Blog Articles

Article written by Valentina Caimi, Policy and Advocacy Adviser, and Julie Marangé, intern

Last Tuesday at the European Parliament’s Social Economy Intergroup, Nicolas Schmidt, Minister for Labour, Employment and Social and Solidarity Economy of Luxembourg, highlighted that employment and unemployment are still key issues for the European Union (EU). In times of increasing precariousness, in-work poverty and unemployment, it is necessary not only to focus on job creation, but also on the quality of work, in all sectors of the economy, including social economy. He also pointed out the increasing income gaps in companies and economies that should be tackled, as it is a key driver for increasing social divergences, thus undermining social cohesion and inclusion. Social economy – a universe of organisations including newer forms of social enterprises based on the primacy of of people over capital and on solidarity and empowerment principles – should be looked to as a model.

Ann Branch, from the European Commission, stated that unemployment and social cohesion are still key issues in a Europe torn apart by the migration crisis and the financial crash. The targets of Europe 2020 for sustainable growth may well be hard to achieve; fostering innovation remains a difficult task. With regard to the social economy, the Commission is already doing its best to support social enterprises, with an emphasis on social business initiatives and the facilitation of access to the market. Yet, there is still a long way to go. But how can social economy improve the situation? The social economy has a new, growing and more than ever relevant role to play. As Ann Branch pointed out, initiatives comparable with social entrepreneurship must be encouraged. The social economy also is a relatively new phenomenon in some Member States. The positive point is that despite this, the social economy has already been fully and formally recognised by European institutions. In addition to that, social economy enterprises have proved to be, as Montserrat Mir Roca from the European Trade Union Confederation pointed out, more resilient than other sectors since the beginning of the economic crisis, with a better internal democracy. In that respect, the social economy does not only benefit the labour market, but also embeds the core values of the EU. In a nutshell, social economy enterprises have the ability to bring a lot to EU employment policies, although the quality of employment remains a decisive issue.

As Member of the European Parliament Elena Gentile explained, the social economy has a specific focus on individuals, dignity and inclusion of vulnerable groups, producing social inclusion and cohesion. In addition, social enterprises have a huge capacity to create stable employment, as well as genuine, high returns to local communities and society as a whole. They provide an opportunity to shape a more sustainable, resilient economy. They also motivate workers and ensure reinvestment in the enterprises’ activities, which means prospects for company growth. Giuseppe Guerini, from Confcooperative, argued that social cooperatives, along with social enterprises, have already proven effective in creating good quality jobs; for example, in Italy 60% of jobs offered by social cooperatives are permanent jobs.

With the Social Investment Package, the Commission has finally acknowledged the social economy as an investment rather than a cost. However, Luk Zelderloo from our member the European Association of Service Providers for Persons with Disabilities (EASPD) revealed that social economy organisations providing social services carry a particularly high potential for job creation. However, a few issues impeding the development of the sector remain to be tackled, namely the gap between the demand and supply of jobs, the attractiveness of the sector and the tendency to provide support at home.

These are some of the next challenges to be faced by the EU Institutions and Member States in order to achieve a strong social economy for the common good. We at Social Platform welcome the first Council conclusions on social economy adopted by the European ministers in charge of employment and social affairs in December, as an important commitment towards a more sustainable economic and social direction for Europe.