European Economic
and Social Committee
REFLECTIONS BY CIVIL SOCIETY PARTNERS: EU budget
SME expectations for the Multiannual Financial Framework
Europe’s next Multiannual Financial Framework (MFF 2028-2034) will be judged by its ability to deliver tangible results for the real economy. For small and medium-sized enterprises, which are at the heart of Europe’s economy, the current proposals contain both promises and risks.
The intention to introduce greater flexibility through a European Competitiveness Fund (ECF) and National and Regional Partnership Plans (NRPPs) is welcomed. Having integrated funds and fewer silos could reduce fragmentation, tackle part of the ‘funding jungle’ and simplify access for potential beneficiaries.
If funding priorities are defined through successive strategic and annual work programmes, SMEs via their representative organisations must be systematically involved at every stage of these processes. Otherwise, funding schemes risk drifting away from the needs of those they are meant to support. SME representation in the proposed Strategic Stakeholder Board is therefore a prerequisite for credibility and not just a ‘nice to have’. The same applies to NRPP monitoring committees at national and regional level.
Targeted access is equally critical. In areas such as decarbonisation, digitalisation and applied research, SMEs are willing to invest and innovate if programmes are designed with them in mind, using a ‘think small first’ approach. Having mandatory SME-specific calls and minimum budget shares and earmarking funds specifically for SMEs would help translate political ambitions into measurable participation. This also requires a clear delineation between funds reserved for SMEs and those accessible to midcaps.
Innovation policy must also recognise diversity. Disruptive innovation rightly belongs in the EU’s key funding programme for research and innovation, Horizon Europe, while incremental innovation has to be supported through national and regional programmes.
Beyond funding, access remains a bottleneck. Advisory and support services, such as those provided under the Single Market Programme and the Enterprise Europe Network, have proven their value precisely because they are simple and long-term. Clear governance and sufficient resources are therefore needed for InvestEU’s SME Window, ESF+ funding for skills and the financing of Small Business Standards and EU4Business advisory services.
Finally, the green and digital transitions must be enabling, not punitive. A proportionate application of the ‘do no significant harm’ principle, interoperable digital public services and respect for the ‘once only’ principle must reduce administrative burden for SMEs while advancing EU priorities.
If Europe wants an MFF that strengthens competitiveness after 2027, it must be designed with SMEs in mind and in close cooperation with SME representatives.
Secretary General, SMEunited (Association of Crafts and SMEs in Europe)
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