We still need to talk about SMEs

The economy is clearly revving up for growth, but can the rebound really be sustained if one of its key motors, the country’s indigenous enterprises, lack the financial wherewithal to allow them to partake in the expansion both at home and abroad?

There is now an increased recognition, both among domestic policymakers and at European level that a meaningful recovery in labour markets will not be possible without a strong base of thriving smaller firms. Germany has thrived in large part because of its celebrated network of strong family firms, manufacturers with roots in local communities going back for generations.

However, one of the features of the current crisis is the way so many European SMEs have been left with their backs to the wall.