Debate: A statute for European cross-border associations and non-profit organisations
Date: TUESDAY, 15 FEBRUARY 2022
Speaker: Margaritis Schinas
Language: EN

This report deals with issues of particular importance for the internal market: fundamental rights and the European democratic space. All necessary components of our way of life. Associations and other non-profit organisations play a central role in our societies. They are fundamental players in the social cohesion of territories, as well as in job creation and growth.  We count around 2.8 million entities operating in the social economy ecosystem in Europe, including the non-profits. They employ around 13.6 million people and provide many daily solutions for anticipating and tackling challenges that we all face in our daily lives. These entities have done so particularly brilliantly during the pandemic by supporting the most disadvantaged, by providing first aid, health and care services, by contributing to the professional reintegration of many citizens, associations and other non-profits have shown support, cohesion and solidarity throughout Europe. They are now contributing to paving the way for sustainable and inclusive recovery.  It is therefore very crucial that these organisations be granted the conditions conducive to their development so that we can optimise their work. This is precisely that we are engaged in – fostering a supporting environment for civil society. As such, we at the Commission support the objectives outlined in this report, making sure that non-profits enjoy freedom of establishment, provision of services and free movement of capital – all essential to their work.  We should also ensure an enabling environment protecting their fundamental rights. To this end, your report proposed to consider the legislative path, both through a regulation that would create a statute for a European association and through a directive that would establish common minimum standards for non—profits.  As regards your call for a new European legal forum for associations, the Commission does agree on the importance of pursuing a comprehensive approach to facilitate activities for these entities. For many years now, we in the Commission have been very active and determined in this matter. Nevertheless, and we have to admit this, previous attempts dating back already to the nineties to create a European association statute failed because there was lack of progress during the interinstitutional discussion. This was even more evident recently with a withdrawal in 2015 of a proposal to create a European foundation statute.  Therefore, we must now examine in detail again your call for the creation of a European standard for these targeted entities. We shall carefully consider the most appropriate legal basis and policy options to make sure that the main policy objectives at hand are attained, fostering European cooperation and strengthening European democracy and the internal market.  However, there are also questions to be addressed that go beyond the question of this statute. We at the Commission welcome the fact that the proposed regulation establishes a cooperation mechanism on matters linked to associations between the national and the European level, which is very often the case of interaction for these entities. Regarding the envisaged directive aiming at establishing minimum common standards, the Commission notes that the proposed scope is broader and that it builds on several shared objectives.  To ensure that non-profit organisations can fully reap the benefits of the internal market freedoms when operating in the European Union, it also is important to protect the freedom of association to shield non-profits from undue influence and strengthen the European democratic space. On this specific issue, we can build on an already well-established framework that we are constantly strengthening.  Let me recall very shortly that the Commission has already done important work in these areas in the past. The action plan on social economy, adopted only last December, is a major relevant policy milestone to this end. We also announced, for next year, the intention to present the Council recommendation on developing social economy framework conditions that will invite policy makers in Member States to create policy that is better adapted to these operations. The recommendations should also help address certain concerns raised in your resolution. With regard to the free movement of capital for non-profits, the Commission will publish guidance clarifying the existing rules on tax treatment of cross-border public benefit donations that affects many of these operations, and on the implementation of the principle of non-discrimination when this operation involve many Member States.  Finally, the Commission will continue to build evidence looking at the results of relevant studies to identify barriers and to map the legal regimes of associations in the Union. These results are expected by April of this year. All these actions stemming from our social economy action plan can respond to most of the concerns raised by your resolution.  I agree, however, that they are not a comprehensive response to the resolution as a whole. This is why, in addition to these targeted actions, the Commission will resort to Union legislative proposals, preferably based on a legal basis entailing the ordinary legislative method, to reach the objectives promoted in your draft resolution.  Of course, I need not stress that this will be done within the respect of the principles of subsidiarity and proportionality and the strictest respect of the competence of our Member States in these areas.