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The Social Economy in the European Union

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The Social Economy in the European Union REG.NO. BE - BXL - 27 EuropeanComité économique Economic and et social Social européen Committee Rue Belliard/Belliardstraat 99 THE SOCIAL ECONOMY IN 1040 Bruxelles/Brussel BELGIQUE/BELGIË www.eesc.europa.eu THE EUROPEAN UNION Published by: “Visits and Publications” Unit EESC-2012-55-EN QE-30-12-790-EN-C DOI: 10.2864/19534 EuropeanComité économique Economic and et social Social européen Committee © European Union, 2012 EN Reproduction is authorised provided the source is acknowledged THE SOCIAL ECONOMY IN THE EUROPEAN UNION Report drawn up for the European Economic and Social Committee by the International Centre of Research and Information on the Public, Social and Cooperative Economy (CIRIEC) EN Authors: - José Luis Monzón Campos - Rafael Chaves Ávila Committee of Experts: - Danièle Demoustier - Roger Spear - Alberto Zevi - Chiara Carini - Magdalena Huncova 2 The Social Economy in the European Union – Report by José Luis Monzón & Rafael Chaves THE SOCIAL ECONOMY IN THE EUROPEAN UNION SHORT TABLE OF CONTENTS Foreword: Mr Luca Jahier, President of the Various Interests Group of the European Economic and Social Committee (EESC) and Mr Miguel Ángel Cabra de Luna, Spokesperson of the Social Economy Category of the EESC Preface 1. Introduction and objectives 2. Historical evolution of the concept of the social economy 3. Identifying the actors and groups included in the concept of the social economy 4. The main theoretical approaches related to the social economy 5. Comparative analysis of the prevailing definitions relating to the concept of the social economy in each European Union Member State, acceding and candidate country 6. The social economy in the European Union and in the acceding/candidate countries in figures 7. The legal framework governing social economy actors in European Union countries and acceding/candidate countries and the public policies in place, with a focus on recent new national legislation on the social economy 8. The social economy in a Europe amid global crisis 9. European Union Policies and the social economy, with a focus on the Europe 2020 strategy: facts and impact 10. Challenges and conclusions BIBLIOGRAPHY APPENDIX 3 THE SOCIAL ECONOMY IN THE EUROPEAN UNION TABLE OF CONTENTS Foreword: Mr Luca Jahier, President of the Various Interests Group of the European Economic and Social Committee (EESC) and Mr Miguel Ángel Cabra de Luna, Spokesperson of the Social Economy Category of the EESC Preface Chapter 1. INTRODUCTION AND OBJECTIVES 1.1. Introduction and objectives 1.2. Methods 1.3. Structure and summary of the report Chapter 2. HISTORICAL EVOLUTION OF THE CONCEPT OF THE SOCIAL ECONOMY 2.1. Popular associations and cooperatives at the historical origin of the social economy 2.2. Scope and field of activity of the social economy 2.3. Present-day identification and institutional recognition of the social economy Chapter 3. IDENTIFYING THE ACTORS AND GROUPS INCLUDED IN THE CONCEPT OF THE SOCIAL ECONOMY 3.1. The social economy in the national accounts systems 3.2. A definition of the social economy that fits in with the national accounts systems 3.3. The market or business sub-sector of the social economy 3.4. The non-market sub-sector of the social economy 3.5. The social economy: pluralism and shared core identity Chapter 4. THE MAIN THEORETICAL APPROACHES RELATED TO THE SOCIAL ECONOMY 4.1. The third sector as a meeting point 4.2. The non-profit organisation approach 4.3. The solidarity economy approach 4.4. The social enterprises approach 4.5. Other approaches 4.6. Similarities and differences between these approaches and the concept of the social economy Chapter 5. COMPARATIVE ANALYSIS OF THE PREVAILING DEFINITIONS RELATING TO THE CONCEPT OF THE SOCIAL ECONOMY IN EACH EUROPEAN UNION MEMBER STATE, ACCEDING AND CANDIDATE COUNTRY 5.1. The prevailing concepts in each country 5.2. The actors in the social economy in EU Member States 4 The Social Economy in the European Union – Report by José Luis Monzón & Rafael Chaves Chapter 6. THE SOCIAL ECONOMY IN THE EUROPEAN UNION AND IN THE ACCEDING/CANDIDATE COUNTRIES IN FIGURES Chapter 7. THE LEGAL FRAMEWORK GOVERNING SOCIAL ECONOMY ACTORS IN EUROPEAN UNION COUNTRIES AND ACCEDING/CANDIDATE COUNTRIES AND THE PUBLIC POLICIES IN PLACE, WITH A FOCUS ON RECENT NEW NATIONAL LEGISLATION ON THE SOCIAL ECONOMY 7.1. Legislation governing social economy actors in the European Union 7.2. Public policies towards the social economy in European Union countries 7.3. New national legislation on the social economy (Spain, Portugal, and social enterprises legislation) Chapter 8. THE SOCIAL ECONOMY IN A EUROPE AMID GLOBAL CRISIS 8.1. The social economy amid cyclical and structural crisis 8.2. The social economy amid financial crisis 8.3. The social economy amid an economic and employment crisis 8.4. The social economy amid a public sector and welfare state crisis Chapter 9. EUROPEAN UNION POLICIES AND THE SOCIAL ECONOMY, WITH A FOCUS ON THE EUROPE 2020 STRATEGY: FACTS AND IMPACT 9.1. The social economy in European Union policies: facts and perception 9.2. The social economy in the Europe 2020 Strategy 9.3. Recent European Union initiatives concerning the social economy Chapter 10. CHALLENGES AND CONCLUSIONS BIBLIOGRAPHY APPENDIX Correspondents Glossary 5 FOREWORD by Luca JAHIER As President of the Various Interests Group of the European Economic and Social Committee (EESC) I would like to strongly welcome this study on the state of the Social Economy in the European Union, which was commissioned by the EESC and carried out by CIRIEC. Since the previous study on the same topic published in 2008, much has changed in the European Union and it was considered necessary to re-examine the scope and impact of the sector, both in the EU Member States and in the acceding/candidate countries (Croatia and Iceland respectively). Moreover, 2012 is the UN International Year of Cooperatives and an opportunity for the entire social economy sector to demonstrate its contribution to our societies and our economies. Undoubtedly, the social economy is a sector which makes a significant contribution to employment creation, sustainable growth and to a fairer income and wealth distribution. It is a sector which is able to combine profitability with social inclusion and democratic systems of governance, working alongside the public and private sectors in matching services to needs. Crucially, it is a sector which has weathered the economic crisis much better that others and is increasingly gaining recognition at the European level. Nonetheless, much still needs to be done in increasing understanding, in raising awareness and in building public trust in the sector. A first step in this process is to fully comprehend the scope and scale of the social economy within the European Union and for this reason it has been necessary to revisit the facts and figures. Armed with this information, we must now strive for unity and a new identity for the sector, despite its multiple dimensions. We must reinforce its profile, highlighting its economic and social potential as a solution to the current economic and social crises and as an instrument for positive change. I call on all relevant stakeholders to work together to achieve this! Luca JAHIER President of the Various Interests Group European Economic and Social Committee 6 The Social Economy in the European Union – Report by José Luis Monzón & Rafael Chaves FOREWORD by Miguel Ángel CABRA DE LUNA Four years on we have the pleasure to publish an update of the EESC study on The Social Economy in the EU. Once again, the objective is to provide an overview of the sector in the EU, both from a quantitative and a qualitative perspective. This time we have extended it to the current 27 Member States plus the acceding/candidate countries (Croatia and Iceland respectively). The EESC thus reinforces its commitment to the recognition and promotion of the Social Economy, a sector that not only constitutes an important pillar in terms of employment and social cohesion across Europe, but which is also key to achieving the goals of the Europe 2020 Strategy. As this study demonstrates, Social Economy enterprises in their diverse forms (including social enterprises) play an important role in increasing the competitiveness and efficiency of the European economy in many different ways: through directing disperse and idle resources towards economic activity, mobilising resources at the local level, strengthening the culture of entrepreneurship, eliminating market rigidities, encouraging the flexibilisation of markets, promoting the multilocalisation of production, just to mention a few. Social Economy enterprises also have a greater capacity to maintain employment and to avoid job losses during difficult economic cycles, as witnessed in the current economic crisis. In the last few years, the sector has also been subject to important improvements in terms of political and legal recognition, both at the EU level (Single Market Act, Social Business Initiative, European Foundation Statute, Social Entrepreneurship Funds, etc.) and at the national level (e.g. the recent Spanish Law on the Social Economy). I hope that this study will positively contribute to gathering further momentum for the recognition of the Social Economy. Miguel Ángel CABRA DE LUNA Spokesperson of the Social Economy Category of the European Economic and Social Committee 7 PREFACE In 2006, the European Economic and Social Committee (EESC) commissioned a report from the International Centre of Research and Information
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