EU Anti Poverty Strategy: Microfinance role explicitly recognised as instrumental

In May 2026, the European Commission formally adopted and published the first ever EU Anti Poverty Strategy. The strategy aims to set a pathway toward reaching the EU’s 2030 poverty reduction target (reducing the number of people at risk of poverty by at least 15 million) and achieving the broader ambition to help to eradicate poverty by 2050.

The package adopted in May includes:

•             the EU Anti Poverty Strategy, setting out a long term, EU level framework to prevent and reduce poverty and social exclusion across the life cycle, in line with the European Pillar of Social Rights.

•             an accompanying Staff Working Document, which details policy instruments, funding mechanisms and sector specific contributions, including explicit references to microfinance, the social economy and access to finance for people in vulnerable situations.

•             A proposal for a Council Recommendation on fighting housing exclusion, identified by the Commission as an integral part of the EU anti poverty strategy package.

In the documents adopted in May, the Commission:

•             confirms the continued role of microfinance and the social economy in providing work and self employment opportunities for persons in vulnerable situations;

•             reaffirms the use of EU funding instruments, including European Competitiveness Fund InvestEU, to support microfinance;

•             announces follow up actions, including further work on responsible microcredit provision through the European Code of Good Conduct for Microcredit Provision and enhanced monitoring of social inclusion outcomes .

The May 2026 adoption therefore marks the formal EU-level policy recognition of microfinance within the EU’s anti poverty framework, providing an official reference point for future advocacy efforts.