The Network of SME Envoys and the European SME associations call on the new European Commission to swiftly appoint a senior SME envoy. The common declaration entitled “Smart, Modern, Empowering – Inspiration for future SME policies”, which was adopted at the initiative of Germany on the occasion of the 50th meeting of the Network in Berlin on 13 June 2024, reads as follows:

“SMEs need a strong advocate within the Commission. We strongly ENCOURAGE EU institutions, particularly the Commission, to swiftly appoint the EU SME Envoy to provide guidance and advice to the Commission on SME issues and to make full use of the Network of SME Envoys, including SME representative organisations.”

Michael Kellner, the Federal Government’s Commissioner for SMEs and Parliamentary State Secretary at the Federal Ministry for Economic Affairs and Climate Action, said:

We all need to increase our efforts to create incentives for more investment and more entrepreneurial spirit by cutting red tape and promoting smart regulation. In addition, I call for the swift appointment of a senior SME envoy to ensure that small and medium-sized enterprises are represented proactively in Brussels. We also need to further facilitate cross-border trade for SMEs in the Single Market, for example by introducing at last a common form for posted worker declarations – the “eDeclaration” – and by establishing an electronic EU portal for the declarations. We need a rapid solution here. We must rigorously prevent and reduce unnecessary bureaucratic barriers.

In its declaration, the Network of SME Envoys sets priorities at an early stage for the EU’s future SME policies and for the new European Parliament and European Commission. In the document, important characteristics of SMEs are linked with specific requirements for the EU’s SME policies.

• 99% of all companies in the internal market are SMEs. For this reason, it is important to represent their interests. The “Think Small First” principle needs to be applied rigorously from drafting to implementing economic policies.
• SMEs need space to focus on their core business: The SME envoys therefore welcome the Commission’s pledge to reduce reporting requirements by at least 25% and strive for the rigorous advancement of digitisation.
• SMEs drive the transition towards a green and digital economy. The SME envoys call on the Commission to establish the Voluntary SME (VSME) standard as a cap for SMEs for reporting requirements vis-à-vis other companies in the value chain.
• SMEs boost innovation. We therefore need to incentivise SME participation in large-scale investment projects such as HORIZON Europe, the ERDF and IPCEIs.
• The SME envoys ask the European Commission to carry out an analysis of the impact of inflation on the financial thresholds set out by the SME definition and encourage it to collect more data on small mid-caps (EIF definition: companies with 250-500 employees) – for evidence-based policies (number 9).

The declaration of the SME envoys and associations underlines the vital role of SMEs – not only for Europe’s economies, but also for democracy and social cohesion. The focus should be on the special characteristics and conditions of SMEs so that they can lead the way towards a green and digital transition. National and European institutions are encouraged to apply the “Think Small First” principle to all measures.

The Network of SME Envoys is a group of high-ranking experts of the European Commission. It comprises senior policymakers from Member States who are in charge of SME policies in their respective countries and representatives of European SME umbrella associations as observers.

You can find more information about the Network at: https://single-market-economy.ec.europa.eu/smes/sme-strategy/sme-envoys-network_en

Link to the register of expert groups: https://commission.europa.eu/about-european-commission/service- standards-and-rinciples/transparency/register-expert-groups_de