Sunday, June 16, 2024

Commission proposal on developing social economy framework conditions

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As part of the implementation of the action plan for the social economy, the Commission adopted a proposal for a Council recommendation on developing social economy framework conditions on 13 June 2023.









The proposal aims to advance access to the labour market and social inclusion by supporting Member States in integrating the social economy into their policies and creating supportive measures and a favourable environment for the sector.


By supporting the social economy, the proposal also aims to drive social innovation, sustainable economic and industrial development, and contribute to territorial cohesion in the Member States. 


The proposal provides recommendations to Member States on


  • how public policies and legal frameworks can be tailored to support the actions of the social economy, particularly in areas where it is less developed
  • how administrative and institutional structures can be adapted to support these entities and engage with stakeholders in the sector


Considering the diverse array of entities and alternative business models within the social economy, as well as its extensive reach across various sectors, the proposal covers various topics, including:


  • skills
  • social innovation
  • access to funding
  • public procurement
  • State aid
  • taxation
  • social impact measurement and management
  • visibility and recognition


Next steps


The proposal will now be discussed in the Council in view of a political agreement. Once the proposal is adopted, Member States will adopt or update their national strategies for the social economy within 18 months. The Commission will then monitor the implementation of the strategies through regular consultations with Member States via the Employment Committee and the Social Protection Committee.



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