NEWS
Padua, 30th April 2025 – The European Union’s rearmament plan, ReArm Europe, encourages the channelling of citizens’ savings into the arms industry and represents a dangerous green light for the financialisation of war. This warning comes from Banca Etica, which argues that security and geopolitical stability must not be entrusted to the speculative logic of financial markets.
The EU aims to actively involve its citizens in the arms race, seeking to redirect part of the EUR 10 trillion held in savings across the continent towards financing European arms companies. This is the concern raised by Italy’s first and only bank exclusively dedicated to ethical finance.
ReArm Europe: A war economy funded by citizens? The EU appears to be shifting towards a war economy. Military spending and the financial mechanisms to support it have become central to the political agenda of both the European Union and its Member States. Under the ReArm Europe initiative, the European Commission is allocating EUR 800 billion: EUR 150 billion would come directly from EU funds in the form of loans to Member States (thereby increasing public debt), while the remaining EUR 650 billion would be drawn from national budgets, but excluded from deficit-to-GDP calculations under the Stability Pact. This comes in addition to the imminent approval of the Savings and Investments Union directive, which aims to channel a significant portion of European citizens’ savings (estimated at EUR 10 trillion) into EU businesses, with a particular emphasis on those in the defence sector.
Banca Etica’s concerns “The approval of the Savings and Investments Union would increasingly expose European savers and workers – through investment funds, pension schemes, insurance products, and enabled by complex securitisation mechanisms – to supporting the arms industry, all in the absence of transparency,” warns Anna Fasano, President of Banca Etica. “Through complex financial instruments such as securitisations, citizens could end up investing in weapons without even realising it.” She adds: “Meanwhile, in France, the state investment bank Bpifrance is preparing to issue savings bonds to finance arms manufacturers, as announced by the Minister of the Economy.”
“Historically, wars have been accompanied by financial speculation, but giving in to the financialisation of defence risks triggering perverse mechanisms that fuel conflict: more conflicts mean greater profits for someone.” Anna Fasano, President of Banca Etica
The financialisation of war fuels conflict “Historically, wars have been accompanied by financial speculation, but giving in to the financialisation of defence risks triggering perverse mechanisms that fuel conflict: more conflicts mean greater profits for someone,” emphasises Anna Fasano, also recalling the words of Pope Francis in 2024 about economic interest becoming an incentive to continue and extend wars in order to sell or test new weapons. The surge in profits across the arms sector since 2022 illustrates this trend: according to a report by Mediobanca, shares in international defence firms returned +72.2% between early 2022 and October 2024 – far surpassing the global stock market average (+20.1%). European firms outperformed even further, with gains of +128.1% compared to +59.1% for their US counterparts. This upward trend continued into early 2025, with the STOXX Europe Total Market Aerospace & Defense Index rising by +35% by March, compared with +9% for the STOXX Europe 600 Index.
Sustainable finance at risk Efforts to broaden funding sources for the defence sector are also endangering sustainable finance (ESG). A radical shift is anticipated, one that could lead to weapons being classified as sustainable investments under current regulations. Banca Etica strongly rejects this direction, reiterating its position following earlier proposals by EU defence ministers to label arms-related financing as sustainable. This trajectory was recently confirmed during a meeting of the EU Directorate-General for Defence Industry and Space (DG DEFIS), and in early April 2025, financial giant Allianz announced plans to include securities from nuclear weapons manufacturers in its ‘sustainable’ finance products – justifying the move on the grounds of the ‘ethical’ role of nuclear deterrence.
A firm ethical finance stance Banca Etica, along with the broader ethical finance movement, firmly condemns these developments. The Global Alliance for Banking on Values (GABV), which brings together over 80 ethical banks worldwide, reaffirmed in its Milan Declaration (2024) that “the financing of weapons cannot form part of – and is incompatible with – any definition of sustainable finance”.
The research aims to demonstrate the economic and social benefits of investing in female entrepreneurs in Belgium, with a particular focus on women of color and those with migration backgrounds. The objective is to assess how microfinance can empower these entrepreneurs to create sustainable businesses while also analysing their specific needs and the effectiveness of existing coaching programs. Ultimately, the research will quantify the economic return on investment in female entrepreneurs through microfinance, using a ‘1 euro invested = X euro generated’ approach.
Deadline to apply: July 7th, 2025
The main objective of this research is to analyse the financial exclusion experienced by migrant populations in Spain and to evaluate the role of microcredit as an effective tool for fostering their inclusion in the financial system. The study will combine qualitative and quantitative methodologies to assess the current barriers, the effectiveness of existing financial mechanisms, and the potential for innovation to enhance migrant access to finance.
Deadline to apply: July 7th, 2025
– The day highlights the role of microcredits as a tool for social and financial inclusion.
– With a loan portfolio of 2.136 billion euros, Spain leads Europe in the penetration of microcredits.
22 May 2025
Barcelona has emerged as the European capital of microfinance with the celebration of the closing ceremony of the European Microfinance Day. The event was organized by the European Microfinance Network, based in Brussels, which promotes microfinance as a means to combat social and financial exclusion, in collaboration with MicroBank and Fundació Autoocupació.
Under the theme “Changing the Narrative: Supporting Local Communities to Generate a Global Impact,” the event addressed the key challenges, opportunities, and perspectives of the microfinance sector in front of an audience of about one hundred attendees. During the discussions, important data illustrating the significance of microfinance in Europe was presented, including a total loan portfolio of 5.273 billion euros in 2022, according to a report by the MNE. Specifically, in Spain, the loan portfolio amounts to 2.136 billion euros, making it the European country with the highest microcredit penetration. In Spain, MicroBank holds an impressive market share of 88.6%.
Throughout the event, the role of microcredits in supporting entrepreneurship and job creation was examined in detail. Cristina González, the general manager of MicroBank, emphasized that 23,253 business ideas were launched in Spain last year, thanks to microcredits from MicroBank. In total, in 2024, CaixaBank’s social bank allocated 317.3 million euros in loans for the start-up or consolidation of businesses, reflecting a 25.2% increase compared to previous years.
Georgios Papadakis, managing director of the European Microfinance Network (EMN), focused on the social impact generated by microfinance, noting that its scope extends beyond financial services alone.
Guillem Aris, director of the Fundació Autoocupació, echoed this sentiment by identifying microcredits as a crucial tool for empowering self-employed individuals, entrepreneurs, and microenterprises. Autoocupació is one of MicroBank’s partner organizations that assists aspiring business owners in evaluating their business ideas, developing viable business plans, setting up their ventures, and acquiring the skills needed to manage and grow their businesses successfully.
The event also featured the stories of two entrepreneurs who, with the support of MicroBank funding and the collaboration of Autoocupació and Barcelona Activa, successfully boosted their businesses.
Sustainable Banking by Microbank
MicroBank addresses the financial needs of various population segments that are not adequately served. It plays a vital role in the Sustainability Plan, part of CaixaBank’s Strategic Plan, which aims to promote financial inclusion and facilitate access to credit for vulnerable groups, while also enhancing its commitment to the socio-economic development of local communities.
As the sole shareholder of MicroBank, CaixaBank has continuously supported its social bank since its inception, providing the necessary financing to expand its lending activities and marketing its products through CaixaBank’s extensive commercial network. This approach ensures that customers receive a comprehensive range of options with the highest quality of service.
In granting microcredits, the bank collaborates with around 270 entities across Spain that provide insight into the borrowers’ backgrounds and offer advice and monitoring for their projects.
MicroBank also enjoys the backing of key European institutions dedicated to promoting entrepreneurship and microfinance, including the European Investment Fund (EIF), the Council of Europe Development Bank (CEB), and the European Investment Bank (EIB).
This year’s European Microfinance Day, taking place on 22–23 May in Barcelona, comes at a symbolic moment for the sector: Spain now leads the European Union in microcredit provision, according to recent figures published by El Periódico.
With over 55,000 active operations and more than €900 million in circulation, Spain has become a benchmark in using microfinance to support financial inclusion, local development, and entrepreneurship. This growing trend is not just about numbers — it’s about real people building a future.
Real stories, real impact: Meet the women of Confía
One of the driving forces behind this success is Treball Solidari, a Mallorcan NGO and long-time member of the European Microfinance Network (EMN). Since 2011, their Confía program has helped hundreds of women start or grow their businesses by offering access to small, progressive loans, along with financial training and community support.
Take Maria Neide Barbosa, for example — a 64-year-old entrepreneur from Brazil who opened her beauty salon Neide Brasil in Palma de Mallorca with the help of Confía. “For me, Confía is everything. It helps so many people,” she says. Starting with just €600 to buy hair products, she has since expanded to a larger salon that now offers a full range of beauty services.
Or Meryin Bohórquez, originally from Colombia, who opened Premium Market in 2024 after receiving her residence permit and joining the program. “It was extremely difficult to get started,” she explains, “but thanks to Confía, I was able to expand my store, offer new services, and receive mentoring adapted to the local context.”
The Confía model is simple yet powerful: loans start at €1,200 and grow progressively. But beyond finance, the program builds a community of solidarity, where women meet in groups every two weeks to approve loans, attend training, and support one another.
Thanks to its results and innovation, Confía has been awarded a certificate of good practices by the European Commission and now benefits from EU-backed guarantees — enabling it to double its loan portfolio to €2.5 million by next year and extend its reach across Mallorca, Menorca, Ibiza, Barcelona, Santander, Valladolid, and Madrid.
A European stage in a country of progress
With Barcelona hosting this year’s European Microfinance Day, it’s fitting that local initiatives like Confía take center stage. Spain’s growing microfinance ecosystem is driven by EMN members such as:
Treball Solidari
MicroBank
Asociación Española de Microfinanzas
Bizkaia Micro
With the support of the European Investment Fund (EIF)
Together, they represent a shared mission: to empower people, especially women and migrants, to build a better future through financial inclusion and entrepreneurship.
Join us in Barcelona
This May, join the EMN community in Barcelona to learn more about initiatives like Confía, meet the people behind the numbers, and shape the future of microfinance in Europe. Let’s celebrate what happens when trust, access, and community come together.
On 29 April 2025, the European Microfinance Network (EMN), in collaboration with the Women Entrepreneurship Platform (WEP), held a pivotal webinar titled “Unlocking Opportunities: Microfinance 1.01 for Women Entrepreneurs.” The event brought together field practitioners, institutional representatives, and advocates for gender equality in finance to explore the potential of microfinance as a tool for women’s empowerment across Europe and beyond.
Bridging the Gender Gap in Access to Finance
Opening the session, Charlene Lambert, Treasurer of WEP and an advocate for women’s economic leadership, outlined the persistent challenges facing female entrepreneurs. Despite women representing 52% of the EU population, only 34.4% of the self-employed are women. Access to finance remains a significant barrier, particularly in risk capital. In 2024, fully female-founded teams in the UK received only 1.8% of the €9.5 billion in equity investments, compared to 86% going to all-male teams.
Yet research reveals a missed opportunity: female-led tech teams generate a 35% higher return on investment than male-led teams. WEP, an international non-profit based in Brussels, promotes women’s entrepreneurship by aligning policy advocacy, facilitating knowledge-sharing networks, and advancing access to resources through five key pillars: government policy, innovation, access to finance, education and training, and networks.
Case Study 1: NOA (Albania) – Microfinance for Inclusion and Economic Revival
The first case presented was NOA, Albania’s leading non-bank financial institution. With 26 years of experience, NOA is recognized for its inclusive and community-driven approach. Its CEO, Besart Kadia, has led the organization’s transformation to include digital branches, biometric identification systems, and partnerships with rural business networks. NOA currently operates 30 branches, employs 350 staff members, and manages a loan portfolio of over €110 million, with an average loan size of €6,070.
In terms of gender impact:
58% of NOA’s staff are women.
Women hold 53% of senior management positions.
26% of business loans are directed to companies owned or managed by women.
34% of individual loans support women investing in household improvements, business tools, or self-employment.
Stories of women like Genta, the first female wooden boat builder in Albania, or Nebije, a traditional artisan creating jobs for local women, highlight NOA’s tangible impact in empowering women entrepreneurs, many of whom return from abroad to reinvest in their communities.
Case Study 2: AMFI (Bosnia and Herzegovina) – Building an Inclusive Financial Ecosystem
The second case came from AMFI, the Association of Microfinance Institutions in Bosnia and Herzegovina, presented by Executive Director Eldina Mehić. AMFI represents 31 microfinance institutions (MFIs), employing over 2,300 people and serving over 280,000 users, reaching nearly 20% of the country’s population.
Gender inclusion is deeply embedded in the sector:
68% of the microfinance workforce are women.
32% of MFI directors are women.
29% of women hold top management positions, and 40% hold middle management roles.
The sector has disbursed more than €4.5 billion, with 45% going to women.
The microfinance sector in Bosnia also plays a crucial role in supporting low-income entrepreneurs and survivors of domestic violence. Programs combine financial literacy, mentorship, and psychosocial support, offering business opportunities and a pathway to dignity and independence.
AMFI also plays a regional leadership role as co-founder of the Western Balkans Microfinance Alliance and spearheads gender-oriented initiatives like the Wi-Fi CODE, a gender-smart services project supported by the European Bank for Reconstruction and Development (EBRD) and the Central Bank of BiH.
Key Takeaways and Conclusions
The event concluded with strong shared recommendations:
Data Matters: Financial institutions must systematically track gender-disaggregated data to identify gaps and design effective solutions.
Tailored Products: One-size-fits-all financing does not work. Women need accessible, flexible loan structures, often with minimal collateral requirements.
Mentorship and Education: Building financial literacy and business acumen is essential, especially for rural and low-income women.
Partnerships for Impact: Joint efforts between financial institutions, women’s organizations, and policymakers amplify outcomes.
Support Survivors: Microfinance must also address social vulnerability. Supporting women survivors of violence through business advisory and microloans can break cycles of dependence and create new futures.
Policy Advocacy: EMN and WEP reaffirmed their commitment to shaping EU-level policy promoting inclusive entrepreneurship.
A Shared Mission: Finance that Works for Women
As participants agreed, microfinance is not just about access to money but also dignity, growth, and autonomy. The examples from Albania and Bosnia and Herzegovina show that gender-inclusive microfinance models exist, work, and can scale.
Empowering women entrepreneurs means unlocking individual potential and broader economic and social prosperity. As stated in the European Commission’s 2014 communication:
“Encouraging the creation of more women-led businesses will not only bring fresh and creative business ideas but will also empower the role of women in society and create new sources of prosperity and jobs.“
