Changes from plenary report to adopted text

RemovedEXPLANATORY STATEMENT

RemovedThe Commission communication “An SME strategy for a sustainable and digital Europe” was published the day before the WHO acknowledged the Covid-19 emergency as a pandemic. The main purpose of the rapporteur is therefore to update the Communication’s original contents according to the economic and social changes brought forward by the pandemic, analysing through a pragmatic and inclusive approach the new challenges that are now affecting the 25 million European SMEs currently operating in the internal market. At the same time, the rapporteur intends to stress the essential role that SMEs still have to play, in the medium and long-term, as fundamental pillars for the post-pandemic economic recovery of the continent.

RemovedIt is well understood that the growth pace of European SMEs was already lower on average than that of non-EU competitors even before the outbreak of the pandemic, because of multifaceted and deep-rooted structural challenges such as limited access to credit, undercapitalisation and severe delays in payments. Excessive administrative burdens have also long affected the growth potential of SMEs’ across the Union; according to the 2019 Business Survey by Eurochambres, administrative procedures do represent a major challenge for no less than 78 % of SMEs. Hyper-regulation reaches particularly alarming levels in some Member States, hindering SMEs’ competitiveness not only within the national business environment but also within the broader European internal market.

RemovedAt the same time, SMEs’ competitiveness and even survival is increasingly threatened by multilateral forms of unfair competition practices, which arise from the globalised nature of European economy and primarily from the action of non-EU producers that keep relying on lower labour and environmental standards while exporting goods or services to the EU.

RemovedThe gradual but yet steady exclusion of micro-, small and medium-size enterprises from the national markets of each Member State, as well as from the European internal market, had therefore reached emergency levels long before the outbreak of the Covid-19 pandemic, being responsible for the erosion of the prime tissue of European economy.

RemovedTaking these critical points in proper consideration, the Union should develop a modern and viable strategy, which must be capable of overcoming the above-mentioned structural challenges while dealing rapidly and effectively also with the new additional obstacles brought forward by the pandemic.

RemovedSuch a strategy must pursue the primary objective of regaining competitiveness, both within the internal market and in trade relations with third countries. Urgent measures are especially needed to substantially reduce regulatory burdens (through the adoption of the “one-in, one-out” principle), to improve access to national and EU-level funding in the form of grants rather than loans, and to bridge the digital divide which still involves a worrying percentage of European micro-, small and medium-size enterprises.

RemovedInnovation and digitalisation should not privilege exclusively those enterprises whose primary field of work is directly related to innovation; rather, EU and national assistance and financial instruments should be readily accessible also to non-digital and non-innovative enterprises, including those operating in traditional handicrafts, in social services or in the creative industry, which are also in need of a digital upgrade to preserve their competitiveness.

RemovedStructural change aimed at making the Union’s legislative ecosystem friendlier towards micro-, small and medium-size enterprises can be achieved in the first place by setting the “Think small first” approach as a foundational principle in the drafting of future legislation, and by maintaining it as such throughout the legislative process (including through the impact-assessment stage).

RemovedMicro- and SME-friendly structural change means also protecting micro-, small and medium-sized enterprises from the unfair pressure of market giants, both within and without the Union. EU and national authorities need therefore to strengthen their efforts to protect micro-, small and medium-size enterprises from any abuse of dominant positions by larger groups. Member States should also take swift action to prevent the further destabilisation of the labour market which is already affecting European societies in terms of higher unemployment levels and lowering of labour rights’ standards.

RemovedIn terms of protection of micro-, small and medium-size enterprises’ competitiveness within the global markets, EU institutions must make a realistic use of trade defence instruments (TDIs) in order to shield European producers and consumers from the de-regulated models of non-EU competitors, and speed-up in this regard the implementation of an effective carbon border mechanism.

RemovedGiven the unprecedented difficulty of this specific stage in the history of the Union, the Green Deal must represent a sustainable opportunity for micro-, small and medium-size enterprises, both in terms of cost-effectiveness and implementation timetable, and it should take into account the existing asymmetries of the competitiveness gap that hinders European companies vis-a-vis third country competitors. In this regard, involvement of micro-, small and medium-size enterprises and their representatives in each stage of the legislative process will be essential, in order to ensure that the latter goes hand-in-hand with the economic and social needs as well as medium-to long-term competitiveness potential and capabilities of European enterprises.

RemovedWith reference to the instruments featured in the Recovery Package, the Internal Market distortions triggered by the uneven use of State aid flexibility across Member States need to be given proper consideration, while any restrictions that may be placed on the use of such resources must not undermine the positive impact they are expected to bring forth. Grants must be favoured over loans, so that financial aid does not turn in further debt for states and businesses.

RemovedWith reference to the next MFF, a careful assessment is necessary in order to prioritise the best performing programmes, bearing in mind that fundamental goals such as simplification, the reduction of bureaucratic obstacles and better communication can no longer be postponed if the Union intends to provide tangible support to European micro-, small and medium-size enterprises.

Removed24.9.2020