Changes from report parliamentary committee draft to plenary report

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

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on access to finance for SMEs and scale-ups

(2025/2072(INI))

The European Parliament,

– having regard to the Commission communication of 29 January 2025 entitled ‘A Competitiveness Compass for the EU’ (COM(2025)0030),

Added– having regard to the Commission communication of 28 May 2025 entitled ‘The EU Startup and Scaleup Strategy – Choose Europe to start and scale’ (COM(2025)0270),

Added– having regard to the Commission communication of 21 May 2025 entitled ‘The Single Market: our European home market in an uncertain world – A Strategy for making the Single Market simple, seamless and strong’ (COM(2025)0500),

– having regard to the Budapest Declaration adopted on 8 November 2024 at the informal meeting of heads of state or government,

Changed– having regard to the publication of 18 July 2024 by Commission President von der Leyen entitled ‘Europe’s choice: political guidelines for the next European Commission 2024-2029’,

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– having regard to the European Central Bank report entitled ‘Survey on the Access to Finance of Enterprises in the euro area – First Quarter of 2025’, published in April 2025,

– having regard to the Commission communication of 19 March 2025 entitled ‘Savings and Investments Union – A Strategy to Foster Citizens’ Wealth and Economic Competitiveness in the EU’ (COM(2025)0124),

– having regard to the Commission report entitled ‘Survey on the access to finance of enterprises (SAFE) – Analytical report 2024’, published in January 2025,

– having regard to the report by Mario Draghi entitled ‘The future of European competitiveness’ (Draghi report), published in September 2024,

Changed– having regard to the Commission report of 425 July 2024 entitled ‘Annual Report on European SMEs 2023/2024’,

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– having regard to the report by Enrico Letta entitled ‘Much more than a market’ (Letta report), published in April 2024,

– having regard to the conclusions of the Special European Council meeting of 17 and 18 April 2024,

– having regard to its resolution of 14 December 2023 on increasing innovation, industrial and technological competitiveness through a favourable environment for start-ups and scale-ups,

– having regard to the Commission communication of 12 September 2023 entitled ‘SME Relief Package’ (COM(2023)0535),

– having regard to Rule 55 of its Rules of Procedure,

Changed– having regard to the report of the Committee on Economic and Monetary Affairs (A10-0000/2025),(A10-0185/2025),

A. whereas micro, small and medium-sized enterprises (MSMEs) represent the backbone of European business, with SMEs accounting for 99.8 % of all enterprises, 65.2 % of employment and 53.1 % of the value added in the non-financial business sector in the EU in 2023;

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RemovedB. whereas European SMEs vary in scope, location, ownership, and innovation capacity, and hence face diverse challenges and financing needs;

AddedB. whereas the EU as a whole – and especially its largest economies – is currently experiencing slow economic growth and problems as companies are losing competitiveness to third countries, aggravated by the consequences of the pandemic, the energy crisis and Russia’s aggression against Ukraine, which have particularly affected SMEs and the economies of countries along the EU’s eastern border;

RemovedC. whereas the Draghi report indicates that regulatory obstacles and administrative burdens are among the greatest challenges faced by SMEs and recommends that SMEs be exempted from regulations on proportionality grounds;

AddedC. whereas European SMEs vary in scope, industry, financial needs, location, ownership, business model, and innovation capacity, and hence face diverse challenges and financing needs, with limited capacity to face them; whereas most European SMEs operate mainly at national level; whereas relatively few SMEs are involved in cross-border operations within the EU, while those that export outside the Union constitute a minority;

RemovedD. whereas the Commission aims to improve access to finance for SMEs in order to increase scale, reduce inefficiencies and promote interoperability, and has set a target of at least a 35 % reduction in the reporting burdens for SMEs, and announced a new SME competitiveness check in impact assessments;

AddedD. whereas the Draghi report indicates that regulatory obstacles and administrative burdens are among the greatest challenges faced by SMEs, with reporting regulations, mostly under the European Green Deal, being seen by more than 60 % of EU companies as an obstacle to investment, and 55 % of SMEs flagging regulatory obstacles and administrative burden as their greatest challenge, while the proportion is even greater for start-ups and micro-enterprises, and recommends that SMEs be exempted from regulations on proportionality grounds, with a more simple, predictable and competitive regulatory framework and a review of the European Green Deal being key for their prosperity;

RemovedE. whereas Europe lacks a more dynamic and favourable environment for innovative companies to scale-up, which leads to close to 30 % of ‘unicorns’ relocating abroad;

AddedE. whereas the Commission aims to improve access to finance for SMEs in order to increase scale, reduce inefficiencies and promote interoperability, and has set a target of at least a 35 % reduction in the reporting burdens for SMEs, and announced a new SME competitiveness check in impact assessments; whereas these initiatives must be accompanied by a well-developed venture capital ecosystem, keeping in mind that institutional investors such as insurance companies make an important contribution to SME financing through the passing and transformation of risks, and also keeping in mind the fact that, unlike in the United States, most of the financing in the European Union comes from banks, and there are noticeable disparities between the European investment culture and other regions of the world, notably for venture capital and angel investment; whereas this situation makes SMEs particularly vulnerable to a tightening of bank lending;

AddedF. whereas Europe lacks a more dynamic and favourable environment for innovative companies to scale-up and for further investment and advancements in digital infrastructure, which leads to close to 30 % of ‘unicorns’ relocating abroad;

AddedG. whereas the Commission has published a strategy for start-ups and scale-ups, and there are various initiatives in place aimed at promoting entrepreneurship, innovation and digital transformation in the EU, such as the start-up and scale-up strategy, the eco-innovation scoreboard, Knowledge and Innovation Communities, the European Cluster Collaboration Platform, the Digital Decade and the digital single market strategy, as well as funding programmes dedicated to innovation in other policy areas;

General considerations

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Changed1. Considers that creating favourable market conditions for European companies to innovate, start up, create, grow and scale up in Europe is essential to unlock our market’s full potential and help our economies become more competitive; acknowledges that regulatory fragmentation is one of the obstacles preventing scale-ups from reaching the full potential of the single market; recognises that SMEs face unequal financing conditions and requirements across Member States and regions, due to factors specific to each business, geographical location – such as being located in remote, outermost, and island areas – and the economic environment, and they therefore need solutions tailored to such particularities, as well as to the needs of the smaller economies;

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Removed2. Welcomes the fact that, following the Draghi and Letta reports, the need for a more competitive and less bureaucratic single market has been recognised;

Added2. Welcomes the fact that, following the Draghi and Letta reports, the need for a more competitive, less fragmented and less bureaucratic single market has been recognised; calls on the Commission to take into consideration the recommendations in these reports, which state that immediate and decisive action at both regulatory and political level is required; regrets, in this regard, the excessive burdens SMEs have experienced as a consequence of the implementation of various obligations under the European Green Deal; is convinced that dedicated definitions of start-ups and scale-ups would increase the opportunities for support through measures that are tailored to their specific needs;

Removed3. Stresses that the EU should strive to make the business environment easier for European entrepreneurs and to create a scale-up ecosystem that relies primarily on private investments;

Added3. Acknowledges that bank lending remains the primary external financing source for SMEs in the Union; underlines the vital role of traditional banking models, including small regional banks, savings banks, cooperative banks and public institutions;

Removed4. Draws attention to the particular challenges faced by European scale-ups in obtaining late-stage growth financing; notes that many high-potential EU firms remain dependent on foreign venture capital and investors, with a large share of later funding rounds led by non-European investors;

Added4. Stresses that the EU should strive to make the business environment easier and more attractive for the mobilisation of both European and international capital and investment; stresses the need to foster a scale-up ecosystem that relies primarily on private investments and public-private partnerships, which would help to mobilise capital and facilitate access to finance for businesses; underlines the important and well-developed role of banks with specific regional and local knowledge in providing funding to SMEs, which stems from long-term relationships with these companies;

Removed5. Considers that facilitating access to finance for SMEs and scale-ups will depend on (i) the significant reduction in bureaucratic and regulatory burdens, (ii) the enhanced capacity to unlock private investment and savings, (iii) bridging the funding gap for scale-ups, and (iv) reinforcing a competitive capital markets ecosystem within the EU;

Added5. Draws attention to the particular challenges faced by European scale-ups in obtaining late-stage growth financing; notes that many high-potential EU firms remain dependent on foreign venture capital and investors, with a large share of later funding rounds led by non-European investors; highlights the need to create more attractive conditions for investment within the Union; stresses that access to finance should be guided by criteria of economic efficiency, profitability and scalability, regardless of the origin of the capital, and recalls that open and global competition to attract investment benefits businesses and innovation; highlights, in this regard, the recent adoption of the EU Listing Act that makes it simpler for companies of all sizes, including SMEs, to be listed on European stock exchanges;

Added6. Takes note of the publication by the Commission of the European start-up and scale-up strategy, which should promote innovation and address the challenges faced by individual innovators, founders, start-ups and scale-ups in the EU; stresses that, although the diagnosis contained in the strategy is to some extent accurate, the proposed measures must be more ambitious, with emphasis being placed on repealing all EU regulations that impose unnecessary bureaucratic burdens that hinder the creation and expansion of businesses; asks the Commission to include agriculture among the priority sectors identified in the strategy;

Added7. Considers that facilitating access to finance for SMEs and scale-ups will depend on (i) a significant and continued reduction in bureaucratic and regulatory burdens, including lengthy permitting procedures, costly reporting requirements, and the complexity and unpredictability of the regulatory environment, (ii) an enhanced capacity to unlock private investment and savings, (iii) bridging the funding gap for scale-ups, and (iv) reinforcing a competitive capital markets ecosystem within the EU; stresses that, for these purposes, the final goal of the Commission must be the completion of a savings and investments union that respects the competences of the Member States and the principle of subsidiarity;

Reducing bureaucratic and regulatory burdens

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Changed6.8. Recalls that many promising European start-ups and scale-ups are relocating to non-EU countries because of a burdensome, slowslow, fragmented and unpredictable European regulatory landscape; underlines that, unless this trend is reversed through substantial simplification, Europe will continue to lose companies at their most strategic growth stage;stage, leading to less job creation and slower economic growth; deplores the fact that tax and regulatory thresholds discourage business growth by imposing more burdensome treatment once certain levels of size or turnover are exceeded;

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Removed7. Calls for further simplification efforts that go beyond the Commission’s omnibus simplification package published on 26 February 2025;

Added9. Calls for further simplification efforts and encourages the Commission to put forward subsequent proposals that go beyond the its omnibus simplification packages and that establish start-up-friendly regulations and frameworks that facilitate the growth, scalability and cross-border operations of start-ups and scale-ups, while ensuring consumer protection, data privacy and fair competition; recalls the Commission’s commitment to reducing bureaucracy through a horizontal approach, across all areas, and calls for the systematic screening of the EU acquis in order to identify and eliminate regulatory obstacles to SMEs;

Removed8. Urges the Commission to assess existing regulatory obligations that are burdening companies, such as the sustainable finance framework, and to develop proportionality thresholds to exempt SMEs from excessive obligations; welcomes the proposed new SME competitiveness check;

Added10. Emphasises, following the adoption by the Commission of the Second Omnibus Package, the need for streamlined processes in the implementation of the InvestEU programme to ensure that SMEs – including the smallest ones – can more easily access the financial support they need to grow and innovate; emphasises the importance of ensuring that regulatory frameworks and EU-funded instruments are proportionate to the size and administrative capacity of SMEs, and are appropriately adapted to SMEs, rather than being replicated from requirements for larger companies;

Removed9. Stresses that the ‘one-in, one-out’ approach is not enough, and calls on the Commission to propose an ambitious simplification strategy;

Added11. Notes that imposing multiple regulatory requirements on banks can negatively impact SME lending; stresses the importance of avoiding duplicate reporting requirements and multiple reporting channels, which impose unnecessary administrative burdens, particularly on smaller banks; calls on the Commission, with assistance from the European Banking Authority and the Single Supervisory Mechanism, to assess the effects of current regulatory rules on SME lending; underscores the necessity of applying the proportionality principle in banking regulation;

Added12. Urges the Commission to assess existing regulatory obligations that are burdening companies, such as the sustainable finance framework, which is a poor fit for European SMEs, and other obligations stemming from the European Green Deal, and to develop proportionality thresholds to exempt SMEs from excessive obligations; welcomes the proposed new SME competitiveness check; calls on the Commission to ensure that any sustainability reporting standards are simple and voluntary, and to review Pillar 3 banking disclosure requirements that may indirectly impose disproportionate data demands on SME clients;

Added13. Stresses that the ‘one-in, one-out’ approach, which in practice is not sufficiently implemented, is not enough, and calls on the Commission to propose a more ambitious simplification strategy that provides for legal certainty and predictability and that also reviews level 2 and 3 legislation; highlights that the Commission’s 35 % reporting obligations reduction target must be measurable and results have to be trackable, with a clear timeline, key performance indicators and a tracking methodology that is fit for purpose;

Unlocking private capital and savings

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Changed10.14. Notes that the Commission aims to implement a savings and investmentinvestments union, which must include not only action at EU level, but also the development of tools, solutions and best practices that respect and support Member States’ actions at national level;level and promote cross-border coherence and the gradual reduction of critical divergences;

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Removed11. Calls on the Commission to improve investors’ access to information and protection, while leveraging the potential of simplified retail products to attract more savings to the capital markets;

Added15. Calls on the Commission to improve investors’ access to information and protection, while leveraging the potential of simplified retail products to help channel household savings to the capital markets, and recalls the important role that pension funds and insurance companies play as facilitators of that channelling; takes note of the launch of the Finance Europe label, which should enable savers who wish to invest their savings in European companies and thus directly contribute to financing the economy of the Union; stresses that this label should not introduce any further administrative burden for companies;

Removed12. Emphasises the need to improve the financial literacy of EU citizens and entrepreneurs; calls on the Commission to include entrepreneurship in the scope of the incoming financial literacy strategy and in a toolkit for Member States to enhance coordination in this aspect;

Added16. Regrets the fact that the European Venture Capital Funds (EuVECA) Regulation has had little positive impact on local venture capital markets; welcomes the focus on venture capital for young, innovative SMEs in the Commission communication on the savings and investments union, but regrets the fact that the Commission’s proposal on EuVECA has been delayed until Q3 2026; calls on the Commission to consider removing the EUR 100 000 minimum investment threshold to allow private savers to invest in alternative funds; urges the Commission to encourage the Member States to provide attractive and stable tax and regulatory frameworks for venture capital funds investing in SMEs;

Removed13. Calls for public funding not to be used as subsidies, but rather as a catalyst to mobilise private investments and make more private funding available to businesses; emphasises also the role of tax incentives in this regard;