Lord Mandelson: why SMEs won’t drive EU growth

Author: Gemma Varriale | Published: 30 Sep 2013

One of Europe’s senior political figures has said that small and medium-sized enterprises will not be the major source of finance for growth in Europe;Speaking during an industry event in London, Lord Mandelson said that coming up with a targeted solution for the relatively small group of companies that do scale and grow should be the key challenge for Europe’s policy-makers;According to the former Labour minister, the next policy frontier is combining the lending disciplines of the private sector, albeit not the short-term profit incentives, with the patient capital and creditworthiness of the state;In the context of growth capital for infrastructure, he noted that the European Investment Bank’s role as a credit enhancer on the Castor Gas project in Spain provides a good example of how to deploy...