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Creating an enabling environment for the social economy

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Opinion Number: CDR 5492/2022
Rapporteur: RIO Ricardo
Commission: SEDEC
Status: Adopted
Date: 08/02/2023
 
This opinion is the Committee of the Regions' contribution to the drafting of the European Commission proposal for a Council Recommendation on developing social economy framework conditions, as requested by the European Commission by a referral. The opinion calls for more supportive legal frameworks and policies on financing, taxation and public procurement to enable building vibrant social economy ecosystems. It also highlights the crucial role of the local and regional authorities in supporting social economy organisations in the territories, and stresses the need for an "operational concept" of social economy, respecting the diversity of already existing systems and including all businesses that meet certain organisational and operational criteria, in order not to exclude them from crucial support for developing this sector, including with the support of the EU co-financing and capacity building measures.
THE EUROPEAN COMMITTEE OF THE REGIONS

- enhances the importance of vibrant social economy ecosystems which can build on supportive legal frameworks and policies on financing, taxation and public procurement, but also the creation of an institutional setup that involves a subsidiarity approach between the European, national, regional and local levels of government;

- calls for an "operational concept" of social economy, respecting the diversity of already existing systems and including all businesses that meet certain organisational and operational criteria, in order not to exclude them from crucial support for developing this sector. This would allow for more coherence and convergence in policies at European, national and regional levels and would ease mutual recognition (capacity to operate cross-border) and visibility of the social economy model;

- stresses the urgency of establishing modern and effective social economy policies and legal frameworks which facilitate access to finance and markets to achieve upwards convergence among regions and Member States, and the need to mobilise public and private funding tailored to the needs of the social economy; in this context, emphasises the need for enabling frameworks for the sector to develop cross-border cooperation and internationalization;

- identifies the lack of access to finance as one of the main obstacles preventing social entrepreneurship from prospering. It is therefore important to foster synergies among funding instruments and to continue mobilising private finance, patient capital and advisory support, tailored to the needs of social enterprises and social economy organisations;

- encourages Member States to mobilise resources from EU funding, including the Recovery and Resilience Facility, and establish, with the help of Invest EU, a "Guarantee fund for small and medium social economy entities";

- calls for policies promoting socially responsible public procurement and the inclusion of social requirements in tenders as a means to help develop the social economy.

Importance

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Informal ministerial meeting on employment and social policies (EPSCO) Madrid, 13-14 July

As SEDEC Vice-Chair, Ricardo Rio represented the CoR at the Informal ministerial meeting on employment and social policies (EPSCO) chaired by the Spanish Presidency, in Madrid, 13-14 July. The meeting addressed the state of the European social dialogue, guaranteeing social justice in Europe and providing more stability to public policies.
The Spanish Presidency put the focus on employment, and issues such as the agreement on teleworking and the right to digital disconnection and greater protection for the self-employed. In terms of social issues, the advances in EU care policies were discussed, as well as social investments that generate better results.

 
13 Jul
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