Microfinance Sector Contribution to the European Pillar of Social Rights Action Plan

The Microfinance Centre (MFC) and European Microfinance Network (EMN) have submitted a joint recommendation to the European Commission’s consultation on the new Action Plan for the implementation of the European Pillar of Social Rights (EPSR).

Microfinance institutions (MFIs) across Europe and Central Asia serve nearly 2 million low-income clients, offering financial and non-financial services that support employment, entrepreneurship, and social inclusion. The sector plays a key role in reaching underserved groups, including women, youth, migrants, ethnic minorities, and rural populations.

The joint contribution highlights the sector’s impact and outlines recommendations to strengthen its role in delivering EPSR objectives:

• Align EPSR with other EU initiatives to improve policy coherence and recognize microfinance as a delivery tool.
• Ensure access to appropriate EU-level financial instruments to support inclusive finance.
• Encourage Member States to integrate microfinance into national and regional strategies and promote collaboration between public and private stakeholders.
• Improve impact measurement frameworks to better track outcomes and inform policy.

These recommendations aim to support the EU’s 2030 social targets, including increased employment, lifelong learning, and reduced poverty and social exclusion.

For more information on the Action Plan and consultation process, visit the European Commission’s initiative page.