• Small and medium-sized enterprises (SMEs) account for 99% of all businesses in the EU and employ around 100 million people

• Retail ecosystem has been seriously affected by the COVID-19 crisis and rising energy costs

• An EU Capital of Local Trade and Retail would help promote uniqueness of EU towns and cities, importance of local trade

An EU Capital of Local Trade and Retail scheme and other support measures could help revitalise and modernise business models in the small retail sector, argue MEPs in a resolution.

The text calls on the Commission to develop a proposal for a European Capital of Local Trade and Retail. Chosen annually by a board consisting of local trade associations, entrepreneurs and other stakeholders, the town or city would then host conferences and other events on current trade-related issues, for example digitalisation and environmental concerns. It was adopted with a show of hands.

The European Capital of Local Trade and Retail scheme would promote local retail and contribute to collective awareness of its economic and social importance. MEPs point out that the retail ecosystem has been seriously affected by the COVID-19 crisis and is now facing pressures due to rising energy costs and the euro area inflation. However, a lack of local commerce can contribute to the social, economic and physical degradation of urban centres and districts, and even lead to a vicious circle of deteriorating safety, note MEPs.

The resolution states that the rapid development of e-commerce is causing a dramatic transformation of the retail sector, and that multi-channel retail, combining offline and online sales, brings both new opportunities and challenges for the sector. Member states could support local traders with training to help them adapt to online commerce and make the retail sector a horizontal priority in their development plans, argue MEPs.

Noting that a lack of local trade can also cause depopulation of rural areas, MEPs also ask Member States to promote fiscal incentives for small traders who choose to settle in sparsely populated areas to combat the demographic challenge in the EU.

Background

Small and medium-sized enterprises (SMEs) account for account for 99% of all businesses and employ around 100 million people, according to the Commission.