COMMISSION RECOMMENDATION on the definition of small mid-cap enterprises

EUROPEAN COMMISSION COMMISSION RECOMMENDATION of 21.5.2025 on the definition of small mid-cap enterprises Brussels, 21.5.2025 C(2025) 3500 final COMMISSION RECOMMENDATION of 21.5.2025 on the definition of small mid-cap enterprises THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 292 thereof, Whereas: (1) The Political Guidelines1 announced the intention of the new Commission to introduce a new category of small midcaps and assess where existing regulation applying to large companies is too burdensome, disproportionate or a hindrance to their competitive development. In its Communication ‘A Competitiveness Compass for the EU’2, the Commission committed to propose a new definition of small mid-caps in order to ensure proportionate regulation adapted to companies’ size. By creating such a new category of company, bigger than SMEs but smaller than large companies, thousands of companies in the EU will benefit from tailored measures. (2) In its Communication ‘SME Relief Package’3, the Commission put forward a large number of actions covering four main areas: making things easier for small and medium-sized enterprises (SMEs), improving their access to finance and to skilled workforce, and supporting them throughout their business lifecycle. While aiming to provide short-term relief, boost long-term competitiveness and resilience, and promote a fair and SME-friendly business...