1. Microfinance as a European policy issue Policy images and venues Michael Unterberg, research assistant, EVERS & JUNG GmbH 5th EMN annual conference, 8–10 september, 2008, Nice.

2. Microfinance at EU level - Puzzles and Questions Puzzles Uptake of a grassroots instrument for fighting poverty as a European policy issue Gap between attention towards MF at EU level and the development of the sector in Europe Questions What were the main drivers of the policy initiation process of MF as a policy issue in the EU? What was the role of the institutional framework of the EU in this process? How influential were non-state actors?

3. Agenda setting in the EU Important aspects: Fragmentation of decision making Central role of EU Commission (DGs) Multiple entry points for influence Two routes of Agenda-Setting in the EU (Princen/Rhinard 2006): High politics route: Top-down dynamics Low politics route: Bottom-up dynamics

4. A framework for analysis Kingdon (1984/1995): Multiple streams: problems, policies and politics Coupling and policy windows Baumgartner and Jones (1993): Policy images and venues Venue shopping Actors: Policy entrepreneurs Non-state actors and state actors Policy communities and networks

5. MF in Europe as policy issue Problem structure: Market failure of credit allocation to specific target groups New forms of self-employment Social exclusion Low levels of entrepreneurship Policy implications: Depends on target group and approach chosen Social, employment and economic policy + financial services regulation Many options to build policy images of MF in Europe

6. Issue initiation (1998-2002) Bottom-up impulses: Commission funded studies and cooperation projects First framing of policy images Formation of a European MF community Top-down impulses Lisbon strategy as main driver Recommendations of the Council in 2000 Inclusion of MF-window into MAP (2000-2005) High politics route with restricted involvement of non-state actors

7. Issue specification (2002-2005) I MF as social/employment policy Venue with favourable institutional conditions (OMC) Network building (EMN) supported by DG EMPL Direct involvement of MF community in framing the policy image of MF as a tool to fight social exclusion MF as enterprise policy: Less favourable institutional conditions Influence of non-state actors mainly through technical expertise in working groups MF community successful in framing policy image to include support for excluded target groups

8. Issue specification (2002-2005) II Regional/structural policy: Least favourable institutional conditions MF in context of restructuring structural funds towards financial engineering and risk financing Lowest influence level of non-state actors Policy image of MF dominated by technical aspects and experience of funding MF in Eastern Europe Low politics route with strong influence of MF community, especially in framing policy images

9. Issue expansion (2003-2006) Top-down dynamics: New political momentum through Council recommendations in 2003 New DGs get involved with MF (DG EcoFin; DG Market) EU Parliament pushes for the integration of MF in the „Integrated Guidelines for Growth and Jobs“ Bottom-up dynamics: First European Microfinance Conference in Brussels High politics route in expanding the issue of MF over EU institutions

10. Issue entrance (2006-) Announcement of European action plan on MF as entrance of MF on the institutional agenda of the EU. Central dynamics: ‚Softening up‘ of EU institutions through venue shopping Renewed Lisbon strategy as policy window for coupling MF to policy goals Important role of EMN with M. Nowak as policy entrepreneur Mixture of high and low politics route, with selective influence of non-state actors

11. Conclusion Findings underline the important role of European MF community in shaping the process of agenda setting Strongest influence of non-state actors during the phase of issue specification, due to knowledge ressources and technical expertise Importance of institutional framework: Availability of accessible policy venues, mostly due to OMC Lisbon strategy served as policy window for MF

12. Thank You! Michael Unterberg michael.unterberg@eversjung.de