European Commission Unveils New Proposal to Support Small Mid-Cap Companies
The European Commission is set to unveil its latest business simplification initiative, the fourth “omnibus” proposal, aimed at supporting small mid-cap companies throughout the EU. According to European Commissioner Stéphane Séjourné, this new category represents over 38,000 companies across Europe, many of which are not headquartered in national capitals but serve as vital economic hubs in regional areas. With the right support, these businesses have the potential to evolve into major players within the European economy.
“With this initiative, we are laying the groundwork for the industrial economy of the future,” said Séjourné during the proposal’s pre-launch briefing.
The proposal will integrate this new classification into the broader ongoing review of existing EU legislation under earlier omnibus simplification efforts. The updated definition will allow qualifying companies to benefit from reduced regulatory obligations. Specifically, they may be exempt from certain requirements under the Carbon Border Adjustment Mechanism and the Corporate Sustainability Due Diligence Directive.
Séjourné described the new proposal as the European Union’s “most important economic strategy,” noting that it targets the administrative burdens that often weigh down a wide range of businesses. He emphasized that the proposal serves as a starting point and that the potential for additional exemptions and support measures remains open. “We’ve selected a few legislative texts to show how the new definition can be applied, but this is far from the full extent of what we could do,” he said.
The legislative updates will involve amendments to eight EU laws:
– The General Data Protection Regulation (GDPR)
– Regulation on Protection against Dumped Imports
– Regulation on Protection against Subsidized Imports
– Markets in Financial Instruments Directive (MiFID)
– Prospectus Regulation
– Batteries Regulation
– Critical Entities Resilience Directive
– Fluorinated Greenhouse Gas Regulation
One key change will be an exemption under the GDPR, enabling flexibility for small mid-caps without fundamentally reopening the privacy law’s core framework. Séjourné noted that this change will only happen as part of a broader drive for simplification, coordinated by fellow Commissioner Michael McGrath. This comes amid significant controversy surrounding any renegotiation of the GDPR, which was the result of years of intense negotiations and continues to generate debate across Europe.
The Commission’s simplification package aims to reduce regulatory red tape and foster growth for dynamic companies at the heart of Europe’s economic backbone — those with the potential to scale up and enhance the EU’s global competitiveness.
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