During the plenary session (7-10 June 2021) in the European Parliament in Strasbourg, MEPs debate on the state of the SMEs Union. Opening statement by Nicolas SCHMIT, European Commissioner for Jobs and Social Rights. This transcription speech is the result of an automatic process. Check against delivery.

SCHMIT, Nicolas (LU, EC)

statement

Strasbourg

plenary session

economic growth (T)

joint debate

Coronavirus outbreak (T)

economic situation in Europe (T)

Joint debate on the state of the SMEs Union: Opening statement by Nicolas SCHMIT, European Commissioner for Jobs and Social Rights

SOUNDBITE (Original), David SASSOLI, EP President, - We will now move on to the debates. The next item on the agenda is the joint debate concerning the state of Small and Medium Sized Enterprises and the European Union. There is a Commission statement first.

SOUNDBITE (Original), David SASSOLI, EP President, - I would like to welcome the commissioner who was present for this. And we will have a Commission statement on implementation of better regulation agenda and the reduction target for administrative burden.

SOUNDBITE (Original), David SASSOLI, EP President, - I should like to remind members that for all debates in this part session, there will be no catch the eye procedure and no blue cards will be accepted. Furthermore, as during the last part sessions, remote interventions from the parliaments liaison officers in the member states are foreseen.

SOUNDBITE (Original), David SASSOLI, EP President, - I welcome Commissioner Schinas for here to the Chamber and I give you the floor for the debate on the estate of SMEs of the Union. You have the floor, please.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - I am not commissioner Schinas, nor Commissioner Breton, but he asked me to stand in for him because he is dealing with important negotiations related to vaccines. So I'm sure that you can understand that he can't be with us.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - I am very happy indeed as commissioner dealing with employment, I know how important it is for job creation, particularly for the recovery, the restart of our economy.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - I express my gratitude to the European Parliament for its strong support to SMEs earlier reports on the topic and for putting the state of European SMEs on the agenda.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - Since the beginning of its mandate, this Commission has put SMEs high on the agenda. The president already in her first speech before this parliament, committed to a new SMEs strategy and we published it within the first 100 days.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - Shortly after the world plunged into a pandemic and an unprecedented crisis that hit SMEs hard. The a performance review shows that across the EU, value added in SMEs fell by seven point six percent in 2020, one point for one point four million SME jobs were lost.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - At all stages, our support to SMEs has been and remains central in the short term to facilitate immediate relief in the long term to stimulate the recovery. We have approved state aid measures allowed under the treaty in special circumstances.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - This enabled a rapid response to companies liquidity needs, thus avoiding further layoffs and bankruptcies. We reinforced lending to SMEs with one billion euros from the EU budget in order to help 100000 European businesses and leverage eight billion euros of financing.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - The demand to use these products was unprecedented across the European Union, covid guarantee, funded by the EU EIB group, is expected to mobilise up to 200 billion euros in financing for European companies, mostly SMEs.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - The SME strategy remains our compass for the long term recovery. Its priorities, digitalisation, sustainability and resilience have only gained in importance. All 33 actions of the SME strategy have started. The recovery and resilience facility gives a major boost to the strategy.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - Member states are proposing reforms and investments that will benefit SMEs such as for digitalisation, upskilling and vocational training, as well as through public procurement opportunities.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - We are now in the process of assessing the national plans. As SMEs and start ups should benefit from a stronger single market, increased resilience and the accelerated green and digital transitions fostering as a means potential for quality job creation.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - This is why SME Dimension is strongly present in the updated industrial strategy. Let me give you an overview of the key actions, starting with trin transition. First, digitalisation.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - Digitalisation is a key enabler by 2030, we want 90 percent of SMEs to reach at least a basic level of digital intensity and 75 percent of companies to use cloud AI and big data. We will support SMEs along the way close to their home.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - Their access points will be local European digital innovation hubs, European Enterprise Network and industrial clusters. Together, they will provide advice and lead any small company to specialised testing and experimentation to help deploy innovative products and services.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - Data is raw material for new business models we work on making sure SME data is more secure and we incentivise data sharing and reuse while preserving our values and ensuring fair access to data for SMEs.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - Let me turn to the Green Deal. This is Europe's growth strategy, and we should make sure that SMEs benefit from it. Start ups and scale ups offering clean tech solutions are facing a deployment challenge.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - To this end we are developing a digital clean tech investment initiative to pull European, national and private funding for scaling up businesses in this area. We also look at hydrogen solutions, batteries, life cycle, carbon capture solutions, device repair and refurbishment, and electro mobility as business opportunities for SMEs.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - Setting rules that allow for technological advance, advances, and market entry for smaller companies is essential. That is also why we prepare the Intellectual Property Action Plan and offer IP vouchers for SMEs.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - Access to finance is key. SMEs will need to make substantial investments at times where many of them are short of liquidity. A dedicated SME window under InvestEU, you could trigger a 45 billion euro of investment in more than 170000 SMEs by 2023.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - The Commission is also expanding support for scaleup capital and for initial public offerings to provide finance across all stages of an SMS life, from start-ups to growth and to exits to public markets. Finally, let us not forget a structural funds.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - Our structural funds raised in Europe and the European Defence Fund with its built in incentives and considerable resources to attract SMEs. I would just add also the European social fund plus resilient and SME friendly business environment is important.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - In that context, financial support alone is not enough. We also need the right framework conditions in which SMEs can prosper and fully benefit from the single market as their large launchpad for growth. Not being paid in time can be an existential matter for SMEs in particular in crisis times.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - The Commission is improving the effectiveness of the late payment directive and monitoring SMEs liquidity to a new late payment observer virtually. Digital, green, innovative and socially responsible procurement creates opportunities for SMEs.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - The public procurement directives have considerably lowered the administrative burden for SMEs. Procurement reforms have introduced and as a friendly label, it allows SMEs to spot specific business opportunities easily.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - Collaboration can boost SME performance, the important projects of common European interest, as well as industrial alliances and partnerships, will see increased participation of SMEs and start ups.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - Let me now touch upon an important topic for this debate, the regulatory burden. Reducing this burden remains a key priority, the better regulation communication reinforces our commitment to evidence based policy making through improved consultations of stakeholders, better analysis of impacts and a strong attention to efficient regulation.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - The one in one out principle allows us to better address cumulative burden. SMEs often experience burden more strongly than other companies do. This is why our better regulation efforts take into account the need to foster small business recovery and build their resilience.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - We will reinforce the SME test and complement it with the SME filter to identify those initiatives with significant impact on SMEs at a very early stage in the preparatory process. Careful assessment of the impacts on SMEs will ensure that our action is targeted, achieve its objectives and does not add unnecessary costs.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - Finally, SMEs need a strong voice in EU policy making. The pandemic has hit SMEs across the industrial ecosystems in an unprecedented way. At the same time SMEs will be the key to green and digital recovery.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - That is why we will reflect further on how to best design the mandate and role of the next European SME envoy and how to structure the work of the network of the national SME envoys to make sure our actions are anchored locally and respond to the realities and needs of small businesses.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - While the Commission shares the SME community's eagerness to appoint an SME envoy, we have decided to take some extra time to conclude the appointment. Let me assure you, there is no void in the interim.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - The network of SME envoys is operating at full speed across borders and is chaired in the interim by the deputy EU SME envoy. To conclude, supporting and embracing small businesses is both necessary and vital to recovery and trim transactions.

SOUNDBITE (Original), Nicolas SCHMIT, European Commissioner for Jobs and Social Rights, - It will take a concerted effort for all of us. And I know the European Parliament shares this sense of urgency and I count on our continued and effective cooperation, our joint objective of promoting SMEs in the European economy. Thank you.