European Union: European Commission proposed 2025 amendment to the Critical Entities Resilience Directive as part of the Simplification Omnibus Bill IV

On 21 May 2025, the European Commission published a legislative proposal to amend Directive (EU) 2022/2557 on the resilience of critical entities. The proposal would extend the obligation for Member States to describe facilitation measures in their national strategies from small and medium-sized enterprises (SMEs) to also include small mid-cap enterprises (SMCs). The Directive also introduces a definition of small mid-cap enterprises (SMCs) as companies with an average market capitalisation between EUR 200 million and EUR 1 billion, based on end-of-year quotes over the past three years. These changes aim to reduce administrative burdens for SMCs designated as critical entities and enhance consistency in resilience strategies across the EU.