Over the last decades, the EU economy saw radical changes and world-wide competition increased. Faced with the fundamental industrial conversion process and the emergence of new science-based industries, traditional bank financing has reached the limits of its capacity.
A Eurobarometer poll published in 2005 showed that many SMEs find it more difficult than previously to obtain a bank loan. Improving SMEs access to finance is one of the key factors for business expansion, job creation and economic growth.
This memo explains what the Commission is doing to promote the financial markets using its financial instruments covering in particular venture capital and guarantee schemes. Examples are underlining that the Commissions financial instruments have proved to be successful. Both the Commission and the Member States already have programmes partnering with the private sector to invest in SMEs, but more needs to be done.
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