COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(93) 650 final 
Brussels, 16.02.1994 
94/0028 (CNS) 
Proposal for a 
COUNCIL DECISION 
relating to a multi-annual programme (1994-96) of work for 
cooperatives, mutual societies, associations and foundations in the Community 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
On 18 December 1989, the Commission approved a communication to the EC Council 
of Ministers on "Businesses in the "Economie Sociale" sector and Europe's frontier-
free market"1, calling for: 
support for cooperatives, mutual societies and associations in considering how 
to cope with the changes brought about by the frontier-free area; 
enterprises in the form of cooperatives, mutuals and associations to be given the 
same resources as all other firms to enable them to take advantage of the single 
market; 
cooperatives, mutuals and associations to be given the necessary instruments to 
facilitate closer cooperation. 
In its communication, the Commission also undertook to present the Council with a 
programme of work based on the principle of subsidiarity. 
This communication was presented to the "Internal market" Council on 21 December 
1989. 
The agreements on European Union, signed in Maastricht on 7 February 1992, stress 
the need for competitiveness. Together with economic and social cohesion and the 
growing international responsibilities of the Community, the need for competitiveness 
now underlies all Commission proposals, especially those concerned with small and 
medium-sized businesses. The majority of cooperatives, mutuals and associations are 
small and medium-sized enterprises or are at the service of SMEs. At any rate, all 
organisations in this sector, whatever their size or field of activity, now have close 
links with the traditional business world. 
The new agreements also underline the importance, with regard to the objectives of 
Article 117 of the Treaty establishing the European Economic Community, of 
cooperation with associations and foundations as institutions responsible for social 
establishments and social services. 
The declaration on promoting economic recovery in Europe2 says that "recognising the 
importance of SMEs for creating employment and stimulating growth, the European 
Council called upon the Council and the Commission to ensure that the burdens from 
Community legislation on SMEs are reduced (including through the use of simplified 
schemes and exemption limits in the field of indirect taxation) and that full information 
about Community support is provided to SMEs. It asked the Commission to accelerate 
the actions in favour of SMEs which have proven their worth at the Community level". 
Communication from the Commission to the Council SEC(89) 2187 final. 
European Council, Edinburgh, 11-12 December 1992, conclusions of the Presidency, Annex 4 
to Part A, point 8. 
It is a fact that SMEs make a significant contribution to the European economy by dint 
of their important share of GDP, employment and regional and local development3. 
The European Council in Edinburgh on 11 and 12 December 1992 adopted the broad 
lines suggested by the Commission and agreed on a significant effort to support growth 
in the Community. 
In his speech to the European Parliament in February 1993, President Delors 
announced that the Commission would "consider the feasibility of a programme 
targeted at cooperatives, mutual societies, associations and foundations". 
In his "guidelines for economic renewal in Europe" which he presented to the recent 
European Council in Copenhagen, President Delors emphasised the need for more 
active employment policies. The fact is that very many cooperatives, mutual societies 
and associations make an active contribution to creating jobs and ask for nothing more 
than the chance to increase their contribution, in both quantitative and qualitative 
terms. 
Council Decision 93/379/EEC of 14 June 19934 intensifies priority measures for 
enterprises regardless of sector of activity, size, legal structure of geographical 
situation, without however taking account of the specific features of cooperatives, 
mutuals and associations. 
Cooperatives, mutuals and associations must be given the same chance as other 
enterprises to benefit from the opportunities arising from the single market and 
Economic and Monetary Union. 
With a view to maintaining the diversity of the European economy, it is necessary to 
enable cooperatives, mutuals and associations - whether SMEs or at the service of 
SMEs - to survive and thrive in an enlarged and competitive market while complying 
with - or promoting - the principles of solidarity underlying their objectives and their 
form of organisation. 
It is important in terms of promoting cooperation between these firms, with a view to 
maintaining and extending their activities, to create a framework which is stable, 
transparent and based on rules which place small businesses on the same footing as 
large firms rand large business groupings. 
The programme of work proposes an approach which takes account of the strong points 
(capacity for innovation and experimentation; vehicles of Community policies) and the 
special features of the sector. 
According to the Commission's second report on "Enterprises in Europe", of the 11.6 million 
enterprises surveyed in 1988, 96.3% had fewer than 20 paid workers, 3.4% between 20 and 200 
and fewer than 0.2% between 200 and 500, representing 70.2% of all jobs in the Community. 
This figure varies according to the geographical breakdown of enterprises, ISBN-92826-4609-2. 
OJ L 161, 2.7.1993 
-2-
Finally, it is important to remember that this sector is particularly skilled in the field of 
social innovation, i.e. a field which it is very much in the Community's interest to 
recognise, promote and utilise. This can be done all the more easily and effectively 
given that a large number of firms in this sector constitute essential vehicles for 
Community policies. Whether the problems be related to urbanisation, economic 
decline, job loss, the increasing financial uncertainty among substantial sections of the 
population or the management of human resources, these entities come up with 
solutions which offer potential for renewal and which they disseminate - often with the 
support of the public authorities - by way of the kind of networks in which they occupy 
a very significant position. 
The present programme of work thus sets out to provide backing for cooperatives and 
mutual societies, associations and foundations in formulating a response to the dual 
challenge now facing the Community: economic development and social progress. 
In addition, the promotion of S ME cooperatives, mutuals and associations must be 
accompanied by specific measures enabling such organisations to improve their scope 
for transnational cooperation and to extend their presence on the market or strengthen 
their role for the achievement of Community objectives in a number of fields. 
At the end of the period covered by this programme, the Commission will be in a 
position to evaluate Community policy on cooperatives, mutuals and associations, thus 
giving the Commission a further basis on which to map out the broad lines of its future 
policy. 
The present programme for cooperatives, mutuals and associations thus aims to 
strengthen the kind of priority action fields capable of giving an immediate response to 
firms' adjustment needs in a period of uncertainty. 
The general economic situation calls for a special effort for cooperatives and the like, 
on the grounds that they have a solid grass-roots base and their links with other 
Community policies will have a £nock-on effect in terms of regional and/or local 
development. 
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PROPOSAL FOR A COUNCIL DECISION 
of... 
relating to a multi-annual programme (1994-96) of work for 
cooperatives, mutual societies, associations and foundations in the Community 
(.../.../ EC) 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 235 thereof, 
Having regard to the proposal from the Commission5, 
Having regard to the opinion of the European Parliament6, 
Having regard to the opinion of the Economic and Social Committee7, 
1. Whereas on 28 July 1989 the Council adopted Decision 89/490/EEC on the 
improvement of the business environment and the promotion of the 
development of enterprises, and in particular small and medium-sized 
enterprises, in the Community8, as last revised by Council Decision 
93/379/EEC of 14 June 19939; 
2. Whereas the Council, in its resolution of 17 June 1992 on Community action in 
support of enterprises, particularly cooperatives, mutuals and associations10, 
confirmed its undertaking to support the consolidation of action taken to help 
such enterprises; 
3. Whereas, in this resolution, the Council recommended that the Commission 
should press ahead, having regard to the principle of subsidiarity, with the 
action necessary to create an environment favourable to the competitiveness of 
enterprises, with special reference to cooperatives, mutuals and associations, 
and to back up their integration into the internal market after 1992; 
4. Whereas the Commission has submitted to the Council a communication on 
"Businesses in the "Economie Sociale" sector and Europe's frontier-free 
5 
6 
7 
8 
9 
10 OJC ...,..., p.... 
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OJL239, 16.8.1989 
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-4 
market"11 stating its intention to present a programme of work for this sector 
together with the appropriate proposals for its implementation; 
5. Whereas the Commission has submitted to the Council a communication on 
enterprise policy for the Community, entitled "the enterprise dimension at the 
heart of European growth"12, giving notice of a programme of work to back up 
the efforts made by enterprises in the "économie sociale" sector to cope with 
transitions brought about by the creation of a frontier-free area; 
6. Whereas cooperatives, mutuals and associations occupy a significant place in 
economic activity in general and in the development of regions; whereas 
maintenance of the strengths and special features of the cooperatives, mutuals 
and associations sector will warrant a special effort in terms of analysis and 
optimisation, more particularly as regards: 
its capacity for innovation and experimentation, 
encouraging the utilisation by these enterprises of Community 
programmes specifically geared to enterprise development (the sector has 
a proven track-record in terms of networks and partnership arrangements 
and the mobilisation of operators and consumers), 
- its enhanced participation in the social dialogue and in the 
implementation of social cohesion policies, an area in which this sector 
has undeniable advantages; 
7. Whereas the development of a Community policy for cooperatives, mutuals and 
associations, based on effective competition, is of major importance in terms of 
boosting the competitiveness of the European economy, job growth, economic 
and social cohesion in the Community, the further enlargement of the market 
after 1993, and the development of cooperation with certain non-member 
countries; 
8. Whereas a substantial proportion of measures in favour of cooperatives, 
associations and mutuals are at Member State level; whereas Community 
measures will have to be designed to be complementary to such national 
measures; 
9. Whereas it is therefore necessary to adopt a specific programme for a period of 
three years and to allocate sufficient resources to enable it to meet its objectives; 
10. Whereas a committee of representatives of the Member States must be set up to 
assist the Commission in implementing the programme;*. 
11. Whereas the Treaty does not provide, for the adoption of this Decision, powers 
other than those laid down in Article 235, 
11 
12 SEC(89) 2187 final, 18.12.19X9 
OJC , p.. 
-'5 
HAS DECIDED AS FOLLOWS: 
Article J 
The enclosed programme for enterprises in the form of cooperatives, mutual 
societies and associations is hereby adopted from 1 January 1994, to run for a 
period of three years. 
Article 2 
The measures embraced by this programme must give the players in the sector 
easier access to Community resources. 
Without wishing to take into consideration any indirect actions resulting from 
the application of certain Community policies, this action plan shall have the 
following objectives: 
I. To promote, coordinate and strengthen measures adopted for cooperatives, 
mutuals, associations and foundations by: 
A. strengthening the horizontal approach, more specifically by: 
conducting studies on the development of the sector in the Community; 
creating a favourable environment and evaluating the impact of 
Community policies; 
making arrangements for consultation; 
B. providing support for specific action with a view to: 
encouraging opportunities for transnational cooperation, especially 
SMEs in the cooperatives, mutuals and associations sector, and the quest 
for new fields of activity by groups of partners; 
improving information; 
disseminating social innovation; 
strengthening the role of cooperatives, mutuals, associations and 
foundations as vehicles for Community policies; 
II. strengthening activities in favour of cooperatives, mutuals, associations and 
foundations within other policies by: 
developing Community statistics and compiling data on the basis of 
surveys conducted within the sector; 
providing training back-up; 
encouraging the development of R&D. 
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Article 3 
1. In order to achieve the objectives laid down in Articles 1 and 2, insofar 
as they cannot be better achieved by the Member States, the Commission shall 
take the measures set out in the annex. 
2. The procedure laid down in Article 4 shall be followed for adopting 
measures relating to: 
the adoption, experimental implementation or extension of the necessary 
projects devised for the application of this Decision, 
the content and timetable of, and financial assistance for, measures and 
calls for proposals. 
3. The committee referred to in Article 4 may examine any other matters 
concerning the programme. 
Article 4 
A committee shall be set up, attached to the Commission, composed of the 
representatives of the Member States and chaired by the representative of the 
Commission. 
The representative of the Commission shall submit to the committee a draft of 
the measures to be taken. The committee shall deliver its opinion on the draft 
within a time limit which the chairman may lay down according to the urgency 
of the matter. The opinion shall be delivered by the majority stipulated in 
Article 148(2) of the Treaty in the case of decisions which the Council is 
required to adopt on a proposal from the Commission. The votes of the 
representatives of the Member States within the committee shall be weighted in 
the manner set out in that Article. The chairman shall not vote. 
The Commission shall adopt measures which shall apply immediately. 
However, if these measures are not in accordance with the opinion of the 
committee, they shall be communicated by the Commission to the Council 
forthwith. In that event, the Commission shall defer application of the measures 
which it has decidcci for a period of two months from the date of 
communication. 
The Council, acting by a qualified majority, may take a different decision 
within the time limit referred to in the previous paragraph. 
Article 5 
i 
The Commission shall submit to the European Parliament, the Council and the 
Economic and Social Committee, not later than the middle of 1996, an 
evaluation report on the implementation of this Decision, including a cost-
effectiveness evaluation, and any proposals which it deems it necessary in the 
light of the evaluations effected. 
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The Commission shall also submit to the European Parliament, the Council and 
the Economic and Social Committee a report on coordination between the 
different programmes which are not covered by this Decision, but which are 
manifestly in the interests of cooperatives, mutuals and associations, and a 
report on the initiatives taken in pursuance of this Decision. 
Article 6 
1. This Decision shall enter into force on 1 January 1994 and shall cover 
the period up to 31 December 1996. 
2. The budgetary authority shall determine the appropriations available for 
each financial year in accordance with the principles of good management 
referred to in Article 2 of the Financial Regulation applicable to the general 
budget of the European Communities. 
Done at Brussels, 
For the Council 
8-
ANNEX 
PROGRAMME OF WORK TO ASSIST 
COOPERATIVES, MUTUALS, 
ASSOCIATIONS AND FOUNDATIONS 
13 INTRODUCTION 
In its communication to the Council concerning "Businesses in the "Economie 
Sociale" sector: Europe's frontier-free market"13, the Commission set out its 
objectives for future action on behalf of cooperatives, mutual and associations, 
informing the Council of its intention to put forward a work programme that 
respected the principle of subsidiarity and to make the appropriate proposals for 
its implementation. 
The economic and social significance of the field 
Cooperatives, mutual, associations and foundations are not only to be found in 
all branches of the economy but they are also extremely diverse in terms of size 
(workforce and turnover), field of activity and location. 
These enterprises - some of which are national, European or event international 
leaders in their own fields - represent in particular: 
20% of European savings; 
two-thirds of the marketing and processing of agricultural produce in the 
EC; 
more than 100 million members of insurance and health-care mutuals; 
60 million members and 3 million jobs in the cooperative sector alone. 
Within the banking sector, for example, five European cooperative banks are 
among the world's 50 largest banks. Some of the largest purchasing and 
distribution centres are run on cooperative lines. Moreover, member-managed 
associations dominate such fields as low-cost tourism and accommodation, 
health and social protection, fields in which these enterprises combine 
competitivity with their social role. 
In addition, this sector is a blend of tradition and modernity, given that 
"entrepreneurial" forms of association are spreading through such different 
Communication from the Commission lo the Council "Businesses in the "Economic Sociale" 
sector: Europe's fronticr-fïec market" SEC(89) 2187 final. 
-9-
sectors as crafts and the software industry, where flexibility and both 
organisational and technical innovation are key imperatives. 
Finally, this sector features entities of widely differing size; not all would 
qualify as SMEs. The significance of these enterprises does, however, vary 
from one region of the Community to another, depending on the history and/or 
culture of these countries. In certain countries some activities cannot be carried 
out by a cooperative, mutual or association. This applies to pharmacies in at 
least six countries. Member States vary in the role they attribute these 
enterprises in their efforts to achieve economic and social development. 
The significance of cooperatives, mutual, associations and foundations is not 
just a matter of their economic importance. 
There is also the social and cultural dimension of these companies which 
profoundly influences the way changes affect European society. 
These enterprises are characterised by the implementation of specific 
organisational and production techniques drawn from the principles of economic 
democracy. 
This type of enterprise is directly involved in local development of employment 
and in combating unemployment. 
Given that they have often been established for social reasons, such enterprises 
are run in accordance with the principles of participation (particularly the rule 
of "one man, one vote") and solidarity between members, producers, users and 
consumers. 
What makes these organisations different is essentially the stressing of the 
following principles: 
primacy of the individual over capital; 
development of the individual (through training and culture); 
free association; 
democratic management; 
values of autonomy and citizenship. 
At the Community level, these enterprises can follow two (not mutually 
exclusive) paths: 
increasing their activities at the European level in their main fields of 
operation, particularly by concentration, diversification or specialisation 
in activities or products; 
seeking new fields of activity and new markets among groups of 
partners, in response to completion of the Single Market and Economic 
and Monetary Union. 
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Although they operate under specific legal structures, cooperatives, mutual, 
foundations and associations are therefore full members of the trading sector, 
complementing to a certain extent traditionally-structured enterprises. In some 
countries, this trend is boosted by legislative reform of these sectors permitting 
increasingly pronounced adaptation to market forces. 
B. Trends affecting cooperatives, mutuals, associations and 
foundations 
The profound changes affecting European society cannot be viewed only in 
technical and economic terms (although this aspect is indisputable); they bring 
about a process of innovation and development in all sectors of human activity. 
Cooperatives, mutuals and associations/foundations are particularly skilled in 
providing social-support measures for technological development and in 
drawing up strategies to respond to the social requirements of modern 
citizenship and economic democracy (e.g. provision of jobs for disadvantaged 
categories). A number of enterprises in this sector are already, or are about to 
become, key vehicles for the implementation of Community policies. Mutuals, 
for example, are both able and keen to make a vital contribution to Community 
policies on the mobility of persons and social protection (pension plans and 
supplementary social-security arrangements). Cooperative banks have become 
the major regional intermediaries for Community funds (ESF, ERDF, 
EAGGF). 
Whether in the context of urbanisation phenomena, the economic decline of 
certain regions and the loss of jobs, increasing financial uncertainty among 
major sections of the population or the management of human resources in 
companies, these bodies develop solutions for a form of renewal which then 
spreads through their networks, often with the support of government. 
Given their SME status, and their basic principles of solidarity and 
participation, cooperatives, mutuals and associations (especially small or 
medium sized ones) have indeed very close links with the area in which they 
operate. 
Jobs generated by these membership companies are therefore strongly anchored 
in the area in which the enterprise was established and are not subject to risks 
such as the relocation or selective closure of production units. 
In addition, and to the benefit of long-term employment, these economic 
entities also play a role in initiating and training people in the enterprise culture. 
Cooperatives, mutuals, and associations/foundations are already actively 
involved in the implementation of a range of»Community policies. But the full 
potential of associations has by no means been tapped. In order to allow the 
Commission to intervene more effectively on behalf of these enterprises, it 
would be advisable to upgrade their role, thus in turn stimulating economic and 
social cohesion, particularly in Objective 1, 2 and 5b regions. 
It 
In implementing these policies, the Community must much more effectively and 
extensively take into account, and (in terms of its own internal organisational 
structure) be influenced by, the link with the population at large and the 
enterprise networks set up by these bodies. 
As with all enterprises, these are obliged to assume or achieve a European 
dimension in order to survive and develop, whether by mergers, taking over 
sections of markets, investment in new technologies or transnational operation: 
all options requiring equity or semi-equity funding. 
Nevertheless, and although they represent 20% of European savings, they tend 
to be looked down on by the traditional financial world, if only because they do 
not have the maximisation of profit as the sole objective of their activities and 
instead also take into account society's interest as a whole, job creation and 
solidarity. 
This situation regularly requires them to change their legal status in order to get 
access to funding, particularly long-term funding and risk or semi risk capital, 
as soon as they wish to undertake development programmes with an element of 
risk or requiring major investment. 
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COMMUNITY PLAN OF WORK TO ASSIST COOPERATIVE, 
MUTUALS, ASSOCIATIONS AND FOUNDATIONS 
In undertaking initiatives in this sector, the Commission's principal objective 
has always been to allow cooperatives, mutuals, associations and foundations to 
benefit from the advantages of the Single Market and Economic and Monetary 
Union in complete equality with other economic agents, being neither 
advantaged nor disadvantaged. 
The cooperatives, mutuals, associations and foundations sector is heterogeneous 
and relatively unstructured. Its "grass roots" status means that it is not well 
known, particularly in certain Member States. These aspects often lead to its 
needs being insufficiently considered when drafting or implementing the 
legislation setting out Community programmes. 
Moreover, enterprises in this sector, many of them SMEs, are normally 
regionally or locally based, and thus tend to be limited in their scope for 
transnational cooperation. Here, the Community can play an intermediary and 
enhancement role assisting the transfer from one Member State to another of the 
methods successfully used by these bodies in the economic and/or social field 
and of the experience gained. 
Finally, the various networks of cooperatives, mutuals, associations and 
foundations could be better mobilised for the implementation of Community 
action. The sector's ability to create networks ensures that the Commission will 
become involved at the European level only where there is no effective 
alternative at national, regional and local level. 
All possibilities for interaction will be mobilised in the multi-annual programme 
(1993-96) to assist SMEs14. The measures embraced by this programme will be 
concentrated on SMEs in the cooperative, mutuals and associations sector and 
should give these players easier access to Community resources. They should 
also assist the integration of national association networks in the European area. 
This action plan, without wishing to take into consideration indirect actions 
arising from the application of certain Community policies, thus has the 
following objectives: 
I. To promote, coordinate and strengthen measures adopted for cooperatives, 
mutuals, associations and foundations by: 
A. strengthening the horizontal approach, more specifically by: 
conducting studies on the development of the sector in the Community; 
14 OJN0LI6I, 2 July 1993 
- 13 
creating a favourable environment and evaluating the impact of 
Community policies; 
making arrangements for consultation; 
B. providing support for specific action with a view to: 
encouraging opportunities for transnational cooperation and the quest for 
new fields of activity between groups of partners; 
improving information; 
disseminating social innovation; 
strengthening the role of cooperatives, mutuals, associations and 
foundations as vehicles for Community policies; 
II. strengthening activities in favour of cooperatives, mutuals, associations and 
foundations within other policies by: 
developing Community statistics and compiling data on the basis of 
surveys conducted within the sector; 
providing training back-up; 
encouraging the development of R&D. 
A. PROMOTING, COORDINATING AND STRENGTHENING 
MEASURES FOR COOPERATIVES, MUTUALS, ASSOCIATIONS 
AND FOUNDATIONS 
1. Strengthening the horizonml approach 
a) Studies on the development of the sector in the Community 
A programme of studies and forecasts will provide the necessary information to 
identify the major trends in the development of cooperatives, mutuals, 
associations and foundations, both in general terms and with regard to 
individual activities. 
These major trends arise from the processes inherent to the market economy in 
which the cooperatives, mutuals and associations/foundations are operating, the 
processes of technological development and those associated with European 
integration. On the one hand, this requires ever greater concentration of 
production and capital and increasingly centralised management. This in turn 
emphasises professionalism and a level of qualifications which comes to 
outweigh the initial importance of the ideological commitment. The enterprises 
in this sector find adjustment to this new situation a considerable strain. On the 
other hand, technological and social change, and the processes of economic 
internationalisation generate new opportunities for cooperatives, mutuals and 
associations/foundations, as well as reviving the emphasis on small production 
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units, widening the scope for mutually-profitable cooperation and setting out the 
new needs to be met by associations. At the same time, the Commission has 
published in the 1991/1992 edition of "Panorama of EEC Industry", a macro-
economic analysis of the cooperative, association and mutual sector. The next 
edition of "Panorama" will include a section examining the problems of 
competitiveness in this sector. 
More than any other type of body, associations are close to the specific needs of 
citizens and are thus able to respond effectively to very varied expectations and 
requirements. This is the justification for stepping up knowledge in the sector. 
The diversity of this sector in terms of the activities undertaken (all social and 
economic activities: health, social, training, occupational associations, 
education, sport, leisure, tourism, environment, habitat, protection of heritage, 
etc.) and their size, tax status, monitoring system and mode of operation in the 
twelve Member States justify the taking of some kind of inventory of this form 
of initiative. 
In order to take account of this diversity which concerns not only Europe's 
economy but also the citizens' Europe, and especially to inform all those 
involved in the cooperative, mutual and association sector, as well as the 
various institutions concerned, draft white papers were drawn up in 1992 
(associations) and in 1993 (mutuals and cooperatives). Their goal was to 
identify how the opening up of the Single Market has affected certain key 
aspects of the life of associations, foundations, mutuals and cooperatives. 
This task cannot be successfully completed without the participation of those 
professionally and otherwise involved in the sector. Two questionnaires have 
therefore been drafted and sent, respectively, to the most representative 
associations and to the ministries of the twelve Member States, asking them to: 
supply basic information; 
inform Commission staff of their concerns and expectations in the light of the 
completion of the Single Market. 
After processing these questionnaires, and consulting other services involved, it 
is planned to contact the Ministries and the most representative associations 
directly (a process due to continue until 1994). The White Paper will make it 
possible to better define future approaches for work on behalf of associations 
and foundations, while respecting the principle of subsidiarity. 
A similar approach will be adopted for mutuals and cooperatives. 
h) Creating a favourable environment and evaluating the impact of 
Community policies 
Legal and tax provisions, the availability of funding and cultural attitudes are 
in general the aspects which determine the economic environment. Although 
attempts to improve this environment must therefore cover a wide range of 
policies, the common principle must be to reduce the constraints on companies. 
- is -
This may be done by a further opening up of markets and by ensuring that any 
regulatory provisions which are required can be applied without hampering 
companies. 
The work programme must include: 
an examination of the impact of Community measures already in force and 
those being drafted on cooperatives, mutuals, associations and 
foundations; in particular, preparing these bodies to make the best 
possible use of future European legislation; 
examination of hindrances in national legislation to cooperation at Community 
level; 
a study of conditions favouring various kinds of transnational cooperation 
between this type of enterprise. 
c) Consultation arrangements 
Cooperatives, mutuals, associations and foundations are aware of the needs and 
challenges encountered by companies in these sectors as a result of the 
completion of the Single Market and of Economic and Monetary Union. 
Following on from the three European conferences at Paris, Rome and Lisbon, 
closer ties have been formed between cooperatives, mutuals and associations so 
that they have been able to share more extensive discussions on specific topics. 
Moreover, to facilitate this exchange and discussions on future Community 
policy and on the work programme, and in accordance with the guidelines set 
out at the Lisbon conference, representative bodies at European level have been 
asked to form a permanent body bringing together cooperatives, mutuals, 
associations and foundations, on the one hand, and the Community institutions, 
on the other. 
This organisation must comprise people particularly representative of the three 
sectors if it is to really work. 
2. Support for specific action to assist cooperatives, mutuals, associations and 
foundations in the Community 
a) Encouraging transnational cooperation by groups of partners in the search for 
new activities 
The aim of this programme cannot be restricted to analysing the current situation and 
the prospects for this sector, particularly in economic terms. For a number of years 
now, mutuals, cooperatives, foundations and associations have been aware of the need 
for cross-border cooperation as an effective way for companies, particularly small and 
medium-sized ones, to adapt to the changes associated with the creation of the Single 
Market and Economic and Monetary Union, without excessive risk of damaging the 
economic and social fabric. 
Up until the Single Act, the international contacts of many organisations within the 
sector were limited to their participation on institutional representative bodies, basically 
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taking up positions designed to defend shared general interests and action to show 
solidarity. At the time of the Single Act, which made these organisations suddenly 
more aware of the situation, most adopted a rather defensive attitude of preserving 
"acquired rights" and demanding special treatment. For a number of years now, 
however, these demands for "specific treatment" are accompanied by a dual desire to 
resist competition on the national market and to compete in third markets or, more 
accurately, to improve the company's existing share of the Single Market. 
There have been experiments at national or regional level of cooperation between 
cooperatives which could be transferred to other countries or regions in order to meet 
similar needs or to provide appropriate solutions to their socio-economic problems. For 
example: 
the grouping together of cooperatives within a single sector or complementary 
sectors allows SMEs not only to operate better amid general business 
competition but also to have access to public procurement contracts from which 
they would otherwise be excluded; 
merging activities in the final stage of agricultural production could make it 
possible for cooperatives to benefit from the advantages of the Single Market by 
spacing out over time the use of complementary marketing structures for 
agricultural products; 
expert systems (knowledge-based systems) developed in common at Community 
level would give cooperatives powerful management tools based on their own 
specific experience. 
A number of obstacles still hamper the development of cooperation within this sector. 
A partial list includes: the size and very localised nature of certain enterprises within 
the sector, information and training, access to capital, to the major markets and to 
advanced technologies, the difficulty of identifying strategic market niches in order to 
act together to create new activities and to draw up truly European development 
strategies, "vertical" divisions in cooperation initiatives (banks cooperating with banks, 
mutuals with mutuals, ...) and finally the identification of trustworthy partners and the 
absence of a completely satisfactory legal framework. 
One of the goals of the work programme is therefore also to make it possible for 
cooperatives, mutuals, associations and foundations to benefit from the Single Market, 
in particular by developing transnational cooperation. Particular attention will be paid 
to schemes involving collaboration and partnership between economic entities of 
different sizes. The accent will be placed on exchange and communication of 
recommended practices. In doing so, the most highly structured organisations in 
economic terms should be able to give all Community enterprises the benefit of their 
strengths in terms of competitiveness, whereas those currently less developed should 
become more competitive. Finally, the Commission will give particular attention to 
those instances of cooperation fitting in with Community policies. 
Pilot schemes could be planned to get around obstacles to transnational cooperation. 
One example might be to supply intermediary services for small enterprises in the 
sector wishing to enter into transnational cooperation. 
17 
b) Better information 
In order to give cooperatives, mutuals, associations and foundations the same access to 
Community information as SMEs, the Commission has supported the creation of an 
information network for these bodies linked to the Euro Info Centres (EIC) network in 
order to make it possible for them to: 
seek partners, establish joint ventures, buy or sell companies or any other 
operation they might wish to engage in; 
obtain information on policies or on the legislation or procedures of other 
relevant countries. 
c) Dissemination of social innovation 
Innovation is a comprehensive development process involving far more than the 
technical and economic dimension alone. It parallels technological development and 
makes it possible to draw up strategies to respond to social requirements (finding jobs 
for disadvantaged categories). 
Cooperatives, mutuals and associations have particular skills in this field which the 
entire Community can only benefit from recognising, promoting and using. 
On the basis of an initial fact-finding stage, the programme will therefore give great 
emphasis to exploiting the capital these companies can provide in terms of experience 
and innovative capacity. The programme thus aims to encourage the exchange at 
European level of models, experience and good practice. It must also seek appropriate 
conditions and resources to reproduce and disseminate these innovations as widely as 
possible. 
In the health sector, for example, sickness insurance is handled by mutuals or 
cooperatives and they also sell or produce health products (pharmacies, hospitals, etc), 
while associations provide services such as health-care and transport for patients. 
Coordination and cooperation is inadequate, particularly in the field of supplementary 
insurance where such bodies can play a key role. 
With regards to the associations and foundations sector, existing European networks 
have already provided, sometimes for a matter of decades, a channel for national and 
even local experience. Nevertheless, efforts should continue to be made to encourage 
mutual understanding so that these structures can become stronger and steadily more 
effective in their work on behalf of the European citizen. 
d) Strengthening the role of cooperatives, mutuals. associations and foundations as 
vehicles of Community policies 
Cooperatives, mutuals, associations and foundations are already actively involved in 
implementing a range of Community policies. In order to interlink these measures so 
that action by the Commission on behalf of these companies can be effective, these 
schemes should be fully exploited. Moreover, the Commission pays particular 
-18-
attention to instances of cooperation under Community policies which offer particularly 
effective scope for dissemination of the most worthwhile techniques. 
Encouraging cooperation and partnership between companies, particularly small and 
medium-sized ones, is an effective way of helping them to adapt the changes associated 
with the creation of the Single Market and Economic and Monetary Union without 
overly endangering the economic and social fabric. 
In general, the cooperative, mutual, foundation and associations sector plays a key role 
in strengthening economic and social cohesion because it is often better able to exploit 
local resources and also to make an appropriate response to new requirements. This 
type of enterprise can accordingly supply the necessary stimulus to endogenous 
development of hard-hit regions and sectors in at the same time supplying the social 
services best meeting the needs of the population. Existing Community regulations 
already provide for different forms of support for cooperatives, mutuals, associations 
and foundations through the Structural Funds (ERDF, EAGGF Guidance, ESF), as 
well as through certain integrated programmes (IMP, IDO, PEDIP) and specific 
schemes (RESIDER, RENAVAL). 
Attempts to render the work of the Structural Funds more effective makes it all the 
more necessary to establish a true partnership with the sector both for the drafting of 
these programmes and their monitoring and assessment. This is a prerequisite for 
achieving a better balance of needs and resources, particularly in encouraging the 
release by national governments of their own contributions to the implementation of the 
programmes. 
The partnership with cooperatives, mutuals and associations is also a necessary 
condition for the Community to play its role effectively among the various 
organisations involved. As an initial step, the work programme must check the extent 
to which Community funding already available to cooperatives, associations, 
foundations and mutuals is actually being used. The next stage will be to examine 
existing regulations to see to what extent these companies can be given better access to 
Community resources. 
On the one hand, action by the Commission strengthens innovation in cooperatives, 
mutuals and associations by aiding projects of recognised value in their fields; at the 
same time, the Commission serves as a sounding board at Community level for such 
projects. A local initiative in a village of the Massif Central can thus become a model 
for a rural project in Ireland. The irreplaceable role played by the Community in the 
dissemination of information acquired through the projects it supports is apparent from 
the very large number of requests for information and the abundant replies received 
when a questionnaire was sent about associations in the Member States. 
Boosted by these information and support activities, these projects themselves are 
learning to operate as part of a European partnership. A number of European 
programmes provide them with considerable support in this regard. 
Nevertheless, in order to cope with the undercapitalisation which is a feature of many 
enterprises in this sector, a new partnership will have to be formed between national 
19 
and Community authorities, the financial institutions (banks and insurance) and 
enterprises. 
The "cooperatives" unit seeks to identify innovative projects, to publicise them and to 
stimulate cooperation between them. 
B. STRENGTHENING ACTION WITHIN OTHER POLICY AREAS 
1. Developing Community statistics 
Across the twelve Member States, information about the cooperatives, mutuals, 
foundations and associations sector is patchy and uneven. 
Research must be carried out in order to better understand the situation in the sector 
and to obtain harmonised and regularly updated statistical data. This survey forms part 
of other work in the statistical programme implemented by the Commission and 
designed, in particular, to achieve: 
a better overview of private non-commercial activities, so as to enhance the 
accuracy and harmonisation of Member States* GNP measurement, given that 
such activities comprise a significant proportion of some countries' GNP; 
the development of statistics for services in sectors not yet possessing adequate 
means of data collection. 
The Commission has already begun work to improve the statistical coverage in this 
field. EUROSTAT, the European Statistical Office, has undertaken initial work to 
upgrade national statistics. 
In addition, sectoral statistical surveys will be carried out to compile indicators specific 
to this field. These are in association with work to develop a methodology whereby 
cooperatives, mutuals and associations can be presented as a specific sector to be 
monitored as part of a (harmonised) separate statistical series. 
2. Supporting training 
Cooperatives, mutuals, associations and foundations have to cope with extensive 
changes involving a concentration of resources, a remorseless increase in technical and 
• management commitments and a need for greater professionalism on the part of 
managers. 
Personnel training therefore becomes a priority so that enterprises are in a position to 
participate in Europe-wide groups and/or partnerships in order to meet new competition 
and to enhance the reliability and quality of their industrial products and services, while 
yet remaining faithful to the primary aim of membership solidarity and responsibility. 
The Structural Funds and specific training programmes established by the Commission 
(e.g. COMETT, FORCE, LINGUA) do in general meet the various needs in this field. 
However, the work programme must make it possible to: 
20 
check that existing training programmes are used by cooperatives, associations 
and mutuals. In particular, it is necessary to ensure that groups are functioning 
smoothly enough to participate in these programmes; 
carry out pilot training schemes based on the specific needs of this type of 
company where people are not only members but also part of management: 
training the management of cooperatives, mutuals, associations and foundations 
in the key issues of this European partnership; 
training the management of professional bodies; 
exchanges of management and technical personnel between these enterprises. 
These must be model schemes capable of deployment in a range of Member States. The 
transfer of methods and tools developed in this way in the SME sector will also be 
encouraged. 
3. Encouraging the development of R & D 
As SMEs founded on the principles of solidarity and participation, cooperatives, 
mutuals, associations and foundations generally find it more difficult to participate in R 
& D programmes. The administrative costs involved in participation and cooperation 
in these programmes are often relatively high for this kind of company, particularly 
because they do not always have access to long-term funding. 
The work programme should create conditions encouraging cooperatives, mutuals, 
associations and foundations to become involved in the R & D process in general and 
in R & D programmes already receiving Community funding. 
In this context, steps should be taken to ensure that this kind of company has access to 
advanced management, evaluation and organisation systems. 
To be accepted, pilot schemes must meet the three essential criteria of: 
being innovative; 
being capable of deployment in all Member States or to be operating in at least 
three Member States; 
having a "multiplier effect" for the sector. 
III. FINANCIAL IMPLICATIONS OF THE PROGRAMME FOR 
COOPERATIVES, MUTUALS AND ASSOCIATIONS 
This programme, scheduled to run for three years, extends and enlarges earlier 
measures taken either in the context of various policies or by the Commission under its 
enterprise policy, whereby the Community had already demonstrated its intention to 
make a contribution, subject to its powers and resources, to the development and 
integration of cooperatives, mutuals and associations in a unified market. 
-21 
This programme adopts a similar approach, but is politically more ambitious, despite 
the fact that the available resources remain extremely modest, with an estimated budget 
of ECU 5.6 million over three years. 
It is ambitious in that, being based on a rigorous and systematic knowledge of the 
sector, it sets out to present a formalised framework for Community action. The 
strengthened horizontal approach and the implementation of specific measures will be 
based on a quest for innovative strategies, for partnership and networking 
arrangements, and for transnational dynamics. 
In this respect, the budget heading B5-3210 "Economie Sociale" must be viewed first 
and foremost as consolidating the general SME heading B5-3200, which in the past was 
used very largely to fund initiatives taken by undertakings in this sector. Secondly, the 
budget funds must be used to integrate the funding of measures, projects, research and 
studies conducted under other policies, with a view to supporting an approach which 
properly reflects the special nature of the cooperatives, mutuals and associations sector. 
IV. INDIRECT ACTION RESULTING FROM THE APPLICATION 
OF CERTAIN COMMUNITY POLICIES 
Other than enterprise policy, a number of Community policies affect cooperatives, 
mutuals, associations and foundations. These are primarily regional policy, consumer 
protection, fisheries policies, policy on agriculture and the development of rural areas, 
business policy, research policy, environmental policy, social policy, development 
policy, education and training policy and, much more recently, health and safety 
policies. 
Finally, a major part of the cooperatives and mutuals sector is directly involved in the 
creation of the single market for financial services. This is particularly the case for 
cooperative banks and insurance mutuals and cooperatives. 
It is nevertheless difficult to identify precisely how much cooperatives, mutuals, 
associations and foundations participate in these Community policies. At national, 
regional and local level, however, many associations and cooperatives, and certain 
mutuals and foundations, participate in the implementation of Community policies 
designed to reduce inequalities between regions. Their role in this context has been 
sufficiently stressed in two resolutions of the European Parliament15 and in an own-
initiative opinion of the ESC"1 which called for involving cooperatives, mutuals, 
associations and foundations in the drafting of Community plans and operational 
programmes. 
15 
16 OJ C 128 of 16 May 19S1. p. s | (report 1-X49/X2) 
OJ C 246 of 14 Scplcmhcr IVS7. 
Own initiative opinion of ilic Ixonomic and Social Committee on "The contribution of the 
cooperative sector to rcgion.il development". 19.10.1989. 
-22-
1 Enterprise policy 
In general, the Commission's enterprise policy makes information, cooperation, 
funding and training tools available to cooperatives, mutuals, associations and 
foundations, most of which are SMEs or serve SMEs. The procedure for evaluating 
the impact of measures proposed by the Commission makes it possible, using certain 
kinds of consultation, to assess their potential effects on these enterprises. 
With particular regard to EIB loans, especially those to SMEs, it should be noted that a 
number of cooperative banks are recognised by the European Investment Bank as 
intermediaries. 
With a view to involving people and organisations from all over Europe in the work of 
building, Europe, by giving them access to information at European level, the 
Commission has lent its support to the creation of information centres specially geared 
to the needs of firms and organisations in this sector. 
2 Policy on development of cooperation with non-member countries 
Cooperatives, associations and mutuals form a significant proportion of the economy of 
the countries in the European economic area. Enterprises in this sector will have a key 
role to play in the cooperation which will accompany the implementation of agreements 
with the European Community. 
The economic system imposed for more than 40 years on the countries of Central and 
Eastern Europe has suffocated even the basic principles of enterprises in this sector -
particularly cooperatives - to the point where they have been discredited in the eyes of 
both producers and consumers: the state has displaced the individual, free association 
has disappeared and bureaucratic management has dominated companies. 
Information, training and the stimulation of cooperation and partnerships will 
contribute to consolidating economic democracy in Eastern Europe and to developing 
the European Economic Area. 
The Community makes extensive efforts to contribute to the development of southern 
countries which have cooperation agreements with the Community. 
The principles of solidarity and participation which underpin cooperatives, associations 
and mutuals automatically contribute to the creation of an environment favouring 
economic and social development. 
As far as the ACP countries are concerned, promotion of cooperatives and other 
associations is called for under the Lomé Convention and more particularly under the 
heading of decentralised cooperation. 
3 Consumer policy 
A significant number of cooperatives, associations, mutuals and foundations have 
arisen out of consumer groups. In this context, and in some cases since 1962, they are 
closely associated with the drafting of Community policy on consumer protection. 
23 
As representative European organisations, EUROCOOP17, COFACE18, ETUC19 and 
EBCU20 are represented on the CCC21 set up by the Commission to seek the opinion of 
consumer organisations on Commission initiatives directly or indirectly affecting 
consumer interests, as well as on many other advisory committees, particularly those 
referring to agricultural and fisheries policies. 
4 Agriculture policy 
COP A22 and COGECA23 have always been essential discussion partners for the 
Commission when it comes to the Common Agricultural Policy: cooperatives and 
producers associations are characteristic features of the agricultural sector in the 
Member States. 
Cooperatives, mutuals and associations have played a vital role in the development of 
agricultural and rural life in the European Community. 
Cooperatives have an important role not only in the processing and/or marketing of 
agricultural products but also in funding farms. The economic development of the 
agricultural sector has been buttressed by health and insurance mutual societies or 
cooperatives providing capital. 
Less known in general has been the role of associations not only in training and the 
publicising and dissemination of knowledge but also in concentrating supply and 
establishing production standards. 
On the eve of the creation of the Single Market and of Economic and Monetary Union, 
agricultural enterprises must be able to develop within this economic area so as to cope 
with profound changes, both economic and sociological, and thus benefit from their 
effects. 
In this regard, particular attention must be paid to cooperatives, mutuals and 
associations within the agricultural sector, particularly in respect of: 
training of both associate members of these structures and workers; 
the requirements of transnational cooperation arrangements; 
financial needs. 
5 Fisheries policy 
Cooperatives, associations and mutuals play an important role in the fisheries sector. 
17 
18 
19 
20 
21 
22 
23 European Organisation of Consumer Coopératives. 
European Community Confederation of Family Organisations 
European Trade Union Confederal ion 
European Bureau of Consumers' Unions 
Consumers Consultative Committee 
Committee of agricultural organisations in the EEC. 
General Committee for Agricultural Cooperation in the EEC. 
-24-
This sector is currently faced by a serious over-capacity problem and a series of 
measures have been adopted by the Commission to speed up the rate at which the 
capacity of the Community fishing fleet is being reduced. These measures require the 
implementation of such socio-economic "support measures" as: 
economic restructuring in order to generate alternative employment; 
social measures (vocational training, early retirement, etc.). 
Planned action includes in particular carrying out regional socio-economic studies and 
launching pilot schemes. 
6 Social policy 
Since the early 1980s, when the Commission observed that there were increasing 
numbers of cooperative enterprises whereas other enterprises were going out of 
business, it has specifically recognised the role that cooperatives could play in 
maintaining and creating jobs. In its communications to the Council concerning the 
problems of employment and unemployment, the Commission has since that time 
stressed the importance of the cooperative movement while recommending appropriate 
stimulation measures. In response to one of these communications, the Council 
Resolution of 7 June 1984 concerning contribution of local initiatives to creating 
employment and combating unemployment has encouraged policy approaches to help 
cooperatives and similar undertakings. 
At the present time, the Community action programmes LEDA and ERGO, concerning 
local employment development and action to help the long-term unemployed 
respectively, involve cooperatives, mutuals, associations and foundations in their 
activities to the greatest possible extent. 
Educational and social cooperatives, associations for training and on-going education in 
particular, and indeed all enterprises in the cooperative sector in terms of the efforts 
they make to train their delegates and workers, are very active participants in 
Community education and training policy. Some organisations manage operational 
programmes supported by the European Social Fund. Cooperatives, mutuals, 
associations and foundations are involved in implementing such programmes and 
initiatives as Force, Euroform, Now and Horizon. Some programmes, particularly 
those involving training and. the establishment of enterprises for young people or for 
women, specifically refer to cooperatives. 
7 Cultural policy 
Cultural policy is to a very large extent run by associations and foundations. In the 
past, for example, they have striven to obtain recognition of the rights of workers 
involved in cultural activities. 
Cooperatives, associations and foundations will play an important role in the 
implementation of European cultural policy in accordance with the Maastricht 
agreements, particularly in the preservation of Europe's cultural heritage, the 
development of non-commercial cultural exchanges and artistic and literary creativity, 
including the audio-visual sector. In addition, cooperatives and associations offering 
-25 
their membership inexpensive travel arrangements can make an effective contribution 
to exchanges in this sector. 
8 Health policy 
This will also be true of health policy. Those involved in this new policy will be 
particularly social-welfare mutuals, those reimbursing their members for medication 
and associations and foundations working in the health sector. Involved on behalf of 
this sector in the consultations between management and workforce, these enterprises 
are affected by all European legislation on health, social protection, medication, health 
education and consumer protection. 
9 R&D policy and structural policy 
R&D programmes are open to participation by cooperatives, mutuals and 
associations/foundations. This is essential if the competitiveness of these enterprises is 
to be enhanced during the current era of economic change in European society. In 
addition, the policy of the Structural Funds is designed to mobilise those economic and 
social organisations firmly established "on the ground" and whose involvement will 
have a more powerful "knock-on" effect in regional and/or local development. 
10 Development policy 
In order to carry out its development policy, the Commission has always worked 
closely with non-governmental organisations (NGOs). Particularly under the budget 
heading of micro-projects, NGOs have been involved in implementing schemes in the 
ACP countries. In accordance with the most recent Lomé Convention, cooperatives 
and local NGOs are the main channels for development policy covering their countries. 
In the Trivelli Resolution, the European Parliament also emphasised the important role 
played by cooperatives in this field. 
11 Environment policy 
For many years now, members of this sector, more especially the environmentalist 
associations, have been involved in a range of Community policies designed to protect 
the environment in Europe. They are also active in promoting sustainable development 
and environmental issues. 
-26-
V. CONCLUSIONS 
The enterprise operated by cooperatives, mutuals and associations must be made as 
capable as other companies of benefiting from the opportunities arising out of the 
creation of the frontierless Single Market and from Economic and Monetary Union. 
In order to maintain the diversity of the European economy, such cooperatives, mutuals 
and associations (either SMEs or serving SMEs) must be able to continue to exist and 
to develop in a larger and competitive market while respecting - and even encouraging 
- the principles of solidarity expressed in their aims or form of organisation. 
It is accordingly important that the promotion of cooperation between these companies 
so as to maintain and extend their activities should take place in a context which is 
stable, transparent and based on rules which set small companies on an equal footing 
with large ones and the major business groupings. 
This work programme is therefore designed to assist cooperatives, mutuals, 
associations and foundations in determining their response to the twin goals of the 
Community: economic development and the achievement of social progress. 
Moreover, the promotion of SMEs that are cooperatives, mutuals or associations must 
be accompanied by the implementation of specific measures to improve their scope for 
transnational cooperation in order to expand their presence on the market or to 
strengthen their role in achieving Community objectives in a certain number of fields. 
In addition, on expiry of the period covered by this programme to assist cooperatives, 
mutuals and associations, the Commission could assess Community policy for the 
companies in question in order to have additional information on which to base future 
approaches. 
27-
FINANCIAL STATEMENT 
1. Title of operation 
Programme of work for cooperatives, mutual societies, associations and foundations. 
2. Budget headings involved in the past: 
B5-3200 (in 1991: ECU 0.030 million in commitment appropriations and ECU 0.030 
million in payment appropriations; in 1992: ECU 0.100 million in commitment 
appropriations and ECU 0.450 million in payment appropriations; in 1993: 
ECU 0.200 million in commitment appropriations and ECU 0.200 million in 
payment appropriations) for stimulating enterprises (particularly small and 
medium-sized enterprises) 
B5-3210 (in 1991: ECU 1.200 million in commitment appropriations and ECU 1.200 
million in payment appropriations; in 1992: ECU 0.820 million in commitment 
appropriations and ECU 0.820 million in payment appropriations; in 1993: 
ECU 0.840 million in commitment appropriations and ECU 1.140 million in 
payment appropriations); heading specific to "économie sociale". 
3. Legal basis 
3.1 Council Decision 89/490/EEC of 28 July 1989 on the improvement of the 
business environment and the promotion of the development of enterprises, and 
in particular small and medium-sized enterprises, in the Community (OJ L 
239/89). 
3.2 Council Decision 93/379/EEC of 14 June 1993 on a multi-annual programme of 
work to intensify the priority areas and to ensure the continuity and 
consolidation of enterprise policy, with particular reference to small and 
medium-sized enterprises, in the Community (OJ L 161/93). 
3.3 Communication from the Commission to the Council of 18 December 1989 
entitled "Businesses in the "économie sociale" sector: Europe's frontier-free 
market" (SEC (89 2187 final). 
3.4 Declaration no. 23 of the Treaty on European Union "Declaration on 
cooperation with charitable associations". 
28 
3.5 "From the Single Act to Maastricht and beyond: the means to match our 
ambitions" (COM(92) 2000 final). 
4. Description of operation 
Appropriations under heading B5-3210, along with headings B3-10 and B6-612, are 
intended to cover expenditure incurred by projects to study the impact of the 
completion of the Single Market on the "économie sociale" sector and to 
improve its access to Community measures. 
4.1 Specific objectives of operation 
In its Communication entitled "Businesses in the "économie sociale" sector: Europe's 
frontier-free market", the Commission's intention was to submit a working 
programme in full respect of the principle of subsidiarity and to make 
appropriate proposals for its implementation. 
This working programme is aimed at: 
1. consolidating the horizontal approach by improving knowledge of the sector and 
particularly its contribution to the economy in general and its specific 
contribution to certain Community policies, and by taking account of this sector 
in Community policies and assessing the impact of these policies on 
cooperatives, mutual societies, associations and foundations; 
2. implementing specific measures designed in particular to: 
enhance the scope for transnational cooperation and the quest for new 
activities and new markets among partners acting in groups in the context of the 
newly-completed Single Market. 
improve information How, 
support training 
encourage the development of research and scientific progress, 
strengthen the role of cooperatives, mutual societies, associations and 
foundations as vehicles of EC policies, particularly as-regards the dissemination 
of social innovation, the consolidation of economic and social cohesion, and the 
development of cooperation with non-member countries. 
4.2 Duration 
Measures taken in the "économie sociale" sector are part of multi-annual framework 
programmes, the first of which is spread over the 1994-96 three-year period. 
4.3 Target population 
-29 
A substantial portion of the Community population is targeted by action in the 
"économie sociale" sector if, for instance, we bear in mind that 60% of 
European agricultural production is harvested, processed or marketed through a 
cooperative, that cooperative or mutual banks collect almost 17% of European 
savings, that 40 million European families use mutual societies to insure against 
the risk of sickness or against the vagaries of old age and that there are 60 
million members and 3 million jobs in the cooperative sector alone. 
5. Classification of expenditure or revenue 
5.1 Non-compulsory expenditure 
5.2 Differentiated appropriations 
5.3 Types of revenue en visaged 
None. 
6. Type of expenditure or revenue 
6.1 100% subsidy 
A minimal part (study contracts, expenditure on meetings, publications) is financed in 
toto. 
6.2 Subsidy for co-financing with other sources from the public and/or private 
sector 
Innovatory pilot projects (above mentioned objects) will be financed at an average rate 
of 18%. 
6.3 Interest subsidies 
Certain operations might qualify for interest subsidies. 
6.4 Other 
None. 
6.5 In the event of the action proving economically successful, has any provision 
been made for partial or total reimbursement of the Community financial 
contribution? 
As things currently stand no reimbursement of the Community financial contribution 
has been envisaged. 
6.6 Does the operation proposed entail any change in the level of revenue? If so 
what does the change involve and what type of revenue is envisaged? 
- 30 -
The operation entails no changes as regards the level of Community revenue. 
7. Financial impact 
7.1 Method for calculating total cost of operation 
A large number of innovatory pilot projects have been gathered through a study 
conducted for DG XXI11/A/4. The total cost of the operation is based on the 
commission's taking over expenditure amounting to approximately 18% of the 
total expenditure for the various pilot projects proposed. 
31 
7.2 Detailed breakdown of the action 
in ECU million 
BREAKDOWN 1994 DESCRIPTION OF 
EXPENDITURE 
A. Promoting, coordinating and 
strengthening measures for 
cooperatives, mutuals, 
associations and foundations 
A.l Strengthening the horizontal 
approach 
Improvement of the 
knowledge of the sector of 
cooperatives, mutual 
societies, associations and 
foundations, particularly its 
contribution to the economic 
in general and its specific 
contribution to certain 
Community policies. 
Implementation of studies on 
the development of the 
sector within the Community 
Creation of a favourable 
environment and assessment 
of the impact of Community 
policies. 
Consultation arrangements. 0.100 
0.210 
0.040 Programme of prospective studies 
and examinations in order to obtain 
the information needed to identify 
major trends 
Examination of the impact of 
Community measures 
Studies of national legislation and 
hurdles to cooperation at the 
Community level 
Pilot actions in order to evaluate the 
impact of Community policies 
To permit exchanges and 
consultation on future Community 
policy and on the programme of 
work, the representative bodies at 
European level are invited to set up a 
standing structure for contact 
between cooperatives, mutual 
societies, associations and 
foundations on the one hand, and the 
Community institutions on the other 
(meetings) 
-32-
A.2. 
B. Support for specific 
measures to assist 
cooperatives, mutual 
societies, associations and 
foundations in the 
community 
Encouraging transnational 
cooperation to seek out new 
activities by groups of 
partners 
Improving the information 
flow 
Dissemination 
innovation of social 
Strengthening the role of 
cooperatives, mutual 
societies, associations and 
foundations as vehicles of 
community policies 
Strengthening action within 
other policy areas 
Development of Community 
statistics and processing of 
data following up surveys 
carried out in this sector 
(B5-3200) 
Supporting training (B3-I0) 
Stimulating R&D 
(B6-612) 
TOTAL 0.100 
0.155 
0.100 
0.545 
0.200 
0.070 
0.130 
1.650 Pilot actions to overcome hurdles to 
transnational cooperation 
Information network linked to the 
EICs plus also permitting the quest 
for partners, the implementation of 
joint ventures, etc. 
Innovatory pilot schemes based on 
the specific features of cooperatives, 
mutual societies, associations and 
foundations 
Pilot schemes, with special reference 
to the disadvantaged reions, in the 
sector by organisations 
Studies, collection and processing of 
data, publications for knowledge of 
the situation in the sector and for 
harmonised statistics and updates 
Pilot actions for training of 
executives and those responsible for 
vocational structures; exchanges of 
executives and engineers 
Pilot schemes, with special reference 
to the disadvantaged regions, by 
organisations in the sector 
- 33 
7.3 Operational expenditure for studies, experts' meetings, etc. included under B 
BREAKDOWN 
Studies 
Meetings of experts 
Conferences and congresses 
Information and publications 
TOTAL 1994 
0.350 
0.040 
p.m. 
0.030 
0.420 1995 
0.300 
0.050 
p.m. 
0.050 
0.400 1996 
0.300 
0.050 
p.m. 
0.050 
0.400 
7.4 Indicative schedule of commitment appropriations 
APPROXIMATE PLANNING (million ECU) 
BUDGET 
WORK PROGRAMME 1994 
1.650 1995 
1.860 1996 
2.090 
8. Anti-fraud measures planned in the proposal for the operation 
As regards the checking of subsidies or receipts of services and studies commissioned 
by the Commission's departments prior to payment, bearing in mind contractual 
obligations and the principles of economy and sound financial management, 
anti-fraud arrangements (monitoring, submission of reports, etc.) are included 
in all agreements or contracts signed between the Commission and the recipients 
of payments. 
9. Elements of cost-effectiveness analysis 
9.1 Objectives 
The main idea behind the selection of pilot schemes either for 1994 or under the 
framework programme (1994-96) hinges on setting up a coordinated policy of 
networks of European cooperatives, European mutual societies and European 
associations. 
9.1.1 The creation of European groupings has been fostered by the Commission. 
Thus: 
34-
for the European agricultural cooperatives, the European Economic Interest 
Group (EUROCORD) has been set up in order to compete more 
effectively for calls for tenders under "Phare" (e.g. winning contracts 
worth three million ECU for the restructuring of cooperatives in Poland, 
in the context of a renewable programme); 
cooperatives and associations from nine Member States and financial 
establishments of the sector (e.g. for France: WF + Caisse des Dépôts 
et Consignations; for Germany: Deutsche Familien Ferien + 
GenossenschaJ'tsbank; for Portugal: APORTAL + Montepio Gérai) 
offering their membership low-cost travel have grouped together to form 
EEIG "Eurovillages"; 
* network of information on "économie sociale" (Euro Info Centres) has been 
set up by the following organisations: Comité Européen des 
Coopératives de Production, Eurocitizen Action Service, Comité 
Européen des Associations d'intérêt Général, European Foundation 
Centre, in order to cater for the need for enterprises of the "économie 
sociale" sector to interact with the rest of the Community's trade and 
industry by using the EIC network (network of networks). 
9.1.2 A study conducted by our department shows that a large number of innovatory 
pilot projects have been put forward and selected in the light of the 
abovementioned objectives. 
9.1.3 Following studies undertaken by DG XXIII a special financial mechanism has 
been set in place for cooperatives, mutuals and associations, based on a 
European investment company and two joint placement funds. 
9.2 Grounds for the opera/ion 
9.2.1 Cost 
The cost of the different operations has been calculated on the basis of the elements 
presented under 7 above. The limited financial and human resources available on the 
one hand and the specific nature o\' the requirements on the other rule out an alternative 
strategy for intervening in the sector in question. 
9.2.2 Spin-off effects 
The spin-off and knock-on effects are important because the operations envisaged 
should enable the "économie sociale" sector to benefit from the advantages of the 
frontier-free Single Market while respecting the rules of competition and without losing 
their special nature as membership organisations. 
9.2.3 Multiplier effects 
The actions undoubtedly have and will continue to have multiplier effects either by 
mobilising other sources of financing from the sector itself or from other sectors, or by 
being reproducible in time and in space. In particular, the experience gained has 
demonstrated that the Commission can, in most cases, limit itself to a financial 
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contribution of around 15-25% and that the enterprises of the sector are prepared to 
finance the rest of the projects in question. The multiplier effect is therefore around 
400-667%. 
9.3 Monitoring and assessment of the operation 
Depending on the objectives pursued this will be as follows: 
comparative assessment, designed primarily to identify the changes 
generated by the operation on a population or on a situation and to 
evaluate the extent to which the objectives set have actually been 
attained and whether there have been any effects other than those 
anticipated; 
analytical assessment, designed to establish the differences generated by 
the operation in relation to an initial situation; 
dynamic assessment based on the interim results of the analysis and 
amending the action as it progresses. 
These methods can be complementary and must permit six-monthly 
assessments. 
The "économie sociale" sector is very diversified as a result of its makeup 
(cooperatives, mutual societies, associations and foundations) and its 
distribution across the 12 Member States. 
Close attention is therefore needed when preparing operations, in order to 
ensure the resources deployed match the perceived needs. 
9.4 Consistency with financial planning 
9.4.1 Is the action included in the DCs financial planning for the years concerned? 
The action is an integral part of the DG's policy. 
9.4.2 Specify to which more general objective defined in the DG's financial planning 
the objective of the operation proposed corresponds. 
The operation proposed corresponds to the objectives pursued by the Directorate 
General (training, information, cooperation, etc.). 
10. Administrative expenditure (part A of the budget) 
10.1 Does the operation entail an increase in the number of Commission staff? If so 
how many? 
36 
Unit XXIII/A/4 will have to recruit two A-grade officials, one B-grade and two 
C-grades. Only internal recruitment procedures will be used, as a function of 
the number of posts available. 
10.2 Give the total operational and staff expenditure generated by the operation. 
No effect on the budget. 
10.3 The proposed operation will also generate the following expenditure on the 
meeting of the committee provided for in Article 4 of the Decision (item A 
2510): 
One meeting per year of 24 government experts. ECU 15 000 
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PROGRAMME OF WORK FOR COOPERATIVES. 
MUTUALS. ASSOCIATIONS AND FOUNDATIONS 
A. 
A.l. 
A.l.a) 
A.l.b) 
A.l.c) 
A.2 
A.2.a) 
A.2.b) 
A.2.c) 
A.2.d) 
B. 
B.l. 
B.2. Budget 
item 
B5-3210 
B5-3210 
B5-3210 
B5-3210 
B5-3210 
B5-3210 
B5-3210 
B5-3200 
B3-10 Financing plan24 1994-96 
Promoting, coordinating and 
strengthening measures for 
cooperatives, mutuals, 
associations and foundations 
Strengthening the horizontal 
approach 
Studies on the development of 
the sector in the Community 
Creation of a favourable 
environment and evaluation of 
the impact of Community 
policies 
Consultation arrangements 
Support tor specific measures in 
favour of cooperatives, mutuals, 
associations and foundations 
Encouraging transnational 
collaboration in the quest for 
new activities by groups of 
partners 
Improving information 
Dissemination of social 
innovation 
Strengthening the role of 
cooperatives, mutuals, 
associations and foundations as 
vehicles of Community policies 
Strengthening action within other 
policy areas 
Development of Community 
statistics and compilation of data 
subsequent to surveys carried out 
in the sector 
Providing training hack-up 1994 
0.100 
0.210 
0.040 
0.100 
0.155 
0.100 
0.545 
0.200 
0.070 1995 
0.080 
0.120 
0.050 
0.100 
0.160 
0.100 
0.790 
0.200 
0.100 1996 
0.080 
0.080 
0.050 
0.100 
0.160 
0.100 
0.830 
0.150 
0.130 1994-96 
0.260 
0.410 
0.140 
0.300 
0.475 
0.300 
2.165 
0.550 
0.300 
24 The pilot projects receive IX% funding on average. Studies and expenses for meetings or for 
publication receive 100% funding 
IX-
B.3. B6-612 Encouraging RAiD 0.130 0.160 0.410 0.700 
C. 
C.l. 
C.2 
C.3. 
C.4. 
C.5. 
C.6. B7-500 
B2 
B3 
B4-3 
B5 
B7 TOTAL (million ECU) 
Indirect action arising from the 
application of certain 
Community policies 
Promotion of Community 
investment in the developing 
countries in Latin America, Asia 
and the Mediterranean within the 
context of economic and 
commercial cooperation 
agreements. 
Structural measures, other 
agricultural and regional, 
transport and fishing measures 
Training, youth, culture, audio 
visual, information and other 
social action 
Environment 
Consumer protection, internal 
market, industry and trans-
European networks 
Cooperation with developing 
countries 1.650 1.860 2.090 5.600 
In the remarks on the general budget 
of the European Communities with 
effect from the budget year 1994, the 
point is made that the action 
envisaged is directed particularly to 
small and medium-sized enterprises, 
including firms in the "économie 
sociale" sector. 
Cooperatives, mutuals and 
associations have received funding 
from this item in the past. For the 
period covered by the programme, 
these firms will continue to qualify 
for such funding, but it is not 
possible, a priori, to specify an 
amount, as this will depend on the 
quality of projects proposed and on 
the way the various activities develop. 
Idem 
Idem 
Idem 
Idem 
39 
ISSN 0254-1475 
COM(93) 650 final 
DOCUMENTS 
EN IO 08 
Catalogue number : CB-CO-93-706-EN-C 
ISBN 92-77-62716-6 
Office for Officiai Publications of the European Communities 
L 2985 Luxembourg 
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