BETA


2016/2032(INI) Access to finance for SMEs and increasing the diversity of SME funding in a capital markets union

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead ECON KARAS Othmar (icon: PPE PPE) SIMON Siôn (icon: S&D S&D), OŻÓG Stanisław (icon: ECR ECR), WIERINCK Lieve (icon: ALDE ALDE), LÓPEZ BERMEJO Paloma (icon: GUE/NGL GUE/NGL), LAMBERTS Philippe (icon: Verts/ALE Verts/ALE), ZANNI Marco (icon: EFDD EFDD), ANNEMANS Gerolf (icon: ENF ENF)
Committee Opinion INTA
Committee Opinion BUDG KUŹMIUK Zbigniew (icon: ECR ECR) Clare MOODY (icon: S&D S&D), Sophie MONTEL (icon: ENF ENF), Liadh NÍ RIADA (icon: GUE/NGL GUE/NGL), Indrek TARAND (icon: Verts/ALE Verts/ALE)
Committee Opinion EMPL
Committee Opinion REGI JOULAUD Marc (icon: PPE PPE) Norica NICOLAI (icon: ALDE ALDE), Remo SERNAGIOTTO (icon: ECR ECR), Davor ŠKRLEC (icon: Verts/ALE Verts/ALE)
Committee Opinion CULT MORGANO Luigi (icon: S&D S&D) Jill EVANS (icon: Verts/ALE Verts/ALE), Liadh NÍ RIADA (icon: GUE/NGL GUE/NGL), Theodoros ZAGORAKIS (icon: PPE PPE)
Lead committee dossier:
Legal Basis:
RoP 54

Events

2016/12/21
   Commission response to text adopted in plenary
Documents
2016/09/15
   EP - Results of vote in Parliament
2016/09/15
   EP - Decision by Parliament, 1st reading/single reading
Details

The European Parliament adopted by 528 votes to 77 with 44 abstentions a resolution on access to finance for SMEs and increasing the diversity of SME funding in a Capital Markets Union.

Members recalled that micro-, small and medium-sized enterprises and mid-caps play an important role for the European economy in terms of employment and growth. SMEs account for 67 % of total employment, 71.4 % of the increase in employment and 58 % of the value added in the non-financial business sector in the EU in 2014. European SMEs are very diverse and operate mainly at national level and have different financing needs. Banks provide 77 % of outstanding SME funding in Europe.

Diverse funding needs of a diverse SME sector : acknowledging the diversity of SMEs and the challenges that SMEs are facing in accessing financing, Parliament considered that the financing of SMEs should be as broadly based as possible in order to ensure optimal access to finance for SMEs at every stage of the development of an enterprise.

Stressing the need for a diversified, tailor-made approach in terms of regulation and in terms of initiatives to be supported, the report called on the Commission to support the development of a broad range of tailored programmes, instruments and initiatives, in order to support businesses in their start-up, growth and transfer phases , taking into account their size, turnover and financing needs whilst ensuring that its programmes do not disfavour women entrepreneurs.

The Commission was called upon to:

continue drafting proposals tailored to the needs of SMEs: the Startup Europe initiative should assist small innovative companies by supporting them until they become operational; follow-up to the Small Business Act whi ch would further assist businesses in overcoming both physical and regulatory barriers; ensure synergies between European instruments and programmes for SMEs such as the European Structural and Investment Funds; promote a holistic approach to the dissemination of information on all EU funding opportunities; make progress on simplification in order to make financing more attractive for SME’s; assess during the review of the Late Payment Directive the introduction of specific measures aimed at easing payments for SMEs; ensure that cross-border activities in the field of retail financial services lead to better access to finance for SMEs.

Members encouraged the Member States to continue their efforts to reduce administrative hurdles and to create one-stop shops as hubs for all regulatory requirements for entrepreneurs.

A European approach to financial regulation and the Capital Markets Union should take into account international developments in order to avoid unnecessary divergences and duplications in legislation and keep Europe as an attractive place for international investors. Furthermore, Members were in favour of a strategic pl an to support SME financing with a view to their internationalisation.

Bank lending to SMEs : Parliament acknowledged that bank lending is traditionally the most important external financing source for SMEs in the Union, as bank funding accounts for over three quarters of SME financing. It invited the Member States to fully collaborate with the financial sector regarding their obligation to ensure full and equal access to bank lending for SMEs . It underlined the important and well-developed role of banks with specific regional and local knowledge in providing funding to SMEs.

Members recalled the decision of the co-legislators to introduce the SME supporting factor into the Capital Requirements Regulation CRR and the Capital Requirements Directive CRD IV framework and that it was designed to leave the capital requirements for SME lending consistent with Basel II rather than Basel III levels. The resolution emphasised the importance of the SME supporting factor for maintaining and increasing bank lending to SMEs. It called on the Commission to explore the possibility of making the factor permanent and called on the Basel Committee for Banking Supervision (BCBS) to back the SME supporting factor and to consider lowering the capital charges for exposures on SMEs.

Parliament encouraged the Commission to study the possibility of introducing ‘funding for lending’ programmes that would make European Central Bank money available to banks with the sole purpose of lending to SMEs.

Non-bank sources for SME funding : the resolution called on the Member States to foster a risk-taking and capital market culture, in particular by improving the financial the financial literacy and access to financial skills and knowledge of SMEs.

Members called on the Commission to provide an appropriate, tailored regulatory framework for issuers of funding to SMEs that does not prove burdensome for them and also wins investors’ confidence. They welcomed the Commission's CMU action plan , which aims to ensure easier access for SMEs to more diverse funding options, while highlighting that bank-based and capital-based financing models should be complementary.

The resolution highlighted the following issues:

the need for a proportionate regulation, with less complex and burdensome disclosure and listing requirements for SMEs to avoid duplication and lighten the burden for SMEs; the importance of the transparency, standardisation and public availability of SME financing information for banks, investors, supervisors and other stakeholders in order to understand the risk profile and take informed decisions and to reduce financing costs; the ongoing discussions on the expediency of designing specific common accounting standards for SMEs; fostering innovation through lending platforms; underline the potential of new innovative financial technology (FinTech) for better matching SMEs with potential investors and explore potential risks and the need for an appropriate harmonised EU regulatory framework without stifling innovation; encouraging safe lending to companies by private individuals through peer-to-peer lending or retail bonds; securitisation could offer a possibility to increase the lending capacity of banks to SMEs. The legislative initiative for simple, transparent and standardised (STS) European securitisations should be encouraged; simplified and harmonised rules on insolvency could help reduce obstacles to cross-border investment in SMEs and start-ups; a fair, effective and transparent taxation system that attracts finance and investments given that the taxation system has a strong influence on the internal finance capacity of SMEs; specific solutions to accessing finance, in order to improve access to finance in the cultural and creative sectors.

Members called for the Commission to deliver an annual report to the European Parliament, outlining the status of implementation initiatives and its impact on the improvement of access to financing for SMEs in Europe.

Documents
2016/09/15
   EP - End of procedure in Parliament
2016/09/14
   EP - Debate in Parliament
2016/06/29
   EP - Committee report tabled for plenary, single reading
Details

The Committee on Economic and Monetary Affairs adopted the own-initiative report by Othmar KARAS (EPP, AT) on access to finance for SMEs and increasing the diversity of SME funding in a Capital Markets Union.

Members recalled that micro-, small and medium-sized enterprises and mid-caps play an important role for the European economy in terms of employment and growth. SMEs account for 67 % of total employment, 71.4 % of the increase in employment and 58 % of the value added in the non-financial business sector in the EU in 2014.

European SMEs are very diverse and operate mainly at national level. 77 % of outstanding SME funding in Europe is provided by banks.

Diverse funding needs of a diverse SME sector : acknowledging the diversity of SMEs and the challenges that SMEs are facing in accessing financing, Members considered that the financing of SMEs should be as broadly based as possible in order to ensure optimal access to finance for SMEs at every stage of the development of an enterprise.

Stressing the need for a diversified, tailor-made approach in terms of regulation and in terms of initiatives to be supported, the report called on the Commission to support the development of a broad range of tailored programmes, instruments and initiatives, in order to support businesses in their start-up, growth and transfer phases , taking into account their size, turnover and financing needs whilst ensuring that its programmes aimed at facilitating access to finance for SMEs do not disfavour women entrepreneurs.

The Commission is called upon to:

follow-up to the Small Business Act which would further assist businesses in overcoming both physical and regulatory barriers; ensure coordination, consistency and synergies between European instruments and programmes for SMEs such as the European Structural and Investment Funds; promote a holistic approach to the dissemination of information on all EU funding opportunities; make significant progress towards further simplification so as to make funding more attractive for SMEs; ensure that cross-border activities in the field of retail financial services lead to better access to finance for SMEs.

Members encouraged the Member States to continue their efforts to reduce administrative hurdles and to create one-stop shops as hubs for all regulatory requirements for entrepreneurs.

Stressing the fact that achieving a well-functioning European capital market is one of the most important initiatives for the financial sector, Members underlined the importance of simplifying or modifying rules which gave rise to unintended consequences for SMEs or inhibited their development.

Bank lending to SMEs : Members acknowledged that bank lending is traditionally the most important external financing source for SMEs in the Union, as bank funding accounts for over three quarters of SME financing. They invited the Member States to fully collaborate with the financial sector regarding their obligation to ensure full and equal access to bank lending for SMEs . They underlined the important and well-developed role of banks with specific regional and local knowledge in providing funding to SMEs.

Members recalled the decision of the co-legislators to introduce the SME supporting factor into the Capital Requirements Regulation CRR and the Capital Requirements Directive CRD IV framework and that it was designed to leave the capital requirements for SME lending consistent with Basel II rather than Basel III levels. The report emphasised the importance of the SME supporting factor for maintaining and increasing bank lending to SMEs. It called on the Commission to explore the possibility of making the factor permanent and called on the Basel Committee for Banking Supervision (BCBS) to back the SME supporting factor and to consider lowering the capital charges for exposures on SMEs.

Non-bank sources for SME funding : the report called on the Member States to foster a risk-taking and capital market culture, in particular by improving the financial the financial literacy and access to financial skills and knowledge of SMEs.

Members welcomed the Commission's CMU action plan , which aims to ensure easier access for SMEs to more diverse funding options, while highlighting that bank-based and capital-based financing models should be complementary.

The report highlighted the following issues:

the need for a proportionate regulation, with less complex and burdensome disclosure and listing requirements for SMEs to avoid duplication and lighten the burden for SMEs; the importance of the transparency, standardisation and public availability of SME financing information for banks, investors, supervisors and other stakeholders in order to understand the risk profile and take informed decisions and to reduce financing costs; fostering innovation through lending platforms; underline the potential of new innovative financial technology (FinTech) for better matching SMEs with potential investors and explore potential risks and the need for an appropriate harmonised EU regulatory framework without stifling innovation; encouraging safe lending to companies by private individuals through peer-to-peer lending or retail bonds; securitisation could offer a possibility to increase the lending capacity of banks to SMEs. The legislative initiative for simple, transparent and standardised (STS) European securitisations should be encouraged; simplified and harmonised rules on insolvency could help reduce obstacles to cross-border investment in SMEs and start-ups; striving for a fair, effective and transparent taxation system that attracts finance and investments given that the taxation system has a strong influence on the internal finance capacity of SMEs.

Lastly, Members called for the Commission to deliver an annual report to the European Parliament, outlining the status of implementation initiatives and its impact on the improvement of access to financing for SMEs in Europe.

Documents
2016/06/21
   EP - Vote in committee, 1st reading/single reading
2016/06/03
   EP - Committee opinion
Documents
2016/05/26
   EP - Committee opinion
Documents
2016/05/24
   EP - Committee opinion
Documents
2016/04/06
   EP - Amendments tabled in committee
Documents
2016/03/10
   EP - Committee referral announced in Parliament, 1st reading/single reading
2016/03/08
   EP - Committee Opinion
2016/02/16
   EP - Committee Opinion
2016/02/15
   EP - Committee Opinion
2016/02/04
   EP - Committee draft report
Documents
2015/07/09
   EP - Responsible Committee

Documents

Activities

Votes

A8-0222/2016 - Othmar Karas - Résolution

2016/09/15 Outcome: +: 528, -: 77, 0: 44
DE IT PL FR RO GB ES BE AT BG PT HU NL SE SK CZ LT HR FI DK SI LU LV EE MT EL CY IE
Total
89
67
43
63
28
57
46
19
18
15
19
17
20
16
13
19
9
9
9
10
7
6
6
6
6
17
5
10
icon: PPE PPE
182

Lithuania PPE

1

Finland PPE

For (1)

1

Denmark PPE

For (1)

1

Luxembourg PPE

3

Latvia PPE

2

Estonia PPE

For (1)

1

Cyprus PPE

1
icon: S&D S&D
170

Netherlands S&D

For (1)

1

Czechia S&D

3

Croatia S&D

For (1)

1

Denmark S&D

2

Slovenia S&D

For (1)

1

Luxembourg S&D

For (1)

1

Latvia S&D

1

Estonia S&D

For (1)

1

Malta S&D

3

Cyprus S&D

2

Ireland S&D

Against (1)

1
icon: ECR ECR
67

Italy ECR

2

Romania ECR

For (1)

1

Bulgaria ECR

2

Netherlands ECR

2

Slovakia ECR

Abstain (1)

3

Czechia ECR

2

Lithuania ECR

1

Croatia ECR

For (1)

1
2

Latvia ECR

For (1)

1

Greece ECR

Abstain (1)

1
icon: ALDE ALDE
60

Romania ALDE

3

United Kingdom ALDE

1

Austria ALDE

For (1)

1

Bulgaria ALDE

3

Croatia ALDE

For (1)

1

Finland ALDE

2

Denmark ALDE

1

Slovenia ALDE

For (1)

1

Luxembourg ALDE

For (1)

1

Latvia ALDE

1

Estonia ALDE

3

Ireland ALDE

For (1)

1
icon: Verts/ALE Verts/ALE
44

United Kingdom Verts/ALE

4

Belgium Verts/ALE

2

Austria Verts/ALE

3

Hungary Verts/ALE

1

Netherlands Verts/ALE

2

Lithuania Verts/ALE

For (1)

1

Croatia Verts/ALE

For (1)

1

Finland Verts/ALE

For (1)

1

Denmark Verts/ALE

For (1)

1

Luxembourg Verts/ALE

For (1)

1

Latvia Verts/ALE

1

Estonia Verts/ALE

For (1)

1
icon: NI NI
9

Germany NI

2

Poland NI

Against (1)

1

France NI

Abstain (1)

2

United Kingdom NI

For (1)

1

Hungary NI

2

Greece NI

1
icon: ENF ENF
32

Germany ENF

Against (1)

1

Poland ENF

Against (1)

1

United Kingdom ENF

Against (1)

1

Belgium ENF

Abstain (1)

1

Netherlands ENF

2
icon: EFDD EFDD
36

Germany EFDD

Against (1)

1

Poland EFDD

1

France EFDD

1

Sweden EFDD

2

Czechia EFDD

Against (1)

1
icon: GUE/NGL GUE/NGL
49

Italy GUE/NGL

3

United Kingdom GUE/NGL

Against (1)

1

Portugal GUE/NGL

3

Netherlands GUE/NGL

Against (1)

3

Finland GUE/NGL

Abstain (1)

1

Denmark GUE/NGL

Against (1)

1

Cyprus GUE/NGL

2
4
AmendmentsDossier
407 2016/2032(INI)
2016/04/06 ECON 249 amendments...
source: 580.551
2016/04/22 REGI 83 amendments...
source: 582.097
2016/04/28 CULT 48 amendments...
source: 582.203
2016/04/29 BUDG 27 amendments...
source: 582.202

History

(these mark the time of scraping, not the official date of the change)

activities
  • date: 2016-03-10T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP responsible: False committee: BUDG date: 2016-02-15T00:00:00 committee_full: Budgets rapporteur: group: ECR name: KUŹMIUK Zbigniew body: EP responsible: False committee: CULT date: 2016-03-08T00:00:00 committee_full: Culture and Education rapporteur: group: S&D name: MORGANO Luigi body: EP shadows: group: S&D name: SIMON Siôn group: ECR name: OŻÓG Stanisław group: ALDE name: WIERINCK Lieve group: GUE/NGL name: LÓPEZ BERMEJO Paloma group: Verts/ALE name: LAMBERTS Philippe group: EFD name: ZANNI Marco group: ENF name: ANNEMANS Gerolf responsible: True committee: ECON date: 2015-07-09T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: EPP name: KARAS Othmar body: EP responsible: False committee_full: Employment and Social Affairs committee: EMPL body: EP responsible: False committee_full: International Trade committee: INTA body: EP responsible: False committee: REGI date: 2016-02-16T00:00:00 committee_full: Regional Development rapporteur: group: EPP name: JOULAUD Marc
  • date: 2016-06-21T00:00:00 body: EP type: Vote in committee, 1st reading/single reading committees: body: EP responsible: False committee: BUDG date: 2016-02-15T00:00:00 committee_full: Budgets rapporteur: group: ECR name: KUŹMIUK Zbigniew body: EP responsible: False committee: CULT date: 2016-03-08T00:00:00 committee_full: Culture and Education rapporteur: group: S&D name: MORGANO Luigi body: EP shadows: group: S&D name: SIMON Siôn group: ECR name: OŻÓG Stanisław group: ALDE name: WIERINCK Lieve group: GUE/NGL name: LÓPEZ BERMEJO Paloma group: Verts/ALE name: LAMBERTS Philippe group: EFD name: ZANNI Marco group: ENF name: ANNEMANS Gerolf responsible: True committee: ECON date: 2015-07-09T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: EPP name: KARAS Othmar body: EP responsible: False committee_full: Employment and Social Affairs committee: EMPL body: EP responsible: False committee_full: International Trade committee: INTA body: EP responsible: False committee: REGI date: 2016-02-16T00:00:00 committee_full: Regional Development rapporteur: group: EPP name: JOULAUD Marc
  • date: 2016-06-29T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2016-0222&language=EN type: Committee report tabled for plenary, single reading title: A8-0222/2016 body: EP type: Committee report tabled for plenary, single reading
  • date: 2016-09-14T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20160914&type=CRE type: Debate in Parliament title: Debate in Parliament body: EP type: Debate in Parliament
  • date: 2016-09-15T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2016-0358 type: Decision by Parliament, 1st reading/single reading title: T8-0358/2016 body: EP type: Decision by Parliament, 1st reading/single reading
commission
  • body: EC dg: Internal Market, Industry, Entrepreneurship and SMEs commissioner: BIEŃKOWSKA Elżbieta
committees/0
type
Responsible Committee
body
EP
associated
False
committee_full
Economic and Monetary Affairs
committee
ECON
date
2015-07-09T00:00:00
rapporteur
name: KARAS Othmar group: European People's Party (Christian Democrats) abbr: PPE
shadows
committees/0
body
EP
responsible
False
committee
BUDG
date
2016-02-15T00:00:00
committee_full
Budgets
rapporteur
group: ECR name: KUŹMIUK Zbigniew
committees/1
type
Committee Opinion
body
EP
associated
False
committee_full
International Trade
committee
INTA
opinion
False
committees/1
body
EP
responsible
False
committee
CULT
date
2016-03-08T00:00:00
committee_full
Culture and Education
rapporteur
group: S&D name: MORGANO Luigi
committees/2
type
Committee Opinion
body
EP
associated
False
committee_full
Budgets
committee
BUDG
date
2016-02-15T00:00:00
rapporteur
name: KUŹMIUK Zbigniew group: European Conservatives and Reformists abbr: ECR
committees/2
body
EP
shadows
responsible
True
committee
ECON
date
2015-07-09T00:00:00
committee_full
Economic and Monetary Affairs
rapporteur
group: EPP name: KARAS Othmar
committees/3
type
Committee Opinion
body
EP
associated
False
committee_full
Employment and Social Affairs
committee
EMPL
opinion
False
committees/3
body
EP
responsible
False
committee_full
Employment and Social Affairs
committee
EMPL
committees/4
type
Committee Opinion
body
EP
associated
False
committee_full
Regional Development
committee
REGI
date
2016-02-16T00:00:00
rapporteur
name: JOULAUD Marc group: European People's Party (Christian Democrats) abbr: PPE
committees/4
body
EP
responsible
False
committee_full
International Trade
committee
INTA
committees/5
type
Committee Opinion
body
EP
associated
False
committee_full
Culture and Education
committee
CULT
date
2016-03-08T00:00:00
rapporteur
name: MORGANO Luigi group: Progressive Alliance of Socialists and Democrats abbr: S&D
committees/5
body
EP
responsible
False
committee
REGI
date
2016-02-16T00:00:00
committee_full
Regional Development
rapporteur
group: EPP name: JOULAUD Marc
docs
  • date: 2016-02-04T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE576.834 title: PE576.834 type: Committee draft report body: EP
  • date: 2016-04-06T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE580.551 title: PE580.551 type: Amendments tabled in committee body: EP
  • date: 2016-05-24T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE580.545&secondRef=02 title: PE580.545 committee: BUDG type: Committee opinion body: EP
  • date: 2016-05-26T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE580.519&secondRef=02 title: PE580.519 committee: REGI type: Committee opinion body: EP
  • date: 2016-06-03T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE580.400&secondRef=02 title: PE580.400 committee: CULT type: Committee opinion body: EP
  • date: 2016-12-21T00:00:00 docs: url: /oeil/spdoc.do?i=27433&j=0&l=en title: SP(2016)876 type: Commission response to text adopted in plenary
events
  • date: 2016-03-10T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
  • date: 2016-06-21T00:00:00 type: Vote in committee, 1st reading/single reading body: EP
  • date: 2016-06-29T00:00:00 type: Committee report tabled for plenary, single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2016-0222&language=EN title: A8-0222/2016 summary: The Committee on Economic and Monetary Affairs adopted the own-initiative report by Othmar KARAS (EPP, AT) on access to finance for SMEs and increasing the diversity of SME funding in a Capital Markets Union. Members recalled that micro-, small and medium-sized enterprises and mid-caps play an important role for the European economy in terms of employment and growth. SMEs account for 67 % of total employment, 71.4 % of the increase in employment and 58 % of the value added in the non-financial business sector in the EU in 2014. European SMEs are very diverse and operate mainly at national level. 77 % of outstanding SME funding in Europe is provided by banks. Diverse funding needs of a diverse SME sector : acknowledging the diversity of SMEs and the challenges that SMEs are facing in accessing financing, Members considered that the financing of SMEs should be as broadly based as possible in order to ensure optimal access to finance for SMEs at every stage of the development of an enterprise. Stressing the need for a diversified, tailor-made approach in terms of regulation and in terms of initiatives to be supported, the report called on the Commission to support the development of a broad range of tailored programmes, instruments and initiatives, in order to support businesses in their start-up, growth and transfer phases , taking into account their size, turnover and financing needs whilst ensuring that its programmes aimed at facilitating access to finance for SMEs do not disfavour women entrepreneurs. The Commission is called upon to: follow-up to the Small Business Act which would further assist businesses in overcoming both physical and regulatory barriers; ensure coordination, consistency and synergies between European instruments and programmes for SMEs such as the European Structural and Investment Funds; promote a holistic approach to the dissemination of information on all EU funding opportunities; make significant progress towards further simplification so as to make funding more attractive for SMEs; ensure that cross-border activities in the field of retail financial services lead to better access to finance for SMEs. Members encouraged the Member States to continue their efforts to reduce administrative hurdles and to create one-stop shops as hubs for all regulatory requirements for entrepreneurs. Stressing the fact that achieving a well-functioning European capital market is one of the most important initiatives for the financial sector, Members underlined the importance of simplifying or modifying rules which gave rise to unintended consequences for SMEs or inhibited their development. Bank lending to SMEs : Members acknowledged that bank lending is traditionally the most important external financing source for SMEs in the Union, as bank funding accounts for over three quarters of SME financing. They invited the Member States to fully collaborate with the financial sector regarding their obligation to ensure full and equal access to bank lending for SMEs . They underlined the important and well-developed role of banks with specific regional and local knowledge in providing funding to SMEs. Members recalled the decision of the co-legislators to introduce the SME supporting factor into the Capital Requirements Regulation CRR and the Capital Requirements Directive CRD IV framework and that it was designed to leave the capital requirements for SME lending consistent with Basel II rather than Basel III levels. The report emphasised the importance of the SME supporting factor for maintaining and increasing bank lending to SMEs. It called on the Commission to explore the possibility of making the factor permanent and called on the Basel Committee for Banking Supervision (BCBS) to back the SME supporting factor and to consider lowering the capital charges for exposures on SMEs. Non-bank sources for SME funding : the report called on the Member States to foster a risk-taking and capital market culture, in particular by improving the financial the financial literacy and access to financial skills and knowledge of SMEs. Members welcomed the Commission's CMU action plan , which aims to ensure easier access for SMEs to more diverse funding options, while highlighting that bank-based and capital-based financing models should be complementary. The report highlighted the following issues: the need for a proportionate regulation, with less complex and burdensome disclosure and listing requirements for SMEs to avoid duplication and lighten the burden for SMEs; the importance of the transparency, standardisation and public availability of SME financing information for banks, investors, supervisors and other stakeholders in order to understand the risk profile and take informed decisions and to reduce financing costs; fostering innovation through lending platforms; underline the potential of new innovative financial technology (FinTech) for better matching SMEs with potential investors and explore potential risks and the need for an appropriate harmonised EU regulatory framework without stifling innovation; encouraging safe lending to companies by private individuals through peer-to-peer lending or retail bonds; securitisation could offer a possibility to increase the lending capacity of banks to SMEs. The legislative initiative for simple, transparent and standardised (STS) European securitisations should be encouraged; simplified and harmonised rules on insolvency could help reduce obstacles to cross-border investment in SMEs and start-ups; striving for a fair, effective and transparent taxation system that attracts finance and investments given that the taxation system has a strong influence on the internal finance capacity of SMEs. Lastly, Members called for the Commission to deliver an annual report to the European Parliament, outlining the status of implementation initiatives and its impact on the improvement of access to financing for SMEs in Europe.
  • date: 2016-09-14T00:00:00 type: Debate in Parliament body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20160914&type=CRE title: Debate in Parliament
  • date: 2016-09-15T00:00:00 type: Results of vote in Parliament body: EP docs: url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=27433&l=en title: Results of vote in Parliament
  • date: 2016-09-15T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2016-0358 title: T8-0358/2016 summary: The European Parliament adopted by 528 votes to 77 with 44 abstentions a resolution on access to finance for SMEs and increasing the diversity of SME funding in a Capital Markets Union. Members recalled that micro-, small and medium-sized enterprises and mid-caps play an important role for the European economy in terms of employment and growth. SMEs account for 67 % of total employment, 71.4 % of the increase in employment and 58 % of the value added in the non-financial business sector in the EU in 2014. European SMEs are very diverse and operate mainly at national level and have different financing needs. Banks provide 77 % of outstanding SME funding in Europe. Diverse funding needs of a diverse SME sector : acknowledging the diversity of SMEs and the challenges that SMEs are facing in accessing financing, Parliament considered that the financing of SMEs should be as broadly based as possible in order to ensure optimal access to finance for SMEs at every stage of the development of an enterprise. Stressing the need for a diversified, tailor-made approach in terms of regulation and in terms of initiatives to be supported, the report called on the Commission to support the development of a broad range of tailored programmes, instruments and initiatives, in order to support businesses in their start-up, growth and transfer phases , taking into account their size, turnover and financing needs whilst ensuring that its programmes do not disfavour women entrepreneurs. The Commission was called upon to: continue drafting proposals tailored to the needs of SMEs: the Startup Europe initiative should assist small innovative companies by supporting them until they become operational; follow-up to the Small Business Act whi ch would further assist businesses in overcoming both physical and regulatory barriers; ensure synergies between European instruments and programmes for SMEs such as the European Structural and Investment Funds; promote a holistic approach to the dissemination of information on all EU funding opportunities; make progress on simplification in order to make financing more attractive for SME’s; assess during the review of the Late Payment Directive the introduction of specific measures aimed at easing payments for SMEs; ensure that cross-border activities in the field of retail financial services lead to better access to finance for SMEs. Members encouraged the Member States to continue their efforts to reduce administrative hurdles and to create one-stop shops as hubs for all regulatory requirements for entrepreneurs. A European approach to financial regulation and the Capital Markets Union should take into account international developments in order to avoid unnecessary divergences and duplications in legislation and keep Europe as an attractive place for international investors. Furthermore, Members were in favour of a strategic pl an to support SME financing with a view to their internationalisation. Bank lending to SMEs : Parliament acknowledged that bank lending is traditionally the most important external financing source for SMEs in the Union, as bank funding accounts for over three quarters of SME financing. It invited the Member States to fully collaborate with the financial sector regarding their obligation to ensure full and equal access to bank lending for SMEs . It underlined the important and well-developed role of banks with specific regional and local knowledge in providing funding to SMEs. Members recalled the decision of the co-legislators to introduce the SME supporting factor into the Capital Requirements Regulation CRR and the Capital Requirements Directive CRD IV framework and that it was designed to leave the capital requirements for SME lending consistent with Basel II rather than Basel III levels. The resolution emphasised the importance of the SME supporting factor for maintaining and increasing bank lending to SMEs. It called on the Commission to explore the possibility of making the factor permanent and called on the Basel Committee for Banking Supervision (BCBS) to back the SME supporting factor and to consider lowering the capital charges for exposures on SMEs. Parliament encouraged the Commission to study the possibility of introducing ‘funding for lending’ programmes that would make European Central Bank money available to banks with the sole purpose of lending to SMEs. Non-bank sources for SME funding : the resolution called on the Member States to foster a risk-taking and capital market culture, in particular by improving the financial the financial literacy and access to financial skills and knowledge of SMEs. Members called on the Commission to provide an appropriate, tailored regulatory framework for issuers of funding to SMEs that does not prove burdensome for them and also wins investors’ confidence. They welcomed the Commission's CMU action plan , which aims to ensure easier access for SMEs to more diverse funding options, while highlighting that bank-based and capital-based financing models should be complementary. The resolution highlighted the following issues: the need for a proportionate regulation, with less complex and burdensome disclosure and listing requirements for SMEs to avoid duplication and lighten the burden for SMEs; the importance of the transparency, standardisation and public availability of SME financing information for banks, investors, supervisors and other stakeholders in order to understand the risk profile and take informed decisions and to reduce financing costs; the ongoing discussions on the expediency of designing specific common accounting standards for SMEs; fostering innovation through lending platforms; underline the potential of new innovative financial technology (FinTech) for better matching SMEs with potential investors and explore potential risks and the need for an appropriate harmonised EU regulatory framework without stifling innovation; encouraging safe lending to companies by private individuals through peer-to-peer lending or retail bonds; securitisation could offer a possibility to increase the lending capacity of banks to SMEs. The legislative initiative for simple, transparent and standardised (STS) European securitisations should be encouraged; simplified and harmonised rules on insolvency could help reduce obstacles to cross-border investment in SMEs and start-ups; a fair, effective and transparent taxation system that attracts finance and investments given that the taxation system has a strong influence on the internal finance capacity of SMEs; specific solutions to accessing finance, in order to improve access to finance in the cultural and creative sectors. Members called for the Commission to deliver an annual report to the European Parliament, outlining the status of implementation initiatives and its impact on the improvement of access to financing for SMEs in Europe.
  • date: 2016-09-15T00:00:00 type: End of procedure in Parliament body: EP
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  • body: EC dg: url: http://ec.europa.eu/enterprise/ title: Enterprise and Industry commissioner: BIEŃKOWSKA Elżbieta
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  • 3.45.02 Small and medium-sized enterprises (SME), craft industries
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  • The Committee on Economic and Monetary Affairs adopted the own-initiative report by Othmar KARAS (EPP, AT) on access to finance for SMEs and increasing the diversity of SME funding in a Capital Markets Union.

    Members recalled that micro-, small and medium-sized enterprises and mid-caps play an important role for the European economy in terms of employment and growth. SMEs account for 67 % of total employment, 71.4 % of the increase in employment and 58 % of the value added in the non-financial business sector in the EU in 2014.

    European SMEs are very diverse and operate mainly at national level. 77 % of outstanding SME funding in Europe is provided by banks.

    Diverse funding needs of a diverse SME sector: acknowledging the diversity of SMEs and the challenges that SMEs are facing in accessing financing, Members considered that the financing of SMEs should be as broadly based as possible in order to ensure optimal access to finance for SMEs at every stage of the development of an enterprise.

    Stressing the need for a diversified, tailor-made approach in terms of regulation and in terms of initiatives to be supported, the report called on the Commission to support the development of a broad range of tailored programmes, instruments and initiatives, in order to support businesses in their start-up, growth and transfer phases, taking into account their size, turnover and financing needs whilst ensuring that its programmes aimed at facilitating access to finance for SMEs do not disfavour women entrepreneurs.

    The Commission is called upon to:

    • follow-up to the Small Business Act which would further assist businesses in overcoming both physical and regulatory barriers;
    • ensure coordination, consistency and synergies between European instruments and programmes for SMEs such as the European Structural and Investment Funds;
    • promote a holistic approach to the dissemination of information on all EU funding opportunities;
    • make significant progress towards further simplification so as to make funding more attractive for SMEs;
    • ensure that cross-border activities in the field of retail financial services lead to better access to finance for SMEs.

    Members encouraged the Member States to continue their efforts to reduce administrative hurdles and to create one-stop shops as hubs for all regulatory requirements for entrepreneurs.  

    Stressing the fact that achieving a well-functioning European capital market is one of the most important initiatives for the financial sector, Members underlined the importance of simplifying or modifying rules which gave rise to unintended consequences for SMEs or inhibited their development.

    Bank lending to SMEs: Members acknowledged that bank lending is traditionally the most important external financing source for SMEs in the Union, as bank funding accounts for over three quarters of SME financing. They invited the Member States to fully collaborate with the financial sector regarding their obligation to ensure full and equal access to bank lending for SMEs. They underlined the important and well-developed role of banks with specific regional and local knowledge in providing funding to SMEs.

    Members recalled the decision of the co-legislators to introduce the SME supporting factor into the Capital Requirements Regulation CRR and the Capital Requirements Directive CRD IV framework and that it was designed to leave the capital requirements for SME lending consistent with Basel II rather than Basel III levels. The report emphasised the importance of the SME supporting factor for maintaining and increasing bank lending to SMEs. It called on the Commission to explore the possibility of making the factor permanent and called on the Basel Committee for Banking Supervision (BCBS) to back the SME supporting factor and to consider lowering the capital charges for exposures on SMEs.

    Non-bank sources for SME funding: the report called on the Member States to foster a risk-taking and capital market culture, in particular by improving the financial the financial literacy and access to financial skills and knowledge of SMEs.

    Members welcomed the Commission's CMU action plan, which aims to ensure easier access for SMEs to more diverse funding options, while highlighting that bank-based and capital-based financing models should be complementary.

    The report highlighted the following issues:

    • the need for a proportionate regulation, with less complex and burdensome disclosure and listing requirements for SMEs to avoid duplication and lighten the burden for SMEs;
    • the importance of the transparency, standardisation and public availability of SME financing information for banks, investors, supervisors and other stakeholders in order to understand the risk profile and take informed decisions and to reduce financing costs;
    • fostering innovation through lending platforms; underline the potential of new innovative financial technology (FinTech) for better matching SMEs with potential investors and explore potential risks and the need for an appropriate harmonised EU regulatory framework without stifling innovation;
    • encouraging safe lending to companies by private individuals through peer-to-peer lending or retail bonds;
    • securitisation could offer a possibility to increase the lending capacity of banks to SMEs. The legislative initiative for simple, transparent and standardised (STS) European securitisations should be encouraged;
    • simplified and harmonised rules on insolvency could help reduce obstacles to cross-border investment in SMEs and start-ups;
    • striving for a fair, effective and transparent taxation system that attracts finance and investments given that the taxation system has a strong influence on the internal finance capacity of SMEs.

    Lastly, Members called for the Commission to deliver an annual report to the European Parliament, outlining the status of implementation initiatives and its impact on the improvement of access to financing for SMEs in Europe.

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  • body: EP responsible: False committee: BUDG date: 2016-02-15T00:00:00 committee_full: Budgets rapporteur: group: ECR name: KUŹMIUK Zbigniew
  • body: EP responsible: False committee: CULT date: 2016-03-08T00:00:00 committee_full: Culture and Education rapporteur: group: S&D name: MORGANO Luigi
  • body: EP shadows: group: S&D name: SIMON Siôn group: ECR name: OŻÓG Stanisław group: ALDE name: DE BACKER Philippe group: GUE/NGL name: LÓPEZ BERMEJO Paloma group: Verts/ALE name: LAMBERTS Philippe group: EFD name: ZANNI Marco group: ENF name: ANNEMANS Gerolf responsible: True committee: ECON date: 2015-07-09T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: EPP name: KARAS Othmar
  • body: EP responsible: False committee_full: Employment and Social Affairs committee: EMPL
  • body: EP responsible: False committee_full: International Trade committee: INTA
  • body: EP responsible: False committee: REGI date: 2016-02-16T00:00:00 committee_full: Regional Development rapporteur: group: EPP name: JOULAUD Marc
links
other
  • body: EC dg: url: http://ec.europa.eu/enterprise/ title: Enterprise and Industry commissioner: BIEŃKOWSKA Elżbieta
procedure
reference
2016/2032(INI)
title
Access to finance for SMEs and increasing the diversity of SME funding in a capital markets union
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Rules of Procedure of the European Parliament EP 052
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Preparatory phase in Parliament
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type
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