Expert Comment
The need for a targeted lending scheme in the euro area
Comment by Dr Michael McMahon, Department of Economics, in response to The Economist's recent Free exchange column on the European Central Bank's troubles in providing support to peripheral economies:
THE Free Exchange column makes a strong case in support of view that there is something wrong with provision of credit to small and medium enterprises (SMEs) in the euro area. I agree. However I would go further than suggesting that lending support targeted at the SME sector, as the UK’s funding for lending scheme (FLS) does, is something the ECB could consider; I believe such targeted lending is something that the ECB must adopt, and sooner rather than later...