Last June 2nd a debate between Members of the European Parliament (MEPs) and the Commission (EC) took place at the European Parliament’s (EP) EMPL Committee regarding the Social Economy Action Plan (SEAP) mid-term review. MEPs also put the focus on next MFF, DG GROW’s role implementing the SEAP and achievements made so far. Access here to the full debate.
MEP Li Andersson (The Left, FI), Chair of the EMPL Committee and Vice-chair of the Social Economy and Services of General Interest Intergroup (SEIG) introduced the debate underlying the weight of the Social Economy (SE) in EU’s economy: “the social economy is a key sector and counts for a 6% of total employment”.
MEP Li Andersson – Chair of the EMPL Committee and Vice-chair of the Social Economy Intergroup – introducing the parliamentary debate on the SEAP mid-term review
Ms Ruth Paserman, Deputy Director-General at DG EMPL started by mentioning that the Social Economy is active in many sectors of activity – “It is not a niche, it is really a structural part of the European economy” – , and underlined the main milestones achieved so far: The Council Recommendation on developing social economy framework conditions (2023)[1] – which has lead 21 Member States to adopt or been preparing National Social Economy Strategies; the improvements in the framework conditions at European level – as called in the Letta Report Much more than a Market (2024)[2]; and the positive results of the Special Barometer for the Social economy[3] – in which a vast majority of Europeans endorsed policies supporting social economy; as dedicated strategies and legislation (88%), awareness-raising (86%) and direct financial support (86%).
Regarding the next steps of the SEAP implementation, the EC will focus on working for a competitive, robust and acknowledged social economy, by focusing on the socially responsible public procurement – providing guidance on its implementation; the General Block Exemption Regulation (GBER) for state Aid – looking to clarify the rules for social economy enterprises; access to adapted finance; work on organisational and innovation capacity; and improvement on data collection via Eurostat and satellite accounts. Actions already ongoing will, of course, be continued.
Just before giving the floor to Members, the Commission representative called for a joint work between the European Institutions and Members States to unlock “the full power of the social economy”.
Deputy Director Ruth Paserman presenting MEPs the main points of the SEAP mid-term review
Several MEPs from the EMPL Committee took the floor to contribute with different inputs to the debate and evaluate the work carried out by the Commission. Generally speaking, there was a moderately positive assessment in which achievements were recognised, and remaining gaps and new challenges were pointed out. Improvements in access to finance, progress in recognition and visibility, and steps forward on framework conditions were appreciated by Members of the European Parliament. At the same time, representatives from different political groups stressed the lack of sufficient links between the social economy and the industrial and single market policies; the new challenges related to the new geopolitical context, as well as concerns regarding the next MFF negotiations and the access to funds and finance.
MEP Maravillas Abadía (EPP, ES) – co-chair of the SEIG – opened by calling “to go from recognition to real integration”. She insisted that the SE is not marginal but an economic reality “that contributes to employment, territorial cohesion and also to European Competitiveness”. She also recognised important advancements and put the focus on competitiveness policies. With a strong territorial perspective, Ms. Abadía identified access to finance, regulatory barriers and stronger governance at all levels as remaining implementation gaps. Likewise, she expressed her conviction that for the SE to “unlocks its full potential it must have a clear role in the Cohesion Fund and the Competitiveness Fund”.
“If we want the SE to actually be part of European Competitiveness, it must also be linked with the Single Market policies, industrial and innovation policies. It cannot be limited to the social agenda only”
MEP Maravillas Abadía – Co-chair of the SEIG – intervening first in the debate on the SEAP mid-term review
MEP Idoia Mendía (S&D, ES), started by appreciating the main milestones of the SEAP during this first 5 years, including the establishment for the first time ever of a European “common definition of the Social Economy, creating a common framework”. Additionally, she highlighted the new initiatives of the Commission included in the mid-term review such as the progress tracker, the toolkit for regional and local SE policies or the promotion of workers buyouts.
When it comes to the persisting challenges, Ms. Mendía insisted – as previous speaker did before – on reinforcing the links between the SE industrial ecosystem and the European industrial policies; calling for “a connexion between DG GROW and DG EMPL”. She echoed concerns on the new MFF, especially regarding that “the contribution of the SE to competitiveness and industry is still not recognised”. Her intervention closed calling for:
“Concrete tools to elaborate the next generation of SE policies post-2030”
MEP Idoia Mendía – Vice-chair of the SEIG – was the second Member to take the floor in the debate
On his side, MEP Konstantinos Arvanitis (The Left, GR) focused on the direct access to financing and markets, the uneven development among MSs, and the lack of data and recognition. He asked the Commission to ensure support “for small players, especially cooperatives and initiatives at local level and in remote areas”.
“The Social Economy is a crucial pillar in the EU”
MEP Konstantinos Arvanitis took the floor as representative from The Left Group
Other MEPs contributed to the debate, including MEP Marc Angel (S&D, LU), who remarked the importance of workers buyouts to guarantee SMEs generational continuity or the positive effects of an adequate innovative environment. MEP Branislav Ondrus (NA, SK) identified public procurement as a key issue for the SE and emphasised his concerns about the lack of recognition for the SE in the next MFF and in European competitiveness policies. He called for proper funds for the SE development. MEP Isilda Gomes (S&D, PT) highlighted the strategic impact of incubators and accelerators as essential tools to support the Social Economy.
From the left to the right: MEP Marc Angel (S&D, LU); Branislav Ondrus (NA, SK); and Isilda Gomes (S&D, PT), who closed the debate.
Ms. Paserman took back the floor on behalf of the Commission to answer the questions and concerns expressed by the MEPs. She acknowledged the relevance of incubators and then directly addressed the next MFF, as one of the topics most mentioned by the MEPs during the debate. Ms. Paserman identified the Social Innovation as a very important aspect of the next MFF and she affirmed that “on the MFF, we believe that support for the SE will be possible both through the NRPs and the ECF”. The InvestEU guarantee was also mentioned as an important tool of the MFF for the ecosystem and the Social Economy was defined as “a very efficient way of spending European money because, as mentioned before, (…) with 1.2 billion in guarantees we have mobilised 11.7 billion to implementing partners”. The importance of cooperating with DG GROW and other DGs was confirmed, and is concretely continuing with the revision of the Public Procurement Directives and the provision of guidance for its implementation. The support to workers buyouts will be reinforced as a tool not only to guarantee generational renovation but also for territorial development and to avoid buyouts from abroad (known as killer-acquisitions).
The debate has shown the relevance of the Social Economy Action Plan and how MEPs from different political groups closely follow-up the Commission’s implementation work with recommendations and proposals. Social Economy Europe supports the calls for collaboration among EU institutions to develop and implement Social Economy policies, which of course should be co-designed with the Social Economy Ecosystem. The session was closed by Ms. Andersson as Chair of the Committee emphasising the interest that this topic always generates in the EMPL Committee and ensuring that “we will continue discussions regarding the Social Economy and how to develop it further in the EU”.
[1] Council of the European Union, Council Recommendation of 27 November 2023 on developing social economy framework conditions, C/2023/1344, OJ C, 29 November 2023. Available at: https://eur-lex.europa.eu/eli/C/2023/1344/oj/eng
[2] Letta, E., Much More Than a Market: Speed, Security, Solidarity. Empowering the Single Market to deliver a sustainable future and prosperity for all EU Citizens, April 2024. Available at: https://www.consilium.europa.eu/media/ny3j24sm/much-more-than-a-market-report-by-enrico-letta.pdf
[3] European Commission, Special Eurobarometer 567: Social economy in the life of Europeans, 2025. Available at: https://europa.eu/eurobarometer/surveys/detail/3356
