Answer given by Mr Breton on behalf of the European Commission
1.7.2020
Small and medium-sized enterprises (SMEs) are particularly affected by the COVID-19 crisis[1]. Acknowledging their role in the European economy, the Commission put in place measures to counter the economic impact of the coronavirus pandemic, including full flexibility of the fiscal and state aid frameworks.
Beyond these first response measures, on 27 May 2020 the Commission presented a major Recovery Plan for Europe to repair and prepare for the next generation. The package complements the three agreed safety nets: the SURE programme, the finance available from the European Investment Bank and the European Stability Mechanism and contains economic instruments to help kick-start the economy and create the conditions for a recovery led by private investment in key sectors and technologies.
The new Solvency Support Instrument will provide urgent support to sound companies put at risk by the crisis and help avoid a vicious circle of economic damage and company bankruptcies. It will be operational still this year.
In addition, the new REACT-EU initiative will provide support to key crisis repair actions, including short time work schemes and working capital for SMEs. The support will be available across economic sectors and for essential investments in the green and digital transitions. These measures will be complemented by longer‐term support under programmes such as InvestEU, cohesion policy and the single market programme.
Finally, the twin transition to a green and digital Europe will continue to remain a priority of this Commission. To this end, the SME Strategy[2] adopted on 10 March 2020 will continue to support small businesses’ transition to a sustainable and digital economy, in order to release their full potential in the Single Market and beyond.