Autonomy through competitiveness: SMEs at the core of Europe’s strategic preparedness

The EU has entered a phase in which strategic autonomy and preparedness have become central organising principles of economic policymaking. Recent shocks, including geopolitical tensions, energy disruptions, supply chain vulnerabilities, and accelerating global competition, have exposed structural dependencies that directly affect the resilience of the European economy. In this context, competitiveness is increasingly framed not merely as a growth objective, but as a precondition for autonomy, security, and long-term sustainability.

Preparedness is emerging as a complementary pillar to strategic autonomy, shifting the policy focus from reactive crisis management to proactive capacity-building. Embedding preparedness into competitiveness policy therefore requires enhancing SMEs’ capacity not only to withstand shocks but to adjust and reposition quickly, making preparedness a key enabler of both resilience and sustained productivity growth.

Small and medium-sized enterprises are pivotal in this regard. As the backbone of the European economy, SMEs account for most of the employment, value creation, and innovation diffusion, yet they are disproportionately exposed to regulatory complexity, energy price volatility, skill shortages, and compliance costs. Enhancing SME productivity is therefore essential: it strengthens their ability to innovate, scale, and compete globally, while simultaneously reinforcing the EU’s strategic resilience.

 The Cypriot Presidency programme places competitiveness at the heart of Europe’s strategic response. Ensuring that SMEs can operate efficiently, invest, and grow under conditions of increasing policy ambition is critical to translating strategic autonomy into economic reality.

Against this background, the event will explore how competitiveness-oriented policymaking can support SMEs as drivers of resilience, adaptability, and productivity, thereby underpinning Europe’s broader strategic readiness.