Riegel/Strasbourg, 29 September 2025 – The competitiveness of small and medium-sized enterprises (SMEs) across Europe is under massive and growing pressure. Insolvencies have been rising for years – and the trend has accelerated dramatically in 2025.
SME are structurally disadvantaged
In Germany, corporate insolvencies in the first half of 2025 were more than 25% higher than in 2019. According to the German Federal Statistical Office (DESTATIS), 98.8% of these cases involved SMEs. Across the EU, the EUROSTAT insolvency index now stands more than 20% above 2019 levels and 66 percentage points higher than in 2021.
The Annual Report on European SMEs 2024/2025 confirms that SMEs in energy- and resource-intensive sectors are structurally disadvantaged, while large enterprises continue to benefit from competitive advantages and state support.
The reasons are well known: high administrative costs, persistent inflation, soaring energy and production prices, labour shortages and weak purchasing power. On top of this come new trade defence measures, tariffs and the Carbon Border Adjustment Mechanism (CBAM). For many SMEs, even small increases in raw material prices can mean the difference between survival and insolvency.
EU Safeguard successor massive burden for SME
Looking ahead, the planned successor to the EU safeguard measure on steel, which expires in 2026, poses an additional risk. Combined with existing trade defence measures and CBAM, it is expected to drive steel and stainless steel prices in the EU even higher – an acute threat to the competitiveness of manufacturing SMEs and to millions of jobs in Europe.
Our demand:
The Steel and Metals Action Plan and the forthcoming safeguard successor must take SMEs into account on an equal footing with large corporations. SMEs make up the vast majority of businesses and are the backbone of employment in the EU. Without their competitiveness, Europe’s economic model is at risk.
Your press contact
Björn Kammeyer
Head of Marketing Gerber Group
Phone: +49 7642 9282851
Mail: pr@steelnews.biz
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