Opinion of the European Economic and Social Committee on the Communication from the Commission to the Council and the European Parliament, the European Economic and Social Committee and the Committee of the Regions on the promotion of cooperative societies in Europe (COM(2004) 18 final)
Date: 2005-03-09
Institutions: European Economic and Social Committee
Subjects: EU Member State, European cooperative, business policy, cooperative, economic and social cohesion

22.9.2005

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Official Journal of the European Union

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II

(Preparatory Acts)

EUROPEAN ECONOMIC AND SOCIAL COMMITTEE

415th PLENARY SESSION, HELD ON 9 AND 10 MARCH 2005

Opinion of the European Economic and Social Committee on the Communication from the
Commission to the Council and the European Parliament, the European Economic and Social
Committee and the Committee of the Regions on the promotion of cooperative societies in
Europe

(COM(2004) 18 final)

(2005/C 234/01)

On 23 February 2004, the Commission decided to consult the European Economic and Social Committee,
under Article 262 of the Treaty establishing the European Community, on the abovementioned communi-
cation.

The Section for the Single Market, Production and Consumption, which was responsible for preparing the
Committee's work on this subject, adopted its opinion on 14 February 2005. The Rapporteur was
Mr Hoffelt.

At its 415th plenary session, held on 9 and 10 March 2005 (meeting of 9 March 2005), the European
Economic and Social Committee adopted the following opinion by 120 votes to one, with three absten-
tions.

1. Introduction

‘A cooperative is an autonomous association of persons
1.1
united voluntarily to meet their common economic, social and
cultural needs and aspirations through a jointly-owned and
democratically-controlled enterprise’ (1). Despite the fact that
‘cooperative society’ may embrace
the legal definition of
different situations in different Member States,
legal practi-
tioners recognise that cooperatives are organised under the
‘intuitu personal’ principle.

The cooperative identity is enhanced by cooperative
1.2
values, such as democracy, equality, equity, solidarity, transpar-
ency and social responsibility and also bolstered by principles
such as voluntary membership,
the exercise of democratic
power by the members of cooperatives, economic participation
by members and a commitment to the community (2).

Cooperative societies can also be distinguished from
1.3
capitalised companies by the facts that
they have variable
capital and their shares are registered and, in principle, are not
transferable to persons who are not members of the coopera-
tive society in question.

1.4
Almost 140 million people in the EU are members of
cooperative societies. There are some 300,000 cooperative

societies in the European Union and they provide employment
for 2.3 million people.

1.5
Examples of cooperative entrepreneurship may be found
in most sectors of activity. This type of entrepreneurship is
characterised by a form of organisation based essentially on the
pooling of purchasing capacity, sales capacity and labour forces
in order to meet the economic needs of the members of coop-
eratives. This type of entrepreneurship is also well-suited to the
pursuit of social, environmental and cultural objectives.

1.6
Cooperatives are also particularly well-qualified to make
a contribution towards achieving the objectives of the Lisbon
Strategy as they seek to reconcile the goals of economic perfor-
mance, participation and enabling their staff to achieve their
full potential.

1.7
Although the size and degree of development of coop-
eratives may vary considerably, they generally have strong local
roots, thereby enabling them to play their part in the inter-
linking and consolidation of
the socio-economic fabric of
regions, whilst at the same time helping to maintain social
cohesion in areas lagging behind in development or having to
contend with major redevelopment requirements (3). The fact

(1) The Cooperative Charter was adopted by the International Coopera-

tive Alliance at its congress in Manchester in 1995.

(2) Idem.

(3) Opinion of the Committee of the Regions of 16 June 2004 (CdR
97/2004 fin), rapporteur: Mrs Pellinen (OJ C 318 of 22 December
2004)

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that cooperatives have local roots does not, however, in any
way prevent them from expanding their activities beyond the
frontiers of the EU. Cooperatives therefore have a significant
impact on the volume of trade and global economic dyna-
mism (4).

The Commission also points out that the potential of
2.2
cooperative societies has not been adequately exploited.
In
order to remedy this shortcoming, the Commission proposes
the setting of three main objectives, translated into a series of
twelve actions.

In June 2002,

In this context, the role and the impact of cooperatives
1.8
have also been recognised at both the national and worldwide
level.
the International Labour Organisation
(ILO) adopted a Recommendation on the Promotion of Coop-
eratives (5) in which it drew attention to the fact that ‘coopera-
tives, in their various forms, promote the fullest participation in the
economic and social development of all people’. This Recommenda-
tion was adopted by all 25 Member States of the EU and is
currently the subject of a ratification process.

1.9
At EU level, cooperative societies are recognised under
Article 48 of the Treaty establishing the European Community
(TEC) (6). The European Commission has a unit responsible for
‘crafts, small businesses, cooperatives and mutuals’, which pays
particular attention to this type of society. The Council has
recently adopted the Statute for a European Cooperative
Society and the Directive supplementing the Statute with
regard to the involvement of employees (7). The adoption of the
Communication under review demonstrates the Commission's
continued interest in this type of society.

This interest also meets an expectation on the part of
1.10
cooperative societies since they are now obliged to rise to a
number of major challenges, as failure to do so would mean
that their development would be curbed or their existence
placed in jeopardy. In several of the new EU Member States,
the use of cooperatives by the former communist governments
discredited this form of society. Very many cooperatives oper-
ating on markets which are becoming increasingly competitive
also have to mobilise considerable resources in order to remain
competitive whilst, at the same time, retaining their character-
istic features and identity.

2. Gist of the Commission's Communication

2.1
One of the key points in the Commission's Communica-
tion of 23 February 2004 is the fact that the Commission
draws attention to ‘the increasingly important and positive role of
cooperatives as vehicles for the implementation of many Community
objectives’.

(4) Resolution 56/114 adopted at the 88th plenary meeting of the UN

General Assembly, held on 19 December 2001

(5) R193: Recommendation on the Promotion of Cooperatives, adopted
at the 90th session of the International Labour Conference on 20
June 2002

(6) Article III – 142 of the European Convention currently in the

process of ratification

(7) Council Regulation No. 1435/2003, OJ L 207 of 18 August 2003
and Council Directive No. 2003/72/EC, OJ L 207 of 18 August
2003
See also the EESC opinion of 26 May 1992 on the Proposal for a
Council Regulation on the Statute for a European Cooperative
Society and the Proposal for a Council Directive supplementing the
statute with regard to the involvement of employees (OJ C 223 of
31 August 1992)

2.2.1 Promoting the establishment of more cooperatives in Europe by
improving the visibility and characteristics of this sector

The objective, inter alia, is to organise structured exchanges of
information and experiences and to promote actions aimed at
raising awareness amongst public authorities and private
economic operators.

2.2.2 Improving national legislation governing cooperatives

This objective has been formulated in connection with the
adoption by the Council in July 2003 of the Regulation on the
Statute for a European Cooperative Society (SCE). The aim is to
bring about implementation of the Regulation as regards the
measures to be taken under the national laws of the Member
States to improve national law in this field and to promote the
establishment of ‘model laws’. Attention is drawn to the fact
that the Commission also pays special attention to the situation
in the new EU Member States.

2.2.3 The maintenance and improvement of cooperatives' place [in]

and contribution to Community objectives

This goal covers, inter alia, agricultural policy in the context of
EU enlargement, rural and regional development and the crea-
tion of jobs.

3. General comments

3.1
The EESC has always paid close attention to the issue of
partnerships and the social economy in general (8). It shares the
view expressed by the Committee of the Regions that all forms
of enterprise should be promoted and supported on an equal
basis (9). The EESC organised a public hearing, based on a ques-
tionnaire, on 11 October in order to ascertain the reactions of
cooperative organisations and enterprises to the Commission's
Communication. At
the hearing a comparison was made
between the proposals put forward by the Commission and the
aspirations and priorities of the cooperative sector.

(8) EESC's opinion on the Social economy and the single market,

rapporteur: J. Olsson, OJ C 117 of 26 April 2000

(9) Cf. footnote 3

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3.2
The EESC welcomes the Commission's Communication
on the promotion of cooperative societies in Europe. Imple-
mentation of this Communication should facilitate the estab-
lishment of a larger number of enterprises of this type, inter
alia by highlighting more effectively and making more widely
known the contribution which cooperatives can make to the
achievement of the objectives of the Lisbon Strategy.

3.3
The EESC does, however, note that quite a large number
of the actions envisaged by the Commission in its Communica-
tion with a view to bringing about more effective promotion of
cooperatives are couched in particularly cautious terms as the
Commission points out in several cases, for example, that it
will ‘examine or study the possibility of …,’ or ‘pay particular atten-
tion to’. The objectives should therefore be defined in a more
concrete way and an appropriate timetable should be estab-
lished.

3.4
The EESC welcomes the attention paid by the Commis-
sion to the new EU Member States and the candidate states. In
the former
the case of some of
regimes made use of cooperatives has led to their being seen as
one of the tools of these regimes.

these states the fact

that

3.4.1
For this reason, the EESC believes that it is particularly
necessary to make entrepreneurs in these states aware of the
potential of cooperative societies, which make it possible, inter
alia, to develop activities by evenly sharing resources, responsi-
bilities and entrepreneurial risks, thereby providing grounds to
expect that projects will be more viable and more sustain-
able (10).

3.4.2
The EESC takes the view that support should be given
to the fresh impetus also being generated by forms of coopera-
tives in the new Member States both to the drive to combat
social exclusion and in the environmental field. Steps should
also be taken to ensure that the fabric of associations, created
by a number of cooperatives, does not collapse as a result of
the changes affecting this form of entrepreneurship.

3.5 Whilst understanding the approach adopted by the
European Commission, namely to underline the SME dimen-
sion of cooperative societies, the EESC would point out that
many cooperative societies and cooperative groups exceed the
EU limits set out in the definition of SMEs. For this reason, the
EESC urges that the Commission's proposals should not be
limited to the SME dimension. This concerns particularly the
references to certain Community actions,
in
respect of business support services and access to finance.

for example,

4. Fields involving cooperatives which need to be fleshed

out in a more in-depth manner

4.1 Regulatory environment

The Communication demonstrates

the particular
4.1.1
importance attached by the Commission to the issue of the law
governing cooperatives and, in particular, the various national
statutes in this field. The EESC supports this approach as it is
vital that cooperatives are provided, at both national and EU
level, with the best possible legal framework in order to enable
them to expand their activities.

Cooperatives are likewise subject

4.1.2
to an array of
company law provisions (accountancy law, labour law, compe-
tition law, tax law, etc). If the laws in these fields fail to take
account of a number of specific features of cooperatives, there
is good reason to believe that, even if the law governing coop-
eratives is made as effective as possible, the development of
cooperatives is likely to be hindered.

By way of example, under

4.1.2.1
the initial draft of
accounting standard IAS 32, shares in cooperatives would be
regarded as falling into the category of liabilities rather than
own funds since they are subject to a potential demand for
reimbursement. In view of the consequences which this provi-
sion would have for cooperatives, the principle in question has
been interpreted in such a way as to enable exceptions to be
made to this rule, subject to the fulfilment of two additional
conditions (11). The fact that this rule has not been revised and
that, instead, an interpretation in respect of cooperative socie-
ties has been added to it tends to give weight to the argument
that this form of company is generally regarded as constituting
an exception vis-à-vis capitalised companies. As has already
been mentioned in point 3.1 above, the EESC takes the view
that cooperative societies should not be regarded as ‘excep-
the legislative framework should rather be adapted,
tions’;
where necessary, to take account of the specific features of
cooperatives.

The EESC therefore calls upon the Commission to
4.1.2.2
take account of
the synergies which should be established
between the law governing cooperatives, on the one hand, and
the other components of the legal environment, on the other
hand, and to translate these synergies into concrete measures.

4.1.2.3
In this same context, the EESC proposes that the
groups of experts set up by the Commission to issue opinions
on future draft legislation in this field should systematically
take account of the intrinsic features of cooperative societies
and avail
itself of the expertise of representative cooperative
organisations (12).

(11) Shares in cooperatives could be regarded as capital a)

in cases
where the issuer retains an unconditional right to refuse to reim-
burse the shares or b) in cases where, either under national legisla-
tion or under
the organisation concerned, a
threshold is established below which the level of capital may not
fall.

the statutes of

(10) EESC opinion entitled Economic diversification in the accession countries
– role of SMEs and social economy enterprises, rapporteurs: L. Fusco
and J. Glorieux, OJ C 112 of 30 April 2004

(12) In this context, it is a striking fact that the High Level Group of
European Company Law Experts, referred to on a number of occa-
sions in the Communication, fails to include any expert in coopera-
tive law

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4.2 Competition rules, freedom of establishment and tax treatment

4.3 Social responsibility and governance of enterprises

As regards competition law, the EESC firmly supports
4.2.1
the standpoint that cooperatives,
like other forms of enter-
prises, should be subject to Articles 81, 82 and 86 to 88 of the
TEC. The EESC nonetheless considers that the wording of the
point in the Commission's Communication referring to Article
81 of the TEC covering agreements is not explicit, since the
Commission underlines the fact that ‘whereas organisation as a
cooperative may not necessarily conflict with Article 81 of the TEC,
[the] subsequent behaviour or rules [of cooperatives] might be consid-
competition’ (13). The Commission therefore
ered restrictive of
advocates improving the dissemination of the competition rules
amongst the various cooperative sectors.

On the basis of the information provided at the
4.2.1.1
hearing which it organised on 11 October 2004 with represen-
tatives of the cooperative sectors, the EESC believes that this
problem is linked more to the fact that the competition rules
do not always take account of the specific features of coopera-
tives, than to an ignorance of the competition rules themselves.
The EESC therefore calls upon the Commission to gear its
action also towards the services responsible for competition
policy in order to ensure that they are better informed of the
different forms of organisation of cooperatives.

4.2.1.2 Whilst stressing that having a multiplicity of forms
of entrepreneurship on the market is a key element in ensuring
healthy competition, the EESC takes the view that such a step
could well avoid any discrimination against cooperatives on the
grounds of the way in which they are organised.

4.2.2
The EESC also draws attention to the fact that some
states outlaw the establishment of cooperatives in particular
sectors (14). This represents a clear barrier to freedom of estab-
lishment. This situation is all the more regrettable in view of
the fact that the Regulation on the Statute for a European
Cooperative Society confirms this ban (15). The EESC therefore
calls upon the Commission to carry out a study on the scope
and impact of these bans.

4.2.3
Turning to the issue of the tax treatment of coopera-
tive societies, the EESC subscribes to the principle that the
benefits granted to a type of company should be proportionate
to any legal constraints or social added value inherent in that
form of enterprise (16). In this context, the EESC encourages the
Commission to call upon the Member States to consider the
possibility of granting tax incentives to cooperatives on the
basis of their social value or in the light of the contribution
which they make to regional development, subject to strict
monitoring conditions relating to compliance with cooperative
principles and values (17).

(13) See the final paragraph of point 3.2.7 of

the Commission's

Communication

(14) In Germany, for example, it is not possible to establish cooperatives

in the field of the dispensing of prescription drugs

(15) Article 8(2) of this Council Regulation stipulates that: ‘if national
law provides specific rules and/or restrictions related to the nature
of businesses carried out by an SCE, or for forms of control by a
supervisory authority, that law shall apply in full to the SCE’

(16) See point 3.2.6 of the Commission's Communication
(17) Opinion of the Committee of the Regions referred to in footnote 3

above

4.3.1 Cor p or a te soci a l r e sp onsi b i li t y (CSR )

integrate

companies

4.3.1.1
Economic globalisation is tending to accentuate the
demands placed upon enterprises to be profitable, sometimes
to the detriment of social considerations. Corporate social
responsibility (CSR), which has been defined as ‘a concept
environmental
whereby
concerns in their business operations and in their interaction
with their stakeholders on a voluntary basis’ (18), is not a new
concept for cooperatives. By virtue of the fact that they pursue
both economic and social objectives and the fact that their
operating procedures are based on the individual and principles
of internal democracy, cooperatives by their very nature accept
CSR and put a lot of effort into promoting it (19).

social

and

4.3.1.2
The EESC regrets that this dimension has not been
incorporated into the Commission's Communication and there-
fore urges the Commission to draw up an action which
addresses this issue in order, inter alia, to promote the practices
of cooperative societies in this field (20).

4.3.2 Cor p or a te g ov e r na n c e

4.3.2.1
For a number of years the EESC has been studying,
with considerable interest, matters relating to corporate govern-
ance (21). The views which continue to hold sway in this field
rarely refer to cooperatives. This is, to some extent, a paradox
as quite a large number of
the provisions relating to the
intrinsic organisation of cooperatives have led them to intro-
duce specific models of governance (22). The services of coop-
erative auditing associations can also substantially contribute to
the success of cooperatives' activities; these associations operate
in many Member States, some of which have had an unbroken
tradition of cooperatives for over 100 years. It is, therefore,
important that the European Community Directive on Statu-
tory Audits recognises and includes this institution of coopera-
tive law.

(18) Green Paper on Promoting a European framework for corporate

social responsibility (COM(2001) 366 final)

(19) Through the organisation of fair trade networks, the implementa-
tion of social impact assessment systems, the establishment of the
European grouping of social impact assessment systems, etc.

(20) Cf. the EESC opinion on the Green Paper entitled ‘Promoting a
Social Responsibility’,
rapporteurs: Hornung-Draus, Engelen-Kefer,

European
CESE 355/2002,
Hoffelt, OJ C 125 of 27 May 2002

for Corporate

framework

(21) Cf. the EESC opinion on the Communication from the Commission
to the Council and the European Parliament on modernising
company law and enhancing corporate governance in the European
Union – a plan to move forward,
rapporteur: G. Ravoet,
CESE 1592/2003, OJ C 80 of 30 March 2004

(22) The structure and organisation of auditing cooperatives in a
illustrate this

number of EU Member States, such as Germany,
point

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4.3.2.2
The EESC therefore takes the view that these experi-
ences should be incorporated in the debate on corporate
governance in order to enable it to embrace progress and
recommendations which could lend themselves to different
forms of enterprise.

4.4 Groupings of cooperative enterprises

The EESC also draws the Commission's attention to
4.4.1
the existence of groupings of cooperative enterprises. These
entrepreneurship models clearly favour cooperation and part-
nership strategies between cooperatives rather than mergers or
acquisitions. This approach enables such enterprises to face the
challenges posed by globalisation and the attendant need to be
more competitive, whilst at the same time retaining and high-
lighting cooperative identity.

The EESC takes the view that, subject to compliance
4.4.2
with the competition rules, support should be given to the
promotion and development of such groupings, which may
enable cooperatives to develop a common brand name or a
range of goods and services, thereby making it possible to
further strengthen the presence of cooperatives at both transna-
tional and worldwide levels. The EESC also proposes that
greater account be taken of groupings of cooperative enter-
prises in the Commission's Communication.

5. Comments

and recommendations

concerning

the

proposed actions

5.1 Perception and promotion of cooperative practices (Actions 1-2)

5.1.1
The EESC encourages the Commission to carry out all
measures to promote improvements in the understanding of
the characteristics of cooperative societies and improvements
in the way in which these characteristics are taken into
account. Ignorance of these characteristics is indeed the main
reason for the inadequate exploitation of the potential offered
by cooperatives. In this context, the EESC believes that it is
essential to provide further support and encouragement for the
identification, benchmarking, and dissemination of examples of
good practice in respect of cooperatives.

The EESC proposes, in particular, that the Commission
5.1.2
give greater official recognition to ILO Recommendation 193
in view of the fact that this recommendation has been adopted
by the 25 EU Member States, the first time there has been such
European consensus with regard to standards for cooperatives
and the promotion of cooperatives. The EESC also advocates
the drawing-up and implementation of specific actions, such as
an information campaign to publicise the characteristic features
and entrepreneurial dimension of cooperatives; this campaign
could be backed up by various video presentations and could
make use of the website of DG Enterprise, etc. The target
group would be the economic and social players and public
authorities at national level.

5.1.3
The EESC also urges that the action of promoting
cooperative societies should also be pursued in all Commission
DGs. Special attention should be paid, in this context, to the
Commission DGs responsible for initiatives having a direct
bearing on the entrepreneurial and social dimension of coop-
erative societies (such as the following DGs: Internal Market;
Employment and Social Affairs; Competition and Health and
Consumer Protection).

5.2 Statistical data (Action 3)

The EESC supports

the Commission's desire

5.2.1
to
improve statistical data relating to cooperatives. In most EU
Member States, where such data is available it is rarely updated
on a regular basis. Furthermore, the methods used for drawing
up aggregate figures are rarely homogeneous. This constitutes a
fundamental obstacle to the promotion and improvement of
knowledge about cooperatives.

In order to find a solution to this problem,

5.2.2
the
Commission plans to make use of satellite accounting techni-
ques. The field of application of this technique — which has
not yet been defined in the case of cooperatives — has, up to
now, been tested in connection with organisations which are
either not principally market-sector organisations or are non-
profit organisations (23). The EESC therefore highlights the need
to ensure that the ways and means adopted in respect of coop-
eratives do not mask their economic and commercial dimen-
sion. Both the public hearing organised by the EESC and the
attendant questionnaire pointed to the fact that this concern
was also shared by cooperative organisations.

5.2.3 With a view to meeting, as swiftly as possible, the
need for data on cooperatives, the EESC recommends, that in
the very near future, Eurostat and the national bodies charged
with collecting statistics on enterprises work together, wherever
this is feasible, in order, inter alia, to enable such data to be
classified on the basis of the various legal statutes under which
enterprises operate.

5.3 Training and entrepreneurship (Action 4)

In the EESC's view, there is an important need for
5.3.1
for
education and training programmes and programmes
promoting entrepreneurship and life-long learning (24) to take
account of the cooperative dimension. The EESC points out
that this issue is also taken up in ILO Recommendation 193
and it welcomes the fact that the Committee of the Regions
likewise mentioned this matter in its opinion (25). The EESC
therefore gives its backing to the Commission in its desire to
introduce networking in respect of existing experience and to
disseminate this experience.

(23) Cf. the Commission's seminar, held on 23 October 2004, on Satel-

lite Accounts for the Social Economy

(24) Such as the Leonardo, Socrates and Erasmus programmes
(25) Cf. footnote 3

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5.3.2
The EESC also recommends that a survey be under-
taken of teaching on the subject of cooperatives offered by
schools and universities. By taking such action and also by
providing assistance for the creation and dissemination of
specific teaching material, the Commission could achieve two
aims, namely the networking of existing experience, on the one
hand, and the inclusion of
the cooperative dimension in
teaching programmes, on the other hand.

5.4 Business support services (Action 5)

5.4.1
The EESC endorses the Commission's desire to call
upon traditional business support services to take greater
account of the cooperative dimension, whilst pointing out that
specialised bodies offering this type of service do already exist.
These bodies should be able to further expand their supply of
services and make them available over a broader area by virtue
of the actions to be implemented by the Commission.

5.4.2
In this context, the EESC points out that the new
multiannual programme for enterprises and entrepreneurship
covering the period 2006-2011 (26) contains no guidelines or
specific headings in respect of cooperatives. It also points out
that the action plan for promoting entrepreneurship (27) also
fails to make any reference to cooperatives; reference is made
only to a ‘social economy’ approach but the way in which the
passage in the document is worded lacks clarity.

5.5 Access to finance (Action 6)

The EESC urges the Commission to carry out, without
5.5.1
delay, its planned appraisal of the advisability of including a
specific reference to cooperative societies in the European
Investment Fund instruments. In this connection, the EESC has
however been informed that the inclusion of this reference has
recently been rejected on the grounds of the need to ensure
equal treatment of the various legal forms in question. The
EESC therefore calls upon the Commission to spell out the new
concrete actions which it could pursue with regard to finan-
cing, bearing in mind that the other line of action, namely to
ensure that cooperatives continue to be eligible under the other
EU programmes, does not involve making any changes whatso-
ever to the current situation. Furthermore, the EESC would like
to see the European Investment Fund earmark a larger propor-
tion of its aid for SMEs and cooperatives, which lack major
guarantees as regards funding.

In this same general context,

5.5.2
the EESC draws the
Commission's attention to the fact that, under the new agree-
ment on capital resources, the ‘Basel II Agreement’, banks will

(26) Community support programme for entrepreneurship and enter-

prise competitiveness (2006-2011)

(27) Communication from the Commission entitled Action Plan: the
European agenda for Entrepreneurship (COM(2004) 70 final). See
the EESC opinion on this
subject: CESE 1198/2004 of 15
September 2004 – Rapporteur: Mr B. Butters

be obliged to take greater account of the risk profile of enter-
prises, particularly with regard to their solvency and form of
management,
in their policy towards providing finance for
enterprises. This could make it a more onerous task for some
cooperatives to gain access to credit (28).

In this context,

In view of the special nature of the capital held by
5.5.3
cooperatives (for example, their shares are not quoted on the
stock exchange and are reimbursed at their nominal value),
cooperatives sometimes find it difficult to obtain finance for
their development.
the EESC supports the
Commission in its call to those Member States which have
specific legislation governing cooperatives to include the provi-
sion whereby these enterprises may issue non-user investor
shares which are tradable and interest bearing on the condition
that the participation of such non-user shareholders does not
jeopardise the cooperative nature of enterprises nor the exercise
of control over the cooperative society by its members (29).

5.6 Contribution made by cooperatives in a number of particular

areas of enterprise policy (Action 7)

5.6.1
The EESC shares the Commission's view that, by virtue
of the ways in which they are governed, cooperative societies
are an eminently appropriate model for employee buy-outs.
The EESC proposes that the cooperative model be highlighted
to a greater extent in the programmes and actions which the
Commission intends to promote in this field.

The Commission proposes to carry out a study of
5.6.2
social cooperative enterprises, whose main concerns are to take
account of social needs. The proposed study could thus high-
light the contribution made by social cooperatives towards the
achievement of such objectives. The EESC does, however,
recommend that the study properly underlines the distinctive
features of social cooperatives vis-à-vis those of ‘social enter-
prises’ (30).

5.7 Coherence between national laws, improvement of national laws,
laws and the European Cooperative Society

drafting of model
(Actions 8, 9, 10 and 11)

The EESC supports

5.7.1
the priority attached by the
Commission to the question of the legal status of cooperatives
at both EU and national levels. It draws attention to the fact
that
in which cooperatives are
developing is a factor which is just as important as the forms
of organisation adopted by cooperatives in order to achieve
their objectives.

the regulatory environment

(28) Cf. the EESC opinion on the Ability of SMEs and social economy
enterprises to adapt to changes imposed by economic growth (OJ
C 120 of 20.5.2005, rapporteur: L. Fusco)

(29) See point 3.2.4 of the Commission's Communication
(30) Under the heading ‘social enterprises’, the Commission points out
that in some EU Member States legal forms have been adopted to
designate enterprises whose main purpose is to achieve social
objectives

22.9.2005

EN

Official Journal of the European Union

C 234/7

tions made by cooperative societies to achieving the objectives
of the EU. The EESC does, however, wonder how this objective
is to be achieved bearing in mind that, as things stand at
present, the requisite budgetary headings do not exist.

5.8.2
In its Communication, the Commission highlights, in
particular, the field of ‘agricultural policy in the context of EU
enlargement’ by making it the subject of one of the proposed
actions. The EESC gives its support to this dimension but takes
the view that the references to other fields, namely rural and
regional development and job-creation, should also be trans-
lated into actions.

From a general standpoint, the EESC believes that it
5.8.3
would be more advisable to adopt the concept of ‘cooperative
development centres’ when defining support and promotion
actions. Using this concept, it would be possible to capitalise
on the existence of cooperatives in a given field by creating
spin-off cooperatives in other sectors.

6. Conclusions

6.1
The EESC welcomes the publication of this Commission
Communication on the promotion of cooperative societies in
Europe. Following on from the adoption of the Regulation on
the Statute for a European Cooperative Society (SCE),
the
Communication thus demonstrates the Commission's interest
in the subject of cooperatives by highlighting the economic
and social dimension of this type of enterprise, in addition to
its potential to bring about the achievement of the objectives of
the Lisbon strategy.

6.2
The EESC supports, in particular, the priority attached
to the promotion of cooperative entrepreneurship. Lack of
knowledge of this form of entrepreneurship is one of the key
impediments to the development of cooperatives in Europe.

for the thrust of

6.3 Whilst expressing its support
the
Commission's Communication, the EESC takes the view that
some of the actions should have been defined in more concrete
terms and have been based on a predefined timetable. The
EESC thus recommends the introduction, as soon as possible,
of a monitoring process in respect of the proposed actions,
rather than awaiting publication after 2008, of the assessments
of these actions, as proposed by the Commission. The relevant
professional organisations representing cooperatives, at both
national and EU levels, should be closely involved in such a
process.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

The EESC supports

5.7.2
the organisation of meetings
between Commission representatives and representatives of
national administrations on the subject of the implementation
of the Regulation on the Statute for a European Cooperative
Society and the associated Directive. The EESC also calls for
regular monitoring of
the preparatory work. By way of
comparison,
the Statute for a European Company, which
recently came into force has, for example, been incorporated
into national legislation in only six Member States.

5.7.3
Turning to the drafting of model laws, the EESC draws
attention to the ambiguous way in which this point has been
formulated. On the one hand, the Commission does not advo-
cate the harmonisation of national cooperative legislation, but,
on the other hand, it highlights the conclusions of the High
Level Group of European Company Law Experts which tend to
support that very objective.

The EESC recognises that many of the articles in the
5.7.4
Regulation on the Statute for a European Cooperative Society
(SLE) refer to national laws. Bearing in mind that a report is to
be drawn up five years after the entry into force of the SCE
Regulation, the EESC takes the view that model laws should be
established in order to align the laws governing cooperatives
and/or the adoption of common rules at EU level should be
proposed. It is vital that professional organisations representing
cooperatives be involved in the appraisals and work in this
context from the outset.

5.7.5
In this context the EESC does, however, wish to draw
attention to the fact that the public hearing which it organised
revealed that a fair number of cooperative organisations was
more interested in securing a strengthening of current national
laws governing cooperatives than in having the laws revised
with a view to achieving harmonisation (31). The cooperative
movements and organisations took the view that such an
approach would also be likely to provide more satisfactory
answers to the problem of ‘demutualisation’ (32) with which
some cooperatives had to contend.

5.7.6
In this context, the EESC also suggests to the Commis-
sion that it carry out a comparative study of the impact and
scope of the incorporation into national legislation on coopera-
tives in some EU Member States of provisions hitherto specific
to capitalised companies (33).

5.8 Community objectives (Action 12)

5.8.1
intention to
enhance, by means of Community programmes, the contribu-

the Commission's

The EESC backs

Brussels, 9 March 2005.

(31) Some national cooperative organisations were even opposed to

such a measure

(32) The term ‘demutualisation’ is generally applied in cases where a
cooperative ceases to be an enterprise owned jointly by an associa-
tion of individuals and passes into the hands of external investors.
in cases where cooperatives are
This happens,
converted into capitalised companies

for example,

(33) For example, under a law recently introduced in Italy cooperatives

may issue bonds