. In 2023, the Commission identified the need to rationalize and simplify reporting requirements for enterprises and administrations5and committed to reduce administrative burdens by 25%. This Directive should ensure that related Union legislation remains proportionate, reduces unnecessary burdens and stimulates growth and investment of companies in the Union and their ability to thrive in the global economy.

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4Better regulation: Joining forces to make better laws, COM(2021) 219 final, available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2021:219:FIN

4Better regulation: Joining forces to make better laws, COM(2021) 219 final, available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2021:219:FIN

5Long-term competitiveness of the EU: looking beyond 2030, COM(2023) 168 final, available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52023DC0168

5Long-term competitiveness of the EU: looking beyond 2030, COM(2023) 168 final, available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52023DC0168

Text proposed by the Commission

Amendment

(4) Enterprises outgrowing the SME definition - the 'small mid-cap enterprises' ('SMCs') - play a vital role in the Union's economy.8They are prominently present in industrial ecosystems that are key to the competitiveness of the Union and its technological sovereignty, in fields including electronics, aerospace and defence, energy, energy-intensive industries and health. Around 20% of all small mid-cap enterprises were SMEs three years earlier9.

(4) Enterprises outgrowing the SME definition - the 'small mid-cap enterprises' ('SMCs') - play a vital role in the Union's economy and are key drivers of Union competitiveness, innovation and job creation8.They are prominently present in industrial ecosystems that are key to the competitiveness of the Union and its technological sovereignty, in fields including electronics, aerospace and defence, energy, energy-intensive industries and health. Around 20% of all small mid-cap enterprises were SMEs three years earlier9.

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8Study to map, measure and portray the EU mid-cap landscape - https://op.europa.eu/en/publication-detail/-/publication/ad5fdad5-6a33-11ed-b14f-01aa75ed71a1/language-en/format-PDF/source-277396461

8Study to map, measure and portray the EU mid-cap landscape - https://op.europa.eu/en/publication-detail/-/publication/ad5fdad5-6a33-11ed-b14f-01aa75ed71a1/language-en/format-PDF/source-277396461

9https://www.esri.ie/system/files/publications/BKMNEXT429.pdf

9https://www.esri.ie/system/files/publications/BKMNEXT429.pdf

Text proposed by the Commission

Amendment

(5) Compared to SMEs, SMCs tend to demonstrate a higher pace of growth, and level of innovation and digitisation. Nevertheless, where administrative burden is concerned, they face similar challenges as SMEs, leading to a need for proportionality in legislation and for targeted support. To enable the smooth transition of SMEs into SMCs, it is important to address in a coherent manner the cliff-effect that may arise once they outgrow the segment of SMEs and are faced with rules that apply to large enterprises. To make business easier for SMCs and reduce their administrative burden, a number of existing acts which provide for specific mitigating rules for SMEs should be adapted to extend the scope of those provisions and include SMCs.

(5) Compared to SMEs, SMCs tend to demonstrate a higher pace of growth, and level of innovation and digitisation. Nevertheless, where administrative burden is concerned, they face similar challenges as SMEs, leading to a need for proportionality in legislation and for targeted support. To enable the smooth transition of SMEs into SMCs, it is important to address in a coherent manner the cliff-effect that may arise once they outgrow the segment of SMEs and are faced with rules that apply to large enterprises. To make business easier for SMCs and reduce their administrative burden, a number of existing acts which provide for specific mitigating rules for SMEs should be adapted to extend the scope of those provisions and include SMCs, provided that doing so does not affect or reduce the scope, funding, or application of Union measures dedicated to SMEs including specific provisions and budgetary allocations made available to them under Union law, including the Multiannual Financial Framework. Given that the majority of SMEs are micro-enterprises whose characteristics and resources differ substantially from those of SMCs, Union law should continue to apply the 'think small first' principle to ensure proportionality, as well as adequate protection of and targeted support for the smallest companies, while avoiding the creation of disincentives to growth beyond the SME category resulting from the expectation of a disproportionate compliance burden. The changes introduced by this Directive are limited to amendments to Directives 2014/65/EU and (EU) 2022/2557 and do not affect other Union legislation applicable to SMEs or to other categories of undertakings.

Text proposed by the Commission

Amendment

(5a) In order to ensure that the regulatory framework effectively contributes to the competitiveness and growth of SMEs and SMCs, as well as their access to finance, the proposals set out in this Directive should be accompanied by a set of complementary measures aimed at supporting SMEs and SMCs, not only through regulatory simplification but also through the reduction of administrative burden, the use of fiscal incentives, the strengthening of access to talent and skills, and the promotion and adoption of innovative technologies.

Text proposed by the Commission

Amendment

(5b) The current challenges faced by small European companies in trying to scale their businesses within the Union are significant. Those challenges present a direct threat to the efficacy and success of the internal market, which should be addressed as a priority if the Union is to truly be a place that supports enterprise, entrepreneurship and a competitive market economy.

Text proposed by the Commission

Amendment

(7) To ensure consistency and legal certainty, a definition of SMCs should be introduced in those acts. While the definition of SMCs should in principle correspond to the definition in Commission recommendation - insert full title and reference) and cover enterprises that are up to three times the size of SMEs, it should, where appropriate, build on the definitions of SMEs that are already provided in the acts that are being amended, which were considered fitting by the legislators.

(7) To ensure consistency and legal certainty, where appropriate, a definition of SMCs should be introduced in those acts.

Text proposed by the Commission

Amendment

(7a) In order to ensure a coherent and evidence-based approach to the future extension of certain measures favouring SMEs to SMCs, it is necessary to establish a complete overview of all existing derogations, simplifications, exemptions and other preferential treatments granted to SMEs across Union legislation. Such an inventory will serve as the factual basis for assessing, in subsequent legislative initiatives, whether and under which conditions those measures could be appropriately extended to SMCs.

Text proposed by the Commission

Amendment

(9) Directive (EU) 2022/2557 obliges the Member States to support critical entities that qualify as SMEs in strengthening their resilience. In doing so, Member States are to prevent excessive administrative burdens. To this purpose, Member States are to adopt strategies for enhancing the resilience of critical entities. Pursuant to Article 4 of that Directive, each strategy is to contain a description of measures that are already in place to facilitate the implementation of certain obligations by the SMEs that are identified as critical entities by the Member States. The scope of that provision should be extended to include SMCs, so that Member States should include a description of any facilitating measures for SMC in their strategies.

(9) Directive (EU) 2022/2557 obliges the Member States to support critical entities that qualify as SMEs in strengthening their resilience. In doing so, Member States are to prevent excessive administrative burdens. To this purpose, Member States are to adopt strategies for enhancing the resilience of critical entities. Pursuant to Article 4 of that Directive, each strategy is to contain a description of measures that are already in place to facilitate the implementation of certain obligations by the SMEs that are identified as critical entities by the Member States. The scope of that provision should be extended to include SMCs, so that Member States should include a description of any facilitating measures for SMC in their strategies. Pursuant to Articles 4 and 10 of Directive (EU) 2022/2557, such measures should support compliance for SMEs and SMCs without undermining the uniform application of minimum resilience requirements or the objectives of that Directive.

Text proposed by the Commission

Amendment

(9a) The Commission should, by five years from the date of entry into force of this Directive and every five years thereafter, carry out an evaluation and submit a report to the European Parliament and the Council on the implementation of the provisions of Directives 2014/65/EU and (EU) 2022/2557 as amended by this Directive, including the impact on the reduction of administrative burden and on competitiveness, on economic, social and environmental aspects, and on the development and growth of micro, small and medium-sized enterprises. The report should in particular focus on any need to review the thresholds defining SMCs in light of economic and market developments. Thresholds defining enterprise categories should be based on objective, verifiable, and up-to-date data, underpinned by a clear policy rationale. The report should be accompanied, if appropriate, by a legislative proposal.

Text proposed by the Commission

Amendment

(13a) 'small mid-cap enterprises', for the purposes of this Directive, means companies that had an average market capitalisation equal to or higher than EUR 200 000 000 and lower than EUR 1 000 000 000 on the basis of end-year quotes for the previous three calendar years;

(13a) 'small mid-cap enterprises', or 'SMCs'for the purposes of this Directive, means companies that had an average market capitalisation equal to or higher than EUR 200 000 000 and lower than EUR 1 000 000 000 on the basis of end-year quotes for the previous three calendar years;

Text proposed by the Commission

Amendment

Directive (EU) 2022/2557 is amended as follows:

Text proposed by the Commission

Amendment

(-1) in Article 2, the following points are added:

'(10a) 'micro, small and medium-sized enterprises' means enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, or an annual balance sheet total not exceeding EUR 43 million in accordance with Article 2 of the Annex to Commission Recommendation 2003/361/EC*;

(10b) 'small mid-cap enterprises' means enterprises that are not micro, small, and medium-sized enterprises, that employ fewer than 1000 persons, and that have an annual turnover not exceeding EUR 200 million or an annual balance sheet total not exceeding EUR 172 million.';

Text proposed by the Commission

Amendment

In Article 4(2) of Directive (EU) 2022/2557, point (h) is replaced by the following:

(1)in Article 4(2), point (h) is replaced by the following:

'(h) a description of measures already in place which aim to facilitate the implementation of obligations under Chapter III of this Directive by small and medium-sized enterpriseswithin the meaning of the Annex to Commission Recommendation 2003/361/EC*and by small mid-cap enterprises within the meaning of the Annex to Commission Recommendation XX**that the Member State in question has identified as critical entities.'.

'(h) a description of measures already in place which aim to facilitate the implementation of obligations under Chapter III of this Directive by small and medium-sized enterprises and by small mid-cap enterprises that the Member State in question has identified as critical entities.'.

Text proposed by the Commission

Amendment

Article 2a

By ... [five years from the date of entry into force of this amending Directive], and every five years thereafter, the Commission shall carry out an evaluation and submit a report to the European Parliament and the Council on the implementation of the provisions of Directives 2014/65/EU and (EU) 2022/2557 as amended by this Directive, including the impact on the reduction of administrative burden and on competitiveness, on economic, social and environmental aspects, and on the development and growth of micro, small and medium-sized enterprises. The report shall in particular focus on any need to review the thresholds defining SMCs in light of economic and market developments. The report shall be accompanied, if appropriate, by a legislative proposal.

1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register (2)

Business Europe

Eurochambres

ABI (Associazione Bancaria Italiana)

EBF (European Banking Federation)

GBIC (German Banking Industry Committee)

Confartigianato

Euronext

Text proposed by the Commission

Amendment

(2) The Commission's better regulation agenda4also supports the competitiveness of Union enterprises by aiming to ensure that Union laws deliver on theirobjectives at a minimum cost. In 2023, the Commission identified the need to rationalizeand simplify reporting requirements for enterprises and administrations5and committed to reduceadministrative burdens by 25%.

(2) The Commission's better regulation agenda4 also supports the competitiveness of Union enterprises by ensuring that Union legislation achieves itsobjectives without imposing unnecessary costs, while making a concrete and positive contribution to the market and consumers' lives, helping the Union address current and future challenges. In 2023, the Commission identified the need to rationaliseand simplify reporting requirements for bothenterprises and publicadministrations5and committed to reducingadministrative burdens by 25% and 35% for SMEs.

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4Better regulation: Joining forces to make better laws, COM(2021) 219 final, available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2021:219:FIN

4Better regulation: Joining forces to make better laws, COM(2021) 219 final, available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2021:219:FIN

5Long-term competitiveness of the EU: looking beyond 2030, COM(2023) 168 final, available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52023DC0168

5Long-term competitiveness of the EU: looking beyond 2030, COM(2023) 168 final, available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52023DC0168

Text proposed by the Commission

Amendment

(2a) SMEs are the backbone of the Union economy across. The support for SMEs should remain a key policy priority, especially in times of economic uncertainty, increased costs, and competitiveness challenges. The efforts to promote business growth and scaling, particularly for SMCs, should not constitute a challenge to the support and resources allocated for SMEs, including financial support, simplified legal arrangements, special recognition in legislation and public policy, and unnecessary administrative burden reduction.

Text proposed by the Commission

Amendment

(3) On 12 September 2023, the Commission published the SME Relief Package6, announcing its goal to help small and medium sized enterprises ('SMEs') compete and grow, by being attentive to the needs of enterprises that outgrow the thresholds of the SME definition7, and those in the broader range of small mid-cap enterprises. Action 18 of this relief package announced that the Commission would 'develop a harmonised definition for small mid-cap enterprises, build a dataset based on such definition and assess possible measures to support these enterprises in their growth (including potential application in adapted form of certain measures favouring SMEs)'.

(3) On 12 September 2023, the Commission published the SME Relief Package6, announcing its goal to help micro, small and medium sized enterprises ('SMEs') compete and grow, by being attentive to the needs of enterprises that outgrow the thresholds of the SME definition7, and those in the broader range of small mid-cap enterprises. Action 18 of this relief package announced that the Commission would 'develop a harmonised definition for small mid-cap enterprises, build a dataset based on such definition and assess possible measures to support these enterprises in their growth (including potential application in adapted form of certain measures favouring SMEs)'. Such measures must not confer disproportionate advantages to small mid-cap enterprises over SMEs, particularly micro, and small enterprises. The Commission, Member States and competent authorities should ensure that any support for small mid-caps is designed in a manner that upholds the principles of fair competition, non-discrimination, a high level of consumer protection as well as the integrity of the Internal Market.

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6SME Relief Package (europa.eu). See also annex 3A to this report SME relief package policy tracker.

6SME Relief Package (europa.eu). See also annex 3A to this report SME relief package policy tracker.

7SMEs are defined as companies with under 250 employees, combined with an annual turnover up to 50 million euro or a balance sheet total up to 43 million - Recommendation 2003/361/EC - https://single-market-economy.ec.europa.eu/smes/sme-definition_en

7SMEs are defined as companies with under 250 employees, combined with an annual turnover up to 50 million euro or a balance sheet total up to 43 million - Recommendation 2003/361/EC - https://single-market-economy.ec.europa.eu/smes/sme-definition_en

Text proposed by the Commission

Amendment

(3a) Mitigating and simplification measures proposed for micro, small and medium-sized enterprises under the Directives covered by this Directive should be extended, where appropriate, to small mid-cap enterprises and other enterprises that should be included within the scope of this amending act, provided that any such extensions are applied in a proportionate and balanced manner and do not weaken key regulatory obligations.

Text proposed by the Commission

Amendment

(4) Enterprises outgrowingthe SME definition - the 'small mid-cap enterprises' ('SMCs') - play a vital role in the Union's economy.8They are prominently present in industrial ecosystems that are key to the competitiveness of the Union and its technological sovereignty, in fields including electronics, aerospace and defence, energy, energy-intensive industries and health. Around 20% of all small mid-cap enterprises were SMEs three years earlier9.

(4) 99% of all Union companies are small and medium-sizedenterprises (SMEs), the vast majority of which are micro and small enterprises. Those that outgrowthe SME definition - the 'small mid-cap enterprises' ('SMCs') - alsoplay a vital role in the Union's economy. 8They are prominently present in industrial ecosystems that are key to the competitiveness of the Union and its technological sovereignty, in fields including electronics, aerospace and defence, energy, energy-intensive industries and health. Around 20% of all small mid-cap enterprises were SMEs three years earlier9. Both categories of businesses, while important and needing similar support in some aspects, have different needs and requirements linked to their size and growth. This support should therefore be tailored accordingly, with particular attention to the specific and continuous challenges faced by SMEs.

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8Study to map, measure and portray the EU mid-cap landscape - https://op.europa.eu/en/publication-detail/-/publication/ad5fdad5-6a33-11ed-b14f-01aa75ed71a1/language-en/format-PDF/source-277396461

8Study to map, measure and portray the EU mid-cap landscape - https://op.europa.eu/en/publication-detail/-/publication/ad5fdad5-6a33-11ed-b14f-01aa75ed71a1/language-en/format-PDF/source-277396461

9https://www.esri.ie/system/files/publications/BKMNEXT429.pdf

9https://www.esri.ie/system/files/publications/BKMNEXT429.pdf

Text proposed by the Commission

Amendment

(5) Compared to SMEs, SMCs tend to demonstrate a higher pace of growth, and level of innovation and digitisation. Nevertheless, where administrative burden is concerned, they face similar challenges as SMEs, leading to a need for proportionality in legislation and for targeted support. To enable the smooth transition of SMEs into SMCs, it is important to address in a coherent manner the cliff-effect that may arise once they outgrow the segment of SMEs and are faced with rules that apply to large enterprises. To make business easier for SMCs and reduce their administrative burden, a number of existing acts which provide for specific mitigating rules for SMEs should be adapted to extend the scope of those provisions and include SMCs.

(5) Compared to SMEs, SMCs tend to demonstrate a higher pace of growth, and level of innovation and digitisation. Nevertheless, where administrative burden is concerned, they face similar challenges as SMEs, leading to a need for proportionality in legislation and for targeted support. To enable the smooth transition of SMEs into SMCs, it is important to address in a coherent manner the cliff-effect that may arise once they outgrow the segment of SMEs and are faced with rules that apply to large enterprises. In order to facilitate the growth and scaling of businesses, reduce the impact of the regulatory cliff-edge when transitioning from an SME to an SMC and strengthen the support for the internal market in general and for European businesses, with a particular focus on SMCs, a number of existing acts should be adjusted. In particular, to make business easier for SMCs and other enterprises that should be included within the scope of this amending actand reduce their administrative burden, a number of existing acts which provide for specific mitigating rules for SMEs should be adapted to extend the scope of those provisions and include SMCs and those other enterprises, while still supporting SMEs and maintaining the existing approach, as well as ensuring that the Union's overarching goals are preserved.

Text proposed by the Commission

Amendment

(5a) The current challenges faced by small Union companies in trying to scale their businesses within the Union are significant. These challenges present a direct threat to the efficacy and success of the Single Market, which should be addressed as a priority if Union is to truly be a place that supports enterprise, entrepreneurship, and a competitive market economy.

Text proposed by the Commission

Amendment

(7) To ensure consistency and legal certainty, a definition of SMCs should be introduced in those acts. Whilethe definition of SMCs should in principle correspond to the definition in Commission recommendation - insert full title and reference)and cover enterprises that are up to three times the size of SMEs, it should, whereappropriate, build on the definitions of SMEsthat are already provided in the actsthat are being amended, which were considered fitting by the legislators.

(7) To ensure consistency and legal certainty, a definition of SMCs should be introduced in those acts. The definition of SMCs should in principle correspond to the definition in Commission Recommendation 2025/1099 of 21 May 2025and cover enterprises that are up to three times the size of SMEs. While this definition may be useful in the context of some policy areas, for the purpose of this simplification exercise it isappropriate to extend certain mitigating measures also to enterprisesthat are not SMEs, SMCs and that employ fewer than 1000 persons, and that either have an annual turnover not exceeding EUR 200 000 000 or an annual balance sheet total not exceeding EUR 172 000 000. That scope covers enterprisesthat are up to four times the size of SMEs, without extending to large mid-caps or large enterprises, thereby ensuring achievement of the objectives referred to in recital 5 in a proportionate way.

Text proposed by the Commission

Amendment

(7a) The economic health of businesses in the Union, as well as compliance with Union's rules, depends on the predictability of obligations and the provision of adequate support for their implementation.

Text proposed by the Commission

Amendment

(7b) The Commission should, by three years from the entry into force of this Directive and every five years thereafter, carry out an evaluation and present a report to the European Parliament and the Council on the implementation of the provisions of directives as amended by this Directive, including the impact on administrative burden-reduction and competitiveness, on the development and growth of micro, small and medium-sized enterprises, and on consumer protection within the Union. The report should particularly focus on the possible need to review the thresholds defining SMCs, in light of economic and market developments. The report should be accompanied, if appropriate, by a legislative proposal.

Text proposed by the Commission

Amendment

(7c) The creation of a new category of enterprises must not come at the expense of support for SMEs, which constitute the backbone of the Union economy and provide the majority of jobs across the Union. Exemptions or derogations proposed under this Directive and future legislation for SMEs, SMCs and other enterprises that should be included within the scope of this Directive, for example in digital and sustainability legislation, should not create regulatory gaps or potential loopholes and should therefore be carefully assessed and accompanied by targeted guidance and support to ensure consistency, legal certainty, and the continued achievement of Union objectives.

Text proposed by the Commission

Amendment

(7d) Thresholds defining enterprise categories should be based on objective, verifiable, and up-to-date data, underpinned by a clear policy rationale, and subject to regular review.

Text proposed by the Commission

Amendment

(7e) Even if the changes provided for in this Directive are tailored to the specific legal acts in question, it is important that when drafting future legislative proposals, the Commission considers ensuring coherence and harmonisation in the Internal Market by using the same definitions and proportionality principles for small mid-cap enterprises as established in this Directive, unless specific circumstances justify divergence.

Text proposed by the Commission

Amendment

(8) Directive 2014/65/EU identifies a subcategory of multilateral trading facilities ('MTF') known as SME growth markets. Article 33 (3), point (a), of that Directive lays down specific conditions to ensure that those trading venues effectively benefit SMEs by facilitating their access to capital and the further development of specialist markets that cater for SMEs' needs. That provision should be extended to include SMCs, to also allow those companies to access capital markets through those SME growth markets.

(8) Directive 2014/65/EU identifies a subcategory of multilateral trading facilities ('MTF') known as SME growth markets. Article 33 (3), point (a), of that Directive lays down specific conditions to ensure that those trading venues effectively benefit SMEs by facilitating their access to capital and the further development of specialist markets that cater for SMEs' needs. That provision should be extended to include SMCs and other enterprises that should be included within the scope of this Directive, to also allow those companies to access capital markets through those SME growth markets.

Text proposed by the Commission

Amendment

(9) Directive (EU) 2022/2557 obliges the Member States to support critical entities that qualify as SMEs in strengthening their resilience. In doing so, Member States are to prevent excessive administrative burdens. To this purpose, Member States are to adopt strategies for enhancing the resilience of critical entities. Pursuant to Article 4 of that Directive, each strategy is to contain a description of measures that are already in place to facilitate the implementation of certain obligations by the SMEs that are identified as critical entities by the Member States. The scope of that provision should be extended to include SMCs, so that Member States should include a description of any facilitating measures for SMC in their strategies.

(9) Directive (EU) 2022/2557 obliges the Member States to support critical entities that qualify as SMEs in strengthening their resilience. In doing so, Member States are to prevent excessive administrative burdens. To this purpose, Member States are to adopt strategies for enhancing the resilience of critical entities. Pursuant to Article 4 of that Directive, each strategy is to contain a description of measures that are already in place to facilitate the implementation of certain obligations by the SMEs that are identified as critical entities by the Member States. The scope of that provision should be extended to include SMCs and other enterprises that should be included within the scope of this Directive, so that Member States should include a description of any facilitating measures for SMC in their strategies.

Text proposed by the Commission

Amendment

In Article 4(2) ofDirective (EU) 2022/2557, point (h) is replaced by the following:

Directive (EU) 2022/2557, is amended as follows:

Text proposed by the Commission

Amendment

(1) in Article 2, the following points are added:

(10a) 'small and medium-sized enterprises' means enterprises as defined in Article 2 of the Annex to Commission Recommendation 2003/361/EC*;

(10b) 'small mid-cap enterprises' means enterprises which are not micro, small and medium-sized enterprises, that employ fewer than 750 persons, and either have an annual turnover not exceeding EUR 150 000 000 or an annual balance sheet total not exceeding EUR 129 000 000, those numbers and amounts being calculated in accordance with points (1) and (3)-(6) of the Annex to Commission Recommendation 2025/1099 on the definition of small mid-cap enterprises**.

Text proposed by the Commission

Amendment

(2) in Article 4(2), point (h) is replaced by the following:

Text proposed by the Commission

Amendment

(h) a description of measures already in place which aim to facilitate the implementation of obligations under Chapter III of this Directive by small and medium-sized enterprises within the meaning of the Annex to Commission Recommendation 2003/361/EC*and by small mid-cap enterprises within the meaning of the Annex to Commission Recommendation XX** that the Member State in question has identified as critical entities.'.

(h) a description of measures already in place which aim to facilitate the implementation of obligations under Chapter III of this Directive by small and medium-sized enterprises within the meaning of the Annex to Commission Recommendation 2003/361/EC* , by small mid-cap enterprises within the meaning of the Annex to Commission Recommendation XX**, and enterprises employing fewer than 1000 persons, and either have an annual turnover not exceeding EUR 200 000 000 or an annual balance sheet total not exceeding EUR 172 000 000that the Member State in question has identified as critical entities.'.

Text proposed by the Commission

Amendment

Article 3a

By ... [three years from the entry into force of this Directive] and every five years thereafter, the Commission shall carry out an evaluation and present a report to the European Parliament and the Council on the implementation of the provisions of Directives as amended by this Directive, including the impact on administrative burden-reduction and competitiveness, on the development and growth of micro, small and medium-sized enterprises, and on consumer protection within the Union. The report shall particularly focus on the possible need to review the thresholds defining SMCs, in light of economic and market developments. The report shall be accompanied, if appropriate, by a legislative proposal.

1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register

Chambers Ireland

Cork Chamber of Commerce

SME United

2. Representatives of public authorities of third countries, including their diplomatic missions and embassies

Title

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

References

COM(2025)0502 - C10-0093/2025 - 2025/0131(COD)

Committee(s) responsible

Date announced in plenary

ECON

7.7.2025

LIBE

7.7.2025

Opinion by

Date announced in plenary

IMCO

7.7.2025

Rapporteur for the opinion

Date appointed

Cynthia Ní Mhurchú

25.9.2025

Rule 59 - Joint committee procedure

Date announced in plenary

7.7.2025

Discussed in committee

25.9.2025

11.11.2025

Date adopted

27.1.2026

Result of final vote

+:

-:

0:

36

9

4

36

+

ECR

Stefano Cavedagna, Piotr Müller, Denis Nesci, Gheorghe Piperea, Reinis Pozņaks, Ivaylo Valchev

PPE

Peter Agius, Pablo Arias Echeverría, Henrik Dahl, Regina Doherty, Christian Doleschal, Kamila Gasiuk-Pihowicz, Arba Kokalari, Andreas Schwab, Tomislav Sokol, Dimitris Tsiodras, Inese Vaidere, Adina Vălean, Axel Voss, Tomáš Zdechovský

Renew

Jeannette Baljeu, Sandro Gozi, Svenja Hahn, Anna-Maja Henriksson, Nikola Minchev

S&D

Alex Agius Saliba, Biljana Borzan, Delara Burkhardt, Adnan Dibrani, Maria Grapini, Elisabeth Grossmann, Maria Guzenina, Pierre Jouvet, Pierfrancesco Maran, Idoia Mendia, Christel Schaldemose

9

-

ESN

Alexander Jungbluth, Milan Mazurek

NI

Kateřina Konečná

The Left

Leila Chaibi, Gaetano Pedulla'

Verts/ALE

Anna Cavazzini, Katrin Langensiepen, Reinier Van Lanschot, Kim Van Sparrentak

4

0

PfE

Jaroslav Bžoch, Elisabeth Dieringer, Jorge Martín Frías, Pál Szekeres

Title

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

References

COM(2025)0502 - C10-0093/2025 - 2025/0131(COD)

Date submitted to Parliament

21.5.2025

Committee(s) responsible

Date announced in plenary

ECON

7.7.2025

LIBE

7.7.2025

Committees asked for opinions

Date announced in plenary

ITRE

7.7.2025

IMCO

7.7.2025

Not delivering opinions

Date of decision

ITRE

25.6.2025

Rapporteurs

Date appointed

Mariateresa Vivaldini

24.6.2025

Kristian Vigenin

24.6.2025

Rule 59 - Joint committee procedure

Date announced in plenary

7.7.2025

Discussed in committee

2.12.2025

Date adopted

25.2.2026

Result of final vote

+:

-:

0:

98

6

5

Date tabled

27.2.2026

98

+

ECR

Stephen Nikola Bartulica, Nicolas Bay, Alessandro Ciriani, Paolo Inselvini, Assita Kanko, Denis Nesci, Michele Picaro, Sebastian Tynkkynen, Johan Van Overtveldt, Charlie Weimers, Jadwiga Wiśniewska

NI

Fernand Kartheiser

PPE

Georgios Aftias, Isabel Benjumea Benjumea, Stefan Berger, Krzysztof Brejza, Caterina Chinnici, Henrik Dahl, Regina Doherty, Lena Düpont, Marco Falcone, Markus Ferber, Christophe Gomart, Dirk Gotink, Branko Grims, Michalis Hadjipantela, Arba Kokalari, Jeroen Lenaers, Lukas Mandl, Verena Mertens, Nadine Morano, Luděk Niedermayer, Ana Miguel Pedro, Lídia Pereira, Sirpa Pietikäinen, Ralf Seekatz, Sander Smit, Alice Teodorescu Måwe, Tomas Tobé, Michał Wawrykiewicz, Isabel Wiseler-Lima, Javier Zarzalejos, Tomáš Zdechovský

PfE

Paolo Borchia, Mireia Borrás Pabón, Jorge Buxadé Villalba, Csaba Dömötör, Marieke Ehlers, Jaroslav Knot, Tomáš Kubín, Fabrice Leggeri, Jaroslava Pokorná Jermanová, Petra Steger, Tom Vandendriessche

Renew

Abir Al-Sahlani, Malik Azmani, Gilles Boyer, Raquel García Hermida-Van Der Walle, Irena Joveva, Billy Kelleher, Fabienne Keller, Moritz Körner, Ľudovít Ódor, Jan-Christoph Oetjen, Anouk Van Brug, Ana Vasconcelos, Sophie Wilmès

S&D

Thomas Bajada, Jonás Fernández, André Franqueira Rodrigues, Eero Heinäluoma, Evin Incir, Marina Kaljurand, Aurore Lalucq, Murielle Laurent, Juan Fernando López Aguilar, César Luena, Ana Catarina Mendes, Matjaž Nemec, Nikos Papandreou, Tsvetelina Penkova, Evelyn Regner, René Repasi, Chloé Ridel, Birgit Sippel, Krzysztof Śmiszek, Cecilia Strada, Marco Tarquinio, Kristian Vigenin, Lara Wolters

Verts/ALE

Damian Boeselager, Saskia Bricmont, Mélissa Camara, Daniel Freund, Alice Kuhnke, Erik Marquardt, Kira Marie Peter-Hansen, Marie Toussaint

6

-

NI

Fabio De Masi

The Left

Gaetano Pedulla', Ilaria Salis, Jussi Saramo, Isabel Serra Sánchez, Pasquale Tridico

5

0

ESN

Siegbert Frank Droese, Mary Khan, Volker Schnurrbusch, Milan Uhrík, Petar Volgin