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The Commission adopted a communication to reinforce the development of micro-credit in the European Union. The ambition is to improve access to finance for micro-entrepreneurs and socially excluded people towards the realisation of the Lisbon Strategy for growth and jobs and the promotion of social inclusion.
In its Communication on financing SME's of 2006, the Commission drew attention to one of the obstacles in the way of developing micro-credit, calling on Member States "to ensure that national legislation facilitates the provision of microfinance (loans less than €25 000)". The present Communication proposes means of overcoming these constraints.
First, it invites the Member States to adapt national institutional, legal and commercial frameworks necessary to promote a more favourable environment for the development of micro-credit.
Secondly, it recommends setting up a new facility with dedicated staff to provide expertise and support for the development of non-bank micro-finance institutions (MFIs) in the Member States. It also proposes to draft a code of conduct and design a micro-credit "label" to create confidence in micro-credit. Financial support for this facility would come from the existing technical assistance budget of the Structural Funds (European Regional Development Fund - ERDF) managed by the European Commission.