The European Commission implementing the Lisbon strategy which is intended to promote economic growth and employment in Europe, prepared an initiative which is aimed that microcredits would be granted in Europe more often, so increasing the supply that did not meet the financing needs until now.
According to the initiative of the European Commission, a microcredit is a loan under EUR 25,000. This loan is intended for very small businesses, having up to 10 employees, also to unemployed person who would like to be self-employed but cannot make use of traditional banking services. In this initiate the EU Member States are urged to promote more favourable environment for development of microcredits, adapting their national institutional, legal and business frameworks for this purpose.
The initiative recommends setting up a new European-level facility with staff to provide expertise and support for the development of non-bank micro-finance institutions in Member States. In order that persons granting microcredits would have sufficient sources of capital, the initiative proposes setting up a micro-fund in the new facility.