Between 2008 and 2013, bank lending to SMEs in the Europe zone dropped a staggering 35 percent. European banks are continuing and shed assets. Simultaneously, European finance is retreating behind national borders.
Since 2008, cross-border bank lending has been reduced by an astonishing €1.7 trillion.
Combined with the excessive austerity policies pursued, this has led to further distortions in financing conditions, particularly for Europe’s South. Unsurprisingly, investments in the EU have also fallen. Since 2012 total investment was 18 per cent below 2007 with long-term investment trends looking volatile at best. 2 Europe stat data indicates that the lack of investment in the private sector is mostly determined by a lack of demand. A lack in financial resources seems to be only a secondary problem.