New analysis from BusinessEurope, Eurochambres, and SMEunited indicates that the European Commission's application of the 'SME Test' methodology is still inconsistent across its services. This test is designed to simplify and reduce regulatory burdens for small and medium-sized enterprises (SMEs), a key focus in the EU's competitiveness agenda.
The 2024 assessment builds on a joint analysis conducted in 2022 by these three business associations. It evaluates the implementation of the SME Test within European Commission services using 23 impact assessments based on better regulation guidelines. The findings reveal some progress but also highlight ongoing issues from the previous report. While consultations were generally held in all EU languages, with alternative methods used alongside traditional public consultations, only 56% of impact assessments quantified their effects on SMEs, and just 30% included a dedicated SME Test chapter.
The report was presented at the EU SME Assembly in Budapest, where recommendations were made for future improvements. BusinessEurope Director General Markus J. Beyrer emphasized: "Reducing the regulatory and administrative burden for businesses – especially SMEs – must be a top priority on the European institutions’ agenda in the new legislative term."
Eurochambres CEO Ben Butters remarked: "As a new EU term begins, the Commission and co-legislators must prioritize the needs of European SMEs with a new approach to policymaking." He noted that while there are encouraging results compared to previous editions, significant room for improvement remains.
SMEunited Secretary General Véronique Willems added: "The vast majority of legislative initiatives in the Commission’s work programme are relevant to SMEs, while only around half of the impact assessments substantially focus on SMEs."
The associations call for concrete actions aligned with political commitments to better support SMEs through smarter regulation and reduced burdens.