EU plan to free up small business lending
Sep 15 2008
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The European Investment Bank (EIB) has pledged to loan more money to small and medium-sized firms as commercial lenders tighten their criteria.
Following meetings of the 27 EU member states' finance ministers in Nice, it was agreed that the best way to help economies in Europe was not through US-style tax rebates but through financing business now other sources of credit are less widely available.
'We're not simply adopting a 'wait and see' policy, we are not going to sit on our hands. We need to make sure that our economies perform well,' Christine Lagarde, French economy minister, says.
She adds that supporting small companies will promote better economic growth, more jobs and more innovation.
Under the plans, 30 billion euros (£23.8 billion) - twice the normal amount lent to small businesses - will be made available as financing by 2011.
The ministers said during their meeting they would avoid huge public-funded stimulus packages and added they would concentrate on tackling inflation and minimising the effect of the economic downturn.
Following meetings of the 27 EU member states' finance ministers in Nice, it was agreed that the best way to help economies in Europe was not through US-style tax rebates but through financing business now other sources of credit are less widely available.
'We're not simply adopting a 'wait and see' policy, we are not going to sit on our hands. We need to make sure that our economies perform well,' Christine Lagarde, French economy minister, says.
She adds that supporting small companies will promote better economic growth, more jobs and more innovation.
Under the plans, 30 billion euros (£23.8 billion) - twice the normal amount lent to small businesses - will be made available as financing by 2011.
The ministers said during their meeting they would avoid huge public-funded stimulus packages and added they would concentrate on tackling inflation and minimising the effect of the economic downturn.
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