News
MEPs want banks/EU Institutions to help small businesses find finance
Banks and EU programmes should provide more support for small and medium sized enterprises (SMEs)
according to a resolution backed by MEPs Wednesday 16 February 2011. The cross-party motion identifies problems in accessing finance as one of the most pressing facing Europe's businesses with less than 250 employees. Across the European Union it is estimated that over 100 million people are employed in such companies. We spoke to some of the MEPs behind the motion.
Austrian Christian Democrat Othmar Karas said, "member states where SME finance depends mainly on large commercial banks, which is the case for example in UK or Belgium, have more problems than regions with functioning savings banks and cooperative banks."
The resolution says that credit and loan guarantee schemes remain crucial for growth of SMEs.
MEPs called for more funds, especially innovative financial instruments. Hungarian Socialist Edit Herczog said, "less than the 2% of SMEs benefit from EU-financed program...but a much higher percentage of enterprises is now seeking European solutions."
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