This year sees the midterm review of the European Commission’s 2021–2030 Social Economy Action Plan (Seap) – with experts warning the EU’s new emphasis on defence and competitiveness are putting its work at risk.
Social Economy Europe (SEE) has contributed an in-depth assessment of the Seap’s progress, noting that its key achievement is to define the social economy, “to create a common understanding of this diverse ecosystem”.
The Council’s recommendation on the social economy framework conditions is also significant, says SEE.
“It should strengthen political recognition at national level, enabling national strategies for SE and institutionalise dialogue mechanisms with SE stakeholders among member states”.
Seap has also reinforced recognition of the social economy as a driver of social cohesion and civic participation at global and local level, says SEE. And there have been some improvements in data and statistics, although social economy data is still lacking in many countries.
But while concrete measures to foster social economy in key policies such as taxation and public procurement have been proposed, they still need to be adopted, warns SEE. And while Seap has led to improved financial instruments and funding for the social economy, some of these are now at risk now – for instance with this year’s suspension of Cosme funds.
And any progress made “is at risk by changing geopolitics and new EC priorities of defence and competitiveness,” says SEE. “These new priorities have deprioritised SE, which means the ecosystem is no longer identified as a key actor that can support essential EU transversal economic policies.”
This is a mistake, SEE says, as the social economy supports a locally rooted economy that answers the needs of communities.
“Thanks to its democratic governance,” it adds, “social economy is at the forefront to identify societal issues and is a champion of social innovation. Its core values also make it a driver of EU digital tech sovereignty, creating an EU digital economy based on data as common goods and giving people sovereignty over their data. Yet is not yet invited to the table on any of these issues.”
The social economy also offers unique solutions that provide access to all key sectors for the EU such as housing and clean energy, agriculture and food sovereignty as well as the circular economy.
But as new EC priorities mean a “de-facto reducing ambitions and means for Social Europe”, unique solutions in terms of social services, healthcare, education, training, territorial and social inequalities, fighting poverty, inclusion of the most disadvantaged groups, preparedness and civic protection are all at risk, says SEE.
“Funding for these policies will be reduced at EU and member state level as a consequence of EC’s proposed prioritisation of defence and pressure on member states to introduce austerity measures. These proposals will have a tremendous impact on the funding of the social economy and its capacity to support the continued development of the cohesive social EU.”
SEE also warns of “ideological threats to democracy” in Europe, and says the democratic governance aspect of the social economy should be further developed in the second phase of the Seap implementation.
Meanwhile, Cecop – the European confederation of industrial and service co-operatives – said Seap has “provided a solid framework for the social economy sector, including for industrial and service co-operatives”. It brought”, by bringing regulatory and institutional recognition.
It added: “Although challenges persist, the Seap opened doors for industrial and service co-operatives in terms of access to finance, promoting co-operatives in rural/remote and disadvantaged areas, and recognising the role particularly of social co-operatives in providing social services and in active labour market policies.
But more needs to be done, says Cecop, which like SEE noted the “current geopolitical and socioeconomic context”.
It calls on the Commission to take into account priorities on access to finance for co-ops, revision of procurement rules, including the social economy in state aid rules, favourable tax policy, and recognition of co-ops’ contribution to employment policies.
Cecop also wants public administrations to strengthen their skills and knowledge of the social economy, including co-ops. It says the EU should support worker buyouts, encourage member states to adopt national strategies on the social economy, and integrate co-ops and the social economy into initiatives on sustainable finance, the circular economy, social rights, quality work and poverty.
Stronger data is needed on the sector, it adds, and co-ops should be promoted as drivers of local development.