In a written answer to a parliamentary question on 31 July 2026, Executive Vice-President Maroš Šefčovič, on behalf of the European Commission, ruled out creating a dedicated EU financial instrument for small and medium-sized enterprises (SMEs) on islands, instead steering support through national and regional partnership plans and existing programmes. The answer, responding to a question from Elena Kountoura (The Left, Greece), signals that the Commission will not introduce a separate competitiveness strand for island businesses in the next Multiannual Financial Framework, but will encourage Member States to allocate resources to island challenges during plan negotiations.
Kountoura had argued that island SMEs face structural disadvantages—geographical isolation, high transport costs, small local markets, seasonal demand, and limited access to finance—and that existing EU funding rules, with their complex administrative requirements and minimum budget thresholds, are ill-suited to businesses with seasonal turnover. The Commission's response acknowledges these difficulties but stops short of proposing new tailored instruments. Instead, it points to the EU strategy for islands (COM(2026) 520 final), which includes actions to reduce the cost of insularity and strengthen competitiveness, such as extending technical assistance under the Clean Energy for EU Islands initiative until 2030.
The answer also highlights that implementation mechanisms under the future National and Regional Partnership Plans will be simpler, easing access for small businesses. On the regulatory side, the Commission says it will consider island issues in upcoming reviews of the EU Emissions Trading System and the FuelEU Maritime Regulation, as well as in the ongoing review of the EU State aid framework—moves that could benefit SME competitiveness. For microfinance, the Commission cites InvestEU support for microcredit programmes, including a project in the Balearic Islands helping vulnerable women start microbusinesses.
While the answer offers no new funding commitments, it signals a policy direction favouring flexibility within existing frameworks rather than new EU-level instruments. The concrete follow-up will depend on the design of the next MFF and the partnership plan negotiations, where Member States are expected to decide how much to dedicate to island-specific measures. The Commission's emphasis on simplification and on reviewing sectoral rules suggests a gradual, mainstreaming approach to island competitiveness, rather than a dedicated support strand.