Spain promotes the creation of a securitisation platform to increase SME financing

Minister Cuerpo presented the progress of the European Competitiveness Laboratory to his Eurogroup colleagues, highlighting the creation of a securitisation platform to increase financing for businesses.

The Laboratory functions as an agile space where Member States can voluntarily promote joint initiatives to accelerate the integration of the single market.

"At a time of heightened international uncertainty, Europe must remain united and strong. On this path towards strategic autonomy, the Laboratory is a key tool to consolidate our integration," stated Minister Cuerpo. "The securitisation platform is the next big initiative to free up credit for our companies, especially SMEs."

Spain and eight other countries (Germany, Denmark, Slovenia, Finland, France, Italy, Luxembourg, and the Netherlands) are committed to this platform. After months of technical work with originators, investors, rating agencies, and European public institutions, it was concluded that the platform has great potential and would complement the Commission's ongoing regulatory reform.

The securitisation market is underdeveloped in Europe, where only 1.9% of loans are converted into securitised vehicles, compared to 7% in the United States. The market is also highly concentrated, with five Member States issuing 80% of European securitisations.

The creation of the platform pursues three objectives: to expand the number of originators and countries accessing the market; to develop a broader pan-European investor base; and to promote cross-border securitisations. Standardising processes would allow smaller entities to achieve the economies of scale necessary to access the market, improving the financing available to SMEs.

As next steps, a public-private technical team will be formed to define the platform's design and the first pilot project, which will be presented in the autumn.

The inclusion of the laboratory as a recurring item on the Eurogroup agenda opens the door for more Member States to join the initiatives and submit new integration projects in coordination with the European Commission.

New projects on the horizon

The meeting also served to preview future initiatives of the Laboratory. Among the most noteworthy are the development of a common rating methodology for SMEs, European financial literacy programs, and various initiatives stemming from the FIVE report by Christian Noyer and Jörg Kukies. The former Governor of the Bank of France and the former German Finance Minister propose concrete measures in their report to close the financing gap for high-growth companies in Europe and facilitate investment in innovative projects.

Non official translation