In the euro area the improvements in credit indicators continuealbeit at a moderate pace. In July, loans to the private sector increased by 1,1% on an annual basis supported by the trend of both those to households (+1,3%) and those to businesses (+0,4%) which returned to growth after over three consecutive years of contraction. The improvement in credit conditions reflects both the increase in net demand by firms and greater competition among lenders. The return to positive trends in loans only partially corrects the contraction accumulated since the beginning of 2009.
Last July, compared to January six years ago, the index numbers of business loans still signaled a difference of -6, -44 and -7 percentage points respectively for Germany, Spain and Italy; with the exception of France, where loans to the productive sector increased by +7% over the entire period. The reduction of productive investments of firms it generated an unfavorable circuit which exacerbated the negative consequences of the crisis on the entire economy.
This problem, like other problems shared by many European economies, has prompted the search for common measures by the institutions capable of restarting the cycle on a stable path of growth. In addition to supranational programs such as the Juncker plan which envisages, among other things, a relaunch of investments and the capital markets union project, numerous initiatives have also been undertaken at a national level, in Italy and beyond.
In France, an interesting report on the financing of business investments indicates various guidelines for economic operators involved in the savings/investment circuit. In our country the credit agreement, the strengthening of Guarantee fund, the progressive extinction of public administration debts, the promotion of the Italian Code of Responsible Payments, the issue of minibonds, the Aid to Economic Growth (ACE), are just some of the measures taken to support businesses through the long crisis and consolidate the recovery.
Attachments: Focus no. 32 – 25 September 2015.pdf
