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Small mid-cap is EU’s new category that could reduce compliance burden, remove SME ‘cliff edge’

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Photo: Marco Secchi/Getty Images

The agreement on certain Omnibus IV files creates a new small mid-cap (SMC) category extending SME regulatory simplification to more companies, amending GDPR, MiFID, and other key EU laws.

The European Parliament and Council of the EU reached a provisional agreement on several files, part of the so-called Omnibus IV proposal adopted by the European Commission on May 21, 2025, aiming to reduce administrative burden and simplify company operations.

The agreement in turn will lead to changes across 20 pieces of introducing