Open letter: the necessary digital transition of the social economy

Open letter: the necessary digital transition of the social economy

by | 10 Mar 2022 | Actualités de SOGA, Communs & plaidoyer, Editorial

Open letter: Anchoring the social and solidarity economy in its digital future

In February 2022, the Social Good Accelerator and its 70 members maintained its vision in its open letter. A better world can only be made with the full support of social economy, which also has to be digitalised. This is how the association defines the key role of the digital transition of social economy in solving social problems with full potential.

G7 leaders
In 2018, Jeanne Bretécher and Steven Bertal founded the Social Good Accelerator to gather the digital sector and social economy
Source: Social Good Accelerator

Our vision: to encourage technological innovation actors to develop and collaborate with social innovation actors in Europe

Four years ago, the Social Good Accelerator (SOGA EU) association was born in France from a double observation: on the one hand, the digital transition of social economy organisations in Europe is left to one side by public policies and funders, and on the other hand, the digital models of social economy encounter too many obstacles to their development.

Its 70 members wish to defend together the vision of a digital social economy (Social Tech) and European, centred on “digital commons”, sustainable and available to all, and to have social economy organisations recognised as actors of the technological transition.

SOGA EU’s work aims to inform social economy actors and decision-makers of the innovative responses proposed to mitigate the digital divide, Uberisation, platform abuses and to promote equity for people who are far from employment, discriminated against in training and retraining.

The challenges: towards a collaborative and responsible digital model for tomorrow’s economy  

In the framework of the European Social Economy Action Plan, which SOGA has been working on, and especially the need for new ideas to emerge to build resilience for all, social economy necessarily has a role to play.

However, as our study – ‘Cooperation between social utility and tech actors in Europe’ – has shown, most social economy organisations – whatever their status – encounter obstacles in their development similar to those of very small enterprises, with additional difficulties linked to their lack of profit, the financing of projects to the detriment of the structures, and the lack of sectoral organisation on these issues.

To meet the challenges of today and tomorrow, SOGA believes that the digital transition can be an opportunity to finally scale up the European SSE, provided that it creates real alternatives and new economic, social and environmental opportunities. To activate this lever, SOGA is promoting and developing digital mediation, UX design and open data.

Our actions: the urgent need to accelerate the digital transition of social economy for a new European horizon  

To address the status quo in this area, the Social Good Accelerator managed to :

  • publish a European study on cooperation between social economy and Tech actors.
  • conducting advocacy at national and European level.
  • launch the first mapping of Social Tech in Europe and soon present the first European information and guidance platform with associated professions (with support from the European Erasmus+ fund).

Presentation study 2020
The Social Good Accelerator’s team presented its research work to the DG Grow, in Brussels, in January 2020
Source: Social Good Accelerator

Since 2018, the media, public policy and funders’ views have shifted towards :

  • an awareness in the social economy sector of its backwardness and difficulties in terms of digital transition – particularly highlighted by the health crisis.
  • a consideration of territorial needs in terms of digital mediation to preserve territorial equality and access to fundamental rights.
  • a need to correlate ecological and digital transition to decarbonise the economy.
  • the observation that some digital citizen responses were effective during the health crisis, as they remain.
euses OECD conference
The Social Economy Action Plan and its presentation were a watershed moment for the sector
Source: European Commission

Our proposals: give the social economy the tools for a successful digital transition

Ensuring effective equal opportunities and rights to digital transformation 

There is a latent lack of training for digital talent, including in the SSE. This is why the public authorities need to provide an impetus to promote support for the digital transformation of organisations that are both economic players and intermediaries for the most vulnerable populations. In this respect, the European action plan for the social economy includes a digital component. The recommendations contained therein give levers of action to the decision-making bodies to act in the direction of these two sectors. Both France and the European Union must set an example and promote ambitious policies to support this change in the general interest.

Developing digital skills: digital citizenship and new jobs. 

While almost 85% of the jobs that will be practised in 2030 probably do not yet exist, it seems essential to gradually train the active population for the transformations of the economy, which is becoming increasingly digital and social. 

Together with three European partners, SOGA has devised a step-by-step training programme through the Social Tech Academy project. The idea here is to develop digital skills by pooling resources on existing training in these areas. The focus on a resource platform aims to enable the digital transformation of the EU, which has the ambition to train 80% of the Union’s population in basic digital skills by 2030.

Unlocking funding for digital innovation in social economy organisations and the development of new models

Through European actions and forward thinking, SOGA works to build bridges between local actions and European policies through a common collaboration framework. 

Nevertheless, they require fiscal, normative and financial support and continuous mobilisation to promote alternative models. 

In the meantime, SOGA wishes to further explore the potential for cooperation between social economy and digital actors in Europe. There are many possibilities to achieve cross innovation, i.e. social and sustainable digital innovation: setting up a European model of “social tech” clusters, promoting project collaborations between social economy and innovative SMEs, or an ambitious European development programme for open and free technologies and databases. We ask to facilitate access to funding for new models combining digital transition and social economy.

SOGA team flags Lisbon
In 2018, the pioneers of the Social Good Accelerator organised the Social Innovation Village in the Web Summit in Lisbon
Source: Social Good Accelerator

Cooperation and digital commons: continuation and upcoming events
In the framework of the European Social Economy Action Plan, which SOGA has been working on, and especially the need for new ideas to emerge to build resilience for all, social economy necessarily has a role to play.

Under the impulse of France, the Social Good Accelerator community, and more globally the social economy structures from all over Europe have the hope to see the issues of :

                                      • inclusive and equitable digital transformation in the territories
                                      • promotion of alternative cooperative models
                                      • digital skills development

The importance of the sector in France favours its promotion. The benefits of this sustainable economic and social model must be developed by the French Presidency of the Council of the European Union in line with the Social Economy Action Plan, presented on 16 December 2021 by the European Commission. The time has come to anchor social economy in its 2.0 version for greater resilience and full inclusion of all publics.

The Social Good Accelerator is counting on this momentum to continue to assert that the open data and the social and digital nature of the economy carry within them a European model in the making. As further evidence of the importance of a healthy public debate and the central role of epistemic communities like ours, see you in 2022 in Strasbourg on the occasion of the Conference on Social Economy, and for the European Social Good Week which will promote the digital social economy ecosystem between Paris, Lisbon and Brussels.

About the author

The Social Good Accelerator and its members
jeanne(at)socialgoodaccelerator.eu

Lettre ouverte – Ancrer l’ESS dans son avenir numérique

by | 20 Feb 2022 | Communs & plaidoyer, Editorial

Lettre ouverte – Ancrer l’économie sociale et solidaire dans son avenir numérique

février 2022 - Social Good Accelerator et ses 70 membres

Contexte

En février 2022, le Social Good Accelerator (SOGA) et ses 70 membres ont souhaité réaffirmer leur vision : un monde plus juste et durable ne peut se construire qu’avec le plein soutien de l’économie sociale et solidaire (ESS).
Encore faut-il que cette économie soit pleinement numérisée, afin de jouer tout son rôle dans la résolution des défis sociaux et environnementaux.

    Nos constats

    Créée en 2018, l’association est née d’un double constat :

    • la transition numérique des organisations de l’ESS est encore largement ignorée par les politiques publiques et les financeurs,

    • les modèles numériques alternatifs portés par l’ESS rencontrent trop d’obstacles à leur développement.

    Nos 70 membres défendent ensemble une vision d’économie sociale numérique européenne (Social Tech) fondée sur :

    • les communs numériques,

    • la durabilité,

    • l’accessibilité pour toutes et tous.

    Nous demandons la reconnaissance pleine et entière des organisations de l’ESS comme acteurs de la transition technologique.

      Les défis à relever

      L’ESS européenne fait face à des difficultés structurelles :

      • financement de projets au détriment du renforcement des structures,

      • manque de ressources humaines et de compétences numériques,

      • obstacles similaires à ceux des très petites entreprises, aggravés par l’absence de but lucratif.

      Pourtant, la transition numérique peut être une opportunité d’essaimage, d’innovation et de montée en puissance de l’ESS à l’échelle européenne. Encore faut-il créer de véritables alternatives et ouvrir de nouvelles perspectives économiques, sociales et environnementales.

      Nos propositions

      1. Garantir l’égalité des droits dans la transformation numérique

      Il est urgent de soutenir les structures de l’ESS dans leur transition digitale. Les pouvoirs publics doivent impulser une politique ambitieuse afin de donner à ces acteurs, qui accompagnent aussi les publics vulnérables, les moyens de se transformer.

      2. Développer les compétences numériques

      Près de 85 % des métiers de 2030 n’existent pas encore. L’ESS doit s’y préparer en formant progressivement salariés, bénévoles et publics accompagnés aux compétences numériques.
      Avec nos partenaires européens, nous développons des programmes de formation et une plateforme de ressources partagée via le projet Social Tech Academy.

      3. Libérer des financements pour l’innovation numérique sociale

      De nouveaux modèles alliant ESS et numérique doivent être soutenus fiscalement, réglementairement et financièrement.
      Nous plaidons pour :

      • un programme européen ambitieux de soutien aux technologies libres et ouvertes,

      • la création de clusters Social Tech européens,

      • la coopération entre ESS, PME innovantes et acteurs du numérique éthique.

      Nos actions déjà engagées

      Depuis 2018, le SOGA et ses membres ont :

      • publié une étude européenne sur la coopération entre ESS et acteurs Tech,

      • mené des actions de plaidoyer national et européen,

      • lancé la première cartographie européenne de la Social Tech,

      • initié le développement d’une plateforme d’orientation et d’information financée par Erasmus+.

      Ces efforts ont contribué à :

      • renforcer la prise de conscience des retards numériques de l’ESS,

      • valoriser la médiation numérique comme outil d’égalité territoriale,

      • corréler transition numérique et transition écologique,

      • démontrer la pertinence des solutions citoyennes issues du numérique libre.

      Un momentum européen à saisir

      Avec le Plan d’action européen pour l’économie sociale (2021–2030) et la Présidence française du Conseil de l’UE, une fenêtre historique s’ouvre.
      Nous appelons les décideurs à :

      • promouvoir une transition numérique inclusive et équitable,

      • soutenir les modèles coopératifs et alternatifs,

      • renforcer le développement des compétences numériques citoyennes.

      L’ESS numérique doit être ancrée dès aujourd’hui dans les politiques européennes pour garantir résilience, innovation et justice sociale.

        Je découvre les actions de plaidoyer du SOGA
        Pourquoi le Social Good Accelerator a-t-il publié une lettre ouverte en février 2022 ?

        Le SOGA et ses 70 membres ont voulu rappeler que l’économie sociale et solidaire (ESS) doit être pleinement intégrée dans la transition numérique européenne, afin de jouer son rôle clé dans la résolution des défis sociaux et environnementaux.

        Quels sont les principaux constats du Social Good Accelerator ?

        Deux constats majeurs : la transition numérique des structures de l’ESS est largement ignorée par les politiques publiques, et les modèles numériques alternatifs portés par l’ESS rencontrent trop d’obstacles pour se développer.

        Quelles propositions concrètes formule le SOGA ?

        La lettre ouverte avance trois priorités :

        • garantir l’égalité des droits et des opportunités dans la transformation numérique,

        • développer les compétences numériques des citoyens et des acteurs de l’ESS,

        • faciliter l’accès aux financements pour l’innovation sociale et numérique.

        Quelles actions a déjà menées le Social Good Accelerator ?

        Depuis 2018, le SOGA a publié une étude européenne sur la coopération entre ESS et Tech, lancé une cartographie de la Social Tech, mené des actions de plaidoyer et développé une plateforme d’orientation financée par Erasmus+.

        Quel est le lien avec le Plan d’action européen pour l’économie sociale ?

        Le SOGA contribue activement à ce plan, qui couvre la période 2021–2030. La lettre ouverte insiste sur l’urgence d’y intégrer une composante numérique forte pour soutenir les organisations de l’ESS.

        Comment puis-je soutenir cette démarche ?

        Vous pouvez adhérer au Social Good Accelerator, participer aux groupes de travail, relayer nos actions ou soutenir financièrement nos projets.

        Social Economy Action Plan: a first awareness on digital transition?

        Social Economy Action Plan: a first awareness on digital transition?

        by | 21 Jan 2022 | Communs & plaidoyer, Editorial

        Social Economy Action Plan: a first awareness on digital transition?

        ‘An impressive public policy launched by the EU, which offers a positive project for the EU’. With these words, the team of our partner Social Economy Europe welcomed the Social Economy Action Plan, which will significantly improve a sector in which 6.3% of the EU population is employed. 38 concrete actions will be put in place over the next 9 years to help a sector that is destined to be more and more present in the daily life of EU citizens. One month after the presentation of this plan by Commissioners Schmit and Breton, let’s take a look at some of the highlights of this unprecedented, innovative and ambitious policy document.

        Finals Social Economy Awards
        From left to right : Marta Lozano Molano (Wazo Cooperative), Tamsin Rose (moderator), Sofi Friedland (Just Arrived) and Stefan van Tulder (Talent Data Labs) talking about new forms of alliances existing in the social economy during the presentation of the Action Plan in Brussels, on 16 December 2021
        Source: European Commission
        Conference FNAF 2021
        Persons in the attendance of the presentation of the Social Economy Action Plan discussing
        Source: European Commission

        Between assessments and concrete actions, an ambitious plan for Europe
        In its drive to include the most disadvantaged people in labour markets and society, “the social economy is a real pillar that provides essential services” to these same groups. Many EU citizens have access to sustainable employment through the social economy. Indeed, depending on the country, between 0.6% and 9.9% of the population work in this essential sector. However, despite the importance of the sector and the values it promotes, the social economy remains unknown to far too many people.

        Nevertheless, the Action Plan explicitly mentions the legal forms of organisations in the sector: cooperatives, foundations, social enterprises, mutuals, and others, which fall within the scope of these new regulations. Measures will be put in place to facilitate the work of cross-border organisations in the sector, both in terms of legislation and taxonomy. These measures will, among other things, help to better anchor the social economy at regional and local level.

        In parallel to this issue, the ecological and digital transition will have a key place in the European social economy of tomorrow. There is still a long way to go to get there, even if the ambitions of the action plan are strong to give social economy structures the keys to develop. Several points echo what the Social Good Accelerator has been advocating since its creation in 2018.

        Improve the access to fundings and grants
        The social economy action plan is accompanied by changes in the line of European budgets in this area. Over two periods of structural investment funds, the differences will be noticeable. Indeed, in the 2014-2020 period, almost 2.5 billion euros have been mobilised for the social economy at EU level. For the next period, the European Commission has indicated its interest in increasing budgets in this area. These ambitions are anchored in the dual objective of developing the social economy, but also of moving towards the success of the next major European meetings for the sector.

        In 2023, the EU Council should have adopted all the necessary recommendations for the development of the social economy, before adopting a new single portal for the sector, which will be launched in 2030.
        These dates may seem far away, but they are rooted in realism. These tools will be adopted at a time when the social economy will have a much more important place on the continent than it has today.

        ActSE 2021 SOGA
        Persons in the attendance of the presentation of the Social Economy Action Plan discussing
        Source: European Commission
        Gabriela Martin ActSE
        Juan Antonio Pedreño (Social Economy Europe) calls to support the implementation of the Action Plan, and talks about the future of Social Economy in the continent.
        Source: European Commission

        Towards the digital transition of social economy?
        With the aim of becoming carbon neutral by 2050, the European Union is banking on renewable energies, but also on the digital transition. So why? The reason is simple: the social economy contributes to the dissemination of good practices and will be able to offer a response to the growth of the circular and collaborative economy in all spheres of society. 

        This is also in line with the European Pillar of Social Rights, presented in 2017 at the Gothenburg Summit (Sweden). One of the key points of this commitment is to offer basic digital skills to 80% of 16-74 year-olds at EU level. As part of the drive to be one of the most equitable societies in the world, European public authorities have in mind the importance of bridging the existing digital divide through mediation, education and acculturation to digital tools. The social economy is, in its very essence, a real driver for a fair and inclusive digital transition. By deploying basic technological tools, many social economy organisations contribute to this objective of the European pillar of social rights.

        Replicating success stories to ensure equitable transitions
        To help strengthen this pillar, the action plan focuses on digital tools to enable the social economy to develop fully in the single market. In particular, digital tools can enable social organisations to move from a local to a national or even European level.

        Several Member States have inspiring social and digital transformation initiatives on their territory that can be replicated elsewhere. On the point of governance, for example, there are many tools that can be used to move towards a more participatory model, with greater involvement of citizens.

        At the level of local authorities, interregional cooperation must be strengthened “to guarantee and stimulate this digital transition”, the action plan states.

        ActSE 2021 SOGA
        Commissionner Schmit presented the Action Plan to the press a few days prior to its public presentation
        Source: European Commission
        Gabriela Martin ActSE
        The Commissionners Breton and Schmit presenting the Social Economy Action Plan in Brussels, on 16 December 2021
        Source: Social Good Accelerator

        The role of social economy actors involved in Tech4Good is also particularly highlighted. Their role in the deployment of digital technologies is described as crucial to the overall impact of making the sector ever more social and ecological. Thus, this particular type of actor also helps to foster new digital business models or cooperations. It is on this particular point that the importance of the collaborative economy and that of platforms, at the heart of a process of revitalisation of the local level, is highlighted.

        Maximising the contribution of the social economy to the ecological and digital transitions
        The action plan outlines the role of the sector in moving towards a green and digital transition in a number of concrete points and objectives. These transitions will, among other things, provide citizens with a digital future based on people, sustainability and prosperity. They thus serve as a real pivot for replicating and replicating successful initiatives in other localities.

        Finally, the role of digital is highlighted in the importance of improving working conditions in the social economy, but not only. Practices such as data management or data processing are unfortunately still marginal in the sector, although the relevance of their use is no longer in question. This is one of the reasons why social enterprises (such as digital transformation accelerators) are seeking to make these digital tools more accessible and affordable, especially for organisations that sometimes have modest means. It remains to be seen how these ambitions will be translated into legislation at European and national levels.

        Social Tech Atlas: why a single map for a thousand social organisations?

        Social Tech Atlas: why a single map for a thousand social organisations?

        by | 30 Nov 2021 | Communs & plaidoyer, Editorial

        Social Tech Atlas: why a single map for a thousand social organisations?

        Until now, there was no European database gathering both organisations supporting social economy stakeholders in their digital transition and those offering alternative digital tools and services. This is now done with the Social Tech Atlas, which does not claim to have succeeded in bringing them together, but it does have the ambition to do so.

        Here are the ambitions of this free, open and accessible tool.

        Screenshot Social Tech Atlas
        A brief overview of the Social Tech Atlas: each dot corresponds to an organisation, each colour represents one kind of sector.
        Source: Social Tech Atlas

        Bringing together social tech stakeholders
        While many other instances of mapping already existed, SOGA recently found that a mapping of the stakeholders involved in social tech from near and far was missing. For example, organisations such as the Impact Database have provided an interactive map of the impact investor landscape in Europe. In the case of the SOGA, the aim is to bring together social tech stakeholders. This concept describes the use of digital technologies to act for the general interest and society. In other words, this is the model that SOGA has been advocating since its creation, i.e. that of reducing inequalities, reinforcing existing solidarity and innovating socially through the use of open and free digital tools.


        Made up of technology models based on social economy stakeholders and infrastructures, Social Tech offers systems with a high social and environmental impact. Moreover, it is necessary for social economy to succeed in its digital transition, in particular so that it preserves its intangible social heritage, at the heart of the European model.

        An interactive map to pool forces for the specificities of the European Tech model
        To achieve this, like many stakeholders in the sector, the Social Good Accelerator also wants to offer open tools coupled with practical applications. This database idea that the association has had in mind for some time will allow social tech organisations in Europe and policy makers to quickly identify several stakeholders. The databases that will provide the Social Tech Atlas will be open databases of our partners, which already list a certain number of structures that SOGA would like to reference. This data must be aggregated, validated and made compliant with the GDPR so that it can then be integrated into the Atlas. The project team had to keep in mind the objective of this open mapping, and therefore to filter out the organisations that should be included from the others.

        Firstly, the Atlas will allow them to find European organisations that support in particular social economy stakeholders in their digital transition through methods focused for example on change management or adapted UX design. Secondly, any organisation will be able to find European structures with different statutes (cooperatives, mutuals, associations, foundations) offering alternative and open digital tools and services.

        The objective of the Social Tech Atlas is to pool forces in order to contribute to the specificities of the European Tech model, while improving the recognition of the added value it entails. Pooling forces for the greater good will allow the structures concerned to limit their financial and time costs. Indeed, with the Social Tech Atlas, a considerable time saving is potentially possible for social economy structures. The creation of such pools is in line with SOGA’s approach to strengthening the sector’s missions. The aim is to enable European social economy stakeholders to find partners in tune with the digital transformation of their structure. 

        cornwall
        The logo of the Social Tech Atlas
        Source: Social Good Accelerator

        In addition to offering skills and services useful to the common good, the organisations listed here are also specialised in social economy issues (sometimes even being part of them).

        SOGA’s ambition in creating such a digital commons is indeed to see the multiplication of European cooperation in Social Tech. This ambition could not have been achieved without the incredible commitment of the partners and volunteers of the Aésio Mutuelle association, which was the main funder of this project. A huge thank you to our volunteers from >Contournement>, Latitudes, Fantastique Bazar and Vizity for the huge amount of work they have done. Have a look at their website, what they do is great!

        Join the Social Tech Atlas
        LOGO-LABEL-PARIS-EUROPE-RVB
        AESIO Mutuelle
        PANA
        Social Economy: From the Margins to the Mainstream

        Social Economy: From the Margins to the Mainstream

        by | 27 Sep 2021 | Communs & plaidoyer, Editorial, Projets européens

        Social Economy: From the Margins to the Mainstream

        The Social Good Accelerator had the great pleasure to participate in the first international conference of the OECD Global Action programme from 13 to 16 September 2021. This programme launched in 2020 is dedicated to the promotion of social economy ecosystems around the world. Funded by the European Union’s External Partnership Instrument, it covers more than 30 countries over a three-year period, including all EU countries and non-EU countries such as Brazil, Canada, India, Korea, Mexico and the United States.

        This event brought together hundreds of policy makers, practitioners and experts in the social economy. Speakers included Victor Meseguer (Director of Social Economy Europe), Nicolas Schmit (European Commissioner for Employment and Social Rights), Olivia Grégoire (Secretary of State for the Social and Solidarity Economy), and Guy Ryder (Director General of the ILO). On the programme: plenary sessions, high-level round tables, interactive sessions and conferences to discuss how the Social Solidarity Economy rebuilds, impacts and creates inclusive growth. A look back at this major event!

        G7 leaders
        Overview of the event organized by the OECD from 13th to 16th of September, 2021.
        Source: UNSSE

        OECD Global Action: How do social economy serves resilience and post-Covid recovery?
        The Global Action programme was born out of the recognition that social economy can help address growing inequality, persistent unemployment and environmental imperatives. These issues have indeed become priority political issues, especially with the pandemic. Thus, the OECD promotes the idea that social economy is a way – if not the best way – to contribute to building more inclusive and sustainable economies and societies. Indeed, social economy has proven to be an agent of inclusive growth. Thus, the Global Action project aims to promote inclusive, smart, resilient and sustainable growth, within the framework of the OECD and EU strategic objectives and around the Social Economy. More specifically, the objectives of this programme are
        – To support social economy, including the development and internationalisation of social enterprises.
        – Raise awareness and build capacity to construct national and local ecosystems favourable to the development of social economy.
        – Promote knowledge and other exchanges at international level.

        For an international development of the social economy and its virtuous values
        The social and solidarity economy is attracting increasing attention, both nationally and internationally, as a driver of inclusive and sustainable economic development and recovery. Indeed, governments can rely on the social and solidarity economy to achieve their broader policy objectives by unlocking its potential. There is thus a strong political impetus to further support it, which the OECD wishes to maintain by increasing its visibility. Social economy helps policy makers to improve people’s lives and stimulate innovation. Strengthening social economy through its linked organisations should thus help to make this marginal activity mainstream, because the benefits of social economy go beyond the mere economic aspect.
        However, it is important to remember the potential for economic growth that this sector represents. Nicolas Schmit indeed underlined that social economy represents between 1% and more than 10% of the economy in the Member States, thus highlighting a real potential for job creation in the EU. Moreover, social enterprises represent 10% of the EU’s enterprises and create a social impact on local populations while creating jobs. The jobs in this sector are also quality jobs that allow for the social inclusion of vulnerable people in the labour market. Thus, the EU (especially through the Commission) and the OECD are working together to create favourable policies for global action to promote social economy and its ecosystem.

        The challenges for its development
        Beyond the budgetary challenges blocking its integration into the general economy, Olivia Grégoire recalled three issues around social economy that will facilitate its development:

        #1 – Simplification: There is an urgent need to simplify the life of social economy actors, especially with regard to the European structure and on the issue of access to aid schemes. In fact, there is often a very long time between applying for funding and receiving a response. Therefore, Olivia Grégoire, the French Secretary of State for Social Economy, highlights the idea that political and public players should facilitate access to funding by creating dedicated funding windows and offices at the heart of Europe.

        Moreover, social economy stakeholders are sometimes buried in the heart of mainstream economic schemes and thus have difficulties to prove the specificity of their model to administrations. This is also the reason why one-stop shops are needed to enable them to address these specificities.

        cornwall
        The Château de la Muette in Paris, one of the main building of the Organisation for Economic Co-operation and Development’s headquarters
        Source: MySociety, Flickr

        #2 – Cooperation: This concept is at the heart of the SSE and constitutes its historical raison d’être. Thus, Grégoire highlighted successful SSE models, mentioning in particular the case of Acome (SCOP leader on the European network market). This structure is very competitive and beats the Chinese and American models in terms of innovation. However, it does not have a mutual recognition system, which tends to block its development in Europe and internationally. This example is therefore indicative of the fact that Social Economy players must be able to develop, as they represent a real potential for growth. Unfortunately, they still face regulatory barriers, particularly in Europe. For example, a French ESUS must restart if it wants to develop internationally, which is extremely long and complex.

        #3 – Innovation: Finally, it is a question of giving the financial means to the SSE to develop in an innovative way. Thus, Social Impact Bonds could be an interesting solution. This new type of private-public partnership based on performance and impacts (social, solidarity and environmental) is in fact at the service of SSE and can be a relevant and innovative source of financing.

        mannheim stadt
        Founding members (dark blue) and members (light blue) of the OECD

        Thus, as Guy Ryder pointed out, social economy organisations play a key role in the recovery. The International Labour Organization (ILO) has provided 93 recommendations that highlight the values of social economy: justice, equity, solidarity, social responsibility. This is what is expected of the economy today. The agenda also recalls that the 110th session of the International Labour Conference will take place next June, during which experiences will be shared in order to make political decision-makers and citizens understand that social economy is part of the answers that society expects, in terms of value production but also of social results and solidarity.
        Social economy, “a precious asset for humanity” (Patrizia Toia, Member of the European Parliament), must therefore move from the margins to the mainstream, and for this to happen, it is necessary to “open the windows and doors of the house that is social economy so that it represents not 10% of the GDP but 30%, as it is capable of doing (Olivia Grégoire).

        About the author

        Sabrina Moutamanni
        sabrina(at)socialgoodaccelerator.eu
        Program and Community Manager
        Brussels, Belgium
        Social Economy: A few steps left for a statute for EU cross-border non-profit organisations ?

        Social Economy: A few steps left for a statute for EU cross-border non-profit organisations ?

        by | 14 Sep 2021 | Communs & plaidoyer, Editorial, Projets européens

        Social Economy: A few steps left for a statute for EU cross-border non-profit organisations ?

        The most common legal forms of non-profit organisations are mainly associations and foundations. These two legal forms are the most defined in various European legal codes. However, they are far from being the only forms existing in most EU member states.

        Here’s a brief summary about one of the latest papers from the EU JURI Committee on this issue and the solutions it promotes.

        G7 leaders
        Informal meeting of Justice and Home Affairs ministers in Ljubljana, Slovenia. The chair of the JURI Committee, Mr Adrián Vázquez Lázara, was also part of this meeting
        Source: JURI Committee Press, Twitter

        A more common use of existing statuses for social economy organisations
        As the social economy gains momentum in the EU, especially in Western countries, some legal forms until now marginally used by some social enterprises are becoming more common. Mutuals, like cooperatives, are far from being linked to an exclusively profitable character, as they underlie “a progressive objective of functional neutralisation of legal forms”. Sometimes, at the national level, there are even “public benefit organisation” statutes for NFPs that have objectives deemed to be of public interest. This distinction is innovative because this status can be obtained by organisations with commercial activities, just as it can be obtained by companies with a limited redistribution of dividends and profits to their shareholders. In Italy and France, for example, the status of “third sector entity” and ESUS accreditation exist respectively. Legislation therefore seems to be moving in this direction, particularly in Western European countries, where the social economy is the most established and where its definition is being extended to include the “third sector”.

        Secondly, behind these statutes there are special tax treatments. Indeed, NFPs very often benefit from advantageous taxation, starting with the existence of tax-free donations.

        The place of the non-profit sector in the EU treaties and its judicial interpretation
        However, this placing of non-profit organisations and their status on the European agenda is not recent. The TFEU explicitly mentions them (Article 54(2)), while the TEU emphasizes “their fundamental role” (Article 11(2)) without giving further details. However, it is above all the case law of the CJEU that interprets the articles of these treaties. It focuses, for example, on the removal of legal obstacles to their cross-border activity (European Commission v. Austria, C-10/10, 2011), on equal treatment with organisations subject to another legal regime, particularly with regard to competition law (Ambulanz Glöckner, C-475/99, 2001), or on the recognition of specificities to justify derogation from the ordinary legal regime for public contracts (Italy Emergenza, C-424/18, 2019).

        Despite this long-standing recognition by the Treaties as well as by the competent courts, NPOs do not have a status under European competition law. However, associations and other NPOs have been campaigning for some 30 years to obtain such a status. It is only recently that the issue has come back on the table, notably through a resolution of the European Parliament in which the Commission is asked to take measures to establish such a statute (Resolution of 5 July 2018 with recommendations to the Commission on a Statute for social and solidarity-based enterprises, 2016/2237).

        Such a reform of the current legal framework would disrupt the current status quo which is neither desirable nor sustainable for NPOs. Several options are prioritised by the European legislator. The first of these would replicate the old idea of having a European legal form of this kind. The problem with this proposal is that it requires a unanimous decision as it would use Art. 352 TFEU as the legal basis. The second option would introduce these statutes via the enhanced cooperation mechanism, which would circumvent unanimity. In this case, developments in national legislation would not necessarily be taken into account.

        cornwall
        Buildings of the Court of Justice of the EU in Luxembourg, Luxembourg
        Source: Pixabay (image free of rights)

        A third option seeks to establish, via a directive, a kind of status or label similar to those already in place in France or Italy. Such a label would allow an NPO to be recognised in all Member States, regardless of where it is domiciled. Member States would therefore be obliged to grant foreign organisations with this label the same rights, benefits and tax and legal obligations as national organisations with it.

        mannheim stadt
        Mr Nicolas Schmit, European Commissionner for Jobs and Social Rights,
        who will present the EU Action Plan on Social Economy in November.
        Source: CC-BY-4.0: © European Union 2019 – Source: EP

        The latest report of the JURI Committee seems to be moving towards this third way. It is, according to the Committee and DG Internal Affairs, the most worthy of recommendation in view of its potential realisation and the objectives of European legislation in this field. This report does not represent integrally the Social Good Accelerator’s thoughts and wishes on that field, but we believe that it goes in the good direction. More information would highlight this issue with the publication of the EU Action Plan on Social Economy in November.

        Sources:

        – JURI Committee of the European Parliament, A statute for European cross-border associations and non-profit organizations, 2021.