The EU’s social economy action plan: an economy that works for people
December 22, 2021
Over the last 20 years, there has arisen a global interest in the role that the social economy plays in the economic and social life of nations.
This interest has generated a growing literature on the nature and role of the social economy, its size and composition, its operating rules and organizing principles, its relevance for the economic and social well-being of societies and its relation to the state on the one hand and the private sector on the other.
Increasingly, the social economy is being viewed as the repository of those social, cultural and political values that are most relevant for protecting and advancing the collective good. These values include the idea of reciprocity as the driving force of social economy organizations, the pursuit of social aims through the practice of mutuality, and the promotion of social solidarity through the advancement of social and economic equity.[1]
On December 9, 2021, the European Commission adopted a new action plan on the social economy. With the action plan, the Commission put forward concrete measures to help mobilize the full potential of the social economy in the EU, building on the results of the 2011 Social Business Initiative and the 2016 Start-up and Scale-up Initiative.
The Covid-19 pandemic made the case for a switch to a fair, sustainable and resilient economic model even stronger than before. The aim of the action plan is to enhance social investment, support social economy actors and social enterprises to start-up, scale-up, innovate and create jobs.[2]
With a proposed duration of five years (2021-2026), the European Social Economy Action Plan appears to be a key tool to systematically incorporate the social economy into the different socio-economic policies of the European Union, as well as into its actions to achieve the Sustainable Development Goals.[3] Its objectives include:
increasing the visibility of social economy companies and organizations;
supporting these companies to generate social and technological innovations;
boosting companies’ access to finance and EU funding;
removing the legal obstacles impeding a company’s ability to grow and operate in the Single Market on an equal footing with other types of companies; and
encouraging governments from the EU and its neighboring countries to promote the growth of the social economy as a driver of economic and social progress for all.
The action plan proposes three areas of action to support actors in the social economy and social innovation in Europe, including:
Creating the conditions conducive to the development of the social economy: the action plan aims to define strategic and legal frameworks to create an environment favorable to the development of the social economy in Europe (supervision of taxation, public procurement and state aid to meet the needs of social economy structures), consolidate good practices in socially responsible public procurement and promote the role of the social economy outside the borders of the European Union.
Fostering the emergence and development of social economy organizations: this line of action aims to increase the financial support dedicated to the structures of the economy and social innovation in Europe, in particular within the framework of the InvestEU program, and to create a new European social economy portal which will centralize all the information needed by social economy players concerning funding possibilities, strategies in place, training actions and EU initiatives.
Ensuring the recognition of the social economy and its potential: the purpose of the action plan is to improve the visibility of the social economy and its potential through various communication activities that will be carried out by the European Commission to highlight the role and specificities of the social economy. Among its promotional actions, a study aimed at collecting qualitative and quantitative data that will allow a better understanding of the ecosystem of the social economy in the European Union and training sessions for civil servants on various related topics. to the social economy.[4]
In connection with the Social Economy Action Plan, the Commission has proposed a series of concrete actions to be implemented over the next nine years, in key areas such as:
state aid (exploration of new possibilities for work integration social enterprises and other social economy enterprises of social utility in the context of the revision of the block exemption regulation);
socially responsible public procurement and market access;
promotion of the social economy at local, regional and international levels;
support for businesses, skills development and entrepreneurship among young people;
access to finance (InvestEU and other related programs);
the contribution of the social economy to green and digital transitions; and
social innovation.[5]
In addition, the Commission has committed to creating a European Competence Center for Social Innovation as well as a European Social Innovation Catalyst Fund.
The action plan is expected to benefit social economy entities as it aims to increase its visibility and recognition, support the development of favorable strategic and legal environments and facilitate access to financing and support for businesses. It is also expected to help raise awareness and understanding of the social economy, particularly among young people, investors and public authorities.
More generally, the social economy has greater societal potential and impact in that it contributes, for example, to social and professional inclusion. Consequently, the social economy contributes to the implementation of the action plan on the European Pillar of Social Rights, including the achievement of its three main objectives for 2030, such as increasing the employment rate to 78% and a significant reduction in the number of people at risk of poverty and exclusion.[6]
[1] John Restakis, ‘‘Public policy for a social economy,’’ Journal of Peer Production.
[2] ‘‘Social Economy Action Plan’’, https://ec.europa.eu.
[3] “A European Action Plan for the Social Economy,” https://www.socialeconomy.eu.org.
[4] La Commission européenne dévoile son plan d'action pour l'économie sociale 2021-2030, December 16, 2021, avise.org.
[5] Occitanie Europe, “La Commission propose un plan d’action pour l’économie sociale”, Actualité de l'Union européenne, December 20, 2021.
[6] “Questions/réponses: le plan d'action pour l'économie sociale,” December 9, 2021, https://ec.europa.eu.
