Social Economy as a driver of competitiveness through reindustrialisation & locally rooted economies

Michael Damianos, Minister of Energy, Commerce and Industry of Cyprus, opened the webinar by underscoring the role of the social economy in Europe:

“Social Economy advances European values, active citizenship, and a resilient, people-centered economy.”

He highlighted Cyprus’ efforts to implement the Social Economy Action Plan (SEAP) and Council recommendations through concrete measures, including enabling legal frameworks, state aid, tax relief, public procurement, and targeted trainings for social enterprises.

Damianos also stressed that European competitiveness today goes beyond productivity and cost efficiency, shifting the focus to energy security, resilient value chains, the green and digital transitions, and economic sovereignty. In this regard, the Minister emphasised the key role social economy actors can play by enabling collective projects.

More broadly, he noted that “Social Economy contributes to strengthening domestic markets while enhancing Europe’s broader economy by promoting local supply chains, ethical business practices, and circular economy models”.

After the Minister’s introduction, the President of SEE, Juan Antonio Pedreño, highlighted that “The social economy is not peripheral in the European model; it is a structural part of the European economic and social fabric.”

He presented key statistics to show SE’s scale and impact with “Over 4.3 million enterprises, more than 11.5 million employees, 6.3% of European employment, 8% of GDP, more than 95 million cooperative members, and 135 million in associations”.  These numbers emphasise how much the unique SE model contributes to reindustrialization, while promoting democratic participation, local production, and long-term economic and social value.

Pedreño closed by highlighting the value of the upcoming sessions:

“European reindustrialisation cannot be understood without a strong territorial dimension based on locally rooted economic models that strengthen social cohesion, resilience, and the EU’s strategic autonomy. In this context, this webinar series will explore the contribution of the social economy across key sectors, and it will also address recent EU-level developments that create new opportunities, such as the mid-term review of the Social Economy Action Plan, the revision of the General Block Exemption Regulation, public procurement, and the Multiannual Financial Framework. Overall, the sessions aim to highlight the importance of fully integrating the social economy into EU competitiveness and economic sovereignty strategies, while showcasing its contribution to Europe’s economic fabric.”

Panel interventions

The first panellist to intervene was Jonathan Bonadio, Head of Policy at REScoop.eu, representing the energy sector. He explained how energy communities are critical contributors to social economy’s competitiveness, endorsing voluntary and open membership, democratic member control, participation through direct ownership, investment in renewable energy assets and energetic autonomy at the European level.

Bonadio emphasised that “Energy Communities have a concern for local and social added value (…) and 80% of them invest in reducing energy poverty”.

In line with this statistic, he argued that energy communities provide a buffer against volatile global market prices, moving away from passive consumption to active participation of citizens and community engagement.

By providing examples, Bonadio illustrated how cooperatives can contribute to the goal of clean energy under the European Competitiveness Fund, while incentivizing local consumption.

He concluded by listing the main benefits of energy communities, including: “Keeping wealth within the community, lowering individual energy bills, providing affordable alternatives to commercial utilities, and accelerating local energy adoption”.

Jeanne Bretécher represented the digital sector, CEO and Co-founder of the Social Good Accelerator (SOGA). Bretécher She emphasised the role of social economy digital pioneers: “They are the builders of digital commons and digital sovereignty, with ethical platforms, open-source software, data cooperatives, or community-owned digital tools. Framasoft, Open Food Facts, Soliguide, Decidim, or Wikipedia, are all rooted in the social economy.”

She denounced that, despite significant public investment in digital transition overall, social economy actors remain underfunded and overlooked. This issue is amplified by “The AI revolution and data protection needs, since we do not have real public policies at the European/national levels.”

Bretécher concluded by advocating a “third digital path for Europe, based on regulatory requirements, research, talent assets, and social economy models that will ensure the protection of our digital sovereignty and guarantee digital inclusion, which is fundamental for the preservation of democracy.”

To bring forward the perspective of the industry sector, Diana Dovgan, Secretary General of CECOP, talked about the role that cooperatives must play in strengthening European competitiveness. She stressed that “industrial cooperatives are an important part of the EU industrial fabric and must be sufficiently acknowledged and supported to increase the economic and strategic autonomy of the EU”.

Additionally, Dovgan also called for cooperatives to be embedded in the European Competitiveness Fund regulation, as key partners in ensuring sustainability at the European level.

She emphasised the relevance of democratic tools against deindustrialisation, such as worker buyouts. They “ensure that businesses at risk of closure or relocation remain in the local territory, together with the jobs, the know-how, and the skills.” 

Lastly, CECOP called for a clearer definition of the ‘Made in the EU’ approach, “as a vehicle to advance the EU’s social and environmental objectives and foster sustainable and resilient European supply chains. This implies ensuring quality jobs, social inclusion, local production, and a fair distribution of wealth”, stressed Dovgan.

Representing the tourism sector Athanasios Michelongonas, Deputy Regional Governor of Tourism of the Region of Peloponnese, delved into how limited scale leads to dispersed initiatives that “cannot reach far” ultimately constraining competitiveness. This structural challenge prompted the need for more integrated, region-wide approaches to tourism development and sustainability.

To address this, he introduced the ‘Peloponnese Trails’ project, a large-scale initiative to unify scattered local routes into a coherent network and brand. While the initial goal was to “develop an integrated tourism product,” Social Economy actors became a key implementation tool. By collaborating with over 20 local entities responsible for different sections of the network, the project leveraged community-based knowledge and ownership while fostering capacity building and allowing social entities to support the maintenance and promotion of the trails network.

Michelongonas emphasized that this model strengthens long-term sustainability, diversifies tourism offerings, and reinforces local economies within the value chain. By integrating small, local initiatives into broader governance and product development frameworks, the Peloponnese region aims to enhance overall competitiveness. Aligned with EU priorities, this approach demonstrates how social economy-driven collaboration can foster both territorial cohesion and a more resilient tourism model.

Daniel Sorrosal, Director of FEBEA (European Federation of Ethic and Alternative Banks) highlighted the strategic importance of ethical and sustainable banking for the social economy. He explained that “Around 70% of FEBEA’s assets goes into loans, and we give total priority to the social economy.”

Sorrosal emphasised the broader impact of social economy financing: “We want to see tangible impact, so whatever we finance has to improve society, improve the environment, or generate employment or well-being.”

He framed social economy as a backbone of resilient local economies: “The social economy promotes a broader vision of competitiveness, creating wealth where it is most needed, generating jobs, and strengthening territories. Despite having a turnover comparable to the automotive industry, the social economy is still not treated as a priority sector by the EU”.

In this vein, Sorrosal called for the full implementation of the SEAP with adequate financial and human resources. He also stressed the need to maintain key financial tools such as InvestEU social window warning that removing them would reduce funding available to social economy organisations. Finally, he warned against shifting social funding entirely towards housing, arguing that the social economy should have its own dedicated funding.

Serge Papin, French Minister for SMEs, Trade, Crafts, Tourism and Purchasing Power, closed the webinar by stressing that “the social economy is not a niche sector, it is a powerful structured part of our economy comprising highly efficient and competitive enterprises.” He underlined that long-term resilience depends on territorial anchoring.

He also highlighted ongoing political coordination at EU level, notably through the follow-up committee of the Luxembourg Declaration on the Social Economy, which allows member states “to build a shared ambition, speak with one voice, and carry a greater weight in European economic decisions.” In this context, he noted that France, alongside Spain, has called on the European Commission to ensure the inclusion of social economy within structural funds in the upcoming EU budget.

To conclude, Papin framed the social economy as central to Europe’s future: “The social economy is not an option. It is a necessity. It is a strategic choice. And above all, it is a powerful driver to deliver transitions. Reindustrialising, relocating, decarbonising, and rebuilding employment in our territories.”

The webinar highlighted the unique capacity of the social economy to respond to the European Union’s key challenges. It made clear that the social economy is not just an alternative model, but a strategic choice that must be fully integrated into the EU’s competitiveness agenda. As a driver of competitiveness, resilience, and reindustrialisation, the social economy plays a crucial role in shaping a more sustainable and inclusive European future.