In December, the OECD published “Social Economy in Europe: Contributing to Competitiveness and Prosperity”, a timely and comprehensive analysis of the state of the social economy across Europe, produced in close cooperation with the European Commission.
In the preface, OECD Secretary-General Mathias Cormann and European Commission Executive Vice-President for Social Rights and Skills, Quality Jobs and Preparedness, Roxana Mînzatu, underline the social economy’s contribution as a driver of economic competitiveness, social cohesion and innovation. With more than 4 million entities and nearly 12 million workers across the EU, the social economy is presented as a strategic pillar of Europe’s economic and social model, supported in recent years by initiatives such as the EU Social Economy Action Plan (2021).
A gap between evidence and EU housing policies
The report focuses on two key sectors where social economy actors already deliver a strong impact: long-term care and affordable housing. Across Europe, social economy organisations provide inclusive, community-centred services while creating quality jobs and responding to demographic change and social needs.
In the housing sector, the OECD highlights the significant role played by social economy entities in several Member States, where associations, cooperatives, and mutuals represent a substantial share of affordable and social housing stock. These models go beyond housing provision alone: they remove housing from speculation, guarantee long-term residential stability, create long-lasting, affordable housing stock, and develop community-building initiatives and democratic governance structures.
However, while the report clearly demonstrates the social economy’s capacity to deliver concrete solutions, the Affordable Housing Plan presented by the European Commission in December makes only limited reference to the role of the social economy. By not recognising the social economy, the plan misses an opportunity to scale up solutions that are already proving effective.
As the European Parliament prepares its upcoming report on housing for February, there is a critical opportunity to better reflect the social economy’s contribution and ensure that EU housing policies are aligned with models that already work on the ground.
Unlocking the social economy’s full potential
Overall, the OECD report reaffirms that social economy entities are already leading innovative responses to major European challenges — from demographic change and social inclusion to the green and digital transitions. To unlock their full potential, the EU and Member States must provide supportive policy and financial environments that allow the social economy to scale up, including institutional settings, access to finance, business support schemes and taxation policies. Addressing these challenges is essential if the social economy is to fully contribute to Europe’s competitiveness and prosperity.
