The European Court of Auditors (ECA) has launched a new audit to examine whether EU funding for small and medium sized enterprises (SMEs) is helping to make them more competitive and future-proof. The auditors will assess whether the European Commission’s support from the European regional development fund (ERDF) is ensuring lasting competitive gains for start-ups and scale-ups. In addition, they will check whether Member States funnel this funding to relevant recipients, address the most pertinent needs, and whether the projects funded are delivering results. The audit comes against the backdrop of the COVID-19 crisis, which demands extra effort from EU companies to survive on the market in a more challenging business environment.
“Our audit is aimed at helping the Commission and the Member States make better use of the ERDF to make EU SMEs more competitive, resilient and fit for the future,” said Pietro Russo, the ECA Member leading the audit.
“This is particularly important given the challenges SMEs are
facing in the COVID-19 crisis and the major role ERDF funding plays in some Member States for start-ups and scale-ups.”
The COVID-19 pandemic and its ensuing global economic crisis have made it even harder for small businesses to survive on the market, due to a more challenging business environment.
In 2018, EU SMEs numbered over 25 million, employed around 98 million people and generated around 56 % of total added value.
