Push for EU-wide definition and strengthened legal mechanisms to allow the social economy to flourish
• Ensure decent working and employment conditions for all social economy workers
• Promotion of social economy among the younger generation to enhance their integration into the labour market
MEPs call for strong measures to promote the social economy as a driver for quality employment, social inclusion and an inclusive digital and green transition.
The report, drafted by Jordi Cañas (Renew Europe, ES), outlines the Parliament’s key recommendations on the EU action plan for the social economy and was adopted with 493 to 75 and 69 abstentions, on Wednesday.
The text underscores that the social economy is dynamic and a transformative, driving force for change and the future of Europe, contributing to social integration and quality job creation. MEPs stress that in order to facilitate its even development across the EU, the legal and policy frameworks for the social economy must therefore be strengthened, including providing guidance on accessing available EU support instruments.
In this context, MEPs strongly welcome the Commission’s commitment to propose a Council Recommendation on developing social economy framework conditions, to be approved in 2023. The recommendation should provide an EU-wide legal definition of the social economy, taking into account the diversity across Member States.
The report also reiterates Parliament’s call to establish a statute for European cross-border associations and non-profit organisations, based on the recommendations set out in the Parliament’s resolution of 17 February 2022.
Dedicated EU financial instruments
As regards financing tools, synergies should be established between regional, national and EU funds, says the text. In particular, the Parliament encourages funding under Next Generation EU, the European Social Fund Plus (ESF+), the European Regional Development Fund (ERDF) and InvestEU. Funds are also available under the reinforced Youth Guarantee to promote social economy among the younger generation, as it can support their integration into the labour market.
Moreover, MEPs call for adequate policies to support the growth potential of social economy entities, including mutuals, in the care sector to help respond to the increased demand for care services.
Effective implementation
To ensure the effective implementation of the EU action plan for the social economy (SEAP), Member States should designate social economy coordinators and set up local social economy contact points with a view to raising awareness of and facilitating access to support and funding, say MEPs. They also call on the Commission to set up an online EU platform for exchange of best practices between Member States as well as an implementation taskforce including all relevant stakeholders.
Quote
Jordi Cañas (Renew Europe, ES), responsible for the report said after the vote:
“With this report, the European Parliament has shown its unequivocal decision to propel the social economy forward to the place it deserves and the one the European Union needs.
The social economy represents the Union that we want, the economy that we want and the social development that we want.
Parliament understands that the very DNA of social economy entities is based on the EU values of inclusion, solidarity and justice and through this report, has thrown its weight behind this model.”
Next steps
The European Commission will propose a Council Recommendation on developing social economy framework conditions in 2023.
Background:
The term social economy refers to four main types of entities providing goods and services to their members or society: cooperatives, mutual benefit societies, associations (including charities), and foundations. The social economy employs some 13.6 million people in the EU active in over 2.8 million entities and enterprises, with paid employment varying between 0.6% and 9.9% amongst Member States (figures from 2017, covering the EU 28). For example, social economy entities play a pioneering role in implementing circular business models, especially in reusing, repairing and recycling activities, and as renewable energy cooperatives.
The Commission published the EU action plan for the social economy in December 2021. It sets out the key priorities and actions necessary to enhance social innovation, support the development of the social economy and boost its social and economic transformative power. It proposes a series of actions for the period 2021-2030.
Source: Cyprus News Agency