Recital (15)

In line with the overall objective of simplification in order to alleviate the administrative burden for final recipients, financial intermediaries and implementing partners, reporting requirements, including those relating to key performance and monitoring indicators, should be reduced, where appropriate, in particular those that affect small businesses and small-size operations. That simplification should not impact the quality of the data received from final recipients where those data are not covered by the proposed reduction in reporting requirements. Without prejudice to the definition of small and medium-sized enterprise (SME) for the purposes of other Union acts and any future programmes and funds, the application of the definition of an SME for the purposes of the InvestEU Programme should be adjusted to remove complexities to the extent possible. Specific attention should be paid to social economy enterprises and microfinance institutions. It is important to recall that the accounting rules laid down in Directive 2013/34/EU of the European Parliament and of the Council, including the rules on consolidation, apply, thereby helping to safeguard the integrity of the definition of SMEs and to ensure that Union support reaches its intended beneficiaries. Where necessary for implementation purposes, and without prejudice to Regulation (EU) 2021/523, it is appropriate that the criteria under the simplified definition be interpreted in line with the principles laid down in the relevant provisions of Annex I to Commission Recommendation 2003/361/EC. It is necessary for implementing partners or, in the case of intermediated financial products, financial intermediaries, to ensure full compliance with the eligibility conditions for SMEs, including by verifying the SME status of final recipients, in particular by the accurate calculation of employee headcount and turnover within the relevant perimeter of the firms, and, where relevant, through the proper application of consolidation rules to prevent circumvention through holdings or similar structures.