Foreseen for the halfway point in the implementation of the Social Economy Action Plan 2021-2030, the mid-term review details the progress and lessons learned since its introduction. It highlights key achievements, such as the adoption of the 2023 Council recommendation on developing social economy framework conditions, which has resulted in national reforms, including national and regional strategies for the social economy in most Member States, as well as new or reformed social economy laws in 12 Member States and counting.

The report underlines the importance and relevance of the social economy – consisting of cooperatives, associations, mutual benefit societies, foundations, and social enterprises – in terms of supporting prosperity and competitiveness and strengthening Europe’s preparedness and strategic autonomy. CECOP welcomes that throughout the review, the Commission emphasises that social economy enterprises create quality jobs, retain the value they create within the local community, and contribute to poverty reduction and social inclusion – key goals to which industrial and service cooperatives directly contribute. We are also glad to see that platform cooperatives are hailed as enterprises that work towards responsible data stewardship.

The mid-term review calls for targeted EU support to enable the growth of the social economy and make it competitive, operating on a level playing field with other actors, robust, with improved access to finance adapted to the social economy, and recognised, and thereby scaling up its impact across the EU.

Looking ahead, the SEAP mid-term review identifies the abovementioned three priorities accompanied by five key action areas to help the European Commission reinforce the social economy until 2030:

  1. Strengthening multilevel governance and implementation on the ground
  2. Making rules and frameworks work for the social economy
  3. Strengthening the social investment ecosystem
  4. Scaling up skills, training and entrepreneurship
  5. Building the social economy evidence base

The mid-term review includes updated Commission actions for the remaining years and the innovative progress tracker on the Social Economy Gateway is a promising tool. Nevertheless, we regret that there is no clear timeline for implementing these actions.

CECOP particularly welcomes the confirmation that the Commission will promote workers buyouts via the implementation of the Commission Recommendation on Business Transfers. In fact, workers buyouts are an underutilised tool that must be at the forefront in fighting against deindustrialisation: in addition to maintaining businesses within Europe, workers buyouts also preserve the jobs, skills and know-how of the workers in the local territory, and, due to the characteristics of the cooperative model, they also maintain the value generated within the local economy. It is important to reiterate, however, that as the 2021 SEAP pointed it out, specific financial and non-financial support is crucial to aid workers buyouts. CECOP will continue to provide proposals for the European Commission on how to effectively support workers buyouts.

The Commission also intends to examine the use of the European Cooperative Society (SCE) statute. The SCE was originally created in 2003 and interest in this legal form increased in recent years. However, according to our members, challenges remain in its uptake due to high costs associated with establishing one, numerous references to national law which makes it complicated to set up an SCE, and the lack of digital tools available which creates higher administrative burden.

We also welcome the commitment to more systematic data collection on the social economy. By improving the availability of data, the visibility of the contributions of the social economy will increase, while at the same time, the social economy evidence base can be strengthened, leading to better-designed and targeted policies. CECOP is engaged in periodical data collection – such as our Snapshot report providing an overview of the size and characteristics of the cooperatives in our network – and many of our members collect data systematically, however, there is need for harmonised methodologies combining stakeholders’ data collection with national statistical offices’ data collection on the social economy.

The key challenge: Accessing to finance

The social economy, including industrial and service cooperatives, have the tools ready to tackle the challenges the EU faces, such as widening inequalities, poverty, demographic changes, the climate crisis, and deindustrialisation. However, what they are missing is the financial instruments targeting and adapted to social economy enterprises to enable them to unlock their full potential.

Indeed, the Review correctly identifies that access to finance remains a challenge, despite improvements in recent years, such as the introduction of the Social Investments and Skills Window under the InvestEU instrument. However, further financial tools tailored to the specificities of the social economy are needed. It is crucial that – as the Review points out – the next Multiannual Financial Framework (MFF) takes into account social economy enterprises and provides financial instruments adapted to social economy models.

To mainstream the social economy throughout the MFF is to acknowledge the actors that are best positioned to provide solutions to key challenges the EU faces. Worker and social cooperatives are deeply embedded in the local territory; they provide quality, inclusive employment opportunities, accessible services, particularly for vulnerable populations and in disadvantaged areas, and work integration opportunities for persons with disabilities and other disadvantaged persons. However, despite their contributions to social and territorial cohesion, social progress, sustainable and inclusive growth, access to finance remains the biggest obstacle they face. To this end, it is indispensable that the next MFF explicitly integrates the social economy, particularly in the European Competitiveness Fund and the National and Regional Partnership Plans. Furthermore, CECOP calls for a strengthened, standalone European Social Fund, a key people-centred instrument that must be aligned with the Social Economy Action Plan as well as the European Pillar of Social Rights. By doing so, the next MFF will be able to tackle demographic and labour market challenges, foster territorial and social cohesion, and work towards reindustrialisation.

Public procurement is one of the key areas highlighted in the report, pointing out challenges, such as the continued emphasis on lowest price, and the lack of inclusion of social considerations. To this end, the Commission is setting out to examine how the uptake of socially responsible public procurement can be promoted in the context of the ongoing revision of the EU public procurement rules. CECOP is awaiting the Commission’s proposal for the Public Procurement Act, a key file that has the opportunity to ensure that public money accounting for about 15% of the EU GDP embraces the principles of environmentally friendly and socially responsible public procurement while creating a level playing field for cooperatives. In particular, we call on the Commission to make the Most Economically Advantageous Tender (MEAT) the default criterion, introduce mandatory social and environmental considerations, design a “Made in EU” concept that integrates cooperatives, maintain the option to reserve contracts (Article 20) and thus facilitate the work integration of disadvantaged persons, and more. By emphasising quality over price, the revised rules will enhance social economy enterprises’, including cooperatives’, access to public procurement.

The report also recognises state aid as a valuable tool for supporting the social economy. The Review mentions the current revision of the General Block Exemption Regulation (GBER) and promises that the updated rules will include incentives for public authorities to finance the social economy with it. With the current GBER expiring at the end of 2026, the new Regulation must be updated to facilitate its better uptake by, inter alia, explicitly including the social economy, supporting workers buyouts, providing aid for the recruitment of disadvantaged or severely disadvantaged workers until the workers are considered to be fully rehabilitated, and acknowledge cooperatives’ contributions to the circular economy.

Mainstreaming the social economy across EU policies

A common thread throughout the report is the interconnectedness of the social economy and various key EU files, because of its cross-sectorial dimension. We welcome this recognition and call on the European Commission to mainstream the social economy, including cooperatives, in other EU policies.

For instance, as the report points out, the social economy is well-positioned to play a key role in the upcoming Circular Economy Act (Q3 2026) due to social economy enterprises’ contribution to the circular economy. In fact, we find many cooperatives active in waste management, repair, reuse and recycling, and circular construction, while creating local, quality jobs. With proper recognition of their contributions and adequate support instruments taking into account their unique characteristics, cooperatives’ added value to the circular economy can be elevated.

Similarly, the Review highlights the role of the social economy in the creative and cultural industries, and sustainable tourism. CECOP calls on the Commission to thoroughly include cooperatives in the upcoming EU Sustainable Tourism Strategy, where they are active in preserving local cultural and industrial heritage, while developing the local area in a sustainable way, with the involvement of the community.

Overall, the mid-term review of the Social Economy Action Plan demonstrates that the effort put into promoting the social economy since 2021 yielded great results. It also signals that recognising the value of the social economy is indispensable as the EU focuses on increasing its competitiveness while preserving the European social model. CECOP calls on the Commission to designate the SEAP as a permanent commitment continued beyond 2030, and we are ready to work hand-in-hand with the Commission to prepare future Action Plans.