Debate: Commission proposal for a Council recommendation on developing social economy framework conditions
Date: THURSDAY, 19 OCTOBER 2023
Speaker: Iliana Ivanova
Language: EN

Social economy offers concrete and innovative contributions of key societal objectives, such as labour market integration, social inclusion and sustainable development. About 2.8 million social economy entities employ over 13.6 million in Europe, and operate in a large range of economic sectors, including social and care services, skills and training, reuse and repair, and financial and insurance activities. Currently, the social economic development across the EU is uneven. While some countries have well-established traditions and thriving social economy ecosystems, others have yet to recognise its importance and utilise its full potential. To create an enabling environment for the social economy to thrive, it is necessary to establish a comprehensive approach that takes account of all the interconnected aspects that impact the ecosystem. Such an approach cannot be achieved by the EU institutions and the Social Economy Action Plan alone. We need all Member States to take action at their level, in close cooperation with regional and local authorities, social economy entities and relevant stakeholders. With the Commission proposal for a Council recommendation, on which the Employment, Social Policy, Health and Consumer Affairs Council reached an agreement a few days ago, we want to support all Member States in further developing their legal and policy frameworks for the social economy. The proposal builds upon the growing international recognition of the social economy, with the adoption of an OECD recommendation and an ILO resolution on the social economy in 2022, and a UN resolution in 2023. The recommendations put forth are comprehensive, reflecting the wide-ranging nature of the social economy itself. As such, the proposal encompasses key areas, such as labour market policy, social inclusion skills, social innovation, sustainable economic development, access to funding, access to markets and public procurement, state aid, taxation, social impact measurement and management, and visibility and recognition. Beyond the Council recommendation, the Commission has taken significant further action to promote the social economy, support the Member States and mobilise action at national level. Let me highlight a few EU initiatives. As regards removing obstacles to business transfers to worker cooperatives, the Commission continues to support best practices in business transfers, notably through various EU-funded projects and studies. To support social economy entities, access to digital tools, new technologies and funding, the Commission co-created with stakeholders a transition pathway for the proximity and social economy industrial ecosystem, with dedicated actions aiming at boosting the twin transition. The Commission has also been supporting women entrepreneurs under the Easy Microfinance product, and continues doing so under the InvestEU Microfinance Guarantee product. As regards monitoring of national support and investments, social economy is one of the topics monitored in the context of the European Semester in the Joint Employment Report. The National Recovery and Resilience Plans include a number of reforms and investments supporting social economy, for instance in Member States such as Bulgaria, Spain, Poland, Romania and Portugal. The Commission only disburses payments after a satisfactory assessment of the milestones and targets set by the plans. On social impact bonds, the InvestEU programme can provide financial support for social outcomes, contracting operations, and through its Advisory Hub it can help build the capacity of public administrations on the topic. The Commission has also conducted studies on this matter. On social economy labels, the Commission is conducting a study that will identify and map both public and private labels and certification schemes that are relevant to social economy entities in the EU. This study will also analyse the scope and feasibility of mutual recognition of schemes between EU Member States, and will offer guidance to assist them in this process.  Furthermore, the Strategy for the rights of persons with disabilities supports the implementation of the United Nations Convention on the Rights of Persons with Disabilities, and that it is relevant for social economy operators, which often provide services and employment for persons with disabilities. In conclusion, the social economy demonstrates that an economy that puts people and the planet first is possible, not only in Europe but also globally.