Written question to the EC on the exclusion of small enterprises that are part of franchise networks from European funding programs.

In continuation of the measures taken in order to tackle the pandemic, the Greek Ministry of Development and Investment undertook certain actions, under the Greek Partnership Agreement for the Development Framework 2014-2020.

A new program entitled “Reinforcement of Small and Very Small enterprises affected by Covid-19” will provide substantial support to Small enterprises, which face liquidity issues due to the measures taken to combat the spread of the pandemic, through the form of non-refundable grants.

According to the 20.10.2020 question from the Greek MP, Mr.Vasili Spanaki, the aforementioned program excludes all Small enterprises that are part of franchise networks.

This exclusion is unjustifiable and goes against the rules of equal opportunity and healthy competition, because these particular enterprises are classified as Small or Very Small according to defined criteria, carry out activity included in the ACN with the beneficiaries, have different TIN and
they are proven to belong to the affected business sectors.

In light of the above, will the Commission reply as to :

1- Does the regulatory framework of the EU set any general exclusion
from European funding programs for Very Small, Small or SMEs belonging to franchise networks, despite them fulfilling all established criteria and them being autonomous legal entities with separate TIN?

See the question here

Answer given by Ms Ferreira on behalf of the European Commission here