The European Central Bank and the Financing Conditions of Small and Medium-Sized Enterprises in Europe

Small and medium-sized enterprises (SMEs) play a crucial role in innovation, economic growth and job creation. Generally, SMEs face special problems when trying to access funding. Their situation is further complicated by the European economic crisis and a fragmentation of financial markets in the euro area. Funding conditions differ between the countries of the euro area. Claims have emerged that the ECB should more explicitly address the financing problems of SMEs. In this contribution we provide an overview of the current situation of SMEs and evaluate whether it should be the central bank that helps to overcome their funding difficulties.