Framing the New Progressive Narrative: A Mutual and Cooperative Approach to the Economy and Society

Peter HUNT Mark WILLETTS

Framing the New Progressive Narrative: A Mutual and Cooperative Approach to the Economy and Society Published by:

FEPS – Foundation for European Progressive Studies Rue Montoyer 40 -­‐ 1000 Brussels, Belgium

Mutuo PO Box 71312, London, UK, SE17 9DL

Edited by Peter Hunt and Mark Willetts Page layout by Multi Image Ltd: 01727 848088 ISBN: 978-2-930769-14-1 9782930769141

This book is produced with the financial support of the European Parliament

This publication represents not the collective views of FEPS but only the opinions of the respective authors. The responsibility of FEPS and Mutuo is limited to approving its publication as worthy of consideration within the global progressive movement. 1. Foreword: Preface Contents 2. 3. 4. Appendix 5Aboutus Appendix 4Bibliography Appendix 3Acknowledgements intheproject undertaken ofactivities Appendix 2Details ofcooperative law intheEU Appendix 1Anoverview g. e. d. Executive Summary Cooperatives andmutuals: The People’s Businessandaforce for progress andsocialdemocracy b. a. Policy ideasfor progressives e. d. c. b. a. f. c. b. a.

Policy ideasfor Progressives Express summary Helping to reach renewable energy targets Enabling rewarding andfulfilling work Providing affordable housing intheinterests ofcustomers, financialservices notcapital Delivering Spreading ownership, power andwealth Access affordable to quality housing Work Financial intheinterests ofcustomers, services notcapital andspread wealthBusinesses thatchallengeinequality Policy ideasthatcounterbalance theeffectsofglobalization peoplebeforeAn economy thatprioritises otherinterests security throughEnergy localcontrol security that is meaningful andrewarding thatismeaningful Ernst StetterErnst &Peter Hunt 28 23 21 12 10 34 33 33 32 31 31 51 48 46 45 39 34 33 2 3 5 4 4 8

THE PEOPLE’S BUSINESS 1

The rich have increased their share of wealth of wealth their share increased richThe have behave begun to whilst global corporations have of their in the interest nations, as sovereign working austerity has affected Yet shareholders. people most, with a whole new generation of young before. challenges than ever people facing greater a positive present be able to need to Progressives ordinary that works for people. vision of an economy how is organised, in which the economy way The is wealth how and ultimately business operates, trust rebuilding is crucial to people, among shared with the electorate. It a binary is no longer choice between the intervention or support of government a free for market. customers, by be trusted Business needs to a purpose that workers, its respect and follow to serves good. the common than regulations Business is about more People’s The It and and laws. is about putting people in control tying that idea of self-help firmly the progressive into tradition of self fulfilment. but in It is about business, interests. your

The power of commerce to create the wealth wealth the create to of commerce power The of society is built is progress upon which the seen have we years in recent Yet immense. of trust in corporations and the the erosion of ordinarypolarisation of the interests citizens whom they work and the businesses for from with whom they trade. Preface

2 THE PEOPLE’S BUSINESS democratic and labour parties intheEU.democratic andlabourparties forand populistpoliciesthatcan work many social business couldhelpto develop strong progressive and grows customer and employee ownership of agendathatpromotesEuropean Union.Apolicy that shouldbeclaimedby progressives across the The themeofcooperative businessownership isone • • • Progressives shouldbeinfavour ofbusinessesthat: customers. that spread wealth andempower and theirworkers business. We shouldbethechampions ofbusinesses ofthisistheprogressiveA majorpart attitudeto and society. politicalplanforwith anew organising oureconomy anddemocracy democratic politicalvaluesoffairness and inspires voters by aligning therecognisable social We with narrative thatconnects needto findapolicy controlled past. areleft throw-backs to anequallydiscredited state- The onlyradicalalternatives beingdiscussedonthe same economicsystems thatare seento have failed. an alternative, albeitkinder, managementofthe Across theE.U., socialdemocratsappearto offer only powerful. the vested interests ofbusiness, thewealthy andthe systems people, for thatwork ratherthan ordinary politicians’ to propose inability economicandpolitical shared across theEuropean Unionstems from our ofthedisillusionmentwithpoliticsthatis Much Ernst Stetter &Peter Hunt Foreword Actively engageandinvolve theirworkers Share widelytherewards ofenterprise Work intheinterests oftheircustomers services to themiddle20 theirmembers. In services originally founded theseorganisations to provide movements. Many tradeunionandsocialistsocieties with progressiveand mutualbusinessisinterwoven many ofcooperative moreIn countries, thehistory ground ofsocialbusinessfor progressives. This isacredible positionfrom whichto reclaim the thepublicthrough thePeoples’serving Business. agenda for ofour policy and deploy themaspart Progressives shouldunderstandthem,value challenges we faceasEuropeans. to play inhelpingto solve someofthebiggest part ofthelives ofourpeople. part They have acentral and energy providers, cooperatives are anintrinsic and relaxation, ourhealthcare, financial well-being we eatto thehomeswe live in,ourplacesofwork acrosssector theEUisimpressive. From thefood But thesize andscopeofthecooperative business aboutboguscollectivism. understandably cynical ‘brand’ where inthesecountries peopleare This hashadadamaging effect onthecooperative democracy.no genuineinternal organisations were controlled by thestate andhad to ownership. collective The reality wasthatthese ‘cooperatives’ to appearopen asameansofseeking ignored. For decades, different regimes misused communist states from Europe Eastern cannotbe oftheformerAt thesametime, thelegacy littleresponse left from theleft. marketization and socialsolutions;thesubsequentgrowth of to thestatesocial democratsturned for economic 1 th century,

THE PEOPLE’S BUSINESS 3 2 people before that prioritisesAn economy people before other interests the effects of ideas that counterbalance Policy globalisation Businesses that challenge inequality and spread wealth of customers, services in the interests Financial not capital that is meaningful and rewarding Work housing quality to affordable Access security local control Energy through 1. 2. 3. 4. 5. 6. 7. This report and mutuals This cooperatives is about how Businesses -can contribute to - the true People’s achieving these objectives. The Peoples’ Business project has seven public has seven Business project Peoples’ The policy objectives: the left is evidence that voters are impatient with the are the left is evidence that voters left and the centre from on offer politics’ ‘managerial right. centre rebuild to approach need a fresh Progressives ensuring in popular trust by that business operates We rather than against them. of people, the interests trying go beyond marketsneed to regulate that to the not workingare promote to and consider how purpose enterprising of core economies. business understand how that we show need to We dealing progress, for a force it can be works and how of the difficult challenges of our time. with many businesses that already are There is hope. There need to We the people. and for of the people are a offer can them. Progressives and grow recognise of interests in the that operates vision of an economy stimulating business that has the servicepeople by of and workers purpose. customers as its core Express summaryExpress

The inability of our politicians to respond to this to inabilityThe respond of our politicians to of consensus the splintering years of 50 has led to rise The of populism of both the right and politics. We remain reliant on a volatile world market oil on a volatile reliant for remain We combine to businesses and states where and gas, fossil replace to to struggle we continue fix prices as alternatives. fuels with renewable Economic hardship has been exacerbated by an exacerbated has been by hardship Economic personal debt and a in housing inequality, increase lack of quality work, particularly people. young for challenged by and societyOur economy remains huge structural population issues such as an ageing costs. higher healthcare ever and its attendant Recession and slow growth means that corporate tax growth Recession and slow greater at the same time, whilst down, are revenues corporations to large globalisation has facilitated From seen before. on a scale not ‘tax shopping’ go big and progress, of growth being seen as the engine the lengthening list of business has been added to do the institutions that the public no longer trusts to right thing. This experience shows how economies are economies are experience how This shows business major shocks when significant vulnerable to each similarly firms, listed by dominated sectors are similar business objectives. and following owned The financial crisis saw Governments spend over EUR over financial crisis spend The Governments saw the failed rescue money to 1.5 trillion of taxpayers’ subsequent periodThe of banks. owned investor Europe, across hardship real austerity has delivered and unemployment economic growth, with reduced have as we even many, for damaged living standards than before. of wealth concentration seen a greater a. Executive SummaryExecutive

4 THE PEOPLE’S BUSINESS in afree andfairmanner. state ofbusinessto that facilitates compete alltypes ineachmember legislative framework andregulatory terms, thismeansthatthere shouldbeapolicy, approach across theEuropean practical Union.In isessentialthatthere isa consistent policy It be vulnerableattimesofstress. that isdominated owned by institutionswill similarly address later, butthebiggerpointisthatany industry ofcourse, which we industry the financialservices failed simultaneously. There are lessonshere for and insurers around theworld, many ofwhich ‘domino effect’ amongshareholder owned banks ledto andinsurancesector a in thebanking economy faced. The diversity lackofcorporate us thatwe have to thatour better managetherisk should teach ofthefinancialcrisis The experience interests An economy that prioritisespeoplebefore other implement theseseven objectives. positionsthatProgressives proposes ofpolicy This aseries report couldadoptinorder to successfully a. actions. appropriate policy, legislative andregulatory cooperative andmutualbusinessesthrough andtherole plurality of corporate to support Progressives objective should adoptapolicy Policy ideasfor Progressives within national boundaries andarewithin nationalboundaries locallyfocussed. interests oftheirmembers. operate They typically Cooperatives maintainacloseproximity to the brands. to thegrowing counterbalance power ofglobal effects onnationalexchequers, butmore isneeded being madeto align taxationpoliciesto dampenthe oftheEU.to compete are inamarket now Efforts inmanyindustries countries, leaving themlessable This hashadareal effect onjobsandproductive owners. theinterestsstrategies to ofdistant devised serve their operations, to andinstead corporate subject leaving governments withlittleinfluence over wheretax inthecountries operate, they and elsewhere,headquartered paying often little governments, withcompaniesowned and of unintended consequencesfor domestic hasanumber The liberalisationofmarkets banking. from coffeeservices, shops to retail stores and of globalandregional brandsfor many day to day ownership hasbegunto leadto thedominance increasingly globalisedeconomies,In multi-national globalisation Policy ideasthat counterbalance of theeffects countries wherecountries are they due. multinationals andensure thattaxes are paidinthe people’s interests, provide competitionto keen to helpto drivebusinessthatoperates inthe domestically owned cooperatives andmutuals There policiesto shouldbeactive promote these

THE PEOPLE’S BUSINESS 5 Progressives should promote policies that policies should promote Progressives encourage high quality work that is rewarding could include activepolicies This workers. for re-routing social worker facilitate ownership, to all EU citizens and giving security investment into the opportunity benefit. to Work that is meaningful and rewarding that Work worker that evidence is strong The ownership business performance improves employee and globalisation satisfaction at a time of increasing powerlessness of greater feelings led to which has among workers. incentivises and business directly owned Employee efforts. their workersworkers for Owner rewards are and can contribute disproportionately productive, puts all the Direct ownership creation. wealth to capital appreciation, – income, fruits of ownership hands of the – in the and control information workers With as the shareholding shareholder. equitably and more wealth is shared beneficiaries, workis rewarding. The need to ensure diversity of corporate ensure need to The must be a policyownership with objective, part a full firmsto play owned able cooperatively in Regulation should not the financial services sector. firms owned and must be simply based on investor flourish. to permit ownership customer Progressives need to consider active policies need to Progressives and help of wealth the spreading that promote in the financial share to and employees customers success of their businesses. It to of governments be a responsibility has to This economic shocks. similar the EU from protect of the industry as far as regulation is understood the structural danger posed by Yet is concerned. similar business following similarly firms owned has not been addressed. strategies Financial services in the interests of customers, of customers, services in the interests Financial not capital economies during the European to shock caused The reaching consequences financial crisis has had far- of ordinary the lives Austerity are policies people. for in bailing of the tax losses incurred a direct result that has out banks and the subsequent recession millions of citizens. for damaged living standards Cooperatives spread wealth by distributing by their wealth spread Cooperatives or of dividends surpluses members in the form to shareholder to Compared pricing. lower through more is spread ownership businesses, owned proportion of customers with a greater widely, the economic from benefit able to and employees benefits of business. Businesses that challenge inequality and spread inequality challenge that Businesses spread and wealth way the will affect a business is owned way The and it pursues, the strategy it conducts its affairs, actsOwnership to the profits. to what happens If left widely. unless it is spread wealth concentrate markets,to will continue through concentration this as capital and takeovers consolidation, mergers served are workers ahead of those of interests or customers.

6 THE PEOPLE’S BUSINESS conditions onthefinancialandhousingmarkets. neighbourhoods, andcopingwithunfavourable stock aswell astheenvironmental ofthe quality improving ofthehousing thesustainability challenges, suchasadaptingto changing demand, housing providers are facedwithanumberof Housing cooperatives as well asotheraffordable affecting theirhomesthrough mutual ownership. Cooperatives enabletenants to control decisions and provides arealistic route to affordable housing. inmany inEurope countries of thehousingmarket Cooperative part housingrepresents animportant Access affordable to quality housing include provision for cooperatively owned homes. Progressive policiesfor affordable housingshould proactive policies to support this. proactive policiesto support renewable energy asaresult overall, of partly renewable projects have thehighestlevel of withsignificantThose countries localcooperative inarenewable solutiontostake theenergy transition. economic benefit for consumerswhotrulyhave a paid.in thetariff This meansthere isarational receive adividendinprofits made, or reductions economic benefits. Local consumersinvest and Cooperatives are alsoableto provide shared sites forsecuring the buildingofwindturbines. benefit suchaswhen we thinkofthechallengesin accord withthewishesoflocalpeople. This isaclear applications intheirarea ifitcanbeshown thatthey planning is more thatlocalpeople willsupport likely cooperative renewable energy projectsmeansthatit This isbecausethedemocraticstructure of renewable targets. projects andtherefore helpingnationsto meettheir to increasing thenumberofrenewable energy oil. Cooperatives asignificant contribution canmake energyand harmful sources suchascoal, gasand if Europe isto enditscurrent reliance onpolluting Switching to clean decentralised renewables is crucial Energy through security localcontrol projects through fiscal and regulatory means.projects through fiscaland regulatory ownership ofrenewablecommunity energy Progressives canadopt policiesto encourage

THE PEOPLE’S BUSINESS 7 3 shareholders. business, compared with 11 % (1 in 10) who are are direct direct are are with 11 % (1 in 10) who compared business, 20% (1 in 5) of EU citizens is a member owner of a cooperative of a cooperative owner is a member 20% (1 in 5) of EU citizens At a time of increasingly globalised economies, multi- globalised economies, a time of increasingly At lead to has begun to ownership national company brands for the dominance of global and regional retail to shops services, day coffee to day from many and banking. stores liberalisation of marketsThis has a number of domestic governments, consequences for unintended and headquarteredwith companies owned away little tax in the countries and often paying where from, with little governments leaves This they operate. subjectto and instead their operations, over influence their corporate strategies. on jobs and productive effect has had a real This them less able leaving countries, industries in many In in a market some countries, compete to of the EU. owned. such as bankingwhole sectors, foreign now are domestically owned and mutuals are Cooperatives of origin. their local state tax in paying businesses, they cannot be absorbed firms, member owned As likely to be a member of at least one cooperative likely of at least one cooperative be a member to company. in a listed than a shareholder

Cooperatives and mutuals are owned by large large by owned and mutuals are Cooperatives twice fact in as people are numbers of EU citizens, Cooperatives spread ownership, power and wealth power ownership, spread Cooperatives distributing by their wealth spread Cooperatives of dividends orsurpluses members in the form to shareholder to Compared pricing. lower through widely, more is spread ownership businesses, owned proportion and employees of customers with a greater the economic fruits of business. benefit from able to As participantsAs range of economic in this diverse a and mutuals contribute to cooperatives activities, good for are They range of public policy objectives. society as a whole. and for people, As businesses owned by those who participate by businesses owned As in them on a direct focus they have and customers, as employees the quality rather than returning of what they achieve, focus permits them Their different to investors. profits in markets whilst achieving act force to as a regulating capitalist businesses. ends from different The examples of cooperative actionof cooperative examples in this reportThe on the can deliver these organisations how show and social democrats. key of progressives aspirations opportunity a genuine They provide people to for and employment housing, their incomes, improve and Cooperatives quality their ultimately of life. benefit not only directly to mutuals can be shown society but also as a whole. their individual members, From their very beginnings, cooperatives have been been have very their cooperatives beginnings, From adversity and market to a practical response failures. ordinaryThey facilitate coming together people capital and personal interests. their talents, pool to of community the epitome self are Cooperatives talents that can lay unleash the latent They help. society and good for They are buried within people. of socialist progression. manifestation a direct are progress and social democracy and progress The People’s Business - a force for - a force Business People’s The Cooperatives and mutuals are mutuals and Cooperatives

8 THE PEOPLE’S BUSINESS Presented capita onaper basis Total income 1.3trillionEuros forthesector eachyear Concentration ofcooperatives mutuals and intheEU employment. cooperatives, whichare alsosignificant providers of economies, are ableto share inthewealth created by oftheir inbusinessesthatarea genuinestake part Their ownership meansthatpeopleare ableto have ofadiverse economy.part populations andsoare usefulbusinessesto have as demutualised. specifiedlocal They existto serve into multinationaloperationswithoutbeing <350 Euros percitizen (9countries) 350 –2000Euros percitizen (8countries) >2000 Euros percitizen (11countries) insurance, andrenewable energy. retail, industry sectors, from agriculture housing, to banking, businesses are significant inarangeofbusiness Across allEUmemberstates cooperative andmutual promote cooperative ownership inindividualstates. economies. policiesare New required to protect and ownership to helpmaintainproductive local Governments shouldpositively encouragecooperative Cooperatives andmutuals provide employment to 4.7millionpeopleacross theEU

THE PEOPLE’S BUSINESS 9 The cooperatives help farmers to achieve economies help farmers achieve to cooperatives The inputs and the unit costs of reducing by of scale, services, on enabling individual farmers focus to and rather than finding buyers goods producing also enable farmers improve to Cooperatives suppliers. They can and serviceproduct quality risks. and reduce develop common problems, farmers address allow to new market opportunities or expand existing markets. farmers and empower cooperatives Agricultural their position in the marketplace. improve in this sector enables play that cooperatives role The in the food compete holdings to small agricultural supply market. Apart the economic benefits that from the avoid it helps to this brings local communities, to stewardship better create depopulation of rural areas, protection. environmental of the land and foster Otherreduction in benefits include a associated which simultaneously means miles travelled food of ownership form This processing. local food more by be owned that land continues to ensures that land use is in families and helps ensure European keeping with local traditions. Maintaining the local small scale production allows be nations to European heritage of many rich food high quality produce preserved, with world renowned currency. exporta significant foreign earner of Top 5 EU states for cooperative agriculture cooperative for 5 EU states Top per capita) income by (Measured 1 Denmark 2 Ireland 3 Finland 4 Netherlands 5 France Income 338bn Euros each year

The lower production costs bring the benefit of lower costs bring production the benefit of lower lower The the supply and secures EU consumers, for priced food within the single market. food of locally produced More than half of the food produced in the European European in the produced than half of the food More that enable cooperatives Union passes through economic realise to producers individual food benefits that they could not otherwise alone. achieve producers of agricultural help groups Cooperatives costs by reduce power, their bargaining improve and sharing servicespooling capital and resources, such as marketing. In this way, the profits from food production are food production are from the profits In this way, in local be reinvested to their source, to returned This owners. local economies or distributed to to economic method enables smaller producers a broad guarantee and to of life maintain their way production. of the means of food based ownership Farmers have always cooperated to achieve achieve to cooperated always have Farmers From food. economies and scale in producing machinery agricultural working purchase to together and marketing in the processing collaborating to of farms work allows of to this approach their produce, maintain their independent ownership. to all sizes Agriculture: Agriculture: security prices food help maintain and lower Cooperatives wealth in all business sectors in all business wealth spread ownership, power and and power ownership, spread How cooperatives and mutuals mutuals and cooperatives How

10 THE PEOPLE’S BUSINESS distinct advantage. distinct in 2015,yieldingaprofit ofEUR20.3million, demonstratingthatthecooperative union modelisa is alsohugelysuccessfullyfrom aneconomic perspective,The withtotal CV-CNF salesofEUR215million through andequality. valuessuchas transparency ethos ofsolidarity the cooperative success. modelisanoverriding True ofitsfounders, to thespirit itstrives to upholdan providingBy membergrowers withdirect access to consumersandanequalshare oftheaddedvalue, incomparable quality. enables thegrowers onlythefinest tograpes, select andinsodoingprovide with thechiefwinemaker ofthejuicesandavoidingguaranteeing thequality oxidation atallcosts. manuallyalso Picking untilthey enter thepress, exclusively intact Grapes are harvested thus by theberries handto keep handles over 50%ofthetotal supply intheregion. morecomprising than5,000growers, 80membercooperatives and2,150hectaresofvineyard. It The businesshasexpandedto becomethebiggestfederation ofgrower cooperatives inChampagne, 2013. Champagne brandintheworld, &Chandonand behindMoët Veuve Clicquot,selling9.9mbottlesin isthenumberonesellingChampagnechampagne. brandinFrance It andthethird biggest-selling The Centre Vinicole Feuillatte –Champagne Nicolas istheoldestunionofproducers of (CV-CNF) The world’s third largest champagne producer Nicolas Feuillatte Champagne, France FoodsArla AnchorandCastello Lurpak, cheese. operates underanumberofbrands includingArla, theNetherlands, Germany,the UK, Belgium andLuxembourg have Foods. joinedArla andthroughThe cooperative inothercountries alsoflourished recent mergers cooperative owners in cooperative, wasformed.border dairy Foods, andArla cooperative merged withitsSwedishlargest counterpart Danishdairy thefirstcross- and becamestronger. They expandedfrom localto regional to nationalcooperatives. 2000,the In theyears,Over thecooperative ideaproved increasingly cooperatives attractive. Smallfarmer merged and together builtasuccessfulfuture they for generationontheirfarm. themselves andthenext products.quality farmers madefrom they The earnings theirmilkwere thedairy equallysplitbetween madeefficientuseoftheirmilkandhigher productionfacilities. doingthisthey By common dairy andSweden formed inDenmark smallcooperatives farmers to invest in the1880sdairy During Foods10.3 billion.Arla istheworld’s company basedonrevenue. seventh largest dairy Foodsproducts inScandinavia. andhada2015revenue Arla farmers ofEUR isowned by 12,700dairy Foods andthelargestArla producer ofdairy cooperative isaninternational Denmark, basedinAarhus, A majorinternational agri-producer Arla Foods, Denmark

THE PEOPLE’S BUSINESS 11 Cooperative and mutual financial services and mutual financial Cooperative businesses run solely in and are their customers, by owned are in marketsThey compete the where their interests. typically companies, listed are providers alternative of their shareholders. in the interests which operate an that theyownership means have in difference The return to in that they advantage do not have inherent This means that they can to capital investors. profits services better provide use that money to and lower Itprices customers. also means that they to operate of instead where economic target, different a to they maximise the value, maximizing shareholder value of their services owners. customer to the earned from of using the wealth is a way This a wider number of people. benefit business to offer able to and mutuals are Cooperatives loans and insurance value savings, better consistently driving the heart into competition products, of these local They also provide markets.highly competitive services networks such as branch and locally focused services their customers. valued by that are

Provide employment to 1.3 million to employment Provide EU the people across Serve million customers 210 Income 540 bn Euros each year 540 bn Euros Income A variety of business models creates corresponding A variety corresponding of business models creates risk of corporate governance, diversity in forms structures, and management, incentive appetite Because they and outcomes. as behaviours as well short-term profit-maximising, not driven by are or financial analysts, expectations of shareholders business pursue able to are mutuals and cooperatives This aimed at long-term sustainability. strategies for consumers through wider choice also offers in partenhanced competition that derives the from business models. juxtaposition of different It to of governments be a responsibility has to This economic shocks. similar the EU from protect of the industry as far as regulation is understood the structural danger posed by Yet is concerned. similar business following similarly firms owned need to The has not been addressed. strategies must be diversity of corporate ownership ensure firmsto owned able with cooperatively examined, a full partplay in economies. The shock caused to European economies during the European to shock caused The for consequences reaching financial crisis has had far of working a the lives Austerity are policies people. in bailing out of the tax losses incurred direct result has damaged banks and the subsequent recession millions of citizens. for living standards

interests of customers, not capital capital not of customers, interests Banking Insurance: & services financial provide Cooperatives in the

12 THE PEOPLE’S BUSINESS Source: EACB Market share ofcooperative banks 0-5% 5-15% 15-25% 25%+ Lithuania, Malta, Portugal, Romania, Slovakia, Slovenia, Portugal, Sweden Slovakia, Lithuania, Malta, Romania, Croatia,Belgium, Bulgaria, Czech Republic, Estonia, Ireland, Latvia, Greece, Hungary, Luxembourg, Poland, Spain Cyprus, UK Finland,Austria, Denmark, France, Germany, Italy, Netherlands

THE PEOPLE’S BUSINESS 13 Latvia Malta Romania Slovakia Source: calculations by TIAS TIAS by calculations Source: cooperative based on data from the European banking groups, Bank and the Swiss Central National Bank. and black orange The Note: the average lines represent on equityreturn of respectively banks and the entire cooperative the time span over baning sector 2002-2014. EU states with no or limited cooperative cooperative with no or limited EU states banking: Belgium Croatia Republic Czech Estonia Return on equity of cooperative banking banking and entire groups on equity sectorReturn cooperative of By consistently offering better value products, these value products, better By offering consistently pre-distributingbusinesses are large to wealth beneficial pricing numbers of consumers through and service But this opportunity quality systems. states with many all EU citizens, to is not available banking. cooperative Policy no or limited having and regulatory the legislative makers must address barriers to that mean this choice is not available everyone. We can see that cooperatives can counter-balance can counter-balance can see that cooperatives We The of the capital market.the short-termist pressure financial services of corporately diverse existence markets de-risk significantly will help to markets and experience the of reliving economies from protect 2008. The performanceThe crisis the financial of starkly contrasts beginning since the banks owned of mutually that with shows. graph market as the following stock of their competitions, listed

14 THE PEOPLE’S BUSINESS market shares 35%ofsavings, of20%mortgages, market 43%and84%offood andagribusiness. inthegovernance ofthebusiness, whichhasdomestic has1.9millionmemberswhoplay apart It 2014,totalof December assetsamountto €681billionwithanetprofit of€1.8billion. strengthened itscapitalratioto 23.2%.AsTier further 1ratioamounted to 13.5%andin2015Rabobank made anetprofit of2.2billioneuros in2015,anincrease Its of20%comparedCommon Equity to 2014. groups isoneofthelargest intheNetherlands, banking andamongthetop 30banksintheworld.It It federation oflocalcredit unions,to thelocal markets. whichoffer services Rooted inagriculture, banking. Rabobank wassetupasa agri financingandsustainability-oriented central banksoftheDutch credit isacooperative andaglobal leaderinfood unionmovement. It and founded isacooperative in 1972,asaresult bank, ofamergerRabobank theregional between ofthetopOne 30banksintheworld Rabobank insurance, Union Investment for fund management,andthenetwork’s central institutionDZBank. Schwäbisch Hallfor buildingfinance,Well R+V namesincludeBausparkasse known Versicherung for cooperative financial network. relationship withthesophisticated, specialized institutionsinthe Volksbanken Raiffeisenbanken Local asa cooperative banksoffer resultoftheir theircustomers awide rangeoffinancialservices dividends paidto members. the localcooperative banks, withprofitsfor customers and services retained to develop thebestquality listed banks, contrastto stock theadvancementofmembers’ market In for interests isthetop priority million customers ofthecooperative banksare simultaneouslytheirmembers andtheirshareholders. is thefoundation ofthe ‘registered cooperative’ legalstructure (eingetragene Genossenschaft). The 18 features themore thatcharacterize than 1,047cooperative banks throughout Germany. Membership Local roots, commitmentto theirmembers, anddemocratic organization anationwide are network, rooted withcustomers, intheeconomiclifecontact are they oftheirregion. particularly As networks. independentbanks, withmany years’service andpersonal oflocalmarkets knowledge sectors. With 12,800 branchesandmore than 19,600ATMs, have they oneof Europe’s biggestbanking Today, cooperative oftheAustrian banking banksaccountfor andaquarter aboutathird oftheGerman became amodelfor Raiffeisen banks. cooperativeIn 1862,he inAnhausen,which hisgoal.beneficial inachieving founded thefirstbanking were ofcharity noteffective principles enoughandthatorganisedChristian self-help would be more cooperatives to helpagricultural labourers however, andsmallfarmers. Soon, herealised thatthe Raiffeisen, asamayorGerman ofanumbervillagesinthe province first setupcharitable Westerwald atatimeoffamineandeconomicbreakdown. farmers established inorder to support over 160years ago,Schulze-Delitzsch in themid-19thcentury. The firstcooperative loansocieties were The firstcooperative banks were founded by FriedrichRaiffeisen Wilhelm (1818-1888)andHermann can´tbedonealone,‘What canbedonetogether’ Raiffeisen banking

THE PEOPLE’S BUSINESS 15 adding stabilitywider financial the insurance and to services sector. evidenceThe of the economic downturn is that than resilient generally been more mutuals have of examples numerous are There firms. listed leading their marketsindividual mutuals consistently in performance and service. During the financial crisis of economic turmoil, years of 2008 and the following not faced have insurers mutual and cooperative by the banking of difficulties encountered the level not have They certainsector and by other insurers. any to their governments be bailed out by had to degree. significant these firms cost services maintain low that Today, the needs of all types of communities and reach in supporting relevant increasingly health and are whilst acting as major contributors provision welfare where insurance, competition in general and life to that markets ensure they continue to work in the of citizens. interests an important are Mutuals and cooperatives part in all EU landscape of business forms; of a diverse is a varyingcountries of diversity there in degree For typeterms of ownership and business model. Private this is not true today. however, insurance, by stockholder-owned be offered insurance may but only 23 EU Membercompanies in all countries, insurance undertakings allow States the legal have to more and three or a mutual, of a cooperative form certainlimit mutuals to lines of insurance. The French banking sector is dominated by cooperatives, ensuring in the banking that these businesses operate cooperatives, by sector is dominated French The of their customers. interests Crédit Mutuel has 15.2% of the French deposit market and 17.2% of loans distributed by banks. Through Through deposit market banks. and 17.2% of loans distributed by Mutuel 15.2% of the French has Crédit democratically. is exercised is collective and power the company ownership, its cooperative Crédit Mutuel is a major French bank, Itwith headquarters Mutuel has 7.4 million customers. Strasbourg. in French is a major Crédit a network Mutuel Its of and CIC have In Crédit brands, euros. income of 11.98 billion 2016 it had a net The expertisemillion customers. to 30.1 of finance provides areas in all group The nearly 6,000 outlets. the to adherent themselves federations, 18 regional attached to Mutuel are local branches of Crédit body of the network. the central Mutuel, of the Crédit National Confederation Crédit Mutuel Mutuel Crédit servingcustomer and owned Customer Customer-centric business models are now now Customer-centric business models are the financial for as better many by recognized the turbulence of the Following services sector. global financial crisis of 2007/8, national and global demonstrating support a increasingly leaders are for and citizens model of business that puts customers, communities at the heart of their corporate purpose, Mutual and cooperative insurers are good for markets good for are insurers Mutual and cooperative ownership structure different Their and competition. on the long-term needs of their focus to them allows high quality and on delivering customers products, their customers/ with and for often designed focus to rather than having at fair prices, members, of external shareholders. on the interests Mutuals and cooperatives are values-based entities values-based entities are Mutuals and cooperatives take a longer- and can therefore with no shareholders in business are They risk.term view when managing their members and the communities benefit to fairlyfor purpose, that they serve fit provide and to most sold in the world’s priced that are products markets.competitive Cooperative and mutual insurance Cooperative on a mutual Insurance been provided has always with property and life basis, cooperatively protected collective action,and health challenges met through social for a responsibility saw states long before and health life property to and casualty, From welfare. pioneers the original were mutual insurers insurance, mutual recorded first with the of insurance provision, stock first the long before 1642, back to dating insurer insurer. company

16 THE PEOPLE’S BUSINESS 3) (practically) nodomesticinsurancemutuals/cooperatives 3) (practically) share ofestablishmentsforeign2) includesthemarket mutuals mutuals hybrid share1) includesthesignificant ofso-called market France Romania Denmark Slovakia Austria Germany Netherlands High >40% High Mutual insurance market share Lithuania Estonia Cyprus Greece (only non-life) (only life)Bulgaria insurance isrestricted: EU countries where mutualorcooperative insurers cannotbeestablished: EU countries where mutualorcooperative 4.7% inlife insurance, figures dated 2013). share (6.2%innon-lifeThe witha5.3%market P&VGroup and ranksnumber sixontheBelgian market by Foundation P&V, created in2000,whichcombatssocial exclusion of young people. financing ofuniversity research anddeveloping assistance, world andalsothroughundertaken activities such areas asprevention campaigns (health,trafficsafety and environment), educational projects, The P& within andsponsoring V Group also through develops closelinkswithcivilsociety partnerships and society. P& V employs 1700peopleandare inBrussels. headquartered However, withtheinsured allshare they thebasicidea,whichhassince1907remained solidarity intact: steadily. oftheP& channelwhichforms Eachbrandanddistribution part V Group hastheirown identity. P & V aimsto offerOver asmany the peopleaspossiblefairprotection.years, the group has grown movements.the tradeunionandmutuality Belgian LabourMovement, whichisstillrepresented ontheboard ofdirectors through delegates from The P& V Group isaBelgian cooperative insurancegroup that wasfounded in1907attheinitiative ofthe A businessestablishedby Progressives P&V Group, Belgium

1 2 3 2 3 1 Slovakia Malta Ireland (onlyIreland life) Bulgaria Bulgaria Spain Finland Poland Sweden Czech Republic Hungary Italy Moderate 20%-40% 1 2 4 2 3 2 3 2 3 Greece Slovenia Latvia Luxembourg Portugal Croatia Belgium Lithuania Low 10%-20% Source: ICMIF Global Mutual Market Share, AMICESource: Market Statistics ICMIF GlobalMutual pensioninsurance 4) exclusive ofstatutory share isstillsizeable. no mutualinsurers are allowed, thesector’s market This explainswhy where for exampleinSlovakia, of foreign mutuals. business volume oflocal branchesandsubsidiairies mutual andcooperative insurers includesthe share many ofthe Note: countries, themarket In Czech Republic Croatia insurance absent: is(practically) EU countries where mutualorcooperative 2 3 2 2 3 2 2 3 2 Cyprus Ireland Malta Estonia United Kingdom 0 -10% Romania Latvia 3 3 2 3

THE PEOPLE’S BUSINESS 17 Top 5 EU states for consumer, retail and pharmacy retail consumer, for 5 EU states Top cooperatives 1 France 2 Finland 3 Germany 4 Denmark 5 UK continue to exist for the benefit of their customers. benefit of their customers. the exist for continue to to their In their profits they return some cases, in a dividend, a share through directly, customers prices and maintain and in others they reduce deem a service others would shops where be to profitable. insufficiently have In these cooperatives countries, many the methods and driven new retailing pioneered food adoption of fair trade policies that benefit particularlyproducers, countries. those in developing independent businesses allow Retail cooperatives in compete under a joint brand to together come to markets. In retail to highly competitive a similar way they combine the strength cooperatives, agricultural brands strong build to of independent ownership pooling scale, which can be marketed on a greater costs keep to and helping food power purchasing low. Income Income 362 bn Euros each year

Consumer cooperatives retain their cooperative their cooperative retain cooperatives Consumer which means that they purpose, and structure The original cooperative shops were established as a shops were cooperative original The food of affordable where market to response failure, In the public. quality to a trusted was not available were since the first coop shops the almost 200 years to grown of these businesses have many established, become market known leading well brands. In some cases, cooperatives are the pre-eminent are In cooperatives some cases, in the economic a major role playing businesses, countries. in their respective and social development perhaps the best known are retailers Cooperative brands. cooperative Cooperatives tend to start to tend based around Cooperatives small, of like-mindedgroups success of But the people. has enabled many the years these businesses over known well into market leaders in a whole grow to range of business sectors.

returning value to customers to value returning retail: and Consumer markets, in retail big businesses are Cooperatives

18 THE PEOPLE’S BUSINESS 2011, S-Bankhadaround 2.5millioncustomers. operationswere launchedbyBanking SGroup theendof andtheS-Bank wasestablishedin2007.By beginning, andlater theSOKCooperative wascreated School Enterprise in1919. Training provided for employees ofSGroup’s hasbeenanintegral part operationssincethevery to ofgoods. ensureenterprises andhighquality theavailability in Finland ofpurchasing interms power. addition,itestablishedasignificant numberofindustrial In of a significant aspect 1920and1950.SOKwastheleadingwholesalebusiness between Finnish society intheFinnishCooperative withinwhatisnow factor SGroup activities soonbecameakey economy and set upin1904to managejointpurchases andprovide adviceandguidance. The cooperative spread principle rapidlyinFinland century. was twentieth SOKCorporation intheearly continueto guideSGroup’saccording to theuseofservices operations. volume ofpurchases. ofsurplus andthedistribution ofopenmembership,The principles democracy according forbidden, allmembershadonevote to primarily wasdistributed the was strictly andsurplus stores were in1889.Its opento Society followed all, Nutritional General selling on credit by theHelsinki Employees ofthe Vyborg in establishedthefirstcooperative workshop society Finland in1882,soon Cooperatives were establishedinresponse to thisfailure ofthemarket. people into andhygiene. continuingtheircustomer relationships productquality whilstneglecting nineteenth century, many merchants private aimedfor maximumprofit andusedspiralsofdebt to trap The origins ofcooperative retail inFinland across iscommonwiththeexperience Europe. the In Russia. and businessintheBalticcountries andhospitality tradeandthetravel industry in thesupermarket additionto chains. itsregionalthe development ofthevarious In andnationalsubsidiaries, SOKengages isalsoresponsible for It thestrategic guidanceofSGroup services. and andsupport procurement, expert operatesSOK Corporation asthecentralcompany for thecooperatives andprovides themwith inFinland.retail market whichisownedCorporation, by thecooperatives, boastsa45% share ofthefood anditssubsidiaries. It 1,600 outletsinFinland. independent regional SGroup consistsoftwenty cooperatives andSOK S Group withmore sectors isaFinnish than ofcompaniesoperatingintheretail andservice network A food retail market leader Finland –SGroup

THE PEOPLE’S BUSINESS 19 The international E. Leclerc stores operate to the same principles in Spain, Portugal, Italy, Poland and Poland Italy, the same principles to in Spain, Portugal, operate stores international E. Leclerc The than 2.4 billion more representing outside France, been created already have 112 stores Today, Slovenia. in turnover. euros The founding principles remain the same today: to defend consumers and their purchasing power. today: the same and their purchasing consumers principles remain defend founding to The Members must follow a few simple rules that codify practices: sell at the lowest price, distribute 25% price, simple rules that codify practices: sell at the lowest a few Members must follow voluntarily participate and to their employees the management. in Members must fully of their profits of their profits. any E. Leclerc pay to and they do not have their store, own The brand was established by social reformer Edouard Leclerc in 1948 as a response to restrictive restrictive to as a response in 1948 Leclerc Edouard social reformer brand was established by The monopolism and trade opposed to He was market in France. practices retailers suppliers and by shorten committing his business to to intermediaries, retailers supply chains and help independent using a unified brand. by compete E. Leclerc is a French cooperative society cooperative and hypermarket 500 than more has currently chain which a French is E. Leclerc of business members independent These of the country. outside and 114 stores in France locations annually. EUR50 billion in turnover over for account Leclerc E. Leclerc E. commerce through Social reform

20 THE PEOPLE’S BUSINESS principle of principle “one person,onevote”. This hasclear controlled by theirmembers, according to the areis thatthey jointlyowned anddemocratically cooperatives compared to otherhousingproviders different housing countries, butwhatcharacterises There are different cooperative housingmodelsin homes through mutualownership. enabling tenants to control decisionsaffecting their provides arealistic route to affordable housing, whilst inmany inEurope countries the housingmarket and of Cooperative part housingrepresents animportant Cooperatives canprovide affordable homes Housing: million people Provide homesfor more than9 Income 22bnEuros eachyear 5 Italy 4 Poland 3 Germany 2 Sweden 1 Austria Top 5EUstates for cooperative housing only theirmembersbutalsothepublicinterest. andbenefitsnot onthehousingmarket other actors implications for theway operate they compared to conditions onthefinancialandhousingmarkets. neighbourhoods, andcopingwithunfavourable stock aswell astheenvironmental ofthe quality demand improving ofthehousing thesustainability challenges, suchasadaptingto thechanging housing providers are facedwithanumberof Housing cooperatives aswell asotheraffordable across theEU. affordable housingisacute inmany communities changes leadingto smallerhouseholds, theneedfor housingcostsanddemographicAt atimeofrising

THE PEOPLE’S BUSINESS 21 Mostly located in urban areas, the cooperatives have between 20 to 100 apartments, between 20 to with an average have the cooperatives Mostly in urban located areas, portfolio in HSB cooperative has 1,033 units. largest The of 80 units. size the housing cooperatives. by properties owned The are (building and land) of membership. approval for is responsible Board The must be members of the cooperative. Tenants tribunal. as a member can lodge a complaint with the local rent An individual who is not accepted occupancy them unlimited giving Members rights buy shares as long as they fulfill their obligations. sold at market the right sublet or sell the apartments own HSB and Riksbyggen to are value. Shares in sold. not completely units are cases of new where coop development the rare loans and amortisation interest expenses of the cooperative’s that covers Members a monthly fee pay to is related monthly fee The maintenance. as the operating expenses and scheduled future as well occupies. of the units the member the size 101 housing cooperatives, 334,000 housing units representing 8% of the total housing stock and 15% housing stock 8% of the total 334,000 housing units representing 101 housing cooperatives, stock multi-family-housing of the total 412,000 individual members housing stock) rental of the total units (15% 228,000 rental occupation housing stock). 106,000 owner-occupied owner units (21% of total • • • • Housing cooperatives (HSB and Riksbyggen’ portfolio) key characteristics are: (HSB and Riksbyggen’ Housing cooperatives • The original goals of the tenant organisation activists were to give everyone a way to control their everyone control to give a way to activists organisation were goals of the tenant original The though Even in society. groups large housing to good provide as to housing situation as well choose their management service, to the freedom most of them buy their have housing cooperatives respectively) Riksbyggen (or organisation service maintenance and administrative regional HSB their from keepingwhich also contributes to and their umbrella close links between the housing cooperatives known good quality which are housing and good maintenance for Housing cooperatives organisations. makes them cheaper in the long run. Cooperative housing was a response to extreme shortages housing to housing speculation. housing was a response and severe Cooperative and make the necessary promote HSB Riksförbund to founded In organisations 1923, tenant support political bodies in to development. of coop housing representations Housing cooperatives in Sweden Housing cooperatives Solving the housing shortage • portfolio housing cooperatives is divided in: The • • At the end of 2005, the housing cooperatives portfolio the housing cooperatives the end of 2005, was as follows: in Austria At • As a result of the long-term government support for housing, every support of the long-term government housing, a result As sixth for in an lives inhabitant of Austria today. apartment housing association a limited-profit and/or managed by built The oldest and still active housing cooperative in Austria was founded in 1895. At that time, there was no there that time, in 1895. At was founded in Austria oldest and still active housing cooperative The housing development limited-profit first movement. The the cooperative supportstate or for housing for imperial by Established in 1908 sanction, the is still operating. was established in 1907 and company shares, profit as limited such housing policy, the essential components of Austrian public fund enabled auditing. assets and government ties-up of rents, reasonable In the middle of the 19th century, housing reformers concerned by distressing living conditions and living conditions concerned distressing by In reformers housing 19th century, the middle of the the birth associations. housing for the way of limited-profit paved growth population Housing cooperatives in Austria cooperatives Housing one in six people for homes Providing

22 THE PEOPLE’S BUSINESS 5 Netherlands 4 Cyprus 3 Germany 2 Spain 1 Italy Top cooperatives 5EUstates andservice for industry morale.indicators ofworker business. are Both lower strong inemployee-owned ideas, andabsenteeism andlabourturnover are towillingness innovative contribute andability Employee ownership is associated withagreater be shown to bemore productive andengaged. Through engagementas owners, can workers isrewarding.work beneficiaries, wealth isshared more equitablyand shareholder. With employees astheshareholding information andcontrol –inthehandsof fruits ofownership –income, capital appreciation, to wealth creation. Directownership putsallthe are productive, disproportionately andcancontribute rewardOwner employees for workers theirefforts. Employee owned businessdirectly incentiviseand andlackofopportunity. economic deprivation for better known and talentsofregions otherwise Cooperative businesscanchannel thelatent skills fulfilling work Cooperatives canprovide rewarding and &Services: Industry the EU than 1.2millionpeopleacross Provide employment to more Income 95bnEuros eachyear also leadto of plantclosures, whenatleast part orbusiness failures addition,bankruptcies In found. whilenobuyer orsuccessorcanbeopportunities, retire, businessorseekother setupanew representing 600,000jobsbecausetheirowners approximately eachyear, 150,000enterprises to theEuropean Commission, theEUmay lose cooperative form.under theworker According bought outby theemployees andre-established businesses thathave been transferred to, or are owned firms the Many worker result of drive for growth andjobs. cansubstantiallyhelpEuropewhich inturn inits promotion ofcooperatives will helpcooperatives, in theirregions. Better publicpoliciesfor the ofgrowth,periods whileremaining embedded andsteady expansionduring economic stability profits. cooperatives alsohaveWorker a record of term ratherthanthepursuitofshort objectives to thewellbeing ofmembersandothersocial iscommittedand inhow theirbusinesspurpose firm’s capabilities for localneedsorsubcontracting, to redeployfor the otherbusinessopportunities downturns, decideto oroften look market during ratherthanreducehours andadjustsalaries jobs onflexible toworkenable worker-members take of self-managementfor worker-members, which Their motivations strengthto theintrinsic islinked alive. localeconomicactivities their jobsandkeeping fromof enterprises closure, maintainingmostof have beennetjobcreators, saving alarge number many ofbusiness. casesthesefirms other types In sustainability, jobsandcapital/debtratiothan seen to bemore resilient ofeconomic interms ownership was thefinancialcrisis, During worker

THE PEOPLE’S BUSINESS 23 Policy should encourage regulatory frameworks for regulatory encourage should Policy frameworks for consortia, of cooperative the creation in particular as those networks level, regional at local and the sustainability of the reinforce considerably enterprises. constituent should also support national policies and European people. young by of cooperatives the establishment primary from of education, levels different Through university to schools, technical education, specialist access to have people should young courses, business model is the cooperative where programs taught. part of or all of a firm is offered to employees by its owners by its part to employees of or all of a firm is offered to the closing of a business been or will be laid off due have of employees a group a new cooperative form company and after at least nine workers the closing target from How it works: How the closing of a firm, as soon as they consider a buy out project anticipate if: to can begin Employees • • • The Italian method of creating WBOs is a negotiated conversion and business restructuring and business mechanism conversion WBOs is a negotiated ItalianThe method of creating with a unique set of supportive approach by a collaborative policies and a financing structure facilitated and the state. sector, between workers, the cooperative State funding that would otherwiseto finance funding that would benefits is used State on unemployment been spent have It that this for the taxpayer; it is estimated these new cooperatives. has been phenomenally efficient for an economic return in 270 businesses and generated nearly 14,000 jobs, has safeguarded investment the Italian of 6.8 times the capital invested. State Under a legal framework that is known as the Legge Marcora (Marcora Law), an infrastructure of support Law), Under a legal framework (Marcora Marcora that is known Legge as the assist the worker to buy-outhas been created of firms. Perhaps the best known example of this is Italy, where these conversions take place as negotiated these conversions best known the where example of this is Italy, Perhaps and local authorities and sector, cooperative the between workers, exiting owners, buyouts employee bankruptcy courts. Worker cooperatives can play a significant part firms would otherwise a significant can play rejuvenating which cooperatives in in Worker close, can actThis as an is a supportive there policyplaces where this. facilitate and business infrastructure to policy. employment essential component of a progressive Turning social security payments into investment into social security payments Turning Law the Italian from Marcora Lessons In some European regions, such as Italy’s Emilia- regions, In some European Basque Autonomous and Spain’s region Romagna strong established have cooperatives Region, their by and controlled industrial owned clusters constituent cooperatives. Policy needs to support to needs Policy direct financial mechanisms to in enterprises in order invest help employees to should be employees, to transfers business engineer supported. the activity is profitable. The potential of saving saving of potential The the activity is profitable. cooperativization the enterprisesthrough jobs and otherwise that would of enterprises, close down, a public policyshould be objective.

24 THE PEOPLE’S BUSINESS workers’ orcapitalinvestments. initialstart-up tocontribute cooperative thecapitalizationofanew viashare ordebtcapitalfinancingona1:1ratiowith andforemployment intimesofcrisis the conversion into cooperatives. ofbusinessesincrisis These funds State The Italian Treasury hasmade available fundsfor two WBOs inorder to promote and secure levels of project. a WBO before consolidationof associations andconsortia, decidingto orfurther invest inorassistthestart-up for closelywithemployees, CFIworks workers. locallabourandbusinessrepresentatives, cooperative coops, andinvestsstudies for worker ofnew capitalordebtfinance assessingtheviability risk agency, Cooperazione Finanza (CFI), Imprese whichprovides technical assistance, businessfeasibility mutualistico) whichisdedicated to cooperative development. This ismanagedby money aspecialist law,By cooperatives 3%oftheirannualprofits must contribute Italian to anationalfund(fondo business fail. personalassetsshouldthe cooperativesare to from worker protect limited risking workers liability ventures capitalcanbenolessthan€4,000.New to thestart-up perworker The minimumcontribution • • • the target company via: Once employees form cooperative canbegin into they orallof theprocess aworker ofpurchasing part F C Pr CFI cooperativescapitalization: has generatedan CFI In osters par ontributes to from theacquired assetsofthetarget company. secured by projectionsonfuture revenues cooperative and/or by oftheworker thecollateral offered debt capital unemployment insurancebenefits advances ofupto three years oftheircashtransfer-based oftheir andemployer portions share capitalpurchases financed paymentsby theirpersonal savings/redundancy ompts atleastanequalcapitalization dotazione aCFI di Rotazionein Capital Capilale Rev 84 €/mill tnerships ofMutualistic olving v

estment 2007-2014 improving compan

financing from eitherthecooperative oraninstitutional financier withfunds sector economicr . 2007-2014 CFI capital Generated by 576 €/mill eturn f y rating Fu

paid bycooperatives nds andtheentr . Irpef (individual or theState6.8timescapitalinvested inthecooperativeby social cushions Ta cooperatives L income tax) esser useof 124 €/min 181 €/min x and str es paidby 37 €/min engthens theabilit y ofotherin

member v estor y toaccessthecr wo s rker s ; e dit system 215 €/min by cooperatives Social securitypaid 15 €/min CFI CapitalRivaluation Dividends 4 €/min paid byworker Estimated indirec ; , InterestIncome s t tax ,

THE PEOPLE’S BUSINESS 25 One of the successes of Mondragon has been its ability to create a sense of identityOne of the successes of Mondragon among the workers has been its ability create to one part where has been shown This solidarity. of an environment encouraging within the company, of the business has supported performing less well units within the group. The system of governance is arranged so that the worker members of the cooperative own a share of is arranged of governance a share so that the worker system own The members of the cooperative and participate cooperative), elect and in the overall their managers (in each company their company, positions and the lowest salary betweenThe executive range limits the difference in all major decisions. paid. than the lowest make the highest paid can never more 6.5 times paid employees; In priest,Catholic 1956, a Jose Mariato the Arizmendiarrieta according established the first cooperative, and participaterun when workers best their owners principle that companies are are in management was curtailed a time when civic freedom At for an outlet in Spain, Mondragondecisions. provided democratic expression The Group was originally established as a response to overwhelming social need in the Basque country. overwhelming to established as a response the Basque country. social need in was originally Group The without and Basques were of Spain, regions had victimized the republican regime fascist Franco The opportunitiesemployment alongside their loss of freedom. Mondragon is Spain’s tenth largest business group. Itretail financial and in the industrial, operates business group. largest tenth Mondragon is Spain’s the Mondragon Today, of in the field sectors initiatives and also develops and education. knowledge 80,000 workers. It employing has 147 companies and competitive is a highly internationalised, group and it has become a worldbenchmark in of history, 50 years with over group successful cooperative terms of work in cooperation. The world famous Mondragon cooperatives, from the Basque region of Spain operate a business a business operate of Spain region the Basque from worldfamous Mondragon The cooperatives, and supportive equitable Its cooperation. on inter-company model based a fair, deliver objective is to owners. on behalf of its employee business Basque Cooperatives at Mondragon at Basque Cooperatives humanity work at promotes that Enterprise

26 THE PEOPLE’S BUSINESS Works Council alsositontheBoard. created, andare represented by anoutsideDirector whositsontheBoard. Three officialsofthe elected The mainFrench tradeunions(CGT, have always beenpresent, FO, ever sincethegroup was CFDT) ensure theirimplementation. legal,manufacturing, salesetc). Their missionisto thestrategic determine guidelinesfor thegroup and are nineto members, fifteen allcomefrom they thecooperative, andfrom different (IT, departments four years,Every themembersofBoard ofDirectors are by elected allemployees-members. There continuity. andensuring equity not beshared are andthey contribute final;they to thedevelopment ofthecooperative by consolidating isallocated toin theform thecompany’s ofdividends, andanotherportion reserves. may These reserves employees intheform ofbonusesandprofit-sharing, isattributed to employee-members anotherportion at least51%ofshare ispaid capital.to all Profit-sharing aportion outonthebasisoffairness: iscarried Board ofDirectors. The Board thenappointsitsChairman. interests,The employees holdthemajority i.e. As acooperative, UpGroup’s instrategic the 700employee decisionsandelect membersparticipate 3,000peopleandhasrevenuesnearly ofover 340millionEuros. 21millionbeneficiaries, Up togroup businesses. employs Operatingin17countries, serving services shareholders. Upgroup now provides arangeofemployee programmes, benefit,loyalty andfinancial Up Group’s parent company, ChèqueDéjeuner, is100%owned by itsemployees withnoexternal offer solutions to improve dailyliving, andcontribute to socialprogress. first membersofthecooperative laidthe foundations ofwhat remains thevisionofUpGroup to thisday: employee lunchbreaks. creating By theChèqueD Established in1964by tradesunions, Le ChèqueD Created by Trades Unionsfor thebenefitof workers inFranceUP Group services ejeuner mealvoucher, asimpleandeffective tool, the ejeuner cooperative wasdesigned to improve

THE PEOPLE’S BUSINESS 27

United KingdomUnited Top 5 EU states for renewable energy cooperatives energy renewable for 5 EU states Top 1 Germany 2 Denmark 3 Austria 4 Netherlands 5 the profits, they also have access to clean energy at a to clean energy at access they also have the profits, fair price. - affordable REScoops keep the individual investment nor panels, Not everyone suitable for solar has a roof does everyone the financial capacityto make have installations are Such production such an investment. keeping of citizens, group typically a large by owned affordable. the individual investment They REScoops community. benefit the local partusually share with their members the profits of new develop or benefit projects and use the rest to the local community Some coops for as a whole. financed the construction of a local example have sustainable concert a others erected while hall, all citizens Thus, electric point for bicycles. charging that they profits and the the projects benefit from generate. REScoops take action efficiency on energy - the projects energy renewable from that result revenues efficiency finance energy often used to measuresare in material insulation paid for Some have public buildings. of a wage while others pay the public buildings, for expertlocal energy and the local who helps citizens efficiency. energy their overall municipality improve REScoops using keep by money in the local economy and stimulating local employment sources, local energy they keepThus money within including local citizens. the local community otherwise that would be lost.

650,000 citizens active in energy active in energy 650,000 citizens transition Income 1 bn Euros each year 1 bn Euros Income

renewable targets renewable Cooperatives can help to reach reach help to can Cooperatives REScoops foster social acceptance for renewable renewable social acceptance for REScoops foster energy renewable opposition to - Local energy projects (typically when wind turbines) decreases the opportunity in and given are invest citizens to is especially This co-own the production installations. the veryfrom involved are true when local citizens start and of the project. Stakeholder involvement participation foster social acceptance direct citizen in not only share Local citizens energy. renewable for Anyone is eligible to join a REScoop; after purchasing join a REScoop; after to purchasing is eligible Anyone and becoming a member and share a cooperative co-owner the members share in of a local project, the opportunitygiven and often are to buy profits the electricity In at a fair price. addition, members can actively participate they can in the cooperative: the REScoop should invest, decide in what and where price. setting the energy when consulted and are A ‘renewable energy sources cooperative’ (REScoop) cooperative’ sources energy ‘renewable A in the field of that cooperate of citizens group is any new which includes developing energy, renewable providing or energy production, selling renewable services. energy related A renewable energy to citizens makes it possible for cooperative’ sources actively participate and energy energy in renewable efficiency projects. Renewable energy: Renewable

28 THE PEOPLE’S BUSINESS on energy matters. cooperatives, becauseoftheway are they owned, are ableto intandemwiththelocalpopulation work madeitpossibleforThe Ecopower project inEeklo to grow more widelyanddemonstrated how ventilation system ofthebuilding. of onethebuilding’s heatingrequirements, Ecopower introduced system onthe aheatrecovery plant usingplantoilto supplyheatto ofthecity’s two buildings. a co-generation To cover alarger part over theyears. Ecopower sponsored anature information centre, setupsolarinstallations, andinstalled Ecopowerto thecity, hadalsooffered whichhave services led anumberofextra to fruitfulcollaboration Ecopower were thewindturbines didnotleave after theoffer installed. thecity In for thepublic tender disappointments. As aresult, onethird Ecopower ofthenew memberswere inhabitantsofthecity. communication ensured thatcitizens felt hadareal they say intheproject. There were or nosurprises andEcopowerThe thecity closecollaborationbetween asthewinddeveloper, andtheopen process.authorisation a maximumnumberoflocalcitizens were to thatcontributed successfactors speedingupthe combined withitscarefully plannedandexecuted process ofopencommunicationaimingto involve the project there wasnolocalopposition.Ecopower’s closecollaborationwiththelocalauthorities inEcopower’s factor isseenasakey The engagementofthelocalcommunity success. Throughout project saw thecreation were ofthree ofwhichtwo builtinonly10months. windturbines actually Ecopower projects ina launchedoneoftheirfirstwindturbine record timeof22months. The land owned by thecity. Ecopower later secured athird site. private locationonanearby launchedapublictenderon to windturbines buildtwo ofEeklo stadium were 1999thecity too high.In Ecopower beganbecauseoneofthecity’s felt Aldermen thatenergy costsofthemunicipalfootball and secondlythe2003decisionto becomeanenergy supplierinthewiderFlanders region. growth ofEcopower maindrivers. hadtwo Firstly ofEeklo thebuildingofthree inthecity windturbines from 47membersin1999withtheinitialhydro projectto more than43,000membersin2012. The Ecopower isoneofthelargest renewable energy cooperatives inEurope. grew Membership quickly Cooperative collaboration withlocalcitizens Ecopower, Belgium

THE PEOPLE’S BUSINESS 29 In Germany there are more than 900 grid operators, many are small, like EWS. For years the EU has the EU years like EWS. small, are For many operators, 900 grid than more In are Germany there Many market, operators. of grid the number change the energy minimize Germany to to been telling to fulfil the unable a financial perspectivethey are because from up, give to have operators small grid this is an area operators, small grid to Bureaucracy is the major enemy regulators. from requirements that should be improved. Being the grid operator of Schönau EWS was able to give every citizen the ability to produce energy. of Schönau everyBeing EWS operator the grid energy. give ability the was able to produce citizen to tariffs. feed-in guaranteed paying hedged by were And these investments EWS new taking can develop that by people cooperatives the hands of the demonstrates in to matters pioneers of The ideals of their organisation. of members and the business models that suit the demand energy. of renewable and the production energy on saving EWS focus to wanted EWS subsidiary in 1994 as a 100% created was of Netzkauf EWS but GbR. It years, long seven took the local electricitysucceeded in buying EWS this first success, in 1997. After grid and is now expanded in eight grids years, During the following Wembach. of the gas networkthe owner in Schönauand bought. neighbouring villages were In 1986 residents of Schönau, Germany founded an organisation named “Parents for a nuclear-free a nuclear-free for “Parents named an organisation GermanyIn founded of Schönau, 1986 residents established the active citizens These energy. save to others about how informed They (EfaZ). future” Netzkaufelectricity buy the made plans to GbR in 1991 and themselves. grid EWS provides electricity to about 137,000 people and gas to around 8,500 people bought from EWS electricity from 8,500 people bought provides around to people and gas about 137,000 to they 1% of the energy about various own produce installations that They currently markets. European provide. Netzkauf EWS eG (ElektrizitatsWerke Schonau, EWS, Schonau, Germany) Netzkauf EWS(ElektrizitatsWerke eG activism generation energy to environmental From

30 THE PEOPLE’S BUSINESS policy ideas policy the People’s Business: How Progressives canbuild • • • • • • • to turn itssentimentsintoto asolid political plan. turn ProgressivesIf adoptthePeople’s BusinessCharter, proposals itwillbepossibleto considerspecificpolicy The People’s BusinessCharter People’s BusinessCharter. approach.new To helpsetthefoundation for this, we would firstpropose that Progressives adoptthe interests ofpeople, ratherthancapital. Progressives willneedto firstestablishthecore ofthis principles Progressives to seize theinitiative andpromote have theopportunity businessthatistrulyinthe Legislation andregulation for shouldmatch thebeststandards these firms for any business ownership ofpublicallylisted companies Fiscal measures canpromote cooperatives, mutualsandmemberowned businessesasmuchshare their creation anddevelopment canrecogniseNational policy thevalueofthesebusinessesandprovide appropriate incentives for ownership Progressives ofcorporate canchampion thesebusinessforms onanequalbasisalongsideothertypes ofbusiness withalltypes terms Cooperatives, mutualsandmemberowned businessesshouldbeableto compete freely andonfair Progressives policiesthatpromote should adopt enterprise The People’s Business people over capital Progressives theinterests should commit to thatprioritises avisionoftheeconomy of andsociety • • • • Policy theeffects ideasthatcounterbalance ofglobalisation Financial intheinterests ofcustomers, services notcapital An economy that prioritises peoplebeforeAn economy thatprioritises otherinterests Businesses that challenge inequality andspreadBusinesses thatchallengeinequality wealth The of objectives The People’s Businessare: • • • Work andrewarding thatismeaningful Energy security throughEnergy localcontrol security Access affordable to quality housing 4

THE PEOPLE’S BUSINESS 31 Business policy the should actively promote of corporate diversity in each maintenance Member State Business policy and fair free should facilitate so that competition between all business forms on compete able to and mutuals are cooperatives field in all EU states playing a level corporations should for and regulation Legislation firms owned investor an advantage to not give should be responsible National Governments measuring and reportingfor on changes in the of diversitylevels annually; the EU Commission should co-ordinate an EU database of corporate ownership Progressives should adopt a policy objective Progressives supportto corporate plurality of and the role through and mutual businesses cooperative and regulatory actions. legislative policy, appropriate • • • • Progressive Policy proposals: Policy Progressive It policy consistent is a is essential that there In Union. practical the European across approach be a policy, should means that there this terms, and regulatory frameworklegislative in each member all types compete that facilitates to of business state and fair manner. in a free Policy ideas for Progressives for ideas Policy specific consider to be possible it will Charter, Business People’s adopt the IfProgressives plan. solid political a policy develop to proposals In some European countries, and in some business countries, In some European and corporate plurality, is already there sectors, of national government sometimes this is the result historical but usually it is connected to policies, that nation. In to factors relevant other countries is little or no corporate diversity, there and industries, discriminationleading to against or a lack of support which means that they and mutuals, cooperatives for fairlycannot compete in the economy. Worker owned and customer owned businesses owned and customer owned Worker because their in the same way do not behave term long Their outlook is more purpose if different. serving to because their business purpose is related rather than short-term stakeholders, profit different shareholders. maximisation for Rather than merely considering corporate form, we Rather we considering corporate form, than merely types of purpose different of should look at the core It solely on shareholder business. is no good relying to ensure want we firms maximising if profit economy, such as our wider that other interests, to are or the environment employees customers, is that this just leads us reality The be safeguarded. with a game of cat and mouse of regulation into set up doing what they only are corporations that are shareholders. for – maximise returns do to The experienceThe of the financial crisisteach should manage the risk better that our to have us that we lack of corporate diversityThe faced. economy in the banking a and insurance sector led to owned banks among shareholder effect’ ‘domino of which many the world, around and insurers for lessons here are There failed simultaneously. the financial services industry we which of course, industry but the bigger point is that any later, address similarly institutions will by owned that is dominated be vulnerable at times of stress. An economy that prioritises people prioritises that economy An other interests before

32 THE PEOPLE’S BUSINESS countries they are they countries due. interests andensures thattaxes are paidinthe help to drivebusinessthatoperates inthepeople’s domestically owned cooperatives andmutualsto There policiesto shouldbeactive promote these andarenational boundaries locallyfocussed. interests oftheirmembers, operate within typically Cooperatives maintainacloseproximity to the brands. to thegrowing counterbalance power ofglobal effects onnationalexchequers, butmore isneeded being madeto align taxationpoliciesto dampenthe oftheEU.to compete are inamarket now Efforts inmanyindustries countries, leaving themlessable This hashadareal effect onjobsandproductive owners. theinterestsstrategies to ofdistant devised serve their operations, to andinstead corporate subject leaving governments withlittleinfluence over wheretax inthecountries operate, they and elsewhere,headquartered paying often little governments, withcompaniesowned and of unintended consequencesfor domestic hasanumber The liberalisationofmarkets from coffeeservices, shops to retail stores andbanking. of globalandregional brandsfor many day to day ownership hasbegunto leadto thedominance increasingly globalisedeconomies, In multi-national ofglobalisationeffects Policy ideasthat counterbalance the economies. thesewould belost to local jobs where otherwise andquality of multinationals, maintainingskills continuing localemployment following theexit We have seenhow cooperatives canprovide • • • Progressive Policy proposals: countries that they are thatthey countries due. nationals andensure thattaxes are paidinthe interests, provide competitionto multi- keen help to drivebusinessthatoperates inthepeople’s domestically owned cooperatives andmutualsto There policiesto shouldbeactive promote these available in EUmemberstates Legislation demutualisationshouldbe to restrict competing withgloballisted firms mutuals are disadvantagedwhen notunfairly Policy shouldensure thatcooperatives and adopted in allstates cooperative andmutualownership shouldbe Fiscal incentives thatrecognise thevalueof

THE PEOPLE’S BUSINESS 33 Fiscal policy and customer should incentivise Fiscal in cooperatives worker investment participation ownership Wider in cooperatives should be encouraged Progressives need to consider active policies need to Progressives and help of wealth the spreading that promote in the financial share to and employees customers success of their businesses. Progressive Policy proposals: Policy Progressive • • Progressives need to consider active policies that need to Progressives in the share to and employees help customers financial success of their businesses. Mutuals and cooperatives are an important are Mutuals and cooperatives part in all EU forms; landscape of business of a diverse is a varyingcountries of diversity there in degree is a This typeterms of ownership and business model. have of a range of business policies that direct result either consciously or firms, owned investor favoured as a consequence of other decisions. Cooperatives spread wealth by distributing by their wealth spread Cooperatives of dividends or surpluses in the form members to shareholder to Compared pricing. lower through more is spread ownership businesses, owned proportion of customers with a greater widely, the economic from benefit able to and employees benefits of business. Ownership matters. The way a business is owned will owned a business is way The Ownership matters. it the strategy it conducts the way affect its affairs, Ownership the profits. and what happens to pursues, widely. unless it is spread wealth acts concentrate to If left markets, to this concentration will continue as and takeovers mergers consolidation, through served are ahead of those of workerscapital interests or customers. Businesses that challenge inequalityBusinesses that and wealth spread

34 THE PEOPLE’S BUSINESS strategies hasnotbeenaddressed. owned firms similarly following similarbusiness is concerned. Yet dangerposedby thestructural is understood asfarregulation oftheindustry protect theEUfrom similareconomicshocks. This hasto bearesponsibility ofgovernments to It damaged livingstandards for millionsofcitizens. out banksandthesubsequentrecession thathas a directresult ofthetaxlossesincurred inbailing for people. policiesare Austerity thelives ofordinary hashadfar-financial crisis reaching consequences The shockcausedto European the economiesduring customers, notcapital Financial intheinterests services of permit customer ownershippermit to flourish. be simplybasedoninvestor andmust owned firms sector.the financialservices Regulation shouldnot in cooperatively able ownedto play firms afullpart objective, with ownership mustbeapolicy The needto ensure ofcorporate diversity • • • Progressive Policy proposals: investors alike raise capitalfrom theirmembersandexternal Cooperatives andmutualsshouldbeableto businesses andfacilitate theircontinuedgrowth should recognise thespecificitiesofthese forRegulation cooperative banksandinsurers memberstate in every offer financialservices Cooperatives to andmutualsshouldbepermitted

THE PEOPLE’S BUSINESS 35 Employees should be supportedEmployees take to an stakeownership in the firm work they in through fiscal incentives policy sponsored should be government There using social worker ownership, promote to initiatives security such as exist in Italy funds as investment, Progressives should promote policies that should promote Progressives encourage high quality work is rewarding that include active could policies This workers. for re-routing social worker facilitate ownership, to EU citizens all and giving security investment into the opportunity benefit. to Progressive Policy proposals: Policy Progressive • • Through engagement as owners, workers can be engagement as owners, Through Worker and engaged. productive more be to shown willingness with a greater is associated ownership and ideas, and ability contribute innovative to in lower are and labour turnover absenteeism indicators strong worker-owned Both are business. of worker morale. Cooperative business can channel the latent skills business can channel the latent Cooperative otherwiseand talents of regions known better for economic deprivation and lack of opportunity. Employee owned business directly incentivises and business directly owned Employee their efforts. workersworkers for Owner rewards are and can contribute disproportionately productive, puts all the Direct ownership creation. wealth to capital appreciation, – income, fruits of ownership – in the hands of the and control information workers With as the shareholding shareholder. equitably and more shared wealth is beneficiaries, workis rewarding. Progressives should promote policies that encourage policies that encourage should promote Progressives The workers. for high quality work is rewarding that that worker improves evidence is strong ownership business performance satisfaction at and employee has led to globalisation which a time of increasing among workers. powerlessness of greater feelings Work that is meaningful and rewarding that Work

36 THE PEOPLE’S BUSINESS conditions onthefinancialandhousingmarkets. neighbourhoods, andcopingwithunfavourable stock aswell astheenvironmental ofthe quality demand, improving ofthehousing thesustainability number ofchallenges, suchasadaptingto changing affordable housingproviders are facedwitha Today, housingcooperatives aswell asother interest. benefits notonlytheirmembersbutalsothepublic to commercial and players inthehousingmarket implications for theway operate they compared ofoneperson,vote.principle This hasclear controlled by theirmembers, according to the areis thatthey jointlyowned anddemocratically cooperatives compared to otherhousingproviders different housing countries, butwhatcharacterises There are different cooperative housingmodelsinthe homes through mutualownership. enabling tenants to control decisionsaffecting their provides arealistic route to affordable housing, whilst inmany inEurope countries the housingmarket and of Cooperative part housingrepresents animportant Access affordable to quality housing • • • Progressive Policy proposals: include provision for cooperatively owned homes. Progressive policiesfor affordable housingshould structures minimum oftenant control inmanagement Publicly fundedhousingshouldinsistona to cooperativeshould extend housingprojects Financial for socialhousinginitiatives support ownership ofaffordable housing agendathatenablescooperative and policy Progressives alegislative shouldsupport

THE PEOPLE’S BUSINESS 37 National legislation and policyNational legislation should specifically support and ownership a whole range of citizen participation and/or use of in the production including setting planning sustainable energy, expectations and certainty, direction provide In to order for should establish targets national governments targets specifically, more and, energy renewable community power. for should not be subject projects Community power to in order bidding processes competitive to support; operating they should be receive instead, tariffs. feed-in receive to eligible should provide Governments (at all levels) financial supportfor preliminary investigations projects. and works on community power Progressives can adopt policies to encourage to can adopt policies Progressives energy community renewable of ownership regulatory and fiscal projects through means. Progressive Policy proposals: Policy Progressive • • • • legislative and policy environment in a clear and and policylegislative environment legal frameworkcan support that coherent diverse differences. national and regional Progressives can provide stronger support the stronger for can provide Progressives a supportive creating by democratization of energy, Those countries with significant local cooperative local cooperative countriesThose with significant of the highest level have projects renewable partlyof overall, as a result energy renewable support policies to proactive this. Shared ownership also helps to promote greater greater promote also helps to ownership Shared conservation energy Cooperatives consumers. by and consumer side to work both on the producer they can best insulate people on how help educate electricity reduce their homes, usage and helps to goals. meet their energy Cooperatives are also able to provide shared shared provide also able to are Cooperatives and invest Local consumers economic benefits. reductions or made, dividend in profits a receive is a rational This means there in the tariff paid. a for consumers who truly have economic benefit transition. the energy stake solution to in a renewable This is because the democratic structure of the democratic structure is because This that it is projects means energy renewal cooperative likely that local people will supportmore planning that they if it can be shown applications in their area is a clear This the wishes of local people. with accord we think of the challenges in benefit such as when the building of wind turbines. securing for sites Switching to clean decentralised renewables is crucial is renewables decentralised clean to Switching on polluting reliance its current end is to if Europe oil gas, such as coal, sources and harmful energy can make a significant Cooperatives and nuclear. the number of renewable contribution increasing to nations to helping and therefore projects energy obligations. meet their renewable Energy security through local control security through Energy

38 THE PEOPLE’S BUSINESS Research Institute onCooperative (EURICSE)in2011. Research Enterprises Institute andSocial The StudyGroup onEuropean Cooperative Law (SGECOL) wasestablishedwiththehelpofEuropean research project onPrinciples ofEuropean Cooperative Law (PECOL). 3 Principles,ative andNationalReports. Commentaries Law: 2 1 laws. that shouldbeadopted for principles cooperativekey lawsinternational andpoliciesidentifiessome cooperative law asfound innational, European and features thekey This analysissummarises of ofbusiness.with othertypes to date legislation, cancooperatives compete freely each memberstate. Onlyby having relevant andup for cooperatives are available to thesebusinessesin thatthebestelementsoflegislation isimportant It recognition andprotection by law. the specialfeatures thatdefineacooperative need from ofcorporations. othertypes This isbecause have aspecialnationallegalregime thatisdistinct purpose. Typically, inmostEU countries, cooperatives thatareand objectives basedontheirbusiness businesses, cooperatives have theirown identity other like operateAlthough they inthemarket insurance. or financialservices sectors, suchasbanking, regimethe sameregulatory asothersinregulated law regime asotherbusinessesandare to subject enterprise. They operate underthesamecommercial onthesamebasisasany other economic activity Across theEUcooperatives engageinallforms of Cooperatives andEUlaw Appendix 1 cooperative identity vis-a-viscooperative otherbusinessorganisations. identity and theUnited Kingdom. The projectdeveloped themain provisions ofcooperative law neededto protect on existingcooperative law inseven Finland, European jurisdictions: France, Germany, Italy, Portugal, Spain PECOL developed “model” legalprovisions isbased comments. (thePrinciples) It accompaniedby explanatory See EURICSE See PaperWorking No. StudyGroup 024/12New onEuropean Principles Project Cooperative Law: for more information onPECOL. The fullresults Ltd 2017by willbepublished inlate UK underthetitlePrinciples Intersentia ofCambridge 2016orearly ofEuropean Cooper More information canbefound aboutSGECOL athttp://www.euricse.eu/study-group-on-european-cooperative-law/. anditswork, 3

participation aseasypossible. participation remoteto make andfaceto facemember voting andcommunicationmethodslikely Cooperative laws shouldencouragetheuse rights. participation limited return andhave limited governance members whoprovide thatbutreceive a tobe permitted admitnon-userinvestor relying ontheirmembers’ shares should Cooperatives require capitalandaswell as business sectors. andoperateenter indifferent transactions to asotherenterprises enjoy thesameability For cooperatives businesspurposes should enterprises. cooperatives to avoid misuseby other use ofthetitle “cooperative” to genuine Cooperative ofthe laws shouldrestrict KeySome Principles for Cooperative Laws 2

1 This paperrefers to theSGECOL -

THE PEOPLE’S BUSINESS 39 This is reflected in many national laws and in the and in laws national in many is reflected This principles the including ICA Statement, of voluntary who can benefit, anyone open to membership member based on one member control democratic contribution, of capital limited regardless one vote the importance on capital, returns cooperative of and the state, both capital suppliers from autonomy cooperation among the emphasis on education, and the community aim as benefit cooperatives, protection The members. cooperative decided by other misuse by from “cooperative” of the title is a central legal requirement. organisations of emergence the recent recognised PECOL in the which operate cooperatives” interest “general of the community rather than the general interest reflects This members. of their own mutual interests the 1991 Italian from developments on social Law of integration which pursue the social cooperatives health and education social, managing by citizens services disadvantaged people in the or integrating solidarity ‘social with followed Portugal workforce. on social services. which concentrate cooperatives’ and French cooperatives initiative” “social Spanish then followed. cooperatives interest” “collective Most law countries their general cooperative place Others cooperatives. act to in a separate dedicated place it in another act, such as the civil code (Italy) or special rules have Many code (Belgium). the company particular banks, for such as cooperative cooperatives housing cooperatives, cooperatives, agricultural France worker or social cooperatives. cooperatives examples of the use of prominent and Portugal are special laws. natural or legal persons members are Cooperative as consumers, who engage with the cooperative membership may suppliers or workers. However, or public bodies volunteers extend investors, to the pursuit of the cooperative to committed a minimum of two Most require objective. systems Most jurisdictionsmembers. cooperative allow subject reasonable to membership to statutes their particular to conditions related type or racial, ethnic, social, but ban gender, objective, discrimination and artificialpolitical or religious restrictions on membership. Cooperative Governance; Cooperative Structure; Financial Cooperative and Audit; Cooperative Among Cooperatives. Cooperation The Definition and Objectives of Cooperatives; DefinitionCooperatives; The and Objectives of “A cooperative is an autonomous association is an autonomous cooperative “A meet their to voluntarily of persons united and cultural needs social, common economic, a jointly-ownedand aspirations through and democratically-controlled enterprise.” The ultimate objective of cooperatives is to satisfy the is to objective of cooperatives ultimate The needs of their members as consumers or suppliers the goods or services. However, of the cooperative’s maximize to companies is controlled aim of investor as capital distributing value by profits shareholder value of the exchange and increasing remuneration investors. held by the shares Cooperative Identity and Definition Cooperative identity of cooperative in this used keyThe features paper use the ICA definition of a cooperative: They are used here to summarise the approach of summarise to the approach here used They are Law. Cooperative to legal systems European • • • • PECOL developed five five Cooperative developed key of elements PECOL Law: • National cooperative laws are influenced by the legal influenced are laws cooperative National each jurisdiction of and approach by and culture the history of a country’s and structure cooperative the affects the legal culture example, For movement. for law by laid down extent which legal rules are to leftthe to are far choices and how all cooperatives structure The of each individual cooperative. statutes and history sectors affects cooperative of national for all cooperatives is one unified law far there how types for different exist regimes far different and how emerge below listed keyThe features of cooperative. those variations. despite Key Features and Legal Context of Context Legal and Features Key Law Cooperative

40 THE PEOPLE’S BUSINESS other businessesorentrepreneurs. cooperatives. Producer cooperatives consistof often cooperatives, andsuppliersfor producer cooperatives,worker consumersfor consumer responsibilities ofmembership–employees for any legalornaturalpersonwillingto acceptthe Cooperative membershipshouldbeopento and Open Voluntary ofCooperatives Membership member control. it operates providing ensure they autonomy and ofcooperative inwhich andthesector and type according to thesizegovernance structures to vary European cooperative legalsystems generallypermit nature ofcooperatives. owned, democraticallycontrolled andautonomous behalf oftheirmembers. That reflectsthejointly- cooperatives are directed andcontrolled by oron vote to ensure ratherthancapitalcontribution that onthebasisofonemember usually works concerns.and democraticcontrol asthekey That Cooperative governance emphasisesmembership Cooperative Governance cooperative identity. filling” leads to anerosion ofthelegalprotection of to avoid aprocessis important by whichthis “gap- deal withmatters notregulated by cooperative law. It otherlaws, includingcompanyOften, law, applyto reserves. gotomember cooperative indivisible transactions recognition. somesystems, In profits from non- the cooperative may losefiscalbenefitsorlegal becometoo oftrade,if they large aproportion cooperatives mustrecord and, suchtransactions butinsomesystems,non-member transactions that condition.Many cooperatives alsoengagein for theexpulsionofamemberwhofailsto meet andallowrequire aminimumlevel ofparticipation orjobs. Cooperativeof goods, statutes services may through withmembers for transactions theprovision Cooperatives mainly mustpursuetheirobjectives voting should be available, particularly in elections inelections voting shouldbeavailable, particularly vote atmembersmeetings. Postal orelectronic to educationandtrainingto attend speakand Cooperative membersmay enjoy individualrights the pursuitofgeneralinterest. cooperatives, allmemberobligationswillfocus on control ofthecooperative. generalinterest In ingovernance. participate That ensures usermember capitalbuthavecontribute to limited rights to have non-userinvestor members. They must acooperativelaws permit and the SCERegulation To assistcooperatives to raisecapital, somenational laws. liabilities orlossesare imposedby somenational ofthecooperative’straining andto bearaproportion governance. ineducation and Dutiesto participate in level ofparticipation andacertain contribution, withthecooperative,transactions aminimumcapital obligationsmay includeaminimumlevelMember of or nationalcooperative law. andareconcerned found inthecooperative’s statutes according ofcooperative to thetype They vary confersMembership andimposesobligations. rights andObligations Rights Member appeal againstexpulsionto themembers’ meeting. expulsion, to beinformed ofthereason for it,andto to beheardmember mustincludetheright before member’s resignation. The procedure to expel a andotherconsequences capital contribution the noticeperiod, any adjustmentofthemember’s procedure for endingmembership. They dealwith Cooperative statutes govern thegrounds and membership isopeninlinewithICAprinciples. for cooperative registration orauditmustensure that cooperative, thenationalbodyresponsibleparticular hasalegallyenforceable to joina right no-one is madeandbeableto appealagainstrefusal. While and theapplicantmustbeheard before adecision reasonable time. mustbegiven Reasons for refusal applications are dealtwithby theboard withina Cooperative statutes mustensure thatmembership

THE PEOPLE’S BUSINESS 41 receive financial information about performance about information financial and receive and board auditors financial and remove appoint members. based on is generally meetings in members’ Voting companies in contrast to one vote” member “one However, one vote”. share “one the norm is where plural can have delegates members or their based on participationvotes in cooperative members represented, the number of transactions, due ensure to in multi-stakeholder cooperatives, or, such as groups member of different representation It and customers. is importantemployees link to not capital contribution prevent to and to plural votes variationsThese minority of the cooperative. control used are system member one vote” “one on the usual only when necessary functioning the better of for with cooperatives “secondary” or in the cooperative as members. cooperatives “primary” within a similar legal operate meetings Members’ the meetings of other civil societyframework to notice of the agenda and Adequate organisations. is needed to the time and the place of meetings members an opportunity Quorum give attend. to not that decisions are ensure requirements Most decisions of the membership. unrepresentative simple majority but cast made by are of the votes fundamental for required special majorities are statutes amend the cooperative’s to e.g. decisions, must hold it. Cooperatives or restructure or dissolve has also meetings but the board annual members’ Typically, call extraordinary to power meetings. do so if a certain to number or it will be required proportion of members demand an extraordinary such as the cooperative’s Another body, meeting. supervisoryown or or audit committee board call to power also have may an outside regulator meetings. and Internal Management Boards, Cooperative Controls with executive deal boards Cooperative Those and supervision.management, representation functions can either be performedthree one by or divided tier system”) (“one board administrative between a supervisory and a management board division between the That (“twoboard tier system”). in the is fully reflected systems two possible board The members’ meeting has power to appoint to meeting has power members’ The day to day the who oversee directors and remove to power but retains operations of the cooperative They include decisions make fundamental decisions. or to the cooperative or dissolve restructure to meeting will members’ The amend its statutes. The members’ meeting may be organised as one be organised meeting may members’ The or In with a large meeting or several. cooperatives widely dispersed membership sectoral meetings the all member general They replace common. are delegates by represented meeting and members are meetings to should allow law The at the next tier. and the cooperative take to place as is best suited via postal or electonic face, its members: face to a mixture of media. communication, or through The Members’ Meeting Members’ The The legal rules on cooperative governance aim to aim to governance on cooperative legal rules The active through democratic control member ensure member participation in policy making and major basis of one member usually on the decisions, is structures range of governance The one vote. national of each by the legal culture influenced be left the statutes may to discretion Wide system. be laid or detailed rules may of each cooperative some legal In small cooperatives, law. by down permit participatesystems all members to in directly making every decision but most divide governance meeting and one or between the members’ powers to day which oversee or committees boards more decision-makingThe of powers management. day or by law fixed are other committees and the board statutes. cooperative Democratic Governance of Cooperatives Governance Democratic for directors and on any issues decided by direct direct by decided issues on any and directors for electionMembers and for can stand vote. member receive They other information. financial and receive engage in cooperative on their shares, interest as refund a cooperative transactions and receive Collectively, meeting. and general board by the fixed rights propose to procedural enjoy members call additional to election as directors, for candidates amendments to propose to meetings, members’ or restructure seek to and to statutes cooperative the cooperative. dissolve

42 THE PEOPLE’S BUSINESS producer. may to contribute Members capitalequally member withthecooperative asconsumer, or worker shareholding butontheeconomicrelationship ofthe Cooperative membershipisnotfocused on dissolved. that level may result inthecooperative being minimum total share capital andreduction below requireSCE Regulation) cooperatives to maintaina However, somenationallegalsystems (andthe disclosure. This contrastswithcompany shares. to itdonotinvolve amending thestatutes orpublic Cooperative share andchanges capitalisvariable them. forlimited liability businessdebtsofthosewhohold company shares,Like cooperative shares quantifythe loans andotherfinancialinstruments to raisecapital. As businessorganisations, cooperatives useshares, Cooperative Financial Structure and theircooperative’s statutes. faith, withduecare andinlinewiththelaw andskill, managers mustusetheirpowers honestly, ingood procedures.or election Cooperative directors and for removal anddisqualificationappointment law oreach cooperative’s statutes, asare grounds and theirqualificationsare laiddown incooperative The numberofboard members, ofoffice, theirterm andadministrative boards. supervisory Cooperative onboth membersform themajority auditors. organ willliaisewithexternal supervisory or ofthemembers’ meetingmay beused. The system, subcommittees oftheadministrative board outby aseparate board.is carried theonetier In tiersystem, thetwo supervision or managers. In involves executive monitoring Supervision directors national systems, e.g. France. (c) oneormore directors ormanagersinsome (b) themanagementboard tiersystem, inthetwo or (a) theadministrative board intheonetiersystem Those powers are allocated to: formally foract thecooperative inalegalcontext. business operations. Representation isthepower to an SCE.Executive managementinvolves day to day eitherapproach whichpermits in SCE Regulation cooperative orto additto reserves. withthe to theirtransactions members inproportion members’ may chooseto meeting. itto distribute It The decisionabouthow to applyitismadeby the cooperative’s tradecanbeusedinanumberof ways. The profit, from orsurplus, thatarises the covered by otherreserves. can onlybeusedto cover abalancesheetlossesnot reserves may beassigned to Mandatory reserves. area. Apercentage orprofit ofthenetannualsurplus retention geographical ofresources inaparticular and promotion ofemployment opportunities tax concessionsfor cooperatives basedontheir are sometimes,Such reserves asinItaly, abasisfor even onthesolvent dissolutionofthecooperative. isindivisibleamongmembers reserve mandatory somesystems, In reserves. the build voluntary against tradinglosses. Cooperatives alsofrequently cooperative educationordevelopment orasabuffer for reserves, example,mandatory to support require jurisdictions cooperativesSome to build from themember. value oftheirshares plusorminusamountsdueto or leaves thecooperative canbepaidonlythenominal to approvalis subject by theboard. Amemberwho transfer members orpotential membersbutevery Cooperative shares canbetransferred among upwards withthelevel ofprofits.return mustnotvary in acompany,business. thereturn onequity Unlike the needed to raiseandretain enoughcapitalto runthe fixed rate.Interest isnever higherthantheamount Cooperative share capitalispaidinterest atalimited fromstakes dominatingthecooperative. hold to prevent afew memberswithlarge capital or amountofshare capitalthatany membermay Legislation usuallylays down amaximumproportion to theircooperative transactions. or inproportion

THE PEOPLE’S BUSINESS 43 Cooperation Among Cooperatives Among Cooperation among cooperatives of cooperation Principle ICA The acknowledges PECOL is part identity. of cooperative two aspects: economic and socio-political and use of forms the Bothcooperation. involve of each the autonomy that safeguard structures the principles guided by of are and cooperative solidarity and subsidiarity. equality, among of economic cooperation forms The contractual include cooperatives relationships of a secondaryand the creation higher-level) (or Socio-political a corporate or group. cooperatives promote use an association to cooperation might representation, through interests cooperatives’ advisoryeducation and training, services, audit or settlement. Otherdispute objectives might include or the of newsupport cooperatives the creation for of of existing ones and the promotion development business model. the cooperative In some European legal systems cooperatives cooperatives systems legal In some European subject an audit of their functioning to are as In Audit Germany the Cooperative cooperatives. ‘management use a special cooperative Federations the financial in addition to cooperatives for audit’ audits a monopoly over have Federations The audit. carryThey out and use specially trained auditors. a mandatory audit of the viability pre-registration compliance and verify project of the proposed Member orientated requirements. with registration by an annual internally is measured effectiveness and report. plan promotion In addition, member such as serviceorientated effectiveness, at near cost, is refund member advantages and the patronage transparency, with the cooperative’s together audited the quality practices of its employment and its use ordinaryto go beyond annual surplus and profit Social Responsibility. Corporate As enterprises, cooperatives are subject financial to are cooperatives enterprises, As that those rules similar to audit and accounting SCE RegulationThe applies companies. apply to which implements the EU the national legislation . SCE’s to directives accounting Law Company Auditing Audit & Cooperation among cooperatives among & Cooperation Audit

44 THE PEOPLE’S BUSINESS • • • • • • • • Elements: 3. • • • Elements: 2. • • • • Elements: 1. intheproject undertaken ofactivities Details Appendix 2 Attendance and participation ateachevent Attendance andparticipation Engagement ofadministrative assistance Logistical includingtravel arrangements and Organisation of presentations andmaterials toInvitations participants Identification ofspeakers ofagenda Development Liaison withFEPSevents andmanagement Preparation for andattendance at sixpolicy with Negotiation andapproval ofparticipation Discussion andengagementwithpartners Identification ofappropriate partners accommodation Rome Sofia Barcelona Copenhagen Berlin Brussels seminars: Cooperative organisations sector bodies sector Liaison withEUwidecooperative andmutual Production plan ofproject work assistance Engagement ofadditionalexternal Identification ofinternal resources Project design workproject plan Production ofconcept andpreparation ofthe 20 January 2016 20 January 2016 12 January 27 November 2015 20 November 2015 2015 28 October 23 September 2015 • • • • Elements: 8. • • • • Elements: 7. 6. 5. • • • • Elements: 4. Final checksanddocumentproduction Engagement of additional external forEngagement ofadditionalexternal design and andeditingfinaldocument text Drafting Working with thedataprovidedWorking from background Production offinal report Management ofandliaison withvideodesignersManagement assistance Engagement ofadditionalexternal assistance Identification ofadditionalexternal considerationofvideoconcept Initial Production ofvideoto accompany final report Preparation for andattendance ofthe Young Preparation for andattendance at meetings Production ofbackground research resources, Advisor andresearcher inrelation activities to their Engagement ofresearch assistance advisor Engagement ofexpert Production ofbackground research concept research to utiliseinfinal report to produce finalvideo European conference Socialists inSicily, Italy Italy Cooperative Enterprises andSocial in Trento, with theEuropean Research Institute on core research identification ofcasestudiesandproduction of engagement withMutuo

THE PEOPLE’S BUSINESS 45 Chiara Carini, EUICSE Valdarnese Industria Vetraria Simone Carresi, Manager Affairs Blandine Cassou-Mounat, European Italy Socialist Covatta, Party, Luigi AIM Romain Chave, REScoop Daan Creupelandt, Belgium Mutuels Socialiste, Alain Coheur, Malta Degabriele, Cooperatives Marylee Farrugia Commission European Dell, Fabien Alternatives Foundation Santiago Diaz de Sarralde, Okti Doncheva, CCU-Bulgaria CECOP Officer, Policy Diana Dovgan, Institute Thought Progressive Erdogan, Cengiz on Economy Spanish Law Esperança Esteve, Nationwide Anne Fairweather, Malta Degabriele, Cooperatives Marylee Farrugia PES Group Olga Fotinou, Zentrum Manuel Gath, Das Progressive Campalans Rafael Cristina Gonzalez, Fundació Ilana Gotz, EURICSE ICMIF Liz Green, EACB Herve Guider, Social Gusi, Tandem Jordi Progress for New Institute Economic Harizonova, Elena Catherine Hock, ICMIF University of Oxford Hutton, Will S.A Internacional Juan Mari of Mondragón Herrasti, former president Institute Thought Nebil Ilseven, Progressive Bulgaria CCU Krasimir Ignatov, Zentrum Bastian Jantz, Das Progressive CERA Jacobs, Lieve Katya Koleva, for Social Institute Integration Sweden Coompanion Ulf Kyrliüg, Erika Network of European Lambert, Social Integration Officer, Policy (ENSIE) Enterprises DGRV Dirk Lehnhoff, Impresa Finanza Melissa Lilli, Cooperazione

Institute for Social Integration for Social Institute Balova, Integration Tanya FR Coop Bancel, Jean-Louis TASC Ireland, Begg, David Campalans Rafael Hub and Fundació Empowerment Sara Berbel, Bevilacqua,Elisa EACB Riccardo Bodini, EURICSE Febecoop Bosmans, Peter Impresa Finanza Cooperazione DeCamillo Berardinis, Secretariat of the Bruno Busacca, Responsible for the Technical Italy Minister of Labour, Social Busi, Tandem Jordi Fondazione Socialismo Fondazione Acquaviva, Gennaro Movement of the Labour Council Lars Andersen, Economic Movement Latvian Green Aris Adlers, EURICSE Alexopoulos, Yiorgos Cooperatives Catalan Alonso, Perfecto Italiane Cooperative Alleanza Rosario Altieri, President We also thank Dr Iain Macdonald, formerly of the also thank Dr Iain Macdonald, We whose wisdom International Alliance, Cooperatives as as well throughout and advice has been invaluable his legal expertise.Ian Snaith for In particular like thank all our colleagues would to we Studies Progressive European for at the Foundation the their kindness, over and patience generosity for past 18 months but in particular; and Dr Ernst Stetter backing of for the endeavours Massimo D’Alema the start,this work from her Charlotte Billingham, for coordinating throughout and commitment energy the work and Kate with us her impeccable Koc for skills.organisational Throughout the project we met and engaged with we the project Throughout policy academic, sector and cooperative numerous like would to We experts and business executives. their expertise people for and thank the following help in assisting our work. It been have not would without the put this document together able to support of the very below. people listed many

Acknowledgements Appendix 3 Appendix

46 THE PEOPLE’S BUSINESS ski, FEPSYoungński, Rydli Bartosz Academica Network ChemnitzUniversity Rybnikova, Irma Dawn Researcher Regan, Rozga, TowarzystwoAgniezka Wzajemnych Ubezpieczen Party Catalan Rangel, Joan Socialist Cooperative Ralli, Nitsa Central Cyprus Bank, Philipps, FES Robert Elise Pedersen,Lykke Kooperationen Zoltan Pogatsa, ofWest University Hungary Piero Pagnotta, Socialismo Associazione P Pekka Parks,Jason Korean Cooperatives Özturanli,ProgressiveIskender Thought Institute Arjen vanNuland, Cooperative Dutch Council Esther Niubó, Fundació Rafael Campalans Niederlander,Klaus formerlyofCooperatives Europe ğlu, Köyluo ProgressiveAli Mutlu Thought Institute Conor Mulvihill, IrishCooperative Organisation Society Fundació Montilla, Jose Rafael Campalans Medic, Institute forEconomicMilan Democracy of Czech Government Advisor Maussen, toJana theOffice Stefania Marcone, Legacoop Salvatore Manfredi, Fenix Pharma Economy forPublic AustrianAssociation &Social Heidi Maier-de-Kruijiff, ättiniemi, Coop Finland May Woldsnes,May Susanne Westhausen, Peter Vittek, Mark Vernaillen,Hilde Vassiljev,Rannar Vansintjan,Dirk Marcus Tumpel, Gareth Thomas Stephane Tisserand, MAIF, GEMA Telfer,Ben Willem Swinnen Lucie Susova, Young European Socialists Štromajer,Jernej ofLjubljana University Yiannos Stavrinides, Cooperative Central Cyprus Bank, ć Stanojevi Ilda Petar Stefanov, CCU-Bulgaria P&VGroup Speltdoorn, Marnix Helen Sheppard, AMICE Foundation Development Simbotin,CivilSociety Roluca Sellars, CooperativeDermot HousingIreland Laura Silmani,Young European Socialists ICA Anne Santamaki, Philipp Sälhoff, Progressive Das Zentrum éta Vinkelhoferová, ICMIF Utopia Association , Croatian Centre forCooperative Entrepreneurship Norwegian CooperativeNorwegian Centre REScoop MP Chemnitz University P&V Group Former ofHealthinEstonia Minister Kooperationen Ekumenicka Akademie

THE PEOPLE’S BUSINESS 47 Finland www.pellervo.fi France www.enterprises.coop www.coopdefrance.coop Germany www.dgrv.de www.web.gdw.de Greece www.diktio-kapa.dos.gr Hungary www.afeosz.hun Ireland www.nabco.ie www.icos.ie Italy www.agci.it www.confcooperative.coop www.legacoop.coop Latvia www.llka.lv Lithuania www.lvks.lt www.koopkelias.lt Luxembourg www.centralepaysanne.lux Malta www.cooperatives-malta.coop

NATION BASED RESOURCES: BASED NATION CENTRAL RESOURCES: CENTRAL Estonia www.eca.ee Denmark www.kooperationen.dk Czech RepublicCzech www.dacr.cz Cyprus www.coopbank.com.cy Croatia www.zadruge.coop Bulgaria www.cks.bg Belgium www.febecoop.be Austria www.gbv.at www.ica.coop www.coopseurope.org www.eacb.coop www.icmif.org www.amice-eu.org www.europcoop.org www.housingeurope.eu www.cecop.coop www.copa-cogeca.be www.euricse.eu www.rescoop.eu Key web information resources accessed in the resources Key information web report:production of this

Bibliography Appendix 4 Appendix

48 THE PEOPLE’S BUSINESS in themutual andcooperative insurance sector. AMICE (2011),Cross-border business andcooperation 2008. Memorandum, 2007, Explanatory Regulation Draft AIM/AMICE, European Society, Mutual AMICE /AIM ADDITIONAL SOURCES: www.ews-schoenau.de www.ecopower.be www.up-group.coop www.mondragon-corporation.com www.cfi.it www.e-leclerc.com www.s-kanava.fi www.pv.be www.creditmutuel.fr www.iru.de www.rabobank.com www.tias.edu www.eacb.coop www.nicolas-feuillatte.com www.arla.com STUDIES: CASE www.uk.coop United Kingdom www.kf.se Sweden www.coceta.coop Spain www.zadruzna-zveza.si Slovenia www.dusr.sk Slovakia www.ucecom.ro Romania www.confe.coop Portugal www.krs.com.pl Poland www.cooperatie.nl Netherlands of Economic Research, MA Cambridge NBER PaperWorking 8716,January, National Bureau Then: What Lessons from theLastEra of Globalization, Eichengreen, B. andBordo, Now and M.(2002),Crises Volume 5,30thAugust, CUC, Toronto Credit UnionCentral (2010), Policy andAdvocacy, of employees. with regardCooperative Society to theinvolvement July 2003supplementingtheStatute for aEuropean (SCE).Council Directive 2003/72/ECof22 Society 2003 ontheStatute for aEuropean Cooperative No1435/2003 of22July Council (EC) Regulation London Rewards: realising themutualadvantage, Mutuo, andD. J. J., Michie Cook, S.Deakin, Nash(2003), Trust London atmutualsisbetter thanatbanks, BSA, service AssociationBuilding Societies (2010),Customer 233 Perspectives inEurope,Country Paper IMFOccasional Germany’s System –CrossThree-Pillar Banking Brunner, A.,Decressin, J., Hardy, D., B. Kudela, (2004), of mutualsinEurope, Panteia (2012) Studyonthecurrent situationandprospects S.,Bert-Jan B.,Broek, Vennekens, A., Van derHorst,R Issue No. 27,June, BankofEngland, London Bank ofEngland(2010),Financial Report, Stability Centre for European Policy Studies, Brussels Europe: The ofSavings Performance andRole Banks, in Sector intheBanking (2009), Investigating Diversity Valverde, andFrancesco EmrahArbak Fernandez Reinhard SantiagoCarbo Ayadi, Schmidt, Rym, Survey, March, ABI,London2009/10 Customer Impact Report: (2010),Industry Association Insurers ofBritish of CivilSociety, AnheierH.and Toepler S.(Ed.), 2009. Encyclopedia societies, in:International Archambault, Edith, organizations, Mutual mutual Shortfalls? The truecostofDemutualisation &FinancialSocieties (2006), Mutuals Windfalls or Group Parliamentary The for All-Party Building

THE PEOPLE’S BUSINESS 49 Lowet, Lieve (2008), Wat is een “SGAM”?, in: Larcier: “SGAM”?, een is Wat (2008), Lieve Lowet, 2008/8. et financiare Revue bancaire Financier/ Forum Diversity in Corporate Michie, & Llewellyn promoting 2010 Mutuo services sector, the Financial International (2002), An Maassen, Gregory Francesco Models. Governance Comparison of Corporate (2010), Converting failed Llewellyn and D. Michie, J. organisations, mutual into financial institutions 1, Volume Journal of Social Entrepreneurship, Number 1 to An Alternative the Future: Mills, C Funding Mutuo 2009 Capitalism, London Mutuo, MutualsThe Manifesto, Mutuo (2010), OwnershipThe (2012). Plurality, Commission ReportThe of the and Engagement. Stewardship Ownership 2012. March Commission, Mutual & Employee-owned for Centre Oxford 2013, Mutuo and Oxford Yearbook Mutuals Business, Mutual & Employee-owned for Centre Business, Oxford Corporate D,. Stuart, J and Pollard, W, Sun, crisisGovernance and the global financial 2011) (international perspectives (August eclipse of the public The (2010), Economist The 58 21st, p. August Economist, The company, Jones, P.A. (2008), From Tackling Poverty to Achieving Achieving to Poverty Tackling (2008), From P.A. Jones, Inclusion Role of British – the Changing Financial The Income Communities, Unions in Low Credit 37 Volume Journal of Socio-Economics, Insurance Industry Working Group (2009), Vision for for Vision Insurance Industry (2009), Working Group London Treasury, the insurance industry in 2020, HM HM Treasury (2010), A new approach to financial to (2010), A new approach Treasury HM TSO, and stability, judgement, focus regulation: London HM Government (2010), The Coalition: our Coalition: The (2010), HM Government London Office, Cabinet government, for programme Hodgson, G. (1993), Economics and Evolution: and Evolution: Hodgson, G. (1993), Economics Press, Polity Economics, Back into Life Bringing CambridgeUniversity and of Michigan Press, Michigan Hesse, H. and Ĉihák, Banks and Hesse, M. (2007), Cooperative WP/07/2 No. Working Paper IMF Stability, Financial Hancke, B. ed. (2009) Debating Varieties of capitalism: Varieties (2009) Debating ed. Hancke, B. University press Oxford A Reader, Heffernan, S. (2003), The Effect of UK BuildingThe Effect Society S. (2003), Heffernan, of Finance Faculty Behaviour, on Pricing Conversion London Business School, Cass Working Paper, Haldane, A & Davies, R. “The short Long.” speech “The short Long.” R. & Davies, A Haldane, Universitaire at the 29th société presented Colloquium: ères Financi de Recherches européene Brussels in Moneynew paradigms and Finance?, (May 2011). http://www.bankofengland.co.uk/ publications/speeches/2011/speech495.pdf. Fonteyne, W., Cooperative Banks in Europe – Policy – Policy Banks in Europe Cooperative W., Fonteyne, WO/07/159 No. Working Paper IMF Issues, Fama, E., Jensen, Journal M. (1983a), and of Law Fama, Volume 26 Economics, European Commission, Consultation document: document: Consultation Commission, European 03/10/2003. Europe, Mutual Societies an enlarged in

50 THE PEOPLE’S BUSINESS cooperative share capital. Deferred Shares mutualinsurers whichpermits Act, to issue affecting mutualsandcompletedMutuals onthe work policy 2015,PeterIn publishedanindependent review into public internationally. andcontinuesthiswork departments, develop thecooperative witharangeofUKgovernment sector ledinitiatives to to growHe hascontributed policy and &mutuallaw.to update co-operative members billsthrough withallparties theUKParliament, working teams whichpilotedHe ledtheParliamentary five private 200supporters’nearly trustsatprofessional football clubs. the football supporters’ initiative, whichhasgoneonto establish Direct, ofSupporters 1999,hewasaco-founder andsecretary In Party. oftheCo-operative Secretary employee owned businesses. For ten years, hewasGeneral in themutualsector, mutualsand withco-operatives, working years’formers anddecisionmakers. Hehastwenty experience andmutualbusinesstobody to opinion promote co-operative Peter founded in2001asthefirstcross Mutuo mutualsector Peter About us Appendix 5 MUTUO CONTRIBUTORS HUNT , ManagingPartner a graduate of oftheUniversity Warwick. andgovernment affairsexperience. Heis extensive parliamentary of Parliament intheHouseofCommons where hegained Prior to joiningMutuo, asaResearcher for heworked aMember Cooperative SummitinQuebec.International ICMIF Communications Leaders Forum inSingapore andthe He haspresented atanumberofglobalevents includingthe regulators. seniorexecutives,between meetingwithpoliticiansand Business Leader Visit to theUnited States, fostering relationships conceiveddiversity. andcoordinated 2012Mark theUKMutual In Commission year –atwo studyinto corporate the Ownership to asAssistant Secretary 2010and2012,heserved Between MPs andPeers onprojects to helpdevelop mutualbusinesses. Group Parliamentary forParty Mutuals, liaisingwith Government, to theAll communications specialist.Heiscurrently Secretary in2010asapublicaffairsandcorporate joinedMutuo Mark Mark WILLETTS , Partner

THE PEOPLE’S BUSINESS 51 STETTER Ernst European for is SecretaryErnst Stetter General of the Foundation on commentator is also a regular Studies (FEPS). He Progressive EU affairs in the media. in as a lecturer career In began his professional 1976 Ernst Stetter Training Vocational for Union Centre Trade economics at the DGB the Friedrich 2008 he worked 1980 to for From in Heidelberg. Ebert Stiftung (FES) in various positions. is an economist and political scientist. He studied in Ernst Stetter on international focusing (Germany) and Heidelberg Tübingen economic and social policy finance, as development well as trade, his In for in political science issues. 1980 he obtained his PhD I (Lomé of ACP-Countries Association The dissertation entitled Community and the STABEX-System. the European and II) to decoration of Chevalier de l’Ordre the French In 2003 he received national du Mérite. BILLINGHAM FEPS CONTRIBUTORS FEPS Charlotte has been working at the at FEPS since its creation she coordinates of 2008. Amongst her responsibilities beginning In that addition to the activities change and energy. on climate the annual activity of the Foundation she oversees programme concerning matters and deals with structural the and relational members as part and its responsibilities. of her core Foundation Previously, Charlotte assisted in the constituency Charlotte assisted of office Richard Previously, language for English as a foreign She also taught Corbett MEP. as part of her university France the British in south-west Council one each for in Mexico, course and then also after graduating year. Charlotte Charlotte in graduated She England. up in Sheffield, Charlotte grew in 2006. at the University of Leeds Studies and French European

52 THE PEOPLE’S BUSINESS

This book is produced with the financial support of the European Parliament ISBN: 978-2-930769-14-1 9782930769141