As Europe faces an energy crisis, Independent Retail Europe has released a statement that called for EU policymakers and the Member States to assist SME retailers with rising costs. Gas prices in Europe are currently eight times higher than the ten-year average, with many countries introducing price caps, subsidies or tax credits to combat rising prices.
“Many SME retailers are obliged to conclude new energy contracts now, with often between fivefold to tenfold price increases. Under these conditions, they may have to close shop, as current energy costs make their businesses unprofitable. Particularly SME retailers in the food supply chain are heavily affected, as their cooling systems have to function continuously,” said Independent Retail Europe.
Independent Retail Europe represents 23 groups across 417,800 independent retailers and 753,500 sales outlets. Small and medium-sized enterprises make up 99 percent of EU businesses.
“Certain Member States already have introduced temporary measures to support businesses on the basis of the State Aid Crisis Framework. However, not all SME retailers can benefit from these supports or, when they can, these are often insufficient.”
“SME retailers are essential to EU communities and to their food supply. We, therefore, urge EU policymakers and the Member States to speed up their plans for emergency interventions.”
So far, the Council of the European Union has agreed that the Member States may temporarily set a price for energy supply to SMEs struggling with energy prices that may be below cost.
