CELEX: 51993PC0650
Language: en
Date: 1994-02-16
Title: 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

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)
 ---pagebreak---                   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.
 ---pagebreak--- 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-
 ---pagebreak--- 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'-
 ---pagebreak---                                PROPOSAL FOR A COUNCIL DECISION
                                              of...
                 relating to a multi-annual programme (1994-96) of work for
      cooperatives, mutual societies, associations and foundations in the Community
                                         (.../.../ EC)
 THE COUNCIL OF THE EUROPEAN UNION,
 Having regard to the Treaty establishing the European Community, and in particular
 Article 235 thereof,
 Having regard to the proposal from the Commission5,
  Having regard to the opinion of the European Parliament6,
  Having regard to the opinion of the Economic and Social Committee7,
1.       Whereas on 28 July 1989 the Council adopted Decision 89/490/EEC on the
         improvement of the business environment and the promotion of the
         development of enterprises, and in particular small and medium-sized
         enterprises, in the Community8, as last revised by Council Decision
         93/379/EEC of 14 June 19939;
2.       Whereas the Council, in its resolution of 17 June 1992 on Community action in
         support of enterprises, particularly cooperatives, mutuals and associations10,
         confirmed its undertaking to support the consolidation of action taken to help
         such enterprises;
3.       Whereas, in this resolution, the Council recommended that the Commission
         should press ahead, having regard to the principle of subsidiarity, with the
         action necessary to create an environment favourable to the competitiveness of
         enterprises, with special reference to cooperatives, mutuals and associations,
         and to back up their integration into the internal market after 1992;
4.       Whereas the Commission has submitted to the Council a communication on
         "Businesses in the "Economie Sociale" sector and Europe's frontier-free
  5      O J C ...,..., p....
  6      O J C , ..., p. ...
  7      O J C ...,..., p. ...
  8      OJL239, 16.8.1989
  9      OJL..., ...
   10    OJC
                                               -4
 ---pagebreak---       market"11 stating its intention to present a programme of work for this sector
      together with the appropriate proposals for its implementation;
5.    Whereas the Commission has submitted to the Council a communication on
      enterprise policy for the Community, entitled "the enterprise dimension at the
      heart of European growth"12, giving notice of a programme of work to back up
      the efforts made by enterprises in the "économie sociale" sector to cope with
      transitions brought about by the creation of a frontier-free area;
6.    Whereas cooperatives, mutuals and associations occupy a significant place in
      economic activity in general and in the development of regions; whereas
      maintenance of the strengths and special features of the cooperatives, mutuals
      and associations sector will warrant a special effort in terms of analysis and
      optimisation, more particularly as regards:
               its capacity for innovation and experimentation,
               encouraging the utilisation by these enterprises of Community
               programmes specifically geared to enterprise development (the sector has
               a proven track-record in terms of networks and partnership arrangements
               and the mobilisation of operators and consumers),
      -         its enhanced participation in the social dialogue and in the
               implementation of social cohesion policies, an area in which this sector
               has undeniable advantages;
7.     Whereas the development of a Community policy for cooperatives, mutuals and
      associations, based on effective competition, is of major importance in terms of
      boosting the competitiveness of the European economy, job growth, economic
       and social cohesion in the Community, the further enlargement of the market
       after 1993, and the development of cooperation with certain non-member
      countries;
8.     Whereas a substantial proportion of measures in favour of cooperatives,
      associations and mutuals are at Member State level; whereas Community
       measures will have to be designed to be complementary to such national
       measures;
9.     Whereas it is therefore necessary to adopt a specific programme for a period of
       three years and to allocate sufficient resources to enable it to meet its objectives;
 10.   Whereas a committee of representatives of the Member States must be set up to
       assist the Commission in implementing the programme;*.
 11.   Whereas the Treaty does not provide, for the adoption of this Decision, powers
       other than those laid down in Article 235,
   11  SEC(89) 2187 final, 18.12.19X9
   12  OJC         , p..
                                            -'5
 ---pagebreak--- HAS DECIDED AS FOLLOWS:
                                     Article J
The enclosed programme for enterprises in the form of cooperatives, mutual
societies and associations is hereby adopted from 1 January 1994, to run for a
period of three years.
                                     Article 2
The measures embraced by this programme must give the players in the sector
easier access to Community resources.
Without wishing to take into consideration any indirect actions resulting from
the application of certain Community policies, this action plan shall have the
following objectives:
I. To promote, coordinate and strengthen measures adopted for cooperatives,
mutuals, associations and foundations by:
A. strengthening the horizontal approach, more specifically by:
        conducting studies on the development of the sector in the Community;
        creating a favourable environment and evaluating the impact of
        Community policies;
        making arrangements for consultation;
B. providing support for specific action with a view to:
        encouraging opportunities for transnational cooperation, especially
        SMEs in the cooperatives, mutuals and associations sector, and the quest
        for new fields of activity by groups of partners;
        improving information;
        disseminating social innovation;
        strengthening the role of cooperatives, mutuals, associations and
        foundations as vehicles for Community policies;
II. strengthening activities in favour of cooperatives, mutuals, associations and
foundations within other policies by:
        developing Community statistics and compiling data on the basis of
        surveys conducted within the sector;
        providing training back-up;
        encouraging the development of R&D.
                                     -6-
 ---pagebreak---                                       Article 3
1.       In order to achieve the objectives laid down in Articles 1 and 2, insofar
as they cannot be better achieved by the Member States, the Commission shall
take the measures set out in the annex.
2.       The procedure laid down in Article 4 shall be followed for adopting
measures relating to:
         the adoption, experimental implementation or extension of the necessary
projects devised for the application of this Decision,
         the content and timetable of, and financial assistance for, measures and
calls for proposals.
3.       The committee referred to in Article 4 may examine any other matters
concerning the programme.
                                       Article 4
A committee shall be set up, attached to the Commission, composed of the
representatives of the Member States and chaired by the representative of the
Commission.
The representative of the Commission shall submit to the committee a draft of
the measures to be taken. The committee shall deliver its opinion on the draft
within a time limit which the chairman may lay down according to the urgency
of the matter. The opinion shall be delivered by the majority stipulated in
Article 148(2) of the Treaty in the case of decisions which the Council is
required to adopt on a proposal from the Commission. The votes of the
representatives of the Member States within the committee shall be weighted in
the manner set out in that Article. The chairman shall not vote.
The Commission shall adopt measures which shall apply immediately.
However, if these measures are not in accordance with the opinion of the
committee, they shall be communicated by the Commission to the Council
 forthwith. In that event, the Commission shall defer application of the measures
 which it has decidcci for a period of two months from the date of
communication.
The Council, acting by a qualified majority, may take a different decision
 within the time limit referred to in the previous paragraph.
                                       Article 5
                                             i
The Commission shall submit to the European Parliament, the Council and the
 Economic and Social Committee, not later than the middle of 1996, an
evaluation report on the implementation of this Decision, including a cost-
effectiveness evaluation, and any proposals which it deems it necessary in the
 light of the evaluations effected.
                                      -7-
 ---pagebreak--- The Commission shall also submit to the European Parliament, the Council and
the Economic and Social Committee a report on coordination between the
different programmes which are not covered by this Decision, but which are
manifestly in the interests of cooperatives, mutuals and associations, and a
report on the initiatives taken in pursuance of this Decision.
                                      Article 6
1.      This Decision shall enter into force on 1 January 1994 and shall cover
the period up to 31 December 1996.
2.      The budgetary authority shall determine the appropriations available for
each financial year in accordance with the principles of good management
referred to in Article 2 of the Financial Regulation applicable to the general
budget of the European Communities.
Done at Brussels,
For the Council
                                      8-
 ---pagebreak---                                                                                    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 in which these enterprises combine
   competitivity with their social role.
   In addition, this sector is a blend of tradition and modernity, given that
    "entrepreneurial" forms of association are spreading through such different
13  Communication from the Commission lo the Council "Businesses in the "Economic Sociale"
   sector: Europe's fronticr-fïec market" SEC(89) 2187 final.
                                             -9-
 ---pagebreak--- sectors as crafts and the software industry, where flexibility and both
organisational and technical innovation are key imperatives.
Finally, this sector features entities of widely differing size; not all would
qualify as SMEs. The significance of these enterprises does, however, vary
from one region of the Community to another, depending on the history and/or
culture of these countries. In certain countries some activities cannot be carried
out by a cooperative, mutual or association. This applies to pharmacies in at
least six countries. Member States vary in the role they attribute these
enterprises in their efforts to achieve economic and social development.
The significance of cooperatives, mutual, associations and foundations is not
just a matter of their economic importance.
There is also the social and cultural dimension of these companies which
profoundly influences the way changes affect European society.
These enterprises are characterised by the implementation of specific
organisational and production techniques drawn from the principles of economic
democracy.
This type of enterprise is directly involved in local development of employment
and in combating unemployment.
Given that they have often been established for social reasons, such enterprises
are run in accordance with the principles of participation (particularly the rule
of "one man, one vote") and solidarity between members, producers, users and
consumers.
What makes these organisations different is essentially the stressing of the
 following principles:
        primacy of the individual over capital;
        development of the individual (through training and culture);
        free association;
        democratic management;
        values of autonomy and citizenship.
 At the Community level, these enterprises can follow two (not mutually
 exclusive) paths:
        increasing their activities at the European level in their main fields of
        operation, particularly by concentration, diversification or specialisation
         in activities or products;
        seeking new fields of activity and new markets among groups of
         partners, in response to completion of the Single Market and Economic
        and Monetary Union.
                                     -10-
 ---pagebreak---    Although they operate under specific legal structures, cooperatives, mutual,
   foundations and associations are therefore full members of the trading sector,
   complementing to a certain extent traditionally-structured enterprises. In some
   countries, this trend is boosted by legislative reform of these sectors permitting
   increasingly pronounced adaptation to market forces.
B. Trends affecting cooperatives, mutuals, associations and
   foundations
   The profound changes affecting European society cannot be viewed only in
   technical and economic terms (although this aspect is indisputable); they bring
   about a process of innovation and development in all sectors of human activity.
   Cooperatives, mutuals and associations/foundations are particularly skilled in
   providing social-support measures for technological development and in
   drawing up strategies to respond to the social requirements of modern
   citizenship and economic democracy (e.g. provision of jobs for disadvantaged
   categories). A number of enterprises in this sector are already, or are about to
   become, key vehicles for the implementation of Community policies. Mutuals,
   for example, are both able and keen to make a vital contribution to Community
   policies on the mobility of persons and social protection (pension plans and
   supplementary social-security arrangements). Cooperative banks have become
   the major regional intermediaries for Community funds (ESF, ERDF,
   EAGGF).
   Whether in the context of urbanisation phenomena, the economic decline of
   certain regions and the loss of jobs, increasing financial uncertainty among
    major sections of the population or the management of human resources in
   companies, these bodies develop solutions for a form of renewal which then
    spreads through their networks, often with the support of government.
    Given their SME status, and their basic principles of solidarity and
   participation, cooperatives, mutuals and associations (especially small or
    medium sized ones) have indeed very close links with the area in which they
   operate.
   Jobs generated by these membership companies are therefore strongly anchored
    in the area in which the enterprise was established and are not subject to risks
    such as the relocation or selective closure of production units.
    In addition, and to the benefit of long-term employment, these economic
    entities also play a role in initiating and training people in the enterprise culture.
    Cooperatives, mutuals, and associations/foundations are already actively
    involved in the implementation of a range of»Community policies. But the full
    potential of associations has by no means been tapped. In order to allow the
    Commission to intervene more effectively on behalf of these enterprises, it
    would be advisable to upgrade their role, thus in turn stimulating economic and
    social cohesion, particularly in Objective 1, 2 and 5b regions.
                                            It
 ---pagebreak--- 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.
                                    -12-
 ---pagebreak---    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
 ---pagebreak---            creating a favourable environment and evaluating the impact of
           Community policies;
           making arrangements for consultation;
   B. providing support for specific action with a view to:
           encouraging opportunities for transnational cooperation and the quest for
           new fields of activity between groups of partners;
           improving information;
           disseminating social innovation;
           strengthening the role of cooperatives, mutuals, associations and
           foundations as vehicles for Community policies;
   II. strengthening activities in favour of cooperatives, mutuals, associations and
   foundations within other policies by:
           developing Community statistics and compiling data on the basis of
           surveys conducted within the sector;
           providing training back-up;
           encouraging the development of R&D.
A. PROMOTING, COORDINATING AND STRENGTHENING
   MEASURES FOR COOPERATIVES, MUTUALS, ASSOCIATIONS
   AND FOUNDATIONS
1. Strengthening the horizonml approach
   a)      Studies on the development of the sector in the Community
   A programme of studies and forecasts will provide the necessary information to
   identify the major trends in the development of cooperatives, mutuals,
   associations and foundations, both in general terms and with regard to
   individual activities.
   These major trends arise from the processes inherent to the market economy in
   which the cooperatives, mutuals and associations/foundations are operating, the
   processes of technological development and those associated with European
   integration. On the one hand, this requires ever greater concentration of
   production and capital and increasingly centralised management. This in turn
   emphasises professionalism and a level of qualifications which comes to
   outweigh the initial importance of the ideological commitment. The enterprises
   in this sector find adjustment to this new situation a considerable strain. On the
   other hand, technological and social change, and the processes of economic
   internationalisation generate new opportunities for cooperatives, mutuals and
   associations/foundations, as well as reviving the emphasis on small production
                                       - 14-
 ---pagebreak---   units, widening the scope for mutually-profitable cooperation and setting out the
  new needs to be met by associations. At the same time, the Commission has
  published in the 1991/1992 edition of "Panorama of EEC Industry", a macro-
  economic analysis of the cooperative, association and mutual sector. The next
  edition of "Panorama" will include a section examining the problems of
  competitiveness in this sector.
  More than any other type of body, associations are close to the specific needs of
  citizens and are thus able to respond effectively to very varied expectations and
  requirements. This is the justification for stepping up knowledge in the sector.
  The diversity of this sector in terms of the activities undertaken (all social and
  economic activities: health, social, training, occupational associations,
  education, sport, leisure, tourism, environment, habitat, protection of heritage,
  etc.) and their size, tax status, monitoring system and mode of operation in the
  twelve Member States justify the taking of some kind of inventory of this form
  of initiative.
  In order to take account of this diversity which concerns not only Europe's
  economy but also the citizens' Europe, and especially to inform all those
  involved in the cooperative, mutual and association sector, as well as the
  various institutions concerned, draft white papers were drawn up in 1992
  (associations) and in 1993 (mutuals and cooperatives). Their goal was to
  identify how the opening up of the Single Market has affected certain key
  aspects of the life of associations, foundations, mutuals and cooperatives.
  This task cannot be successfully completed without the participation of those
  professionally and otherwise involved in the sector. Two questionnaires have
  therefore been drafted and sent, respectively, to the most representative
  associations and to the ministries of the twelve Member States, asking them to:
   supply basic information;
   inform Commission staff of their concerns and expectations in the light of the
           completion of the Single Market.
  After processing these questionnaires, and consulting other services involved, it
  is planned to contact the Ministries and the most representative associations
  directly (a process due to continue until 1994). The White Paper will make it
  possible to better define future approaches for work on behalf of associations
  and foundations, while respecting the principle of subsidiarity.
  A similar approach will be adopted for mutuals and cooperatives.
  h)       Creating a favourable environment and evaluating the impact of
Community policies
   Legal and tax provisions, the availability of funding and cultural attitudes are
   in general the aspects which determine the economic environment. Although
  attempts to improve this environment must therefore cover a wide range of
   policies, the common principle must be to reduce the constraints on companies.
                                       - is -
 ---pagebreak---        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-
 ---pagebreak--- 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
 ---pagebreak---     b) Better information
In order to give cooperatives, mutuals, associations and foundations the same access to
Community information as SMEs, the Commission has supported the creation of an
information network for these bodies linked to the Euro Info Centres (EIC) network in
order to make it possible for them to:
        seek partners, establish joint ventures, buy or sell companies or any other
        operation they might wish to engage in;
        obtain information on policies or on the legislation or procedures of other
        relevant countries.
     c)  Dissemination of social innovation
Innovation is a comprehensive development process involving far more than the
technical and economic dimension alone. It parallels technological development and
makes it possible to draw up strategies to respond to social requirements (finding jobs
for disadvantaged categories).
Cooperatives, mutuals and associations have particular skills in this field which the
entire Community can only benefit from recognising, promoting and using.
On the basis of an initial fact-finding stage, the programme will therefore give great
emphasis to exploiting the capital these companies can provide in terms of experience
and innovative capacity. The programme thus aims to encourage the exchange at
European level of models, experience and good practice. It must also seek appropriate
conditions and resources to reproduce and disseminate these innovations as widely as
possible.
In the health sector, for example, sickness insurance is handled by mutuals or
cooperatives and they also sell or produce health products (pharmacies, hospitals, etc),
while associations provide services such as health-care and transport for patients.
Coordination and cooperation is inadequate, particularly in the field of supplementary
insurance where such bodies can play a key role.
With regards to the associations and foundations sector, existing European networks
have already provided, sometimes for a matter of decades, a channel for national and
even local experience. Nevertheless, efforts should continue to be made to encourage
 mutual understanding so that these structures can become stronger and steadily more
effective in their work on behalf of the European citizen.
     d) Strengthening the role of cooperatives, mutuals. associations and foundations as
     vehicles of Community policies
 Cooperatives, mutuals, associations and foundations are already actively involved in
 implementing a range of Community policies. In order to interlink these measures so
 that action by the Commission on behalf of these companies can be effective, these
 schemes should be fully exploited.       Moreover, the Commission pays particular
                                           -18-
 ---pagebreak--- attention to instances of cooperation under Community policies which offer particularly
effective scope for dissemination of the most worthwhile techniques.
Encouraging cooperation and partnership between companies, particularly small and
medium-sized ones, is an effective way of helping them to adapt the changes associated
with the creation of the Single Market and Economic and Monetary Union without
overly endangering the economic and social fabric.
In general, the cooperative, mutual, foundation and associations sector plays a key role
in strengthening economic and social cohesion because it is often better able to exploit
local resources and also to make an appropriate response to new requirements. This
type of enterprise can accordingly supply the necessary stimulus to endogenous
development of hard-hit regions and sectors in at the same time supplying the social
services best meeting the needs of the population. Existing Community regulations
already provide for different forms of support for cooperatives, mutuals, associations
and foundations through the Structural Funds (ERDF, EAGGF Guidance, ESF), as
well as through certain integrated programmes (IMP, IDO, PEDIP) and specific
schemes (RESIDER, RENAVAL).
 Attempts to render the work of the Structural Funds more effective makes it all the
 more necessary to establish a true partnership with the sector both for the drafting of
 these programmes and their monitoring and assessment. This is a prerequisite for
achieving a better balance of needs and resources, particularly in encouraging the
 release by national governments of their own contributions to the implementation of the
 programmes.
 The partnership with cooperatives, mutuals and associations is also a necessary
 condition for the Community to play its role effectively among the various
 organisations involved. As an initial step, the work programme must check the extent
 to which Community funding already available to cooperatives, associations,
 foundations and mutuals is actually being used. The next stage will be to examine
 existing regulations to see to what extent these companies can be given better access to
 Community resources.
 On the one hand, action by the Commission strengthens innovation in cooperatives,
  mutuals and associations by aiding projects of recognised value in their fields; at the
  same time, the Commission serves as a sounding board at Community level for such
 projects. A local initiative in a village of the Massif Central can thus become a model
  for a rural project in Ireland. The irreplaceable role played by the Community in the
 dissemination of information acquired through the projects it supports is apparent from
  the very large number of requests for information and the abundant replies received
  when a questionnaire was sent about associations in the Member States.
  Boosted by these information and support activities, these projects themselves are
  learning to operate as part of a European partnership. A number of European
  programmes provide them with considerable support in this regard.
  Nevertheless, in order to cope with the undercapitalisation which is a feature of many
  enterprises in this sector, a new partnership will have to be formed between national
                                               19
 ---pagebreak--- and Community authorities, the financial institutions (banks and insurance) and
enterprises.
 The "cooperatives" unit seeks to identify innovative projects, to publicise them and to
 stimulate cooperation between them.
 B.      STRENGTHENING ACTION WITHIN OTHER POLICY AREAS
 1.      Developing Community statistics
 Across the twelve Member States, information about the cooperatives, mutuals,
 foundations and associations sector is patchy and uneven.
 Research must be carried out in order to better understand the situation in the sector
 and to obtain harmonised and regularly updated statistical data. This survey forms part
 of other work in the statistical programme implemented by the Commission and
 designed, in particular, to achieve:
         a better overview of private non-commercial activities, so as to enhance the
          accuracy and harmonisation of Member States* GNP measurement, given that
          such activities comprise a significant proportion of some countries' GNP;
          the development of statistics for services in sectors not yet possessing adequate
          means of data collection.
  The Commission has already begun work to improve the statistical coverage in this
  field. EUROSTAT, the European Statistical Office, has undertaken initial work to
  upgrade national statistics.
  In addition, sectoral statistical surveys will be carried out to compile indicators specific
  to this field. These are in association with work to develop a methodology whereby
  cooperatives, mutuals and associations can be presented as a specific sector to be
  monitored as part of a (harmonised) separate statistical series.
  2.      Supporting training
  Cooperatives, mutuals, associations and foundations have to cope with extensive
  changes involving a concentration of resources, a remorseless increase in technical and
• management commitments and a need for greater professionalism on the part of
  managers.
  Personnel training therefore becomes a priority so that enterprises are in a position to
  participate in Europe-wide groups and/or partnerships in order to meet new competition
  and to enhance the reliability and quality of their industrial products and services, while
  yet remaining faithful to the primary aim of membership solidarity and responsibility.
  The Structural Funds and specific training programmes established by the Commission
  (e.g. COMETT, FORCE, LINGUA) do in general meet the various needs in this field.
   However, the work programme must make it possible to:
                                                 20
 ---pagebreak---         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
 ---pagebreak--- This programme adopts a similar approach, but is politically more ambitious, despite
the fact that the available resources remain extremely modest, with an estimated budget
of ECU 5.6 million over three years.
It is ambitious in that, being based on a rigorous and systematic knowledge of the
sector, it sets out to present a formalised framework for Community action. The
strengthened horizontal approach and the implementation of specific measures will be
based on a quest for innovative strategies, for partnership and networking
arrangements, and for transnational dynamics.
In this respect, the budget heading B5-3210 "Economie Sociale" must be viewed first
and foremost as consolidating the general SME heading B5-3200, which in the past was
used very largely to fund initiatives taken by undertakings in this sector. Secondly, the
budget funds must be used to integrate the funding of measures, projects, research and
studies conducted under other policies, with a view to supporting an approach which
properly reflects the special nature of the cooperatives, mutuals and associations sector.
IV.      INDIRECT ACTION RESULTING FROM THE APPLICATION
         OF CERTAIN COMMUNITY POLICIES
Other than enterprise policy, a number of Community policies affect cooperatives,
mutuals, associations and foundations. These are primarily regional policy, consumer
protection, fisheries policies, policy on agriculture and the development of rural areas,
business policy, research policy, environmental policy, social policy, development
policy, education and training policy and, much more recently, health and safety
policies.
Finally, a major part of the cooperatives and mutuals sector is directly involved in the
creation of the single market for financial services. This is particularly the case for
cooperative banks and insurance mutuals and cooperatives.
It is nevertheless difficult to identify precisely how much cooperatives, mutuals,
associations and foundations participate in these Community policies. At national,
regional and local level, however, many associations and cooperatives, and certain
mutuals and foundations, participate in the implementation of Community policies
designed to reduce inequalities between regions. Their role in this context has been
sufficiently stressed in two resolutions of the European Parliament15 and in an own-
initiative opinion of the ESC"1 which called for involving cooperatives, mutuals,
associations and foundations in the drafting of Community plans and operational
programmes.
 15      OJ C 128 of 16 May 19S1. p. s | (report 1-X49/X2)
         OJ C 246 of 14 Scplcmhcr IVS7.
 16      Own initiative opinion of ilic Ixonomic and Social Committee on "The contribution of the
         cooperative sector to rcgion.il development". 19.10.1989.
                                                   -22-
 ---pagebreak--- 1       Enterprise policy
In general, the Commission's enterprise policy makes information, cooperation,
funding and training tools available to cooperatives, mutuals, associations and
foundations, most of which are SMEs or serve SMEs. The procedure for evaluating
the impact of measures proposed by the Commission makes it possible, using certain
kinds of consultation, to assess their potential effects on these enterprises.
With particular regard to EIB loans, especially those to SMEs, it should be noted that a
number of cooperative banks are recognised by the European Investment Bank as
intermediaries.
With a view to involving people and organisations from all over Europe in the work of
building, Europe, by giving them access to information at European level, the
Commission has lent its support to the creation of information centres specially geared
to the needs of firms and organisations in this sector.
2       Policy on development of cooperation with non-member countries
Cooperatives, associations and mutuals form a significant proportion of the economy of
the countries in the European economic area. Enterprises in this sector will have a key
role to play in the cooperation which will accompany the implementation of agreements
with the European Community.
The economic system imposed for more than 40 years on the countries of Central and
Eastern Europe has suffocated even the basic principles of enterprises in this sector -
particularly cooperatives - to the point where they have been discredited in the eyes of
both producers and consumers: the state has displaced the individual, free association
has disappeared and bureaucratic management has dominated companies.
Information, training and the stimulation of cooperation and partnerships will
contribute to consolidating economic democracy in Eastern Europe and to developing
the European Economic Area.
The Community makes extensive efforts to contribute to the development of southern
countries which have cooperation agreements with the Community.
The principles of solidarity and participation which underpin cooperatives, associations
and mutuals automatically contribute to the creation of an environment favouring
economic and social development.
 As far as the ACP countries are concerned, promotion of cooperatives and other
associations is called for under the Lomé Convention and more particularly under the
 heading of decentralised cooperation.
 3       Consumer policy
 A significant number of cooperatives, associations, mutuals and foundations have
arisen out of consumer groups. In this context, and in some cases since 1962, they are
 closely associated with the drafting of Community policy on consumer protection.
                                              23
 ---pagebreak--- As representative European organisations, EUROCOOP17, COFACE18, ETUC19 and
EBCU20 are represented on the CCC21 set up by the Commission to seek the opinion of
consumer organisations on Commission initiatives directly or indirectly affecting
consumer interests, as well as on many other advisory committees, particularly those
referring to agricultural and fisheries policies.
4        Agriculture policy
COP A22 and COGECA23 have always been essential discussion partners for the
Commission when it comes to the Common Agricultural Policy: cooperatives and
producers associations are characteristic features of the agricultural sector in the
Member States.
Cooperatives, mutuals and associations have played a vital role in the development of
agricultural and rural life in the European Community.
Cooperatives have an important role not only in the processing and/or marketing of
agricultural products but also in funding farms. The economic development of the
agricultural sector has been buttressed by health and insurance mutual societies or
cooperatives providing capital.
Less known in general has been the role of associations not only in training and the
publicising and dissemination of knowledge but also in concentrating supply and
establishing production standards.
On the eve of the creation of the Single Market and of Economic and Monetary Union,
agricultural enterprises must be able to develop within this economic area so as to cope
with profound changes, both economic and sociological, and thus benefit from their
effects.
In this regard, particular attention must be paid to cooperatives, mutuals and
associations within the agricultural sector, particularly in respect of:
         training of both associate members of these structures and workers;
         the requirements of transnational cooperation arrangements;
         financial needs.
5        Fisheries policy
Cooperatives, associations and mutuals play an important role in the fisheries sector.
 17
         European Organisation of Consumer Coopératives.
 18
         European Community Confederation of Family Organisations
 19
         European Trade Union Confederal ion
20
         European Bureau of Consumers' Unions
21
         Consumers Consultative Committee
22
         Committee of agricultural organisations in the EEC.
23
         General Committee for Agricultural Cooperation in the EEC.
                                                  -24-
 ---pagebreak--- This sector is currently faced by a serious over-capacity problem and a series of
measures have been adopted by the Commission to speed up the rate at which the
capacity of the Community fishing fleet is being reduced. These measures require the
implementation of such socio-economic "support measures" as:
         economic restructuring in order to generate alternative employment;
          social measures (vocational training, early retirement, etc.).
Planned action includes in particular carrying out regional socio-economic studies and
launching pilot schemes.
6         Social policy
Since the early 1980s, when the Commission observed that there were increasing
numbers of cooperative enterprises whereas other enterprises were going out of
business, it has specifically recognised the role that cooperatives could play in
maintaining and creating jobs. In its communications to the Council concerning the
problems of employment and unemployment, the Commission has since that time
stressed the importance of the cooperative movement while recommending appropriate
stimulation measures. In response to one of these communications, the Council
Resolution of 7 June 1984 concerning contribution of local initiatives to creating
employment and combating unemployment has encouraged policy approaches to help
cooperatives and similar undertakings.
At the present time, the Community action programmes LEDA and ERGO, concerning
local employment development and action to help the long-term unemployed
respectively, involve cooperatives, mutuals, associations and foundations in their
activities to the greatest possible extent.
Educational and social cooperatives, associations for training and on-going education in
particular, and indeed all enterprises in the cooperative sector in terms of the efforts
 they make to train their delegates and workers, are very active participants in
 Community education and training policy. Some organisations manage operational
 programmes supported by the European Social Fund. Cooperatives, mutuals,
associations and foundations are involved in implementing such programmes and
 initiatives as Force, Euroform, Now and Horizon. Some programmes, particularly
 those involving training and. the establishment of enterprises for young people or for
 women, specifically refer to cooperatives.
 7        Cultural policy
 Cultural policy is to a very large extent run by associations and foundations. In the
 past, for example, they have striven to obtain recognition of the rights of workers
 involved in cultural activities.
 Cooperatives, associations and foundations will play an important role in the
 implementation of European cultural policy in accordance with the Maastricht
 agreements, particularly in the preservation of Europe's cultural heritage, the
 development of non-commercial cultural exchanges and artistic and literary creativity,
 including the audio-visual sector. In addition, cooperatives and associations offering
                                             -25
 ---pagebreak--- their membership inexpensive travel arrangements can make an effective contribution
to exchanges in this sector.
8       Health policy
This will also be true of health policy. Those involved in this new policy will be
particularly social-welfare mutuals, those reimbursing their members for medication
and associations and foundations working in the health sector. Involved on behalf of
this sector in the consultations between management and workforce, these enterprises
are affected by all European legislation on health, social protection, medication, health
education and consumer protection.
9       R&D policy and structural policy
R & D programmes are open to participation by cooperatives, mutuals and
associations/foundations. This is essential if the competitiveness of these enterprises is
to be enhanced during the current era of economic change in European society. In
addition, the policy of the Structural Funds is designed to mobilise those economic and
social organisations firmly established "on the ground" and whose involvement will
have a more powerful "knock-on" effect in regional and/or local development.
10      Development policy
In order to carry out its development policy, the Commission has always worked
closely with non-governmental organisations (NGOs). Particularly under the budget
heading of micro-projects, NGOs have been involved in implementing schemes in the
ACP countries. In accordance with the most recent Lomé Convention, cooperatives
and local NGOs are the main channels for development policy covering their countries.
In the Trivelli Resolution, the European Parliament also emphasised the important role
played by cooperatives in this field.
11      Environment policy
For many years now, members of this sector, more especially the environmentalist
associations, have been involved in a range of Community policies designed to protect
the environment in Europe. They are also active in promoting sustainable development
and environmental issues.
                                          -26-
 ---pagebreak--- V.      CONCLUSIONS
The enterprise operated by cooperatives, mutuals and associations must be made as
capable as other companies of benefiting from the opportunities arising out of the
creation of the frontierless Single Market and from Economic and Monetary Union.
In order to maintain the diversity of the European economy, such cooperatives, mutuals
and associations (either SMEs or serving SMEs) must be able to continue to exist and
to develop in a larger and competitive market while respecting - and even encouraging
- the principles of solidarity expressed in their aims or form of organisation.
It is accordingly important that the promotion of cooperation between these companies
so as to maintain and extend their activities should take place in a context which is
stable, transparent and based on rules which set small companies on an equal footing
with large ones and the major business groupings.
This work programme is therefore designed to assist cooperatives, mutuals,
associations and foundations in determining their response to the twin goals of the
Community: economic development and the achievement of social progress.
Moreover, the promotion of SMEs that are cooperatives, mutuals or associations must
be accompanied by the implementation of specific measures to improve their scope for
transnational cooperation in order to expand their presence on the market or to
strengthen their role in achieving Community objectives in a certain number of fields.
In addition, on expiry of the period covered by this programme to assist cooperatives,
mutuals and associations, the Commission could assess Community policy for the
companies in question in order to have additional information on which to base future
approaches.
                                              27-
 ---pagebreak---                          FINANCIAL STATEMENT
1.    Title of operation
Programme of work for cooperatives, mutual societies, associations and foundations.
2.    Budget headings involved in the past:
B5-3200 (in 1991: ECU 0.030 million in commitment appropriations and ECU 0.030
      million in payment appropriations; in 1992: ECU 0.100 million in commitment
      appropriations and ECU 0.450 million in payment appropriations; in 1993:
      ECU 0.200 million in commitment appropriations and ECU 0.200 million in
      payment appropriations) for stimulating enterprises (particularly small and
      medium-sized enterprises)
B5-3210 (in 1991: ECU 1.200 million in commitment appropriations and ECU 1.200
      million in payment appropriations; in 1992: ECU 0.820 million in commitment
      appropriations and ECU 0.820 million in payment appropriations; in 1993:
      ECU 0.840 million in commitment appropriations and ECU 1.140 million in
      payment appropriations); heading specific to "économie sociale".
3.    Legal basis
3.1   Council Decision 89/490/EEC of 28 July 1989 on the improvement of the
      business environment and the promotion of the development of enterprises, and
      in particular small and medium-sized enterprises, in the Community (OJ L
      239/89).
3.2   Council Decision 93/379/EEC of 14 June 1993 on a multi-annual programme of
      work to intensify the priority areas and to ensure the continuity and
      consolidation of enterprise policy, with particular reference to small and
      medium-sized enterprises, in the Community (OJ L 161/93).
3.3   Communication from the Commission to the Council of 18 December 1989
      entitled "Businesses in the "économie sociale" sector: Europe's frontier-free
      market" (SEC (89 2187 final).
3.4   Declaration no. 23 of the Treaty on European Union "Declaration on
      cooperation with charitable associations".
                                          28
 ---pagebreak--- 3.5     "From the Single Act to Maastricht and beyond: the means to match our
       ambitions" (COM(92) 2000 final).
4.     Description of operation
Appropriations under heading B5-3210, along with headings B3-10 and B6-612, are
        intended to cover expenditure incurred by projects to study the impact of the
        completion of the Single Market on the "économie sociale" sector and to
        improve its access to Community measures.
4.1     Specific objectives of operation
In its Communication entitled "Businesses in the "économie sociale" sector: Europe's
        frontier-free market", the Commission's intention was to submit a working
        programme in full respect of the principle of subsidiarity and to make
        appropriate proposals for its implementation.
This working programme is aimed at:
 1.     consolidating the horizontal approach by improving knowledge of the sector and
        particularly its contribution to the economy in general and its specific
        contribution to certain Community policies, and by taking account of this sector
        in Community policies and assessing the impact of these policies on
        cooperatives, mutual societies, associations and foundations;
2.      implementing specific measures designed in particular to:
                 enhance the scope for transnational cooperation and the quest for new
        activities and new markets among partners acting in groups in the context of the
        newly-completed Single Market.
                 improve information How,
                 support training
                 encourage the development of research and scientific progress,
                 strengthen the role of cooperatives, mutual societies, associations and
         foundations as vehicles of EC policies, particularly as-regards the dissemination
        of social innovation, the consolidation of economic and social cohesion, and the
        development of cooperation with non-member countries.
4.2     Duration
Measures taken in the "économie sociale" sector are part of multi-annual framework
        programmes, the first of which is spread over the 1994-96 three-year period.
4.3      Target population
                                            -29
 ---pagebreak--- A substantial portion of the Community population is targeted by action in the
       "économie sociale" sector if, for instance, we bear in mind that 60% of
       European agricultural production is harvested, processed or marketed through a
       cooperative, that cooperative or mutual banks collect almost 17% of European
       savings, that 40 million European families use mutual societies to insure against
       the risk of sickness or against the vagaries of old age and that there are 60
       million members and 3 million jobs in the cooperative sector alone.
5.     Classification of expenditure or revenue
5.1    Non-compulsory expenditure
5.2    Differentiated appropriations
5.3    Types of revenue en visaged
None.
6.     Type of expenditure or revenue
6.1    100% subsidy
A minimal part (study contracts, expenditure on meetings, publications) is financed in
       toto.
6.2    Subsidy for co-financing with other sources from the public and/or private
       sector
Innovatory pilot projects (above mentioned objects) will be financed at an average rate
       of 18%.
6.3    Interest subsidies
Certain operations might qualify for interest subsidies.
6.4 Other
None.
6.5    In the event of the action proving economically successful, has any provision
       been made for partial or total reimbursement of the Community financial
       contribution?
As things currently stand no reimbursement of the Community financial contribution
       has been envisaged.
6.6    Does the operation proposed entail any change in the level of revenue? If so
       what does the change involve and what type of revenue is envisaged?
                                          - 30 -
 ---pagebreak--- 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
 ---pagebreak--- 7.2  Detailed breakdown of the action
                                                                    in ECU million
         BREAKDOWN                    1994           DESCRIPTION OF
                                                       EXPENDITURE
 A.   Promoting, coordinating and
      strengthening measures for
      cooperatives,          mutuals,
      associations and foundations
 A.l  Strengthening the horizontal
      approach
      Improvement         of      the
      knowledge of the sector of
      cooperatives,           mutual
      societies, associations and
      foundations, particularly its
      contribution to the economic
      in general and its specific
      contribution     to     certain
      Community policies.
      Implementation of studies on    0.100 Programme of prospective studies
      the development of the                and examinations in order to obtain
      sector within the Community           the information needed to identify
                                            major trends
      Creation of a favourable        0.210 Examination of the         impact   of
      environment and assessment            Community measures
      of the impact of Community
                                            Studies of national legislation and
      policies.
                                            hurdles to cooperation at the
                                            Community level
                                            Pilot actions in order to evaluate the
                                            impact of Community policies
      Consultation arrangements.      0.040 To      permit      exchanges      and
                                            consultation on future Community
                                            policy and on the programme of
                                            work, the representative bodies at
                                            European level are invited to set up a
                                            standing    structure    for   contact
                                            between      cooperatives,     mutual
                                            societies,      associations       and
                                            foundations on the one hand, and the
                                            Community institutions on the other
                                            (meetings)
                                       -32-
 ---pagebreak--- A.2. Support       for      specific
     measures         to      assist
     cooperatives,           mutual
     societies, associations and
     foundations         in      the
     community
     Encouraging       transnational 0.100 Pilot actions to overcome hurdles to
     cooperation to seek out new            transnational cooperation
     activities by groups of
     partners
     Improving the information       0.155  Information network linked to the
     flow                                   EICs plus also permitting the quest
                                            for partners, the implementation of
                                            joint ventures, etc.
     Dissemination       of   social 0.100  Innovatory pilot schemes based on
     innovation                             the specific features of cooperatives,
                                             mutual societies, associations and
                                             foundations
     Strengthening the role of       0.545   Pilot schemes, with special reference
     cooperatives,           mutual          to the disadvantaged reions, in the
     societies, associations and             sector by organisations
     foundations as vehicles of
     community policies
B.   Strengthening action within
     other policy areas
     Development of Community        0.200 Studies, collection and processing of
     statistics and processing of            data, publications for knowledge of
     data following up surveys               the situation in the sector and for
     carried out in this sector              harmonised statistics and updates
      (B5-3200)
     Supporting training (B3-I0)     0.070 Pilot actions for training of
                                             executives and those responsible for
                                             vocational structures; exchanges of
                                             executives and engineers
      Stimulating R & D              0.130 Pilot schemes, with special reference
                                             to the disadvantaged regions, by
      (B6-612)
                                             organisations in the sector
TOTAL                                 1.650
                                      - 33
 ---pagebreak--- 7.3    Operational expenditure for studies, experts' meetings, etc. included under B
         BREAKDOWN                              1994            1995             1996
 Studies                                       0.350           0.300            0.300
 Meetings of experts                           0.040           0.050            0.050
 Conferences and congresses                     p.m.            p.m.             p.m.
 Information and publications                  0.030           0.050            0.050
              TOTAL                            0.420           0.400            0.400
7.4    Indicative schedule of commitment appropriations
                                          APPROXIMATE PLANNING (million ECU)
 BUDGET                                     1994            1995            1996
 WORK PROGRAMME                             1.650          1.860           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-
 ---pagebreak---         for the European agricultural cooperatives, the European Economic Interest
               Group (EUROCORD) has been set up in order to compete more
               effectively for calls for tenders under "Phare" (e.g. winning contracts
               worth three million ECU for the restructuring of cooperatives in Poland,
               in the context of a renewable programme);
        cooperatives and associations from nine Member States and financial
               establishments of the sector (e.g. for France: WF + Caisse des Dépôts
               et Consignations; for Germany: Deutsche Familien Ferien +
                GenossenschaJ'tsbank; for Portugal: APORTAL + Montepio Gérai)
               offering their membership low-cost travel have grouped together to form
                EEIG "Eurovillages";
        * network of information on "économie sociale" (Euro Info Centres) has been
                set up by the following organisations: Comité Européen des
                Coopératives de Production, Eurocitizen Action Service, Comité
                Européen des Associations d'intérêt Général, European Foundation
                Centre, in order to cater for the need for enterprises of the "économie
                sociale" sector to interact with the rest of the Community's trade and
                industry by using the EIC network (network of networks).
9.1.2 A study conducted by our department shows that a large number of innovatory
        pilot projects have been put forward and selected in the light of the
        abovementioned objectives.
9.1.3 Following studies undertaken by DG XXIII a special financial mechanism has
        been set in place for cooperatives, mutuals and associations, based on a
        European investment company and two joint placement funds.
9.2     Grounds for the opera/ion
9.2.1   Cost
The cost of the different operations has been calculated on the basis of the elements
presented under 7 above. The limited financial and human resources available on the
one hand and the specific nature o\' the requirements on the other rule out an alternative
strategy for intervening in the sector in question.
9.2.2 Spin-off effects
The spin-off and knock-on effects are important because the operations envisaged
should enable the "économie sociale" sector to benefit from the advantages of the
frontier-free Single Market while respecting the rules of competition and without losing
their special nature as membership organisations.
9.2.3 Multiplier effects
The actions undoubtedly have and will continue to have multiplier effects either by
mobilising other sources of financing from the sector itself or from other sectors, or by
being reproducible in time and in space. In particular, the experience gained has
demonstrated that the Commission can, in most cases, limit itself to a financial
                                            - 3'S
 ---pagebreak--- contribution of around 15-25% and that the enterprises of the sector are prepared to
finance the rest of the projects in question. The multiplier effect is therefore around
400-667%.
9.3    Monitoring and assessment of the operation
        Depending on the objectives pursued this will be as follows:
                comparative assessment, designed primarily to identify the changes
                generated by the operation on a population or on a situation and to
                evaluate the extent to which the objectives set have actually been
                attained and whether there have been any effects other than those
                anticipated;
                analytical assessment, designed to establish the differences generated by
                the operation in relation to an initial situation;
                dynamic assessment based on the interim results of the analysis and
                amending the action as it progresses.
        These methods can         be complementary         and   must permit  six-monthly
        assessments.
        The "économie sociale" sector is very diversified as a result of its makeup
        (cooperatives, mutual societies, associations and foundations) and its
        distribution across the 12 Member States.
        Close attention is therefore needed when preparing operations, in order to
        ensure the resources deployed match the perceived needs.
 9.4    Consistency with financial planning
 9.4.1 Is the action included in the DCs financial planning for the years concerned?
        The action is an integral part of the DG's policy.
 9.4.2  Specify to which more general objective defined in the DG's financial planning
        the objective of the operation proposed corresponds.
        The operation proposed corresponds to the objectives pursued by the Directorate
        General (training, information, cooperation, etc.).
 10.    Administrative expenditure (part A of the budget)
 10.1   Does the operation entail an increase in the number of Commission staff? If so
        how many?
                                              36
 ---pagebreak---      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
                                       -37-
 ---pagebreak---                   PROGRAMME OF WORK FOR COOPERATIVES.
                  MUTUALS. ASSOCIATIONS AND FOUNDATIONS
          Budget       Financing plan24 1994-96               1994  1995  1996  1994-96
          item
 A.                    Promoting, coordinating and
                       strengthening      measures        for
                       cooperatives,               mutuals,
                       associations and foundations
 A.l.                  Strengthening     the     horizontal
                       approach
 A.l.a)   B5-3210      Studies on the development of          0.100 0.080 0.080 0.260
                       the sector in the Community
 A.l.b)   B5-3210      Creation      of    a     favourable   0.210 0.120 0.080 0.410
                       environment and evaluation of
                       the     impact   of      Community
                       policies
 A.l.c)   B5-3210      Consultation arrangements              0.040 0.050 0.050 0.140
 A.2                   Support tor specific measures in
                       favour of cooperatives, mutuals,
                       associations and foundations
 A.2.a)   B5-3210      Encouraging            transnational   0.100 0.100 0.100 0.300
                       collaboration in the quest for
                       new activities by groups of
                       partners
 A.2.b)   B5-3210      Improving information                  0.155 0.160 0.160 0.475
 A.2.c)   B5-3210      Dissemination         of        social 0.100 0.100 0.100 0.300
                       innovation
 A.2.d)   B5-3210      Strengthening      the     role     of 0.545 0.790 0.830 2.165
                       cooperatives,               mutuals,
                       associations and foundations as
                       vehicles of Community policies
 B.                    Strengthening action within other
                       policy areas
 B.l.     B5-3200      Development       of     Community     0.200 0.200 0.150 0.550
                       statistics and compilation of data
                       subsequent to surveys carried out
                       in the sector
 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
                                                        IX-
 ---pagebreak--- 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       of       certain
            Community policies
C.l. B7-500 Promotion      of     Community    In the remarks on the general budget
            investment in the developing       of the European Communities with
            countries in Latin America, Asia   effect from the budget year 1994, the
            and the Mediterranean within the   point is made that the action
            context     of   economic     and  envisaged is directed particularly to
            commercial            cooperation  small and medium-sized enterprises,
            agreements.                        including firms in the "économie
                                               sociale" sector.
C.2  B2     Structural     measures,     other Cooperatives,       mutuals        and
            agricultural     and     regional, associations have received funding
            transport and fishing measures     from this item in the past. For the
                                               period covered by the programme,
                                               these firms will continue to qualify
                                                for such funding, but it is not
                                               possible, a priori, to specify an
                                               amount, as this will depend on the
                                               quality of projects proposed and on
                                               the way the various activities develop.
C.3. B3     Training, youth, culture, audio     Idem
            visual, information and other
            social action
C.4. B4-3   Environment                         Idem
C.5. B5     Consumer protection, internal       Idem
            market, industry and trans-
             European networks
C.6. B7     Cooperation     with   developing   Idem
            countries
                                          39
 ---pagebreak---                                                                      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
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                                               -qo-