European Progress Microfinance Facility - Interim evaluation: European Implementation Assessment

12-05-2015

The European Progress Microfinance Facility for employment and social inclusion was established by Decision 283/2010 and will be in operation until April 2016. Although only a limited number of conclusions can be made on the basis of data available so far, some criticism towards this instrument has already been reflected in the set-up of the next EU multi-annual framework to cover microcredit, namely the Programme for Employment and Social Innovation (EaSI). The specific effects of the Microfinance Facility, especially those related to social and employment matters, seem to correspond to the objectives that were set in response to the financial crisis in Europe. The commitment of 100 million euro from the EU budget (supplemented by an equal amount from the European Investment Bank), allowed a growing number of financial intermediaries to offer small loans (below and above 5,000 euro - but in any case below 25,000 euro which is the maximum limit of the micro-credit's definition) to persons starting-up or developing their own micro-enterprises (and often previously unemployed).  

The European Progress Microfinance Facility for employment and social inclusion was established by Decision 283/2010 and will be in operation until April 2016. Although only a limited number of conclusions can be made on the basis of data available so far, some criticism towards this instrument has already been reflected in the set-up of the next EU multi-annual framework to cover microcredit, namely the Programme for Employment and Social Innovation (EaSI). The specific effects of the Microfinance Facility, especially those related to social and employment matters, seem to correspond to the objectives that were set in response to the financial crisis in Europe. The commitment of 100 million euro from the EU budget (supplemented by an equal amount from the European Investment Bank), allowed a growing number of financial intermediaries to offer small loans (below and above 5,000 euro - but in any case below 25,000 euro which is the maximum limit of the micro-credit's definition) to persons starting-up or developing their own micro-enterprises (and often previously unemployed).