AGP Executive Report

EU Budget & Defence Cashflow: The European Commission and Ukraine say they’ve found ways to cover 2026 budget and defence needs, while agreeing to move quickly on €45bn under the EU Ukraine Support Loan for 2027—subject to conditions. UK SME Tech & Calls: BT’s new AI receptionist aims to help small firms answer calls 24/7 and book customers, after research links missed calls to lost revenue and customers switching away. Spain Cybersecurity Crackdown: Spain arrested a 16-year-old tied to the KillSec ransomware gang as part of an international operation that also seized a leak site and large stolen data. UK Climate Reporting Shift: The FCA drops mandatory climate-risk disclosure plans for listed firms, keeping “comply or explain” and delaying wider reporting to start from 2027 accounting periods. Payments & Retail Cash Use: Research on UK ATMs says store cash withdrawals drive repeat visits and hundreds of millions in in-store spending, underlining the value of cash access for local retailers. AI & Small Business Risks: A report warns AI agents and “shadow AI” can expose firms to policy and data leaks, pushing demand for guardrails for SMEs.

Energy Costs for SMEs: UK manufacturers can apply for the British Industrial Competitiveness Scheme (Bics), aiming to cut electricity bills by up to 25% from April 2027, with support for 10,000+ firms and applications open until Nov 30. Consumer Rules for Business: A Digital Consumer Information Alliance manifesto urges the EU to harmonise digital product info (like QR/e-labelling) so SMEs aren’t stuck with conflicting national rules. SME Finance & Risk: Mastercard’s Dreamonomics report says 68% of SMEs prioritise stability over fast growth, and it’s rolling out “Collection for Business” with productivity and cyber-risk support. EU SME Scale: Eurostat reports 34m enterprises in the EU in 2024, with micro and small firms driving 35% of value added. Trade & Compliance Pressure: Malaysia’s SME lobby warns imported goods can bypass local certifications and taxes, undercutting domestic firms. Local High Street Diversity: London’s Fix Uxbridge Road campaign pushes for a wider mix of independent shops and services as betting shops and similar outlets dominate parts of the corridor. Germany Reform Pace: Chancellor Merz tells business leaders reforms will be gradual, including labour-market changes and pension debate. Cross-border Deal Watch: India-EU FTA progress is reviewed as trade ministers meet under G20.

EU SME Snapshot: Eurostat says 34m enterprises in the EU employed 164.5m people in 2024, generating €38.7tn net turnover and €10.9tn value added, with micro and small firms (99%) driving 48% of jobs and 35% of value added. EU Regulation for Software: The EU Cyber Resilience Act moves cybersecurity into market access rules, requiring CE marking and free security updates for software products with digital elements, with reporting already starting for exploited vulnerabilities and severe incidents. Consumer Info Rules: A coalition of consumer-facing operators, including SMEs, urges EU policymakers to create a harmonised legal framework for digital product information (like QR codes) to avoid conflicting national approaches. Trade Pressure on SMEs: In the US, a trade court is scrutinising Trump’s forced-labour tariffs covering 60 trading partners, with small businesses arguing the administration exceeded legal authority and skipped country-specific justification. Cross-border Payments: Payoneer renews its Etsy partnership through 2029 to help small sellers manage international payouts across Europe and other regions. Skills Funding (UK): Chancellor John Healey pledges an extra £100m over two years to expand apprenticeship services nationwide, aiming to match young people with local employers.

Trade & Tariffs: The US Court of International Trade will hear a challenge to Trump’s forced-labor tariffs covering EU and China goods, with small businesses and 25 states arguing the duties exceed presidential power after the Supreme Court curbed similar tariff authority. G20 Pressure: G20 trade ministers meet in Milwaukee as US tariffs strain talks; analysts expect deadlock, with Washington pushing forced-labor and overcapacity concerns. SME Cybersecurity Support: Ireland’s BH Consulting launched BH Haven, an ongoing service that helps SMEs map GDPR/NIS2/AI Act/Cyber Resilience duties using AI-backed analysis and reporting. UK SME Costs: Britain’s Federation of Small Businesses urges Chancellor John Healey to cut employment taxes and business rates in the Oct 28 Budget, including raising the 100% small business rate relief threshold. EU Housing Shockwaves: Spain proposes banning evictions until 2030 and curbing “vulture funds” after protests over an 87-year-old woman’s eviction—aimed at stabilising tenant protections. Energy Costs Hit SMEs: UK diesel price fears raise the prospect of “restraints” on supplies this winter to protect critical sectors like food and the NHS, warning of tougher conditions for businesses and drivers. Payments & Banking Competition: Revolut and Nubank are pushing deeper into neobanking as the UK market matures and consolidation talk grows.

SME Tax Pressure in the UK: The Federation of Small Businesses urged Chancellor John Healey to cut employment taxes and expand business-rate relief in the Oct. 28 Budget, including raising the 100% Small Business Rate Relief threshold in England from £12,000 to £25,000. Housing Rules for Small Landlords and Tenants in Spain: Spain’s coalition agreed measures to ban evictions until 2030, roll over leases to 2028 and restrict “vulture funds,” after protests over the removal of an 87-year-old tenant. Fuel Cost Shock for European Operators: UK diesel hit a record 199.53p/litre, with warnings that “restraints” could protect critical sectors this winter—bad news for van-based SMEs. Deforestation Compliance Costs in Ireland: Ireland’s plan to transpose the EU Deforestation Regulation would bring fines up to €10m and new criminal offences, raising compliance pressure for food and land-linked businesses. Embedded Finance in France: Froda launched in France with Shine, offering digital embedded financing to 200,000 self-employed and small businesses inside the Shine app. Cash Access Meets Retail Growth in the UK: New research links in-store ATMs to higher repeat visits and spend, reinforcing how payments infrastructure can support local shop economics. SME Digital Support in the Philippines: DTI launched Negosyo Center Online Portal 2.0 to centralize registration help, mentoring and training for entrepreneurs. Private 5G for Banking in South Korea: Hana Financial launched a private 5G network for financial services, aiming for more reliable, regulator-aligned connectivity for bank operations. Local Business Resilience Under Strain: A Birmingham boutique, Via Manzoni, was broken into for a second time and still can’t reopen after losing around $100,000 in stock.

Late Payments Crackdown (UK): The UK’s Small Business Protections Bill is still working through parliament, with ministers pushing tougher rules on late payment to ease SME cashflow strain. Cash-to-Card Reality Check (Europe): A new look at Europe’s cashless shift argues the real battleground is the point-of-sale systems behind the counter, not just banks and payment apps. Retail Cash Access Boosts Spend (UK): Research using 300,000 responses from 4,646 UK ATMs says stores with ATMs drive repeat visits and in-store spending, turning cash machines into a sales lever. Tourism Pressure (Romania): A Romanian tourism white paper reports 76.4% of operators saw revenue declines in 2026, with nearly half down more than 20%. SME Export Support (Eswatini): An EU/ITC programme trained 17 local trainers to help MSMEs use market intelligence tools and turn trade data into export decisions. Payments Rules Shift (Australia): Card surcharges are ending, forcing businesses to rethink how they cover processing costs. Development Finance Push (DFIs): DFIs are urged to mobilise private capital with guarantees and blended finance, not just lend.

SME Growth & Skills: UK Chancellor John Healey used his Labour conference speech to warn that “the money… is simply not there,” while also backing a youth jobs and skills push and restoring the Union Learning Fund—welcome for training, but employers say the cost of hiring is still rising. SME Finance & Lending: iwoca reported a 56% revenue jump to £366m in 2025 and £1.5bn lent to ~100,000 SMEs, launching a new Business Credit Card plus tools like Credit Compass to help firms manage credit. Payments & Risk: Mastercard’s Dreamonomics survey finds EEMEA SMEs prioritising cybersecurity (78%) and growing AI use for fraud/security, while stablecoins are also flagged as a potential long-term threat to card networks like Visa and Mastercard. Energy Costs for Small Firms: France is rolling out a €500m aid package as soaring energy prices squeeze businesses, with UK diesel hitting record highs—both pressures hit margins fast for small operators. Industrial Investment: Rolls-Royce announced a £300m UK manufacturing investment, a signal for supply-chain demand and skilled jobs. Local Business Reality: Northern Ireland small firms are still wrestling with business email setup choices—domain, spam filtering, and support quality matter more than price. Sustainability Spotlight: A Northern Ireland family farm (Ballydown Milk) won for sustainable practices like rainwater harvesting and reforestation, showing how agri SMEs can turn green upgrades into recognition and momentum.

Carbon trade & SME exposure: BRICS leaders back a “New Delhi Declaration” pushing back against CBAM-style carbon border rules, a direct threat to EU-bound exporters—especially heavy-industry SMEs facing higher compliance costs. Energy shock hits small makers: France’s rural bakers are getting squeezed as heating-oil prices jump again, with energy bills rising fast enough to cut earnings for thousands of small ovens. UK fuel crunch for traders: A UK diesel shortage is driving forecourt prices toward record levels, raising delivery and haulage costs that small businesses say they can’t absorb. Insolvency crackdown: The UK Insolvency Service makes “phoenixing” directors its top enforcement priority, targeting repeat company closures and re-starts that dodge debts. Payments & regulation for growth: Teya, serving 75,000+ European SMEs, is accepted into the FCA’s Scale-up Unit, giving fast-growing firms a direct regulatory contact. AI at board level: ERGO Group creates a chief AI officer role, appointing its US small-business insurer CEO to roll AI across the group. Cross-border trade support: InterTradeIreland’s Trade Connects 2026 offers free events for SMEs looking to grow in the all-island market. Local enterprise spotlights: Ireland’s Local Enterprise Village at Ploughing 2026 showcased 30 LEO-supported small businesses to a huge audience. Nature-based tourism funding: KAZA TFCA launches regenerative tourism support for MSMEs, with EU and Germany backing capacity building and finance for community-led operators. Tech & commerce for SMEs: A new UK broadband management game highlights the “small operator vs incumbent” theme, while TikTok Shop coverage points to live commerce as a growing route for young British sellers.

Energy shock for SMEs: France’s rural bakeries are getting squeezed as heating-oil prices jump since the Iran war, with one small bakery saying costs rose about 50% for far less fuel—an energy bill hit that threatens earnings for thousands of bakers. Fuel squeeze across Europe: A UK diesel shortage is pushing forecourt prices toward record levels, raising costs for small traders, drivers, haulage and rural deliveries—fuel costs then flow through to goods and inflation. Payments & regulation for growth firms: Teya, serving 75,000+ small businesses across Europe, has been selected by the UK FCA for its Scale-up Unit, giving fast-growing firms a dedicated regulatory contact to speed product and policy planning. Trade compliance pressure: At an India-EU MSME conference, exporters were warned that lower tariffs won’t help without readiness for EU rules, including ESG, CBAM, certification, and deforestation/child-labour requirements. SME finance & innovation: Basel biotech Nuclidium raised over CHF100m to develop copper-based cancer diagnostics and therapies, aiming for “theranostic” drug development. Local business & security link: Lagos stakeholders say weak grassroots engagement and insecurity undermine investment and production, warning that insecurity can worsen inflation and disrupt farming livelihoods.

Energy Costs for SMEs: French baguette bakers are getting squeezed as heating-oil prices jump since the Iran war, with some small shops paying nearly the same bill for far less fuel—an energy shock that hits rural businesses hard. SME Tax Policy in Hungary: Péter Magyar says he’ll push to reinstate the flat-rate small business tax (KATA) and even suspend his own immunity, while also promising a waiting-list reduction programme—signals that could reshape costs and planning for small firms. Local Business & Energy Transition: Abu Dhabi Chamber and Germany’s Fraunhofer IPK sign an MoU to help companies, including SMEs, access applied research in AI, automation and circular economy—aimed at building industrial capability. Payments & Compliance: Orange Money (Jordan) partners with ADSTRA to roll out AI-powered AML/CFT screening and sanctions checks, strengthening fintech compliance for merchants and customers. Tourism Support for Micro-Enterprises: KAZA launches a regenerative tourism initiative with EU and German backing, targeting MSMEs—especially women, youth and communities near protected areas—with training, finance access and market links. Cross-border Trade Readiness: India’s MSMEs are urged to boost EU compliance capacity (ESG, CBAM, certification, child labour/deforestation) to actually benefit from the India–EU FTA, not just from lower tariffs. SME Cybersecurity & Growth: Mastercard’s Dreamonomics report finds EEMEA SMEs prioritize stability but are also leaning into AI and cybersecurity as growth enablers, with many already using security tools.

SME Trade Readiness: India’s MSMEs are being urged to boost EU compliance capacity ahead of the India–EU FTA, with experts stressing ESG, CBAM, certification and rules-of-origin readiness—not just lower tariffs. Cross-border Finance Security: Orange Money (Jordan) and ADSTRA signed a partnership to deploy AI-powered AML/CFT screening and sanctions checks, aiming to strengthen trust in digital payments. Applied Research for Industry: Abu Dhabi Chamber and Germany’s Fraunhofer IPK agreed to link SMEs with advanced manufacturing know-how in AI, automation and circular production. Cyber Pressure on Small Firms: Kenya recorded 11.12bn cyber threat events in 2025/26, with DDoS attacks up sharply—another reminder that SMBs need practical cyber protection. Energy Cost Squeeze: Diesel price spikes are hitting diesel-dependent operators, from trucking and farming to wider supply chains, forcing surcharges or margin cuts. SMB Growth & Tech: Mastercard’s Dreamonomics report finds EEMEA SMEs prioritise stability but are leaning into cybersecurity and AI, treating protection as a growth enabler.

EU-India Trade & SME Readiness: India’s MSMEs are being urged to build compliance capacity for the newly concluded EU FTA—lower tariffs won’t help without ESG, CBAM, certification and rules-of-origin readiness. SME Finance & Regulation: The ECB’s latest credit data points to easing loan growth for non-financial firms, a sign Europe’s funding split is widening—especially relevant for tech founders watching bank credit conditions. SME Cyber & Growth Priorities: Mastercard’s Dreamonomics report finds EEMEA SMEs pushing for growth while treating cybersecurity as a growth enabler, with strong interest in AI for fraud and protection. EU Chemicals Oversight: Ireland’s Minister Alan Dillon met ECHA leaders in Kilkenny, underlining how REACH enforcement shapes costs and compliance demands for small firms. Energy Cost Pressure: Diesel price spikes are squeezing transport-heavy businesses, with fuel surcharges and cost-cutting becoming survival tactics. Local Business Resilience: A locally owned ice-cream/gellato shop in Crystal Lake highlights how small operators win with in-house production and repeatable “signature” flavours. Biotech Investment: Basel radiopharma start-up Nuclidium raised over CHF100m to develop copper-based theranostic cancer diagnostics and therapies.

Energy squeeze on SMEs: Rural France’s small businesses are taking the hit from the Iran-driven energy crisis, with local bakeries and food trucks forced to absorb steep fuel-oil price jumps or cut back on jobs. Cross-border payments for smaller firms: Amaiz launched an international payment service using local banking rails across 96 countries, aiming to speed up transfers and reduce intermediaries for smaller businesses paying overseas suppliers and freelancers. SME finance and compliance pressure (UK): New reporting and “proof of income” expectations are changing how self-employed borrowers show affordability, while research highlights how regulatory cost stacks keep rising for small firms. Startup momentum in Germany: Despite long-running bureaucracy complaints, Germany saw a record number of new startups in H1 2026, with about a third linked to AI. Trade policy and inclusion: A look at India’s evolving free-trade agreements argues the goal is shifting from just market access to broader job creation and better access to trade gains for smaller firms. Chemicals governance in the EU: Ireland’s Minister Alan Dillon met ECHA’s management board in Kilkenny, underscoring EU-wide cooperation on REACH and safer chemicals.

Cross-border payments for SMEs: UK e-money firm Amaiz launched local-rail payments across 96 countries, aiming to cut intermediaries for smaller firms paying overseas suppliers, with pricing from 0.75% plus fixed fees and quotes showing expected delivery. Cross-border fees uncertainty: UPI is now accepted in 11 countries, but India’s new MDR charges (starting Oct 15, 2026) raise questions about whether the 0.4% merchant fee will apply across all those markets. SME embedded finance in the UK: DECTA and SAPI teamed up to offer payment-linked financing to UK SMEs inside the payment flow, with offers typically available within 24 hours and repayments tied to card sales. UK farm lending boost: The British Business Bank agreed a £500m ENABLE guarantee with Oxbury to expand long-term lending for smaller agricultural businesses, with sustainability-linked pricing discounts. SME payment provider churn: A Mastercard/Bain poll finds 91% of SMEs plan to switch cross-border payment providers within two years, with faster settlement a key driver. AI in customer service: Deutsche Telekom is replacing phone menus with AI agents across 10 European countries, expanding coverage from limited call types toward larger shares over time. Defence-linked local growth: Plymouth’s £50m Defence Growth Deal will back robot submarines and marine autonomy skills via a local consortium. SME tech and finance friction: DECTA’s push and the UPI MDR debate both point to a wider theme: SMEs want faster, simpler cross-border money—without surprise fees.

SME Finance (UK): DECTA and SAPI are launching DECTA Capital, embedding payment-linked financing into UK SMEs’ existing card/payment flows, with underwriting and compliance handled by SAPI and offers often available within 24 hours. SME Funding & Trade (Serbia): Italy-backed CEI Fund operations at the EBRD were presented in Belgrade, highlighting support for investment, reforms, regional cooperation and Serbia’s EU integration, with Banca Intesa and Serbian private-sector voices involved. SME Payments (Africa): Stanbic Bank Ghana says it’s simplifying cross-border payments under AfCFTA using PAPSS to settle in local currencies faster, aiming to cut bottlenecks for traders. SME Tax/Accounting (Germany): Berlin AI startup mika raised €6m to build an AI-native accounting and tax operating system for SMEs, targeting bookkeeping, VAT returns and filings for GmbHs/UGs. SME Tech & Customer Service (Europe): Deutsche Telekom is replacing phone IVR menus with AI agents that answer 24/7 across 40–60 languages, aiming to reduce calls that never reach humans. Local Business Pressure (Cyprus): Nicosia’s municipality rejected claims from traders over Ledra/Onasagorou redevelopment, defending consultation steps and EU-funded project aims while shopkeepers push for mayoral accountability. Energy Costs (UK): FairFuelUK warns rising diesel could add about £360 a year for typical small-van operators, squeezing small businesses that can’t absorb the hit. AI & Creative Economy (UK): Bristol’s AI-designed Banksy-themed vinyl mural sparked backlash from local creatives and small businesses, arguing it undermines handmade street art.

EU SME Funding & Local Transport: Cyprus’ Nicosia mayor Prountzos says the Makarios Avenue row is about protecting €21m EU funding, warning against a “fully open” traffic plan without a holistic study. SME Finance & Exports (Armenia): Armenia’s deputy PM met the EBRD to push competitiveness and export support for SMEs, citing €2.8bn EBRD investment in 242 projects by end-2025. Regulation Burden (EU Packaging): SMEunited warns the PPWR is creating legal uncertainty and extra cross-border costs, urging a pause on authorised-representative requirements across member states. Energy Costs for Business (Data Centres): A new analysis argues Europe’s clean-power procurement choices for data centres can either hedge or amplify price shocks, with vPPA deals flagged as “cheap on paper” but risky. Cyber/Trust for SMBs: Danish cloud backup firm Keepit tops $100m ARR with its “AI Truth Cloud” pitch for independent, verifiable data protection. SME Growth Spotlight (Poland): A roundup highlights standout Polish firms powering economic growth, from manufacturing to transport. Waste & Trade (EU metal ban): Indian recyclers seek government action over an EU metal-waste export restriction due May 2027, warning of supply-chain disruption for MSMEs. AI Skills & Productivity: UK coverage flags an “AI productivity gap” and the need to close the skills mismatch for small firms. Local Business Climate (UK): A survey finds Gen Z in the UK doing about five kindness acts a week, with charity giving tied to everyday shopping—useful context for community-facing SMEs.