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Empowering SMEs: The Keystone To Europe’s Strategic Resilience

by THEFUTURE.TEAM

May 11, 2026

Placing SMEs At The Heart Of Europe’s Future

Michalis Damianos said small and medium-sized enterprises should remain central to Europe’s competitiveness strategy during an extraordinary meeting of the Employers’ Group of the European Economic and Social Committee. Speaking under the theme “Autonomy Through Competitiveness: SMEs At The Core Of Europe’s Strategic Preparedness,” Damianos said geopolitical uncertainty, technological change and the green transition are reshaping the economic landscape across Europe. According to the minister, strengthening SMEs is increasingly linked to Europe’s broader goals surrounding industrial resilience, competitiveness and strategic autonomy.

Confronting Core Challenges

Damianos noted that SMEs account for approximately 99% of the 125,000 businesses operating in Cyprus, making them central to regional development and economic activity. At the same time, many businesses continue facing structural challenges, including regulatory complexity, elevated energy costs, limited access to financing and persistent labour and skills shortages.

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Bridging Policy With Practical Support

The Cypriot government has introduced policies focused on improving competitiveness, productivity and business adaptability through measures supporting entrepreneurship, financing access and industrial modernisation. Funding allocations include €227.3 million from EU Cohesion Policy programmes for 2021–2027, alongside an additional €124.5 million linked to the Recovery and Resilience Facility and the REPowerEU programme.

Coordinated European Action For A Stronger Market

Damianos said national measures alone would not be sufficient to address broader structural challenges affecting SMEs across Europe. Cyprus is therefore using its role during the EU Council Presidency to advocate for stronger coordination on competitiveness policy, industrial strategy and further integration of the Single Market. The issue was also discussed during an informal meeting of EU competitiveness ministers held in Nicosia, where officials stressed the importance of a more unified European market environment for business growth and innovation.

A Blueprint For Sustainable Prosperity

The minister also called for greater regulatory coordination and reduced market fragmentation, particularly in strategically important sectors, including defence, where more than 2,500 SMEs are active. According to Damianos, closer alignment between European and national policy frameworks will be necessary to strengthen long-term competitiveness and support sustainable economic growth across the region.

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Keve Welcomes New Cyprus Business Development Organisation

by THEFUTURE.TEAM

July 17, 2026

The Cyprus Chamber of Commerce and Industry (Keve) has welcomed Parliament’s unanimous approval of legislation establishing the Cyprus Business Development Organisation, describing it as a major step toward improving access to finance for small and medium-sized enterprises, startups and self-employed professionals.

Expanding Access To Finance

The legislation creates a new public body aimed at addressing financing gaps by supporting businesses that struggle to secure funding through traditional channels.

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According to Keve, the initiative could strengthen entrepreneurship, boost competitiveness and support Cyprus’ green and digital transition. The chamber has long argued that SMEs rely too heavily on bank financing, limiting investment, expansion and innovation.

Keve Calls For Swift Implementation

Keve said it helped shape the legislation through the consultation process and called for the organisation to become operational as quickly as possible. It also pledged to continue working with the Finance Ministry and the organisation’s management to support implementation.

How The Organisation Will Operate

Approved by Parliament on Tuesday, the legislation establishes Cyprus’ national business development body under the supervision of the Finance Minister, while the Central Bank of Cyprus will oversee anti-money laundering compliance.

The organisation will design financing programmes, provide loans and conduct studies to identify weaknesses in the financing market.

Cyprus will provide €60 million in initial capital. Over time, the body will also be able to raise funding from European and international institutions and benefit from state guarantees linked to approved strategic priorities.

Recovery Plan Milestone

Creation of the organisation is one of the final milestones under Cyprus’ Recovery and Resilience Plan and is required for the country to receive the plan’s ninth and final payment. Appointment of the board of directors remains the last outstanding step.

Before approving the bill, the Finance Ministry revised the draft following consultations with MPs and stakeholders. The changes removed provisions allowing the organisation to establish companies and narrowed the list of eligible beneficiaries by excluding small mid-cap companies.

Lawmakers also strengthened governance rules by introducing stricter board suitability requirements, conflict-of-interest safeguards, enhanced reporting obligations and borrowing limits. A seven-member board appointed by the Cabinet will oversee the organisation, while a transitional board will serve for two years until it becomes fully operational.