Speech by President von der Leyen at the SME United General Assembly on Next GenerationEU

Met dank overgenomen van Europese Commissie (EC) i, gepubliceerd op donderdag 3 december 2020.

Dear President, Mr. Maggiar,

Dear members of SMEunited,

Dear entrepreneurs,

A Lithuanian textile company from one day to the other changed its line of production and started to fabricate masks. A German supplier for the car industry developed new filters for Air Conditioning,that are able to filter out a virus. Now they are being tested in schools. And liquor distilleries in Italy and Ireland quickly moved to producing disinfectants instead of digestifs and Whiskeys.

These are only three examples that show: people like you don't sit back when a crisis hits. These examples, like many, many others, demonstrate, how our societies can count on Small and Medium Sized Enterprises. Not only when the economy is doing well. But also when times get tougher. Like now.

In the Covid-19 crisis SMEs have reacted with courage and rationality. They have shown the European entrepreneurial spirit at its best. For this, I would like to say to each and every one of you a heartfelt "thank you"!

We all know: This meeting couldn´t come at a more crucial time for Europe. The Corona crisis is far from over.Europe is hit by a second wave. With the virus spreading quickly again, parts of Europe are in lockdown. Despite the consequences this can have for workers and companies. I understand that the second wave of the pandemic is even more difficult for many SMEs than the first one. A recent study by SMEunited indicates, that more that 90 percent of SMEs saw their turnover fall. About two thirds have delayed their investment decisions or cut back investments. Especially the service sector is hit hard.Once more, bars, restaurants and cinemas in many Member states had to close. And the loans, that helped many SMEs through the first lockdown, often are not available for a second time.

This is why we have to make sure, that our support programs are tailored to the special needs of SMEs. They want help without too much red tape attached to it. And they get it now. This is why all public actors, from local municipalities to the European Commission, have to listen even more closely to what SMEs have to say. This is also why I am with you today.

The good news is that we have the tools to combat this crisis. Differently than at the beginning of the first wave in March, today we know that there are ways out. You remember: the Commission speedily authorized national governments to come to your support with loans and grants. We created the short-time-work program SURE, so that workers would not lose their jobs and companies their expertise. Up till now we have already disbursed 40 billion Euro to 15 Member States. And we worked hard to re-open borders, to let our goods flow again and to keep the Single Market functioning. The same Single Market of course, which accounts for 70 percent of SME goods exports. And now there will be the next step,the recovery package NextGenerationEU. It is our compass for coming out of this crisis.Together 750 Billion euro. With this money, we not only want to overcome the consequences of the crisis, but also build a better economy for the future: greener,more digital, more resilient. Fit for the next generation.

NextGenerationEU is also YOUR recovery plan. Because with NextGenerationEU, SMEs take center stage. Take digitalization: NextGenerationEU is the unique opportunity to start a real Digital Decade for Europe. And for your companies as well. I must say, I am impressed, how all of you digitalized part of your work since the start of the crisis: with more automation, more teleworking, more e-commerce. You have achieved years worth of digital transformation in just a few weeks. To save your businesses, you reinvented them. With NextGenerationEU we want to build on these achievements. We want to bring high speed internet to all corners of Europe. We want to help all businesses to go digital.We want to give everyone a chance to learn the digital skills that they need. Because in Europe´s digital decade, access to the best technologies cannot be the privilege of a few. It must be an asset for all.

But NextGenerationEUis about more than kick-starting Europe´s digital decade. Over one third of investment from NextGenerationEU will finance the objectives set out in the European Green Deal. This European Green Deal is Europe´s growth strategy. You all know, that we want to become the first climate neutral continent in the world by 2050. And again, SMEs are right in the center of it. I know,some of you think, this plan is too ambitious. I know,some of you have doubts about the timeline we have given ourselves. But then again, at the same time, it is you, small and medium sized enterprises, who are already driving this sustainable transition. It is you, businesses all across Europe,who are already exploring innovative solutions: by offering new green products or inventing new services. By spearheading innovation in the green sector from smart mobility to green finance. You are frontrunners. And the EU is your best ally in this.

Together we will create new European Hydrogen Valleys. So that carbon intensive industries can more easily switch to clean hydrogen. And together we will rethink the way we build houses and offices - with a European renovation wave. For this money to flow, your governments have to send their national recovery plans to the Commission. But we already now stand ready to discuss with your governments any draft plans they might have. It's important to already identify the best projects and the best ideas, to make European money count for all of us. This shows: you are not alone in this crisis. The Commission will do everything to help. Therefore we will also revisit our industrial strategy to make it fit for the post-COVID world. SMEs will be an integral part of this. We know that many of Europe's small and medium sized enterprises are very active on the international level. We encourage European SMEs to embrace the ideals of the Green Deal. At the same time, we know that we have to make sure, that they can compete on the global market place on a level playing field. Therefore we will propose a carbon border adjustment mechanism by the summer of 2021.Fairness is important to us.

This is also true for taxes. Of course we expect European companies to pay their taxes on time.But we will make sure that this is also the case for the large digital companies making business in Europe. It cannot be, that commercial giants benefit enormously from our single market, but fail to pay taxes. This undermines the acceptance of the social market economy. It's time to end this practise. If there is no consensus-based solution on a Digital Tax in the OECD or the G20 by mid 2021, Europe will act. Let me also address another issue, that I know, many of you have questions about:minimum wages. I can assure you: for responsible entrepreneurs like you, this will be no issue at all. SMEs are grounded in our social market economy. They know the value of their workers and their experience. They pay them decently. But what is only natural for you unfortunately is not true for all parts of our economy. The current crisis has particularly hit sectors with a higher share of low-wage workers. Sectors like tourism,retail, health- and residential care. To help these workers, the Commission has proposed a framework for minimum wages. A framework fully respecting the crucial role of social partners in negotiating wages. A framework, that expands collective bargaining across all countries in Europe. A framework that protects entrepreneurs like you. Entrepreneurs, who are already doing the right thing.

Despite the crisis, let me end on a brighter note.The Commission, by now, has secured almost 2 billion doses of potential vaccines against the virus.When these vaccines will be available, this will be a huge step out of this crisis. There is light at the end of the tunnel. For the vaccines to work, we need to rely on doctors and scientists. But to get NextGenerationEU up and running this is up to all of us. Now the EU institutions have to agree on our package. But then it is up to Parliaments in your home countries to ratify this agreement, which is needed to start our recovery. I want to encourage each and every one of you to tell your national politicians how urgently we need this. For a true recovey, we must join forces. It is when we manage to join forces, that we see Europe at its best. This is the essence of our social market economy. This is how we move out of the Corona world, and take control of our future.

Thank you.