On 27 November 2023 the Council adopted a Recommendation on developing social economy framework conditions to encourage social inclusion and access to the labour market, after reaching the political agreement in October.
According to the Recommendation, Member States shall take measures to tap into the role of Social Economy in: easing access to the labour market and fostering social inclusion especially for vulnerable or underrepresented groups; stimulating skills development, including those needed for the digital and green transitions; promoting social innovation and sustainable economic development.
In addition, in terms of developing frameworks to enable and support social economy, Member States should act in order to facilitate access to funding, to markets and to public procurement for social economy entities; make best use of state aid rules and develop a favourable taxation environment; increase the visibility and recognition of the social economy.
Trade unions acknowledge and value the role of Social and Solidarity Economy (SSE) in social inclusion, democratisation of the economy and valorisation of people into European societies and labour markets, and its contribution to the achievement of the Sustainable Development Goals (SDGs) and of the European pillar of Social Rights (EPSR).
In particular, the ETUC values the specific features that the SSE enterprises and organisations identify as distinctive of their missions and operating model, beyond the diversification of forms and sectors of activity:
1. Primacy of people and the societal/collective objectives over capital;
2. Democratic governance principles;
3. Statutory commitment to reinvest all or most profits into their activity
Such distinctive features are substantial ones, and for trade unions across Europe they represent a promising ground for establishing synergies aimed at realising upward social convergence.
Therefore the ETUC has supported the aim of the Recommendation, namely “to create favourable conditions for social economy organisations to thrive and grow, and raise awareness of their potential, particularly in creating quality jobs, supporting innovation and social inclusion.”
The final results, however, do not seem to be fully in line with the initial ambitions and needs.
The ETUC welcomes:
- the call to the promotion of social dialogue and collective bargaining in the SSE;
- the reference to the importance of supporting the representation of SEE among social partners, where conditions allow it;
- the recognition of SSE’s contribution to the EPSR and SDGs and its role in the inclusion of people and groups with difficult access and integration into the labour market.
However, it must be said that nowadays these features should be common to an alleged social market economy as the EU.
The Recommendation has instead the merit to recognise the distinctive features of SSE, if it promotes the peculiar characters of the SSE with respect to the private for-profit actors and all those who perform business as usual. SSE are part of the economic fabric of the EU and perform substantial economic activity in many member states. It’s the SSE way of doing business which is peculiar because it promotes the democratisation, the inclusiveness, the socialisation and the strengthening of the real economy.
The ETUC regrets in particular
- that the call for “socially responsible” solutions in public procurement, tenders and contracting by authorities is just an encouragement or an almost voluntary “plus” that should be limited only to social and solidarity economy
- that reference to the crucial role that trade unions play within SSE is missing, especially when it comes to the promotion of workers’ rights and quality jobs and in the case of workers’ buy-outs, business succession etc
- the highly unclear approach in the promotion of the “social economy as an investment opportunity for private, profit-making investors”. This would be at odds with the non-profit making SSE entities, but also for the technically profit-making ones, that still play a significant role for a more democratic, redistributive, collective and people-centred social economy with respect to the “usual” private-making investing actors
- the mixed and not fully functional approach to tax exemptions and enhancing incentives to SEE, that should be based on the SSE distinctive features, recognised by specific EU and national legal frameworks, and seem instead blended and diluted not to disappoint other actors of the economy that yet are not bound by the same statutory conditions.
These last two points determine that the Recommendation is a missed opportunity for clarifying the importance of SSE and for recognising it well deserved incentives by virtue of its values and operating mission.
In this respect the ETUC calls on Member States and the EU to go beyond the text of the Recommendation in some crucial aspects, and to take action
- To distinguish SSE from the private profit-making sector that performs generic and voluntary practices of social responsibility and due diligence. This would be especially needed for social economy organisations providing social and care services.
- To design and tailor incentives and tax exemptions on the genuine capacity of SSE entities to provide more inclusive and democratic activities investing in societal progress and communal projects, and to prevent the dilution of the SSE peculiar characteristics and role
- To provide a strong regulation for public services: the Recommendation lacks the reference to the need to develop and/or strengthen such frameworks, whereas they would be useful to enhance the role of SSE in the provision of health, social and welfare services, that are human rights-based and should be available to all people in need
Background
Since 2020 the EC has convened a series of European social partners to consult them on measures to be taken to implement the Action Plan on the Social Economy (SEAP).
The ETUC has expressed the vision of TUs thanks to the work of the appointed delegation, first underlining the modest but useful relevance of the SEAP and then specifying more comprehensive and stringent guidelines.
It was along these main guidelines that TUs expressed their views also on the last occasions, in December 2022, during the EU SP consultation aimed at gathering inputs for a Recommendation to the Council on what measures to undertake to develop a favourable framework for the social economy and its economic and social potential.