News item | 28-05-2026 | 1:00 PM
European rules ensure that otherwise unviable companies do not receive subsidies, guarantees or loans. This prevents unfair competition with state aid, but this Undertaking in Difficulty (OIM) definition is also very detrimental to the financing of innovative startups and scale-ups. Growth companies that are promising are now included and are therefore missing out on financing. At the initiative of Minister Heleen Herbert (Economic Affairs and Climate), the Netherlands and 7 other EU countries (Germany, Latvia, Luxembourg, Poland, Slovakia, Spain, the Czech Republic) propose to change the OIM definition.
EU ministers responsible for the economy will speak about this during the Competitiveness Council in Brussels on Thursday, May 28. The 8 countries have sent a joint non-paper to the European Commission for this purpose, which is on the agenda of this Council. Many other countries also individually support this initiative to achieve a better definition.
Ratio between issued share capital and equity is different
Growth companies often have a different ratio between issued share capital and equity. In the current situation, for example, subordinated loans and other quasi-equity cannot be counted as full equity. As a result, start-ups often fall under the definition, even though they are viable.
The 8 countries therefore propose to include these forms of equity in the definition. And as an alternative, extend the exception period for growth companies in SMEs to 15 years.
Minister Heleen Herbert (Economic Affairs and Climate): “Start-ups and scale-ups, with their new innovations and technology, are indispensable for the transition to a sustainable economy and fewer strategic dependencies. The current Company in Difficulties-lines hinder their growth and therefore the opportunity for Europe and the Netherlands to remain competitive and innovative worldwide.”
The minister continues: “Together with 7 countries, we therefore propose that the European Commission can take steps by first improving the definition itself. Good to see that even more countries support this. After all, with the current proposal with only exceptions, we are only pushing the problem for growth companies forward by a number of years. I will remain on top of this in the EU in the interest of our future economy.”
