Policy papers
The European Microfinance Network (EMN)
The European Microfinance Network provides policy papers and advocacy resources to support financial inclusion and strengthen microfinance institutions (MFIs) across Europe. These materials help shape policies, improve lending practices, and ensure underserved communities have access to financial services.
Through policy papers, EMN offers insights and recommendations that guide policymaker and practitioners in fostering a more inclusive financial system. Its advocacy efforts facilitate engagement with European institutions, promoting regulations that support microfinance.
By sharing best practices and case studies, EMN helps MFIs and the whole microfinance community refine its strategies and enhance its impact. In addition, working groups and initiatives encourage collaboration among practitioners, policymakers, and researchers to develop effective financial inclusion strategies.
EMN also provides guidance on crisis response and resilience building, ensuring MFIs can continue to serve their clients during economic challenges. These resources collectively contribute to a stronger, more inclusive financial landscape.
- Adrian Suteu
This is a policy note to demonstrate the many ways in which microfinance actors support the objective of financial and economic inclusion for entrepreneurs with migrant backgrounds. It explores a number of activities that microfinance institutions (MFIs) have put in place, and a number of successful public-private partnerships that also address this goal.
Policy notes
- Adrian Suteu
Microfinance institutions are in a key position to help mitigate the effects of human capital flight that manifests between East and West Europe. We want to propose public-private partnership initiatives that would combine the social mission of microfinance with the solidarity mechanisms within Europe, to renew investment in local entrepreneurship and innovation.
This Policy Note was prepared in collaboration with the Microfinance Centre and NOA.
Policy notes
- Adrian Suteu
As the effects of climate change are dramatically unfolding around the world, it is essential to implement and foster a fair green transition for everybody, including micro & small entrepreneurs, and vulnerable households.
The European Microfinance Network, in partnership with The Microfinance Centre, has published a paper focused on discussing the next steps to be taken in order to make the transition real. Download the full paper at the link above.
Papers
- Adrian Suteu
Foreword
As we are reaching the end of the year, we would like to thank you all for supporting our network and contributing to our work this year. This year of European (and national) elections and political transition brought us many challenges but also opened up new opportunities and new partnerships.
We, at EMN, have been always embracing challenges, to make the best out of them. Equipped with our brand-new Strategic Plan 2025-2027, we are ready to work harder with our existing and new members, institutional and funding partners, and make sure everyone in Europe understands the importance of microfinance and its unique ability to change people’s lives.
However, we cannot do it on our own. Your support and assistance are for yet another time not only desirable but required. And we are certain we can count on it in these rapidly changing times.
From all of us at EMN, a happy festive season and a Healthy, Prosperous and Joyful New Year!
Policy notes
- Adrian Suteu
Read EMN-MFC Manifesto in view of the upcoming European elections!
Annual report
EMN Position
Papers
01 Preparation for the 2021-2027 multiannual financial framework
EMN/MFC followed the design and negotiation phases of this budget cycle and took part in the stakeholder expert group that the EC consults when planning the Multiannual Financial Framework (MFF), to ensure the financial instruments and the programmes are most efficiently designed to support the microfinance actors.
The long-term EU budget, roughly 1 trillion Euro, was agreed at the Special session of the Council of the European Union, 17-21 July 2020. The new MFF will cover seven years between 2021 and 2027 and will also be the main instrument for implementing the recovery package to tackle the socio-economic consequences of the COVID-19 pandemic.
Microfinance will benefit from the programmes that will be called InvestEU (for centralised support) and ESF+ (for decentralised support).
- Proposals on continued and improved EU instruments to support the European microcredit sector
- Concept note on microfinance sourcing guarantee
- EMN response to GECES consultation on InvestEU
- EMN-MFC response to GECES Sustainability Proofing consultation in August 2019
- EMN-MFC response to GECES Investment Guidelines consultation in August 2019
02 Actions to support Microfinance sector during COVID-19 context
Due to the pandemic, the risk of exclusion for microfinance clients has worsened drastically. On top of this, COVID-19 put some of the European microfinance institutions under severe financial and operational pressure. Despite this, MFIs have been showing their resilience and have been implementing several measures to help their clients. EMN has been sharing all these measures with DG EMPL since March 2020 on an ongoing basis and continues carrying out this exercise now in post-crisis context. Also, EMN started compiling public measures, concretely fiscal, monetary, social and employment initiatives, launched by governments of the EU countries to support the resilience of MFIs and their clients.
EMN has taken a very proactive role, advocating to the European institutions to pass amendments on the EaSI programme to be more flexible and adapt it to these difficult times, as well as demanding additional financial resources for the sector to overcome the pandemic economic and social consequences.
- EMN-MFC Letter to the EIF and DG EMPL (April 2020)
- Response from EIF about EaSI Guarantee amendments as COVID support measures
- EMN-MFC Letter to Commissioner Nicolas Schmit (April 2020)
- Response from Commissioner Nicolas Schmit
- EMN-MFC Letter to European Commission President Von der Leyen (July 2020)
- Response from European Commission President Von der Leyen
03ESF and Microfinance, working together for inclusive entrepreneurship
The objectives of the European Social Fund include improving employment and social inclusion. These are core to the mission of the microfinance sector, and microfinance institutions have a history of expertise in achieving these objectives. This makes microfinance institutions perfect partners for ESF managing authorities seeking to roll out programmes encouraging entrepreneurial skills, and to lower the barrier to financial inclusion.
EMN has developed a number of Policy Notes exploring particular topics that demonstrate the value of closer partnerships.
04 Costs and pricing of microcredit
05Regulatory framework for the creation of microenterprises and self-employment
Member states each have their own approaches to how they empower entrepreneurship and self-employment. In some states it is a higher priority than others, and there is a lot of room for improvement across the continent, which also means the European institutions have an opportunity to lead the direction of upward convergence here.
EMN makes a number of suggestions that would be a strong starting point for improving the inclusiveness of entrepreneurship across Europe in its Note to DG GROW below. At the same time, the OECD produces a regular, thorough, report that gives country-specific policy recommendations for identifying and boosting excluded target groups.
06EU definition of microfinance and microcredit
The EU definition for microfinance sets an important precedent for the member states. Over the past decade, the EU definition has seen strong improvements to be more in line with EMN/MFC suggestions. However, there is more work to be done to reflect the essentially social and inclusive nature of microfinance, and to drive for more harmonisation of national definitions across Europe.
A full account and reasoning behind the EMN/MFC proposed definition can be found in the document below.
07Close the funding gap for the microfinance sector and microfinance in the Capital Market Union
Though the microfinance industry has been rapidly growing according to the overview surveys data carried out in the past years, a study produced by evers & jung has suggested that the current size of the microfinance industry is still only covering a fraction of the potential demand. Policymakers, investors and microfinance practitioners must work together to address this gap through a combination of sourcing new funds, and marketing them effectively.
Beyond identifying this funding gap, one of the main initiatives at EU level aiming to increase access to finance is the Capital Markets Union (CMU) – a series of measures proposed to make the EU a single market for capital
Here is selection of good practices in advocacy at national level from EMN members.
To access the Good Practices, please click on the titles below.
