On 9 June 2026, the European Parliament issued a press release stating that its negotiators had reached a provisional agreement with Council of the EU negotiators on 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 adds that SMCs are defined in principle 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). The new category will be added to certain EU directives and regulations including the Markets in Financial Instruments Directive II and the Prospectus Regulation.
Next steps
The provisional agreement needs to be formally adopted by both the European Parliament and Council of the EU. The draft legislation then needs to be published in the EU Official Journal.