Social Economy Europe hosted “Social Economy as a Pillar of Democracy: European Democracy & the Social Economy” on the 16th of April 2026. The session explored how the Social Economy contributes to the preservation of democratic values by embedding participatory governance models and engaging with a wide range of actors. Representatives from the local and regional SE network, cooperatives, public authorities, civil society organisations and research centres shared their insights and experiences in building a vibrant democratic ecosystem.
This was the second webinar of our three-session online event “Democracy at Work: Social Economy actors bringing EU values to citizens”, organised under the auspices of the Cyprus Presidency of the Council of the EU 2026. You can find the recording of the session here.
Below are key highlights from the speakers’ interventions, presented in order of participation:
OPENING REMARKS BY SEE DIRECTOR, SARAH DE HEUSCH
Sarah de Heusch, Director of Social Economy Europe, opened the webinar by highlighting the crucial role of the social economy in safeguarding European values, particularly at a time when these are increasingly under pressure:
“Democracy is one of the three pillars of the social economy. At a time when democracy is under attack, this conversation is more important than ever.”
She defended the need to strengthening economic and local democracy through frameworks promoted by social economy entities and civil society organisations. These initiatives not only contribute to more participatory and resilient democratic systems but also empower vulnerable groups and help to cultivate more vibrant and inclusive democratic landscapes.
Panel interventions
HOW SOCIAL ECONOMY PRINCIPLES FOSTER CRISIS RESISTANCE, RESILIENCE AND CREATIVITY
The first panellist to intervene was Ana Umbelino, President of REVES (European Network of Cities and Regions for the Social Economy). She stressed that democratic and participatory governance is inscribed in the social economy’s DNA as one of the main core principles:
“Prioritising people as well as social and environmental purposes over profit leads to the promotion of democracy by all social economy actors”.
Umbelino also emphasised that by definition, democracy relies on cooperative and participatory structures within society and that the solution to the challenges democracy is facing in the EU lies in rebuilding social connections based on two pillars: communities that strengthen the connection between institutions and citizens, and shared goals and values that facilitate working together and taking collective decisions.
At the end of her intervention, she concluded that “a system organised around social economy principles is not only more capable of resisting threats, shocks and crises, but also better equipped to generate solutions that benefit people, places and the planet. This fosters resistance, resilience and creativity.”
CYPRUS’ SOCIAL ENTERPRISE MODEL FOR PEOPLE WITH DISABILITIES
Christina Flourentzou-Kakouri, acting Director of the Department for Social Inclusion of Persons with Disabilities in Cyprus, provided a perspective on the role of the social economy in promoting the inclusion of people with disabilities, who represent around 20% of the EU population and often face barriers to accessing the labour market, as well as a higher risk of poverty and social exclusion.
She presented Cyprus’ framework to support the inclusion of people with disabilities in the labour market through social enterprises. The initiative promotes a model of ownership by offering incentives such as subsidies and job coaching, enabling people with disabilities to create and run social enterprises. It aims to strengthen both economic participation and democratic inclusion.
The framework also includes measures in public procurement, reserving certain public contracts for social enterprises led by people with disabilities. This approach positions the state as an active partner in fostering inclusion, using public spending to support participation and equal opportunities.
Flourentzou-Kakouri concluded by noting that the success of these initiatives depends on policy design and effective implementation to ensure genuine and active participation. She pointed to key challenges, including the concentration of power, unequal representation, administrative burdens, and the need for capacity-building among social economy actors working with people with disabilities.
Strengthening the link between the social economy and democratic resilience, she argued, requires action on several fronts: fostering internal democracy, supporting external engagement, developing appropriate legal frameworks, and reinforcing overall democratic resilience.
COOPERATIVES AS DRIVERS OF DEMOCRATIC PARTICIPATION
Agnès Mathis, Director of Cooperatives Europe, talked about the role that cooperatives play in strengthening European democracy: “they are grounded in collective dialogue, participatory values, and collaborative skills. This requires accepting the decisions of the majority, keeping people engaged, and investing in training and committed leadership.”
At the same time, Mathis acknowledged that democratic governance has its challenges. Practising democracy requires continuous investment in time, resources, and effort. However, these efforts are essential to secure engagement and long-term commitment.
She also highlighted that their impact is not limited to the European context: “In international settings, particularly in post-crisis environments, cooperatives can support reconciliation, recovery, and reconstruction. They act as bridges between international partners to rebuild trust and enhance social cohesion.”
At the organisational level, Mathis called for more support for democratic management practices, not only within social economy enterprises but across the wider economy. This includes placing stronger value on participatory structures and ensuring that workers have a voice.
Lastly, she also stressed the importance of education and capacity-building. Training on cooperative values, she argued, can help promote democratic principles and strengthen connections between actors in the social economy. In this context, she defended that digital tools can offer new ways to facilitate consultation and participation.
CIVIL SOCIETY’S ROLE IN MONITORING POWER AND AMPLIFYING VOICES
Representing civil society organisations, Gabriella Civico, President of Civil Society Europe, highlighted the fundamental role of civil society as a watchdog of democracy, acting as a check on both governmental and economic power. “Civil society plays a key role in monitoring how wealth is distributed and shared,” she defended.
She stressed that civil society organisations are key enablers of democracy, and that they fill the gaps left by for-profit actors ensuring that the voices of marginalised and underrepresented communities are heard. By gathering citizens’ perspectives and bringing them into public debate, CSOs play a crucial role in strengthening democratic participation and inclusion.
Civico emphasised that trust is essential for meaningful civic engagement, requiring fair and transparent interaction between public authorities, for-profit actors, and social economy organizations. In this context, she claimed that “education is a key element to foster inclusive dialogue”.
RECOGNISING FIRMS AS POLITICAL ENTITIES
Isabelle Ferreras, Research Director at the Belgian National Science Foundation and author of the book ‘Firms as Political Entities: Saving Democracy through Economic Bicameralism (2017)’, highlighted that the challenge is not only to resist democratic backsliding, but also to actively create and experiment to keep democracy alive. She advocated for treating the social economy as a benchmark, capable of bridging the gap between mainstream and other economic actors. Highlighting the structural tension between capitalism and democracy, she described firms as political entities, contrasting two models: an “Oikos” system, where voting power is linked to money, (“1 vote = 1 dollar”), and a “Polis” system, where each person has one vote (“1 vote = 1 person”). This contrast shows a contradiction between how workers are treated as employees in the economic system and how they are treated as citizens in a democratic one.
To address this, Ferreras referred to the International High-level Expert Committee on Democracy at Work Report, convened by the Vice President and Minister of Labor of Spain, Yolanda Díaz, and the Secretary of State for Employment, Joaquín Perez Rey. In this piece of research, firms are recognised as political entities. Therefore, the report outlines governance structures within corporations and promotes the ambition of ensuring workers’ voices across Europe, “moving beyond ownership-based rights toward broader participation”. It also examines key societal issues like poverty and inequality, suggesting that economic democratization should have a systematic approach, covering both daily work life (micro level) and the broader economy (macro level).
Ferreras further proposed advancing a democratic transition within firms through new tools, and she introduced the Corporate Democratic Development Index. This Index measures both voice and ownership on a structured 6-point scale, aiming to encourage governments to restore democratic control and institutionalize co-decision rights within corporations.
Lastly, Professor Ferreras stressed that reducing wealth concentration, addressing business succession challenges, and expanding ownership are essential to anchoring companies in their local communities and ensuring that economic value remains within territories, ultimately reinforcing both democracy and economic resilience.
CONCLUSIONS BY PASCALE ZOETAERT (CONCERTES, SEE) AND GIUSEPPE GUERINI (EESC, COOPERATIVES EUROPE, SEE)
As for closing remarks, Pascale Zoetaert, member of SEE’s Executive Board and Policy Adviser – European and International Affairs – of ConcertES, underscored the importance of preserving participatory ecosystems as a cornerstone of democratic societies. She highlighted that “meaningful engagement requires not only communication, but genuine dialogue grounded in listening”. Drawing on practical examples presented by the panellists, she emphasised that “When there is a will, there is a way,” particularly when it comes to fostering inclusive and participatory governance.
Zoetaert presented the concept of strengthening the social economy as synonymous with reinforcing the foundations of democracy, which could be reinforced notably by embedding democratic values early on through education and conscious practice across society. As democracy is part of the DNA of social economy actors, she identified them as key catalysts in promoting and safeguarding these values, reinforcing the idea that “there is no political democracy without an economic democracy.”
From his side, Giuseppe Guerini, European Economic and Social Committee member, President of Cooperatives Europe and Vice-president of SEE, focused on “the importance of safeguarding open dialogue, promoting peace, and investing in structural care”. In this regard, he recognised social economy actors as frontliners of social reconstruction, advocating for a model of competitiveness that is based on collective progress rather than rivalry.
Guerini also mentioned that recent global crises have exposed both the strengths and limitations of the European Union: “While the EU has demonstrated significant capacity to act, sometimes this action remains insufficient in the face of growing democratic challenges.” As a result, he underlined the need for more ambitious and transformative action, calling on the social economy to play a more prominent role in advancing democratic values and reinforcing the broader European project.
This second session of the webinar highlighted the unique capacity of the social economy to respond to the European Union’s key challenges. It demonstrated that the social economy is not just another component of a democratic society, but a strong pillar that must be reinforced within EU’s priorities. As a catalyst of participatory and democratic models, the social economy plays a crucial role in shaping a more sustainable and inclusive European future.
