Services of general interest and the social economy should strive together across the EU

On Tuesday 12 June 2023, the European Commission presented its proposal for a Council recommendation for Member States to design and implement social economy strategies. The proposal aims 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.

Following the presentation of the proposal, SGI Europe Valeria Ronzitti commented:

“SGI Europe welcomes the proposal for a Council recommendation on social economy, aiming at providing definitions of social economy and social enterprise, raising awareness and supporting their access to finance. It will be a central element to establish an enabling environment and level the playing field for actors that do not pursue solely profits and serve the general interest.”

“Social economy entities are closely linked to the service of general interest and often overlap. The proposal rightly states that Member States are recommended to explore which services provided by social economy entities could be defined and financed as services of general economic interest. We now call for social economy entities to be assessed on the nature of the services provided, regardless of their ownership.”

“SGI Europe welcomes that the proposal recognises the issues with state aid, and that it encourages Member States to find the correct basis for granting support measures by highlighting instruments such as General Block Exemption Regulation, rules on services of general interest and the De Minimis Regulation. More guidance is needed, especially to assess when state support does not qualify as state aid.”

SGI Europe will closely monitor the work of the Council on the proposal, and provide inputs on the articulation between the EU acquis on services of general interest and the growing social economy.

(Illustration: European Union)