EU advocacy is not just for big business
As the EU's current term of office draws to a close, now is the perfect time to look back on the past period. The last few years have not been easy for anyone. The pandemic, the large-scale war launched by Russia, and the constant uncertainty and price rises that have plagued the minds of consumers and the vitality of small and medium-sized enterprises.
SMEs are the backbone of Europe, accounting for 99% of businesses in the Union and more than half of Europe's GDP. The growth and vitality of the whole economic area relies on safeguarding and securing the opportunities for SMEs to operate. The crises of the 2020s have shown that the EU must guarantee the region's security of supply and the business that sustains its economy. In addition to the global upheavals, the EU has introduced new reporting and administrative burdens that have become even more burdensome for SMEs. At the beginning of the current parliamentary term, the Commission's work programme included more than 600 projects, some of which were green transition and digitalisation legislation.
While large companies often have more resources and expertise to influence legislation and the EU machinery, it is essential that SMEs have a voice in decision-making. Especially when looking at the EU's promises to SMEs, the balance of delivery has been thin over the past period, with the exception of financial solutions and the construction of the recovery package. For example, neither the update of the Payments Directive nor the Directive on the headquarters of SMEs (Transfer Pricing Directive) were adopted in the past period.
As part of the EU's 2020 SME Strategy (COM(2020) 103, An SME Strategy for a sustainable and digital Europe), the Commission has set the objective of appointing an EU SME Envoy to report to the Internal Market Commissioner on SME-related activities and to work with business organisations to advocate for the specific concerns and needs of SMEs within the Commission. However, over the past four years, the Commission has been unable to appoint anyone to the post, as the selection process has been bogged down by a poor recruitment process.
The EU needs more SME advocates and a stronger will to promote the SME agenda. Decisions are not only taken on the terms of the big players, but securing opportunities for SMEs must be higher on the priority list. Hopefully, the next period will start with high expectations for the completion of the outstanding actions. This will not happen automatically, but more visible lobbyists in Brussels and pressure on decision-makers are needed to advance the objectives. SMEs cannot be left behind on the agenda, as they are the driving force behind the economic downturn towards a more stable and innovative economy.
Jenna Rautionaho
The author is a Blic trainee and a former Brussels resident who is passionate about making the voices of different actors in society heard in EU decision-making.