On 25 February 2026, the European Parliament issued a press release stating that three of its committees voted to endorse proposals introducing the concept of small mid-cap enterprises (SMCs) and extending to them various exemptions that so far have been available to small and medium enterprises (SMEs).

The press release states that MEPs want to see SMCs defined as companies with fewer than 1,000 employees; and either up to €200 million in turnover or up to €172 million in total assets (the European Commission proposed 750 employees, €150 million in turnover and €129 million in total assets). At the same time, the European Parliament wants to ensure that support for SMEs is not diluted, that EU support follows a “think small first” principle, and that the thresholds are reviewed every five years.

As for financial services related legislation the press release states:

  • The new definition of SMCs in the Markets in Financial Instruments Directive would reduce administrative burdens. It would allow these companies (SMCs) to access SME growth markets and benefit from simpler prospectus disclosure rules, in line with the updated Prospectus Regulation. This would make it easier for SCMs to raise money on capital markets.
  • An SME Growth Market is a special type of multilateral trading facility created to help SMEs access public funding, with rules that are adapted to smaller companies.

Next steps

Once the mandates have been endorsed by the European Parliament plenary (planned for March), negotiations with the Council can begin.