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
Date: 1994-02-16
Institutions: European Commission
Subjects: EU statistics, European undertaking, association, committee (EU), cooperative, economic development, economic policy, economic statistics, foundation, inter-company cooperation, small and medium-sized enterprises

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. 

3'-

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 

THE COUNCIL OF THE EUROPEAN  UNION, 

(.../.../  EC) 

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. 

2. 

3. 

4. 

Whereas  on  28  July  1989  the  Council  adopted  Decision  89/490/EEC  on  the 
improvement  of 
the 
in  particular  small  and  medium-sized 
development  of  enterprises,  and 
last  revised  by  Council  Decision 
in 
enterprises, 
93/379/EEC of  14 June  19939; 

the  business  environment  and 

the  Community8,  as 

the  promotion  of 

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; 

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; 

Whereas  the  Commission  has  submitted  to  the  Council  a  communication  on 
in  the  "Economie  Sociale"  sector  and  Europe's  frontier-free 
"Businesses 

5 
6 
7 
8 
9 
10 

O JC  ...,...,  p.... 
O J C,  ..., p.  ... 
O JC  ...,...,  p.  ... 
OJL239,  16.8.1989 
OJL...,  ... 
O JC 

-4 

market"11  stating  its  intention  to  present  a  programme  of  work  for  this  sector 
together with the appropriate proposals for its implementation; 

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; 

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, 

the  utilisation  by 

encouraging 
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 
the 
implementation  of  social  cohesion  policies,  an  area  in  which  this  sector 
has undeniable advantages; 

the  social  dialogue  and 

in 

in 

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; 

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; 

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; 

Whereas a committee  of  representatives of  the  Member  States  must be  set  up to 
assist the Commission  in  implementing the programme;*. 

Whereas  the Treaty  does  not  provide,  for  the adoption  of  this  Decision,  powers 
other than those laid down  in  Article 235, 

5. 

6. 

7. 

8. 

9. 

10. 

11. 

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 
Community  policies; 

impact  of 

making arrangements for consultation; 

B.  providing  support  for  specific  action  with a view to: 

for  transnational  cooperation,  especially 
encouraging  opportunities 
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 
foundations  as vehicles  for Community  policies; 

the  role  of  cooperatives,  mutuals,  associations  and 

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. 

- 6-

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. 

The  procedure  laid  down  in  Article  4  shall  be  followed  for  adopting 

2. 
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. 

The  committee  referred  to  in  Article  4  may  examine  any  other  matters 

3. 
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 
the  date  of 
communication. 

two  months  from 

for  a  period  of 

it  has  decidcci 

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. 

- 7-

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 

This  Decision  shall  enter  into  force  on  1 January  1994  and  shall  cover 

1. 
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 

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 
these  enterprises  combine 
competitivity  with  their  social  role. 

in  which 

In  addition,  this  sector  is  a  blend  of  tradition  and  modernity,  given  that 
"entrepreneurial"  forms  of  association  are  spreading  through  such  different 

13 

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 
organisational  and technical  innovation are key imperatives. 

industry,  where  flexibility  and  both 

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. 

specific 
These  enterprises  are  characterised  by 
organisational  and production  techniques drawn from  the principles of  economic 
democracy. 

implementation  of 

the 

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. 

- 1 0-

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 
in 
providing  social-support  measures  for  technological  development  and 
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 
(ESF,  ERDF, 
intermediaries  for  Community 
EAGGF). 

funds 

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. 

- 1 2-

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 
Community  policies; 

the 

impact  of 

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 
foundations  as vehicles  for  Community  policies; 

the  role  of  cooperatives,  mutuals,  associations  and 

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 
the  development  of  cooperatives,  mutuals, 
identify 
associations  and  foundations,  both 
to 
individual  activities. 

terms  and  with  regard 

in  general 

the  major 

trends 

in 

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 

-  1 4-

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, 
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. 

social, 

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 

-  16-

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 

- 1 8-

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 
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. 

to  play 

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 
enterprises. 

institutions  (banks  and  insurance)  and 

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 
for  partnership  and  networking 
based  on  a  quest 
arrangements,  and for transnational  dynamics. 

innovative  strategies, 

for 

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. 

- 2 2-

1 

Enterprise  policy 

training 

the  Commission's  enterprise  policy  makes  information,  cooperation, 
In  general, 
funding  and 
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. 

tools  available 

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. 

training  and 

Information, 
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. 

Agriculture  policy 

4 
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. 

- 2 4-

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. 

in  the 
Cooperatives,  associations  and  foundations  will  play  an  important  role 
in  accordance  with  the  Maastricht 
implementation  of  European  cultural  policy 
agreements,  particularly 
in  the  preservation  of  Europe's  cultural  heritage,  the 
development  of  non-commercial  cultural  exchanges  and  artistic  and  literary  creativity, 
In  addition,  cooperatives  and  associations  offering 
including  the  audio-visual  sector. 

-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. 

- 2 6-

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 
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. 

therefore  designed 

is 

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 

3.2 

3.3 

3.4 

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). 

to 

Council  Decision  93/379/EEC  of  14 June  1993 on a  multi-annual  programme  of 
the  continuity  and 
work 
consolidation  of  enterprise  policy,  with  particular  reference 
to  small  and 
medium-sized  enterprises,  in the Community  (OJ  L  161/93). 

the  priority  areas  and 

to  ensure 

intensify 

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). 

Declaration  no.  23  of 
cooperation  with  charitable  associations". 

the  Treaty  on  European  Union  "Declaration  on 

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. 

its  contribution 

consolidating  the horizontal  approach  by improving  knowledge of  the  sector  and 
particularly 
its  specific 
to  the  economy 
contribution  to certain  Community  policies,  and  by  taking  account  of  this  sector 
in  Community  policies  and  assessing 
these  policies  on 
impact  of 
cooperatives,  mutual  societies,  associations and  foundations; 

in  general  and 

the 

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. 
Target population 

4.3 

-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. 
Classification of expenditure or revenue 

5. 

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 

6.2 

toto. 
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%. 
Interest subsidies 

6.3 

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 

of 

Improvement 
the 
knowledge  of  the  sector  of 
cooperatives, 
mutual 
societies,  associations  and 
foundations,  particularly 
its 
contribution  to  the  economic 
in  general  and  its  specific 
contribution 
certain 
Community  policies. 

to 

Implementation  of  studies  on 
the  development 
the 
sector  within  the  Community 

of 

0.100 

Programme  of  prospective  studies 
and  examinations  in  order  to  obtain 
identify 
the  information  needed  to 
major  trends 

Creation  of  a 
favourable 
environment  and  assessment 
of  the  impact  of  Community 
policies. 

0.210 

Consultation  arrangements. 

0.040 

- 3 2-

Examination 
Community  measures 

of 

the 

impact 

of 

Studies  of  national 
hurdles 
to 
Community  level 

legislation  and 
the 
at 

cooperation 

Pilot  actions  in  order  to  evaluate  the 
impact of  Community  policies 

permit 

exchanges 

and 
To 
consultation  on  future  Community 
policy  and  on 
the  programme  of 
the  representative  bodies  at 
work, 
European  level  are  invited  to set  up a 
contact 
standing 
between 
mutual 
and 
societies, 
foundations  on  the  one  hand,  and  the 
Community  institutions  on  the  other 
(meetings) 

structure 
for 
cooperatives, 

associations 

A.2. 

to 

for 

specific 
Support 
assist 
measures 
cooperatives, 
mutual 
societies,  associations  and 
foundations 
the 
community 

in 

transnational 
Encouraging 
cooperation  to  seek  out  new 
activities  by 
of 
partners 

groups 

0.100 

Pilot  actions  to  overcome  hurdles  to 
transnational  cooperation 

Improving 
flow 

the 

information 

0.155 

Dissemination 
innovation 

of 

social 

0.100 

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 

the  role  of 
Strengthening 
cooperatives, 
mutual 
societies,  associations  and 
foundations  as  vehicles  of 
community  policies 

B. 

Strengthening  action  within 
other policy areas 

0.545 

Pilot  schemes,  with  special  reference 
to  the  disadvantaged  reions,  in  the 
sector by organisations 

Development  of  Community 
statistics  and  processing  of 
data  following  up  surveys 
carried  out 
in  this  sector 
(B5-3200) 

0.200 

Studies,  collection  and  processing  of 
data,  publications  for  knowledge  of 
the  situation  in  the  sector  and  for 
harmonised  statistics and updates 

Supporting training  (B3-I0) 

0.070 

actions 

training 

of 
for 
Pilot 
executives  and  those  responsible  for 
vocational  structures;  exchanges  of 
executives and engineers 

Stimulating  R &D 

0.130 

(B6-612) 

Pilot  schemes,  with  special  reference 
to  the  disadvantaged  regions,  by 
organisations in the sector 

TOTAL 

1.650 

-  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"; 

the 

*  network  of  information  on  "économie sociale"  (Euro  Info  Centres)  has been 
following  organisations:  Comité  Européen  des 
set  up  by 
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 
in  the  light  of  the 

pilot  projects  have  been  put  forward  and  selected 
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 

-  3'S 

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 
assessments. 

six-monthly 

The  "économie  sociale"  sector  is  very  diversified  as  a  result  of  its  makeup 
(cooperatives,  mutual 
its 
societies,  associations  and 
distribution  across the  12 Member States. 

foundations)  and 

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 

- 3 7-

PROGRAMME OF WORK FOR COOPERATIVES. 
MUTUALS.  ASSOCIATIONS  AND FOUNDATIONS 

Budget 
item 

Financing  plan24  1994-96 

1994 

1995 

1996 

1994-96 

A. 

A . l. 

coordinating 
measures 

Promoting, 
strengthening 
cooperatives, 
associations  and  foundations 

and 
for 
mutuals, 

Strengthening 
approach 

the 

horizontal 

A.l.a) 

B5-3210 

Studies  on  the  development  of 
the  sector  in  the  Community 

0.100 

0.080 

0.080 

0.260 

A.l.b) 

B5-3210 

a 

of 

Creation 
favourable 
environment  and  evaluation  of 
Community 
of 
the 
policies 

impact 

0.210 

0.120 

0.080 

0.410 

A.l.c) 

B5-3210 

Consultation  arrangements 

0.040 

0.050 

0.050 

0.140 

A.2 

A.2.a) 

B5-3210 

Support  tor  specific  measures  in 
favour  of  cooperatives,  mutuals, 
associations  and  foundations 

transnational 
Encouraging 
collaboration 
for 
in 
new  activities  by  groups  of 
partners 

the  quest 

0.100 

0.100 

0.100 

0.300 

A.2.b) 

B5-3210 

Improving  information 

0.155 

0.160 

0.160 

0.475 

A.2.c) 

B5-3210 

Dissemination 
innovation 

of 

social 

0.100 

0.100 

0.100 

0.300 

A.2.d) 

B5-3210 

the 

role 

of 
Strengthening 
mutuals, 
cooperatives, 
associations  and  foundations  as 
vehicles  of  Community  policies 

0.545 

0.790 

0.830 

2.165 

B. 

Strengthening  action  within  other 
policy  areas 

B . l. 

B5-3200 

Development 
Community 
of 
statistics  and  compilation  of  data 
subsequent  to  surveys  carried  out 
in  the  sector 

0.200 

0.200 

0.150 

0.550 

B.2. 

B3-10 

Providing  training  hack-up 

0.070 

0.100 

0.130 

0.300 

24 

The  pilot  projects  receive  IX%  funding  on  average.  Studies  and  expenses  for  meetings  or  for 
publication  receive  100%  funding 

I X-

B.3. 

B6-612 

Encouraging  RAiD 

0.130 

0.160 

0.410 

0.700 

TOTAL  (million  ECU) 

1.650 

1.860 

2.090 

5.600 

C. 

Indirect  action  arising  from  the 
application 
certain 
of 
Community  policies 

C . l. 

B7-500 

C.2 

B2 

in 

of 

Community 
Promotion 
investment 
the  developing 
countries  in  Latin  America,  Asia 
and  the  Mediterranean  within  the 
and 
context 
commercial 
cooperation 
agreements. 

economic 

of 

is  made 

In  the  remarks  on  the  general  budget 
of  the  European  Communities  with 
effect  from  the  budget  year  1994,  the 
point 
action 
envisaged  is  directed  particularly  to 
small  and  medium-sized  enterprises, 
including 
"économie 
in 
firms 
sociale"  sector. 

that 

the 

the 

Structural 
agricultural 
transport  and  fishing  measures 

measures, 
and 

other 
regional, 

mutuals 
received 

and 
Cooperatives, 
associations  have 
funding 
from  this  item  in  the  past.  For  the 
period  covered  by  the  programme, 
these  firms  will  continue  to  qualify 
funding,  but 
for 
is  not 
an 
to 
possible,  a  priori, 
amount,  as  this  will  depend  on  the 
quality  of  projects  proposed  and  on 
the  way  the  various  activities  develop. 

specify 

such 

it 

C.3. 

B3 

Training,  youth,  culture,  audio 
visual, 
and  other 
social  action 

information 

C.4. 

B4-3 

Environment 

C.5. 

B5 

Consumer  protection, 
industry 
market, 
European  networks 

and 

internal 
trans-

Idem 

Idem 

Idem 

C.6. 

B7 

Cooperation  with 
countries 

developing 

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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