Commission for Social Policy, Education, Employment, Research and Culture
The Role of the Social Economy in restoring economic growth and combating unemployment
Opinion factsheet
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- Employment and Social Policy
- Enterprise and Industry
- Enterpreneurship
Opinion number:
CDR-1691-2015
Status:
Sprejeta mnenja
Objective
The opinion urges the European Commission to present, in the form of a proposal for a directive, a legal framework defining a European status of cooperatives, foundations, mutual societies and associations (notably charitable, philanthropic or cultural) in order to enable social economy enterprises to operate on a legally certain basis and thus enjoy the advantages of the internal market and free movement. This legal framework should include a body of common definitions. These definitions must underpin the way EU partnership programmes with these organisations are framed, so that support can be tailored to the needs of each type of organisation, with a view to strengthening their role in promoting employment and fostering local and regional entrepreneurship;
it notes that the positive role of social economy institutions and actors in tackling unemployment and promoting inclusive and sustained growth is particularly important in regions marked by emigration, a rapidly ageing population, lack of economic dynamism and a low level of entrepreneurship.
it suggests stepping up efforts already under way to amend the European rules on public procurement, making it possible to take account of social and regional/local considerations in public procurement.
it considers it crucial to unlock the potential of the social economy by improving access by the social economy to various forms of financing (such as European funds, venture capital, microcredit and crowdfunding) and by tapping sufficient financial resources at local, regional, national and EU levels, reconciling the necessarily demanding economic and financial requirements with the acknowledged public interest of the work carried out in the field by these organisations;
it argues that the highly localised (or territorialised) scope of most social economy organisations means that the EU and the various Member States should promote and facilitate an expanded role for local and regional authorities in framing programmes and policies for the social economy, and in linking it with other public policies, making it possible to achieve the objectives set.
it notes that the positive role of social economy institutions and actors in tackling unemployment and promoting inclusive and sustained growth is particularly important in regions marked by emigration, a rapidly ageing population, lack of economic dynamism and a low level of entrepreneurship.
it suggests stepping up efforts already under way to amend the European rules on public procurement, making it possible to take account of social and regional/local considerations in public procurement.
it considers it crucial to unlock the potential of the social economy by improving access by the social economy to various forms of financing (such as European funds, venture capital, microcredit and crowdfunding) and by tapping sufficient financial resources at local, regional, national and EU levels, reconciling the necessarily demanding economic and financial requirements with the acknowledged public interest of the work carried out in the field by these organisations;
it argues that the highly localised (or territorialised) scope of most social economy organisations means that the EU and the various Member States should promote and facilitate an expanded role for local and regional authorities in framing programmes and policies for the social economy, and in linking it with other public policies, making it possible to achieve the objectives set.
Impact
On 1 March 2016 the CoR rapporteur was invited to present his opinion to the members of the INT section of the European Economic and Social Committee. EESC members and the CoR rapporteur agreed to cooperate on this important topic in the future.
While a CoR member, Mr Gomes attended meetings of the European Commission's Expert Groups on Social Entrepreneurship (GECES), where he represented the CoR. He has not been a member since 2017.
While a CoR member, Mr Gomes attended meetings of the European Commission's Expert Groups on Social Entrepreneurship (GECES), where he represented the CoR. He has not been a member since 2017.
Essential points
THE EUROPEAN COMMITTEE OF THE REGIONS
- highlights how social economy initiatives, being based on cooperation and civic engagement among the individuals who make up communities, contribute to boosting social, economic and territorial cohesion and to raising the level of trust throughout the EU, due to their commitment and degree of local rootedness, making them less vulnerable to relocation and consequently providing a higher level of security to their employees, aspects which are part of their corporate social responsibility;
- urges the European Commission to present, a legal framework, which would encompass a body of common definitions applying to the different forms of social economy in Europe, i.e. cooperatives, foundations, mutual societies and associations in order to enable social economy enterprises to operate on a legally certain basis and thus enjoy the advantages of the internal market and free movement. This document should include a body of common definitions. These definitions could underpin the way EU partnership programmes with these organisations are framed, so that support can be tailored to the needs of each type of organisation, with a view to strengthening their role in promoting employment and fostering local and regional entrepreneurship;
- calls on the Commission to be flexible when applying the rules on State aid for social economy organisations, to support local and regional authorities in understanding and applying these rules in a proportionate manner and, where possible, to increase the aid provided by the Member States or their local and regional authorities and the EU for partnerships, including social economy organisations;
- considers it crucial to unlock the potential of the social economy by improving access by the social economy to various forms of financing (such as European funds, venture capital, microcredit and crowdfunding) and by tapping sufficient financial resources at local, regional, national and EU levels, reconciling the necessarily demanding economic and financial requirements with the acknowledged public interest of the work carried out in the field by these organisations.