Group debate with partner organisations: Balancing external pressure with internal reform

On 18 June 2025, representatives from leading business and SME organisations convened to discuss Europe’s upcoming priorities, focusing on competitiveness, regulatory simplification, and the challenges posed by the current geopolitical climate. The meeting, opened by Stefano Mallia, President of the EESC Employers' Group, brought together key voices including Markus J. Beyrer, Director General of BusinessEurope, and Gerhard Huemer, Director of SMEUnited.

Stefano Mallia set the tone by acknowledging the tense geopolitical environment but cautioned against losing sight of Europe’s internal priorities. “We must not neglect the urgent need to improve competitiveness and reduce red tape,” Mallia stated. He highlighted recent progress on digitalisation, notably the launch of AI-powered tools to cut red tape.

Beyrer echoed the call for simplification, referencing BusinessEurope’s comprehensive 11-chapter proposal to cut regulatory burdens. While he recognised the European Commission’s recent steps, he noted that “many challenges remain unresolved,” expressing disappointment with the Council’s resistance but commending the Parliament’s constructive stance.

Beyrer identified the Omnibus 1 package as the central battleground for regulatory simplification. On energy, he welcomed initial moves to lower costs but urged faster implementation. He also voiced strong support for the 28th regime and mutual recognition of professional qualifications.

On international trade, Beyrer advocated for a balanced approach: “We must maintain strong US ties while avoiding decoupling from China.” He stressed the importance of finalising the Mercosur agreement, warning that reopening negotiations would be “a road to hell.” Beyrer called for diversified trade partnerships as that would reinforce Europe’s credibility as a reliable partner.

Huemer provided a sobering counterpoint, warning that SMEs have yet to see tangible benefits from ongoing talks on competitiveness and simplification. He raised concerns that policies aimed at midcaps could siphon resources from SMEs and questioned the real-world impact of strategies like the single market and investment union, calling many of them “largely theoretical.”

Huemer was sceptical about the 28th regime’s effectiveness and highlighted the practical challenges for scale-ups and start-ups in Europe. He emphasised that the Green Deal must deliver real results, and that supply chain resilience hinges on the successful implementation of Omnibus 1.

On the broader topic of better regulation, Beyrer answered questioned and cautioned against allowing impact assessments to become a "bottleneck that delays crucial legislative packages" such as the Omnibus initiative. He emphasised that while thorough assessments are important, they should not be used as an excuse to stall progress. Furthermore, Beyrer advocated for making better use of existing data to inform policy decisions, ensuring that reforms are both evidence-based and efficiently implemented. Huemer acknowledged incremental improvements in impact assessments but noted that most regulatory burdens are imposed at the national level.

Huemer also flagged cybersecurity and defence preparedness as growing priorities, and cautioned that meaningful progress is unlikely without a sufficiently resourced EU budget.

The discussion underscored the need for Europe to be proactive, not reactive, in addressing both internal and external challenges. While there is consensus on the need for regulatory simplification and enhanced competitiveness, stakeholders emphasised that progress must translate into measurable, real-world benefits—especially for Europe’s SMEs.

As Europe navigates a complex geopolitical landscape, the message is clear: internal reforms and international credibility must go hand in hand, with a renewed focus on delivering tangible outcomes for businesses of all sizes.