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European Microfinance Network aisbl

EMN aisbl

- to promote self-employment, social and financial inclusion, micro-enterprise and the supply of micro-finance services including micro-credit, any other micro-finance service such as but not limited to, micro-insurance, personal credit, micro-securities, micro-payment and all other related services in Europe - to support the development of micro-finance programs and micro-finance institutions - to develop and strengthen the technical support to training and information programs - to increase knowledge about microfinance, particularly on good practices in this field - to establish and improve a regulatory framework for micro-finance and self-employment in the European Union and in the Member States - to represent the Association and its members before the EU institutions

Lobbying Activity

Response to EU Anti-Poverty Strategy

24 Oct 2025

The European Microfinance Network (EMN) welcomes the European Commissions initiative to design a comprehensive EU Anti-Poverty Strategy (APS). Among the tools to be developed in support of the APSs objectives, microfinance can play a crucial role in addressing the root causes of poverty by empowering vulnerable and underserved populations. By enhancing access to microfinance, financial literacy, and entrepreneurial opportunities, the activities of microfinance institutions (MFIs) can complement and reinforce the APSs objectives, turning policy ambitions into tangible economic empowerment and social inclusion. To ensure that microfinance reaches its full potential within the Anti-Poverty Strategy, we recommend: (1) Strengthening EU funding instruments to guarantee the continuity of InvestEU and ESF+ allocations for microfinance; (2) Encouraging national-level support for microfinance; (3) Enhancing monitoring and impact assessment frameworks; and (4) Promoting access to green microfinance for vulnerable groups. Please find attached our full contribution to the call for evidence.
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Response to The new Action Plan on the implementation of the European Pillar of Social Rights

4 Sept 2025

The European Microfinance Network (EMN) and Microfinance Centre (MFC) welcome this opportunity to provide their opinion on the new European Pillar of Social Rights action plan. EMN is a member-based not-for-profit association based in Brussels that promotes microfinance as a tool to fight social and financial exclusion through self-employment and the creation of microenterprises. The network gathers more than 90 organisations across Europe (microfinance institutions, service providers, investors, banks, and academics). MFC is a social finance network that promotes fairness, inclusion, equality, and responsible service. MFC currently unites 149 members across 36 countries of Europe and Central Asia, who together deliver responsible microfinance services to almost 2,000,000 low-income clients. Together with its members, microfinance institutions, financial cooperative systems, social finance banks, social investors, academic institutions, national and international support organizations and networks, MFC seeks to make financial services work effectively for people, communities, and the planet by embracing sustainability, good practices, and standards, sharing knowledge, advocacy and networking in the region of Europe and Central Asia. Microfinance addresses market gaps by serving micro-entrepreneurs and individuals excluded from traditional banking due to lack of collateral, credit history, or business networks. MFIs offer microloans (typically under 50,000) alongside business development services, training, and mentoring. In 2023, the sector reported a 7 billion gross loan portfolio and 1.5 million active borrowers. MFIs contribute directly to several EPSR principles: Education, training, and lifelong learning: 76% of MFIs offer non-financial services, with 45% focusing on business skills and one-third on financial literacy. Gender equality: Women comprise 67% of MFI staff and 45% of individual business clients. Equal opportunity: 36% of MFIs serve clients earning below GNI per capita, 33% support rural entrepreneurs, and 10% serve migrants and ethnic minorities. Active support to employment: Half of MFIs exclusively focus on business lending, representing 70% of total portfolio volume, directly supporting microenterprises, 83% of MFIs track job creation and retention. Housing Inclusion: 61% of MFIs offer personal microloans for housing-related needs, helping prevent homelessness and improve living conditions. Access to Essential Servicesincluding financial services: MFIs expand financial inclusion through personalised loans and financial education. Recommendations: 1. Ensure the coordination between the European Pillar of Social Rights (EPSR) and other EU-level initiatives to increase efficiency of social policies and recognise microfinance as one of the tools available to reach the goals set at the EU level 2. At the EU level, match EPSR goals with available EU financial instruments 3. At the national level a) Incentivise Member States to develop microfinance and social finance programmes under their National and Regional Partnerships Plans b) Develop cooperation opportunities between private and public stakeholders 4. Develop impact measurement tools Microfinance is a proven, scalable solution for advancing the EPSRs objectives. With appropriate recognition, coordination, and funding, MFIs can further empower vulnerable populations and foster inclusive economic development across Europe. For more details, please see the enclosed document.
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Response to Proposal for an amendment to the InvestEU Regulation.

18 Jul 2025

On behalf of the European Microfinance Network (EMN), please find below our contribution.
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Response to Savings and Investments Union

7 Mar 2025

The European Microfinance Network (EMN) welcomes this opportunity to provide its opinion on the upcoming Savings and Investments Union (SIU). EMN is a member-based not-for-profit association based in Brussels which promotes microfinance as a tool to fight social and financial exclusion through self-employment and the creation of microenterprises. The network gathers more than 90 organisations across Europe. In 2023, the microfinance sector reported a total gross loan portfolio of EUR 5.3 billion serving a total of 1.3 million active borrowers that are underserved by the traditional financial sector. Microfinance exists to fill a market gap that consists of micro entrepreneurs and underserved groups who are excluded from traditional banking services because they cannot comply with the common requirements to get a loan (no collateral, no credit history, lack of business network and of entrepreneurial skills...). For this target group, microfinance provides access to financial services (microloans under EUR 50.000) which are always accompanied with non-financial services (business development services, training, coaching and mentoring). Experience shows that the latter helps a very satisfactory repayment record in the sector. As a reminder, the last Capital Market Union (CMU) Action plan published in 2020 aimed, among other objectives, to lead the EU towards a more inclusive economy, to get investment and savings flowing between Member States to benefit citizens, investors and companies across the EU. The CMUs actions were built to create a more inclusive and resilient economy and society with incentives to promote investments in socially and environmentally sustainable activities. The first of the three objectives of the CMU was to support a green, digital, inclusive and resilient economic recovery by making financing more accessible to European companies. The future Savings and Investments Union (SIU) should also contribute to achieving wider economic and social objectives and notably the green and digital transitions and ensuring economic and social sustainability for the EU in the long term. We understand that the first purpose of the SIU would be to mobilise more effectively savings to create a larger pool of investment capital in order to reduce the use of bank loans by European businesses. We agree that this could further help channelling funding to EU (innovative) companies. We call the European Commissions attention on the following points to ensure that these new investments opportunities will also contribute to achieve the social and green objectives mentioned above (please see the document attached for more details on the points below): 1) Ensure access to funding for self employed and microentrepreneurs through a better support to microfinance and social finance providers 2) Set up the EU referral scheme as planned in the 2020 CMU Action plan 3) Ensure access to funding for the green transition of MSEs and underserved households
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Meeting with Mario Nava (Director-General Employment, Social Affairs and Inclusion) and

24 Feb 2025 · DG meeting with European Microfinance Network

Response to ESF+ mid-term evaluation

13 Feb 2024

MFC, FEBEA and EMN are welcoming this opportunity to give their feedback on the ESF+ to document the mid-term evaluation of the programme. The 4-year Partnership Agreement under ESF+ allows EMN, MFC and FEBEA to run their operations with quality and stability and thereof represent a valuable support at the EU level of the microfinance and social finance sector in Europe. From advocacy, to research, capacity building and the organization of the Annual Conferences, through and thanks to this Grants, the networks are a constant point of support and bridge between practitioners and EU institutions, with the EMN-MFC Survey being a key tool to understand and address the needs of the sector. Complementary to the support of ESF+ to microfinance and social finance, is its effort in fostering social innovation through different EU projects, which provides a boost to the innovation and digitalization trends for MFIs and social economy finance providers, still limited in the EU. Looking up to the future, our Networks identify a need to pursue the continuity of Business Development Services (BDS), especially those targeted to vulnerable groups, accompanying different microentrepreneurs and social economy entities across the whole array of growth stages, from startup to organizational development. This continuity aspect should be under special consideration when preparing national social economy strategies or policies in a response to the EU Council Recommendation, from November 27th 2023. The Networks are welcoming positively the announcement of a blending instrument for 2024, adding a non-repayable component as a complement to the financial instruments available under the Social Investment and Skills Window of InvestEU. Within this scope, we call on the implementing partners to prioritize vulnerable groups, BDS and interest rates subsidies on granted loans. As from feedback received from our practitioner members, only a few of them have applied to ESF+ projects. Here we highlight the uncertainty regarding if and how InvestEU financial and risk coverage instruments and EU structural funds (such as ESF+) can be combined. Due to the few feedbacks received from our members at present it is difficult to properly and fully assess the use of ESF+ resources by microfinance and social finance providers. In conclusion, while ESF+ funds and projects have greatly supported and fostered the microfinance and social finance sector and networks, to expand their impact we see the need for more national instruments to be directed to microfinance and social finance projects. To achieve this, we propose the following processes to be encouraged by EU institutions at the national level: 1. Reduction of national legal and financial barriers that micro and social finance institutions face. 2. Development of new funding opportunities such as risk-sharing loans, BDS grants, complementary guarantee schemes, starting with an analysis of the funding needs and gaps not filled by InvestEU instruments. 3. Promotions of micro and social finance to raise awareness and visibility of this tool for financial inclusion, social impact, and economic development. 4. Allocation of a significant share of EU shared management funds available to microfinance and social economy finance. 5. Provision of funding for innovation, digitalization, and green transformation. You can see further detailed feedback in the attached document.
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Meeting with Joost Korte (Director-General Employment, Social Affairs and Inclusion)

12 May 2023 · EU Network’s achievements, and advocacy proposals.

Response to Interim Evaluation of the InvestEU Programme

10 May 2023

On behalf of the European Microfinance Network (EMN), the Microfinance Centre (MFC) and the European Federation of Ethical and Alternative Banks and Financiers (FEBEA) please find below and attached our contribution to the call for evidence. This contribution is the result of a consultation process among the members of the three organisations (approximately 30 members sent us their feedbacks). Following our consultation, it appears that, our members (microfinance institutions, social finance providers and ethical and alternative banks), are using principally the InvestEU fund and the InvestEU advisory hub pillars. As providers of financial and non-financial services for vulnerable groups, MSMEs and social enterprises, our members are mainly using the financial guarantee products to support their activities (as it was the case under the EaSI programme). The financial guarantee is used for instance to lower their funding costs, to reduce their credit risks and their capital requirements. Ultimately, it allows them to provide access to finance to vulnerable groups, MSMEs and social enterprises and to support (self) employment, financial and social inclusion. The InvestEU programme is still in its early days of operation. However, as explains in more details in the document uploaded, our members pointed out a few shortcomings such as the removal of the recovery rate (used under the EaSI guarantee), the exclusion of some financing projects, the new refinancing conditions or the increase of the reporting requirements and need for low-cost funding/capital/new financing instruments not satisfied by InvestEU guarantee programme. Members also mention the lack of transparency around InvestEU (amounts disbursed for the social window, list of successful recipients...). When it comes to improving the current programme to reach the goals set under the InvestEU social window, our members mentioned the need to: provide grants in order to reduce the interest rate for the final recipients, provide less expensive loans (below the market rate) for financial intermediaries, develop new funding instruments and also importantly increase the portfolio dedicated to the Social investment and skills window. Regarding the InvestEU Portal, our members unanimously answered that they were not using it e.g., due to its complexity. Finally, concerning the InvestEU Advisory hub (i.e the SIFTA programme), the opinions differ between our members depending on their status (bank, microfinance institutions, non-banking financial institutions) and their size. For the smallest ones for whom this service is of help, they mentioned the lack of clarity regarding the application process (sometimes defined as too bureaucratic) and the need for more peer-to-peer visits and specific trainings (on the European Code of Good conduct renewal for instance). On behalf of our organisations, please see below our full contribution to the call for evidence.
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Response to Developing social economy framework conditions

30 Sept 2022

EMN and MFC welcome the Social Economy Action Plan (SEAP) published by the European Commission in December 2022 and thank the European Commission for this opportunity to contribute to its implementation. Please see attached our recommendations.
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Meeting with Anouk Faber (Cabinet of Commissioner Nicolas Schmit), Santina Bertulessi (Cabinet of Commissioner Nicolas Schmit)

11 Jul 2022 · EU support for microfinance and for the Social Economy Sector in the Western Balkans

Meeting with Nicolas Schmit (Commissioner) and

15 Feb 2021 · Meeting on future of the EU budget, the successor programme to EaSI guarantee and the development of fresh policy initiatives supporting microfinance.

Response to Consumer Credit Agreement – review of EU rules

31 Aug 2020

The microfinance sector welcomes the review of the Consumer Credit Directive, and appreciates this early opportunity to provide input. Consumer protection is at the heart of microfinance, and we believe that such incremental improvements to European regulation will lead to better outcomes for both the industry and for citizens. The emerging phenomena that necessitate this review are indeed pertinent: the rise of new operators, the advent of digital platforms and the behavioural risks they entail, the risk of systemic indebtedness, and the crushing effect of the pandemic are all to be taken very seriously by policymakers. At the same time, the microfinance sector has been working in these areas as well, in a socially responsible, inclusive manner. We serve low-income clients at risks of financial exclusion, and support them to take an active role in the economy and manage their obligations. It is of crucial importance to distinguish the concept of social credit (such as professional microcredit) from low-quality and predatory lending. Access to credit is and remains one of the cornerstones of participation in modern life. Microcredit has been an ally of public policy since its inception, leading to tangible successes like the European Code of Good Conduct of Microcredit Provision, which is now an international reference for sustainable business practices that lead to demonstrably positive social outcomes. With regards to the main 4 focuses of the consultation: 1) EMN and MFC agree that loans falling just outside of the scope of the directive should be brought into scope. New operators and non-bank financial instituitions offering loans out of scope still have the potential of leading consumers down the road of overindebtedness. 2) EMN and MFC agree that disclosure of information should be modernised for rapidly evolving landscape of digital platforms. Digital credit disbursement has become the norm for microfinance providers since the pandemic, and responsible market players have managed to observe all necessary guidelines to ensure client protection, proving that such an approach is possible. 3) EMN and MFC agree that safeguards against irresponsible lending are crucial. However, current standards in microfinance seem appropriate. Further requirements or standardisation may lead to mismatches with the market that lead to operators no longer being able to issue loans when needed, leading to further financial exclusion. As such, care should be taken not to issue requirements that would make social and inclusive loans impossible. The requirements in the European Code of Good Conduct for Microcredit Provision could prove to be a starting point to drive upward convergence for non-bank financial institutions. 4) EMN and MFC agree that citizens should be protected in exceptional circumstances when they are exposed to systemic risks they cannot control or plan for. Debt relief, guarantees, subsidies and other "soft failure" measures should ensure that systemic disruptions don't leave people with chronic debt from which they cannot recover. More than a million microfinance clients across Europe are now figuring out how to meet their commitments, and they need support. EMN and MFC stand ready to give further input into the revision process, regardless of which of the 4 legislative approaches is chosen.
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Meeting with Joost Korte (Director-General Employment, Social Affairs and Inclusion)

1 Feb 2019 · Meeting to discuss micro-finance

Response to Evaluation of the support to social inclusion by the European Social Fund

10 Jan 2019

Dear Ms Cueto Faus and DG EMPL unit G4, Thank you for the opportunity to give feedback on the roadmap for this important assessment. The European Social Fund (ESF), when administered effectively by managing authorities, is a potent tool for enhancing social inclusion and combating poverty. The European microfinance industry shares these goals, and considers the European institutions as a crucial ally in increasing financial inclusion. The European Microfinance Network (EMN) and the Microfinance Centre (MFC) have previously mapped out how well the ESF support has effectively empowered the microfinance industry, examining good practices and market failures. EMN and MFC previously shared this document with the EC, and hope that it can serve as useful reference material for the review. As this document highlighted many challenges, EMN is in the process of performing a follow-up study that intends to suggest more effective practices for the future. We will share this second study when it is completed. Aside from these studies, EMN and MFC stand ready to support the EC in its evaluation of the ESF, through their feedback mechanisms including working groups and thematic think tanks, focus groups, interviews and other methods, and they will encourage their members across Europe to also be ready to participate where and whenever useful. Sincerely yours, Jorge Ramirez (General Manager European Microfinance Network) Grzegorz Galusek (Executive Director Microfinance Centre)
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Meeting with Florentine Hopmeier (Cabinet of Vice-President Jyrki Katainen)

14 Sept 2018 · European Microfinance Network proposal for a European Platform for Microfinance and Social Enterprises

Meeting with Christoph Nerlich (Cabinet of Commissioner Marianne Thyssen)

14 Sept 2018 · InvestEU in the social sector

Meeting with Florentine Hopmeier (Cabinet of Vice-President Jyrki Katainen)

14 Feb 2018 · Microfinance in Europe

Meeting with Baudouin Baudru (Cabinet of Commissioner Marianne Thyssen)

20 Dec 2017 · FEI, Easi

Meeting with Raquel Lucas (Cabinet of Vice-President Valdis Dombrovskis), Tatyana Panova (Cabinet of Vice-President Valdis Dombrovskis)

9 Mar 2017 · Microfinance in the CMU and funding through EaSI programme

Meeting with Julie Fionda (Cabinet of Commissioner Marianne Thyssen)

11 Jan 2017 · Microfinance

Meeting with Lee Foulger (Cabinet of Vice-President Valdis Dombrovskis)

2 Sept 2016 · CMU and the development of microcredit for an inclusive entrepreneurship