Text · Opinion parliamentary committee
On the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2016/679, (EU) 2016/1036, (EU) 2016/1037, (EU) 2017/1129, (EU) 2023/1542 and (EU) 2024/573 as regards the extension of certain mitigating measures available for small and medium sized enterprises to small mid-cap enterprises and further simplification measures
Full title
On the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2016/679, (EU) 2016/1036, (EU) 2016/1037, (EU) 2017/1129, (EU) 2023/1542 and (EU) 2024/573 as regards the extension of certain mitigating measures available for small and medium sized enterprises to small mid-cap enterprises and further simplification measures
Document IMCO-AD-782403 · COM(2025)0501 – C100092/2025 – 2025/0130(COD)
- Kind
- Opinion parliamentary committee IMCO-AD-782403
- Date
- 27 January 2026
- Committee
- Committee on the Internal Market and Consumer Protection
- Rapporteur
- Cynthia Ní Mhurchú
- Dossier
- 2025-0130
More facts (2)
- Formats
- Official page PDF Word
- Reference
- COM(2025)0501 – C100092/2025 – 2025/0130(COD)
In short
A summary of the text written by AI; ¶ opens the paragraph it rests on.
AI: In short Written by AI from the official text — check the source · deepseek-flash · 25 Sept 2026
The Committee on the Internal Market and Consumer Protection gives its opinion on a proposal to extend certain SME measures to small mid-cap enterprises (SMCs) and to simplify rules. It proposes amendments to the draft regulation. The amendments define SMCs as enterprises with fewer than 1000 employees and either annual turnover not exceeding EUR 200 000 000 or annual balance sheet total not exceeding EUR 172 000 000. They raise the record-keeping exemption in the data protection regulation to enterprises with fewer than 1000 employees, and extend simplified tools, codes of conduct and certification to SMCs and other enterprises. They let SMCs and other enterprises use the EU Growth issuance prospectus, exempt SMCs from battery due diligence obligations, and require due diligence reports every three years instead of annually. The Commission would evaluate the amended regulations three years after entry into force and every five years thereafter, focusing on whether the SMC thresholds need review.
Position. The committee welcomes extending selected SME measures to growing enterprises and proposes amendments to define SMCs, raise thresholds, extend data protection simplifications, broaden access to the EU Growth issuance prospectus, and ease battery due diligence obligations.
Key points
- The rapporteur welcomes extending selected SME measures to growing enterprises, saying a calibrated threshold adjustment prevents a regulatory cliff edge during scale-up.
- Raising thresholds above the Commission's baseline can incentivise employment growth and keep scale-up companies in the EU, but overly ambitious increases could dilute SME policy.
- Amendment 1 changes recital 2 to say Union legislation achieves its objectives without imposing unnecessary costs, and commits to reduce administrative burdens by 25% and 35% for SMEs.
- New recitals state that support for SMEs remains a key priority and that support for SMCs must not challenge SME resources or confer disproportionate advantages over SMEs.
- New recitals say mitigating and simplification measures should be extended to SMCs where appropriate, proportionately and without weakening key regulatory obligations.
- Amendment 8 defines SMCs as enterprises that are not SMEs, employ fewer than 1000 persons, and either have annual turnover not exceeding EUR 200 000 000 or annual balance sheet total not exceeding EUR 172 000 000.
- New recitals require the Commission to evaluate the amended regulations three years after entry into force and every five years thereafter, focusing on whether SMC thresholds need review.
- New recitals say exemptions for SMEs and SMCs should not create regulatory gaps or loopholes, and that thresholds should be based on objective, verifiable and up-to-date data.
- Amendment 14 and 15 extend the record-keeping derogation in the data protection regulation to enterprises and organisations with fewer than 1000 employees, unless processing is likely to result in a high risk.
- Amendment 23 requires supervisory authorities and the Commission to ensure SMEs, SMCs and enterprises with fewer than 1000 employees have access to simplified tools harmonised at Union level.
- Amendments 26 and 27 let SMCs and other enterprises use the EU Growth issuance prospectus, and exempt SMCs and other enterprises from battery due diligence obligations.
- Amendment 28 requires battery due diligence reports every three years instead of annually, and without undue delay after a significant change occurs.
Who is affected
- Small mid-cap enterprises (SMCs): gain access to SME mitigating measures, simplified data protection tools, the EU Growth issuance prospectus and battery due diligence exemptions.
- Micro, small and medium-sized enterprises (SMEs): keep priority support, and the record-keeping exemption threshold rises to fewer than 1000 employees.
- Enterprises and organisations with fewer than 1000 employees: benefit from the data protection record-keeping derogation unless processing is high risk.
- Economic operators under the batteries regulation: must review and publish due diligence reports every three years instead of annually.
- The Commission: must evaluate the amended regulations three years after entry into force and every five years thereafter.
Figures and deadlines
- Around 20% of today's small mid-caps were SMEs three years earlier.
- Administrative burdens to be reduced by 25% and 35% for SMEs.
- SMC definition: fewer than 1000 employees and either annual turnover not exceeding EUR 200 000 000 or annual balance sheet total not exceeding EUR 172 000 000.
- Record-keeping derogation applies to enterprises and organisations with fewer than 1000 employees.
- Battery due diligence exemption applies to economic operators with net turnover of less than EUR 200 million.
- Battery due diligence reports to be reviewed and made public at least every three years instead of annually.
- EU Growth issuance prospectus amendments apply from 5 March 2026.
- Commission evaluation three years from entry into force and every five years thereafter.
Text
The text as parsed from the official Word file. Every paragraph has a link (¶) and can be saved to a project as a passage.
Jump to an amendment (29)
- Amendment 1
- Amendment 2
- Amendment 3
- Amendment 4
- Amendment 5
- Amendment 6
- Amendment 7
- Amendment 8
- Amendment 9
- Amendment 10
- Amendment 11
- Amendment 12
- Amendment 13
- Amendment 14
- Amendment 15
- Amendment 16
- Amendment 17
- Amendment 18
- Amendment 19
- Amendment 20
- Amendment 21
- Amendment 22
- Amendment 23
- Amendment 24
- Amendment 25
- Amendment 26
- Amendment 27
- Amendment 28
- Amendment 29
Short justification
The objective of this initiative is to strengthen the competitiveness of growing European businesses by ensuring that regulatory support does not stop abruptly as firms scale. The Commission’s own analysis shows that around 20% of today’s small mid-caps were SMEs just three years earlier, underlining how quickly successful companies can grow beyond traditional SME definitions. This rapid transition is positive for jobs and innovation, but it also exposes businesses to a sudden shift in regulatory requirements and the loss of measures that helped them expand in the first place.
Your rapporteur therefore welcomes the Commission’s proposal to extend selected SME measures to growing enterprises within the scope of this text. In particular, a calibrated adjustment of thresholds can ensure that a wider group of businesses remains covered as they grow, providing continuity and predictability during a critical scale-up phase. This approach helps prevent a regulatory “cliff edge” that may otherwise discourage investment, hiring, and expansion precisely when firms are gaining momentum.
Raising thresholds above the Commission’s baseline can incentivise employment growth and support scale-up companies to remain and develop within the European Union, rather than relocating to jurisdictions perceived as more favourable. It also supports the EU’s broader economic resilience by fostering stronger domestic value chains and enabling European companies to compete globally.
At the same time, your rapporteur is mindful that overly ambitious threshold increases could dilute the targeted nature of SME policy and weaken the specific protections designed for smaller firms. The objective is therefore a focused and proportionate extension for genuine enterprises, supporting those that have recently grown out of the SME category, without blurring the line to the point where SME measures lose their meaning. A balanced approach will help Europe retain its most promising growing firms while preserving the integrity and purpose of SME support.
The Committee on the Internal Market and Consumer Protection submits the following to the Committee on Economic and Monetary Affairs, the Committee on Environment, Climate and Food Safety and the Committee on Civil Liberties, Justice and Home Affairs, as the committees responsible:
| Text proposed by the Commission | Amendment |
|---|---|
| (2) The Commission’s better regulation agenda4 also 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 rationalise and simplify reporting requirements for enterprises and administrations5 and committed to reduce administrative burdens by 25%. | (2) The Commission’s better regulation agenda4 also supports the competitiveness of Union enterprises by ensuring that Union legislation achieves its objectives 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 rationalise and simplify reporting requirements for both enterprises and public administrations5 and committed to reduce administrative burdens by 25% and 35% for SMEs. |
| 4 Better 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 | 4 Better 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 |
| 5 Long-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 | 5 Long-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. 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 entreprises 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. |
| 6 SME Relief Package (europa.eu). See also annex 3A to this report SME relief package policy tracker. | 6 SME Relief Package (europa.eu). See also annex 3A to this report SME relief package policy tracker. |
| 7 SMEs are defined as enterprises 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 | 7 SMEs are defined as enterprises 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 Regulations covered by this Omnibus Regulation 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 outgrowing the SME definition – the ‘small mid-cap enterprises’ (‘SMCs’) – play a vital role in the Union’s economy8 . 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 . | (4) 99% of all EU companies are small and medium-sized enterprises (SMEs), the vast majority of which are micro and small enterprises. Those that outgrow the SME definition – the ‘small mid-cap enterprises’ (‘SMCs’) – also play a vital role in the Union’s economy8 . 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 . 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. |
| 8 Study 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 | 8 Study 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 |
| 9 https://www.esri.ie/system/files/publications/BKMNEXT429.pdf | 9 https://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 achieve the overarching objective of facilitating the growth and scaling of businesses, reducing the impact of the regulatory cliff-edge when transitioning from an SME to an SMC and strengthen the support for Union businesses, and the internal market generally, with a particular focus on SMCs, a number of existing acts should be adjusted. In particular, to make business easier for SMCs and other entreprises that should be included within the scope of this amending act 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 and those other entreprises, 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 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 of 21.5.2025 on the definition of small mid-cap enterprises - C(2025) 3500 final 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, 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 2025 and 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 is appropriate to extend certain mitigating measures also to enterprises that 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 enterprises that 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 Regulation 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 the Regulations amended by this Regulation, 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 European economy and provide the majority of jobs across the Union. Exemptions or derogations proposed under this and future legislation for SMEs, SMCs and other enterprises that should be included within the scope of this amending act, 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 Regulation 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 Regulation, unless specific circumstances justify divergence. |
| Text proposed by the Commission | Amendment |
|---|---|
| (8) Regulation (EU) 2016/679 provides for the protection of natural persons with regard to the processing of personal data and free movement of such data. The obligation to maintain records of processing should be simplified so that it applies to all enterprises and organisations with fewer than 750 employees, provided that their processing activities are not likely to result in a high risk to the data subjects’ rights and freedoms. | (8) Regulation (EU) 2016/679 provides for the protection of natural persons with regard to the processing of personal data and free movement of such data. To take account of the specific situation of micro, small and medium-sized enterprises and the obligation to maintain records of processing activities should be simplified so that the derogation applies to all enterprises and organisations with fewer than 1000 employees, provided that their processing activities are not likely to result in a high risk to the data subjects’ rights and freedoms. |
| Text proposed by the Commission | Amendment |
|---|---|
| (9) In order to reflect the above, it is necessary to amend Article 30(5) of Regulation (EU) 2016/679, by extending the scope of the derogation from the record-keeping obligation to SMCs and organisations with fewer than 750 employees to allow also them to profit from that derogation and by providing that the derogation applies unless the processing is likely to result in a ‘high risk’ to data subjects’ rights and freedoms, within the meaning of Article 35 of Regulation (EU) 2016/679. In particular the processing of personal data referred to in paragraph 3 of that provision should be considered as requiring the data controller or the processor to maintain records of its processing activities. | (9) In order to reflect the above, it is necessary to amend Article 30(5) of Regulation (EU) 2016/679, by extending the scope of the derogation from the record-keeping obligation to enterprises and organisations with fewer than 1000 employees to allow them to also benefit from that derogation and by providing that the derogation applies unless the processing, upon assessment by the data controller and data processor and, where applicable, the controller’s or the processor’s representative, is likely to result in a ‘high risk’ to data subjects’ rights and freedoms, within the meaning of Article 35 of Regulation (EU) 2016/679. In particular the processing of personal data referred to in paragraph 3 of that provision should be considered as requiring the data controller or the processor to maintain records of those processing activities. Furthermore, it should be clarified that enterprises and organisations with fewer than 1000 employees carrying out high-risk processing of personal data are only required to maintain a record of those specific processing activities which are likely to result in a ‘high risk’ to data subjects’ rights and freedoms within the meaning of Article 35 of Regulation (EU) 2016/679. |
| Text proposed by the Commission | Amendment |
|---|---|
| (11) Furthermore, in order to extend to SMCs, the provisions that are available for micro, small and medium-sized enterprises under Regulation (EU) 2016/679, the following articles should also be amended: | (11) Furthermore, definitions should be added for micro, small and medium-sized enterprises and for SMCs in Article 4 of Regulation (EU) 2016/679. The requirements provided for in Articles 40 and 42 of that Regulation to take particularly into account the specific needs of micro, small and medium-sized enterprises as regards the drawing-up of codes of conduct and the establishment of data protection certification mechanisms and of data protection seals and marks should be extended to include the specific needs of SMCs and other enterprises that should be included within the scope of this amending act. It is important that these codes of conduct take into account inter alia with the principles of administrative burden reduction and digitalisation while contributing to the proper compliance with this Regulation. |
| – Article 4, which contains the definitions applicable for the purpose of Regulation (EU) 2016/679. For reasons of clarity, definitions should be added for micro, small and medium-sized enterprises, and for small mid-cap enterprises. For small and medium-sized enterprises, it is appropriate to follow the choice of the co-legislator as expressed in recital (13) of the preamble to Regulation (EU) 2016/679. For SMCs, reference should be made to point 2 of Commission Recommendation of 21.5.2025 on the definition of small mid-cap enterprises - C(2025) 3500 final. | |
| – Article 40, which provides that Member States, the supervisory authorities, the Board and the Commission are to encourage associations and other bodies representing categories of controllers or processors to draw up codes of conduct, and that the specific needs of micro, small and medium-sized enterprises are to be taken into account when doing so. This requirement should be extended to include the specific needs of SMCs. | |
| – Article 42, which provides that when Member States, the supervisory authorities, the Board and the Commission are to encourage, in particular at Union level, the establishment of data protection certification mechanisms and of data protection seals and marks by certification bodies referred to in Article 43 of that Regulation or by competent supervisory authorities, the specific needs of micro, small and medium-sized enterprises are to be taken into account. This requirement should also be extended to include the specific needs of SMCs. |
| Text proposed by the Commission | Amendment |
|---|---|
| (14) Regulation (EU) 2017/1129 sets out requirements for drawing up of a prospectus in cases where securities are offered to the public or admitted to trading on a regulated market. That Regulation, as amended by Regulation (EU) 2024/2809, provides for a streamlined EU Growth issuance prospectus that has lighter requirements, compared to a standard prospectus, to make the listing process less burdensome and less costly for certain types of enterprises and in certain cases. The main categories of beneficiaries of such streamlined prospectus are enterprises with a growth potential, notably SMEs and other enterprises whose securities are admitted or are to be admitted to trading on an SME growth market. In order to reduce the burden for SMCs and potentially make them more attractive to investors, it is appropriate to also enable SMCs to draw up an EU Growth issuance prospectus for their offers of securities to the public, including when such offers are accompanied with an admission to trading on a multilateral trading facility. | (14) Regulation (EU) 2017/1129 sets out requirements for drawing up of a prospectus in cases where securities are offered to the public or admitted to trading on a regulated market. That Regulation, as amended by Regulation (EU) 2024/2809, provides for a streamlined EU Growth issuance prospectus that has lighter requirements, compared to a standard prospectus, to make the listing process less burdensome and less costly for certain types of enterprises and in certain cases. The main categories of beneficiaries of such streamlined prospectus are enterprises with a growth potential, notably SMEs and other enterprises whose securities are admitted or are to be admitted to trading on an SME growth market. To further support SMCs and other enterprises that should be included within the scope of this amending act and improve their access to capital markets, it is appropriate to allow those SMCs and those other enterprises to draw up an EU Growth issuance prospectus for public offers of securities , including when such offers are accompanied by an admission to trading on a multilateral trading facility. Furthermore, to facilitate access to finance for those SMEs, SMCs and those other enterprises, simplified measures shall be applied in respect of documentation and procedures so as to ease access to finance for such undertakings, including adjusted reporting requirements and technical support. Any simplification of prospectus and disclosure requirements should enhance access to capital markets, while ensuring that investors receive key information needed for informed decision making. Simplification should therefore be implemented in a way that balances reduced administrative requirements for enterprises with the need to preserve financial market integrity, investor protection, and confidence in Union capital markets. |
| Text proposed by the Commission | Amendment |
|---|---|
| (17) The provision in Regulation (EU) 2017/1129 concerning the EU Growth issuance prospectus will apply as of 5 March 2026, as the Commission is required to develop delegated acts to specify the reduced content and the standardised format and sequence of that prospectus. It is therefore appropriate to defer the application of the amendments to Regulation (EU) 2017/1129 concerning the EU Growth issuance prospectus set out in this Regulation to 5 March 2026. | (17) The provision in Regulation (EU) 2017/1129 concerning the EU Growth issuance prospectus will apply as of 5 March 2026, as the Commission is required to adopt delegated acts to specify the reduced content and the standardised format and sequence of that prospectus. It is therefore appropriate to defer the application of the amendments to Regulation (EU) 2017/1129 concerning the EU Growth issuance prospectus set out in this Regulation to 5 March 2026. |
| Text proposed by the Commission | Amendment |
|---|---|
| (18) Regulation (EU) 2023/1542 establishes rules concerning batteries and waste batteries. Article 47 of that Regulation exempts SMEs from certain obligations regarding battery due diligence policies. The scope of that provision should be extended to SMCs, so that they are also exempted from those obligations. To ensure consistency, it is appropriate to refer to SMCs in the same way bearing in mind that they are entities up to three times the size of SMEs, i.e. with a net turnover which should thus be less than EUR 150 million. | (18) Regulation (EU) 2023/1542 establishes rules concerning batteries and waste batteries. Article 47 of that Regulation exempts SMEs from certain obligations regarding battery due diligence policies. The scope of that provision should be extended to SMCs and other enterprises that should be included within the scope of this amending act, so that they are also exempted from those obligations. To ensure consistency, it is appropriate to refer to SMCs in the same way whilst aligning with the Omnibus IV definition of SMCs referred to in recital 7, i.e. exempting SMCs with a net turnover which should thus be less than EUR 150 million and other enterprises that should be included within the scope of this amending act. While such an extension could provide proportional relief, care must be taken to ensure that transparency, consumer protection, sustainability objectives, and the integrity of the Union’s regulatory framework are not undermined. |
| Text proposed by the Commission | Amendment |
|---|---|
| (19) Pursuant to Article 52 of Regulation (EU) 2023/1542, economic operators referred to in Article 48(1) of that Regulation are required - on an annual basis – to review and make publicly available, including on the internet, a report on their battery due diligence policy. With a view to reducing the administrative burden on economic operators, operators should be required to review and make publicly avilable their due diligence policy only only every three years instead of annually. This burden reduction should apply to all economic operators, including SMCs. | (19) Pursuant to Article 52 of Regulation (EU) 2023/1542, economic operators referred to in Article 48(1) of that Regulation are required - on an annual basis – to review and make publicly available, including on the internet, a report on their battery due diligence policy. With a view to reducing the administrative burden on economic operators, operators should be required to review and make publicly avilable their due diligence policy only only every three years instead of annually. This burden reduction should apply to all economic operators, including SMCs. In between the three years, economic operators should be required to review, and make publicly available their due diligence policy without undue delay after a significant change occurs. |
| Text proposed by the Commission | Amendment |
|---|---|
| (28) ‘small mid-cap enterprises’ means enterprises as defined in point (2) of the Annex to Commission Recommendation of 21.5.2025 on the definition of small mid-cap enterprises - C(2025) 3500 final**.; | (28) ‘small mid-cap enterprises’ means enterprises as defined in point (2) of the Annex to Commission Recommendation 2025/1099 of 21.5.2025 on the definition of small mid-cap enterprises - C(2025) 3500 final**.; |
| ** Commission Recommendation of 21.5.2025 on the definition of small mid-cap enterprises - C(2025) 3500 final.’ ; | ** Commission Recommendation of 21.5.2025 on the definition of small mid-cap enterprises - C(2025) 3500 final.’ ; |
| Text proposed by the Commission | Amendment |
|---|---|
| 5. The obligations referred to in paragraphs 1 and 2 shall not apply to an enterprise or an organisation employing fewer than 750 persons unless the processing it carries out is likely to result in a high risk to the rights and freedoms of data subjects, within the meaning of Article 35.; | 5. The obligations referred to in paragraphs 1 and 2 shall not apply to an enterprise or an organisation employing fewer than 1000 persons unless the processing it carries out is likely to result in a high risk to the rights and freedoms of data subjects, within the meaning of Article 35.; |
| Text proposed by the Commission | Amendment |
|---|---|
| (2a) the following article is inserted: | |
| Article 31a | |
| Simplified tools | |
| Supervisory authorities and, where relevant, the Commission, shall ensure that controllers and processors which qualify as micro, small or medium-sized enterprises, or as small mid-cap enterprises or 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 172 000 000, have access to simplified tools harmonised at Union level and proportionate to their economic and operational circumstances. Those tools shall include, inter alia, standardised forms, templates for records of processing activities, models for risk assessments adapted to the specific characteristics of such enterprises, as well as other resources and practical guidance intended to facilitate the effective and consistent application of this Regulation. |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. The Member States, the supervisory authorities, the Board and the Commission shall encourage the drawing up of codes of conduct intended to contribute to the proper application of this Regulation, taking account of the specific features of the various processing sectors and the specific needs of micro, small and medium-sized enterprises and of small mid-cap enterprises.; | 1. The Member States, the supervisory authorities, the Board and the Commission shall encourage the drawing up of codes of conduct intended to contribute to the proper application of this Regulation, taking account of the specific features of the various processing sectors and the specific needs of micro, small and medium-sized enterprises, of small mid-cap enterprises, and of 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 172 000 000.; |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. The Member States, the supervisory authorities, the Board and the Commission shall encourage, in particular at Union level, the establishment of data protection certification mechanisms and of data protection seals and marks, for the purpose of demonstrating compliance with this Regulation of processing operations by controllers and processors. The specific needs of micro, small and medium-sized enterprises and of small mid-cap enterprises shall be taken into account. | 1. The Member States, the supervisory authorities, the Board and the Commission shall encourage, in particular at Union level, the establishment of data protection certification mechanisms and of data protection seals and marks, for the purpose of demonstrating compliance with this Regulation of processing operations by controllers and processors. The specific needs of micro, small and medium-sized enterprises, of small mid-cap enterprises, and of 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 172 000 000 shall be taken into account. |
| Text proposed by the Commission | Amendment |
|---|---|
| (b a) companies referred to Article 2 point (fa) (i), which, according to their last annual or consolidated accounts, meet at least two of the following three criteria: an average number of employees during the financial year of less than 1000, a total balance sheet not exceeding EUR 172 000 000 and an annual net turnover not exceeding EUR 200 000 000; |
| Text proposed by the Commission | Amendment |
|---|---|
| This Chapter does not apply to economic operators that had a net turnover of less than EUR 150 million in the financial year preceding the last financial year, and that are not part of a group, consisting of parent and subsidiary undertakings, which, on a consolidated basis, exceeds the limit of EUR 150 million.; | This Chapter does not apply to economic operators that had a net turnover of less than EUR 200 million in the financial year preceding the last financial year, and that are not part of a group, consisting of parent and subsidiary undertakings, the net turnover which group, on a consolidated basis, equals or exceeds the limit of EUR 200 million in the financial year proceeding the last financial year.; |
| Text proposed by the Commission | Amendment |
|---|---|
| The economic operator referred to in Article 48(1) shall, by the latest one year after the date specified in Article 48(1) and at least every three years thereafter, review and make publicly available, including on the internet, a report on its battery due diligence policy.. | The economic operator referred to in Article 48(1) shall, by the latest one year after the date specified in Article 48(1) and at least every three years thereafter, and without undue delay after a significant change occurs, review and where necessary, update and make publicly available, including on the internet, in a prominent, and easily accessible manner, a report on its battery due diligence policy.. |
| Text proposed by the Commission | Amendment |
|---|---|
| Article 6a | |
| Review | |
| By ...[ three years from the entry into force of this Regulation] 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 the Regulations amended by this Regulation, 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. |
Back matter, 1
Parts that accompany the text rather than belong to it: explanatory statement, annexes, opinions appended by other committees. Collapsed.
Annex: declaration of input 4 blocks
Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for opinion declares that she included in her opinion input on matters pertaining to the subject of the file that she received, in the preparation of the opinion, prior to the adoption thereof in committee, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:
| 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 |
Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for opinion declares that she has submitted to the natural persons concerned the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.
Procedure pages and committee votes
How the committees handled the text and how their members voted on it. Collapsed.
Procedure – committee asked for opinion 1 block
| Title | Amending Regulations (EU) 2016/679, (EU) 2016/1036, (EU) 2016/1037, (EU) 2017/1129, (EU) 2023/1542 and (EU) 2024/573 as regards the extension of certain mitigating measures available for small and medium sized enterprises to small mid-cap enterprises and further simplification measures | ||
| References | COM(2025)0501 – C10-0092/2025 – 2025/0130(COD) | ||
| Committee(s) responsible Date announced in plenary | ECON 10.7.2025 | ENVI 10.7.2025 | LIBE 10.7.2025 |
| Opinion by Date announced in plenary | IMCO 10.7.2025 | ||
| Rapporteur for the opinion Date appointed | Cynthia Ní Mhurchú 25.9.2025 | ||
| Rule 59 – Joint committee procedure Date announced in plenary | 10.7.2025 | ||
| Discussed in committee | 25.9.2025 | 11.11.2025 | |
| Date adopted | 27.1.2026 | ||
| Result of final vote | +: –: 0: | 36 9 4 |
Final vote by roll call by the committee asked for opinion 3 blocks
36 · For
- ECR
- Stefano Cavedagna, Piotr Müller, Denis Nesci, Gheorghe Piperea, Reinis Pozņaks, Ivaylo Valchev
- EPP
- 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 · Against
- ESN
- Alexander Jungbluth, Milan Mazurek
- No group
- Kateřina Konečná
- The Left
- Leila Chaibi, Gaetano Pedulla'
- Greens
- Anna Cavazzini, Katrin Langensiepen, Reinier Van Lanschot, Kim Van Sparrentak
Connections
The dossier, the decisions on this text and its other versions.
No connections found for this item.
Sources & citation
Where the facts on this page come from, and how to cite it.
- Data source
- Licensed CC BY 4.0.
- Retrieved
- 25 September 2026
Cite as
European Parliament (2026). “OPINION on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2016/679, (EU) 2016/1036, (EU) 2016/1037, (EU) 2017/1129, (EU) 2023/1542 and (EU) 2024/573 as regards the extension of certain mitigating measures available for small and medium sized enterprises to small mid-cap enterprises and further simplification measures”. Text, 27 January 2026. docId IMCO-AD-782403. EU Parl Watch Research. https://news.eu-parl.st-solutions.dev/texts/IMCO-AD-782403 (retrieved 25 September 2026). Data: EP Open Data API: document record, https://data.europarl.europa.eu/api/v2/documents/IMCO-AD-782403 (CC BY 4.0).
BibTeX
@misc{epw-text-imco-ad-782403,
author = {{European Parliament}},
title = {{OPINION on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2016/679, (EU) 2016/1036, (EU) 2016/1037, (EU) 2017/1129, (EU) 2023/1542 and (EU) 2024/573 as regards the extension of certain mitigating measures available for small and medium sized enterprises to small mid-cap enterprises and further simplification measures}},
year = {2026},
date = {2026-01-27},
howpublished = {\url{https://news.eu-parl.st-solutions.dev/texts/IMCO-AD-782403}},
url = {https://news.eu-parl.st-solutions.dev/texts/IMCO-AD-782403},
urldate = {2026-09-25},
publisher = {EU Parl Watch Research},
note = {Text. docId IMCO-AD-782403. Data: EP Open Data API: document record (CC BY 4.0)}
}