Social Economy Action Plan’s Mid‑Term Review: Key Messages for Microfinance

The European Commission has published the mid‑term review of the Social Economy Action Plan (SEAP), taking stock of progress since 2021 and outlining priorities for the next phase. The review confirms that the social economy has become a pillar of resilience, inclusion and competitiveness in the EU, while underlining that access to finance remains a significant bottleneck for social economy organisations.  

For microfinance and inclusive finance actors, the review is particularly relevant, as it confirms continued EU policy, financial and regulatory support and enumerates actions directly affecting the microfinance ecosystem. 

The Commission data confirms that microfinance is important EU instrument for social inclusion and entrepreneurship, embedded in InvestEU’s Social Investment and Skills Window (SISW): Since 2022, around EUR 1.2 billion in EU guarantees have been allocated for microfinance, social entrepreneurship and social impact investing, with an expected mobilisation of EUR 11.7 billion in investments.  

The review also highlights strong evidence of impact: EU‑supported guarantees have already benefited around 90,000 microfinance recipients, with reporting from microfinance institutions showing extremely high business survival rates while reaching to vulnerable groups.  

The Commission also reports piloting blended finance approaches, combining InvestEU financial instruments with grants from the EaSI strand of ESF+. This is particularly relevant for providers serving higher‑risk clients.  

One of the important forward‑looking commitments of the Commission is to revise the European Code of Good Conduct for Microcredit Provision. The updated Code will aim to: 

• Strengthen the social dimension of microfinance 

• Align the framework with new realities in the social economy 

• Make certification more accessible, efficient and supportive of diverse institutional models  

The Commission also announces plan for a pilot assessment of impact and outcomes at beneficiary level of InvestEU financial instruments for microfinance and social enterprises, signalling a stronger focus on outcomes and impact, not only volumes.  

The Commission also plan to prepare a report under the InvestEU Advisory Hub on financial intermediaries serving social economy organisations and, with support of Expert Group on Social Economy and Social Enterprises (GECES), on improving access to finance for social economy organisations.  

As the EU moves into the next phase of SEAP implementation and prepares future EU budgets, the review makes clear that microfinance remains important for delivering inclusive growth, social innovation and territorial cohesion across Europe.