BETA


2016/2237(INL) Statute for social and solidarity-based enterprises

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead JURI RADEV Emil (icon: PPE PPE), ROZIÈRE Virginie (icon: S&D S&D), DZHAMBAZKI Angel (icon: ECR ECR), CAVADA Jean-Marie (icon: ALDE ALDE)
Committee Opinion EMPL BECKER Heinz K. (icon: PPE PPE) Laura AGEA (icon: EFDD EFDD), Marian HARKIN (icon: ALDE ALDE), Tamás MESZERICS (icon: Verts/ALE Verts/ALE), Jana ŽITŇANSKÁ (icon: ECR ECR)
Lead committee dossier:
Legal Basis:
RoP 47

Events

2018/11/08
   EC - Commission response to text adopted in plenary
Documents
2018/07/05
   EP - Results of vote in Parliament
2018/07/05
   EP - Decision by Parliament
Details

The European Parliament adopted, by 398 votes to 78, with 44 abstentions, a resolution containing recommendations to the Commission on a statute for social and solidarity-based enterprises.

Importance of the social economy : Members recalled that the social and solidarity-based economy makes a major contribution to the Union economy. Parliament highlighted in its resolutions of 19 February 2009, 20 November 2012 and 10 September 2015 , that the social and solidarity-based economy provides employment for more than 14 million people, which represents around 6.5 % of workers in the EU and 10 % of EU undertakings. The mutual societies operating in the healthcare and social assistance sectors in the Union employ 8.6 million people and provide support to 120 million citizens. These mutual societies have a market share of 24 % and generate over 4 % of the Union GDP.

Members stressed that sector has proved particularly resilient to the economic and financial crisis and has potential for social and technological innovation, decent, inclusive, local and sustainable job creation, fostering economic growth, environmental protection and strengthening social, economic and regional cohesion.

Diversity of the sector : there are substantial differences among Member States in the way they regulate social and solidarity-based enterprises and the organisational forms available to social entrepreneurs under their legal systems. This diversity and the innovative character of certain of these legal forms indicate that it will be difficult to find consensus in Europe as to whether it is convenient or necessary at the present moment to set up at EU level a specific legal form of social enterprise.

This is why Members suggested adopting a more cautious approach that they consider could help build more political consensus and, more importantly, that can have substantial benefits for social enterprises.

European label : Parliament considered it desirable to move towards better recognition of the term ‘social and solidarity-based enterprise’. The Commission is requested to submit, on the basis of Article 50 of the Treaty on the Functioning of the European Union, a proposal for a legislative act on the creation of a European social economy label for enterprises based on the social economy and solidarity.

The legislative act should aim to create an optional European social economy label for enterprises based on the social economy and solidarity, regardless of the legal form they decide to adopt in accordance with national legislation.

The label should only be awarded to enterprises complying with the following criteria in a cumulative manner:

the organisation should be a private law entity established in whichever form available in Member States and under EU law, and should be independent from the State and public authorities; its purpose must be essentially focused on the general interest or public utility ; it should essentially conduct a socially useful and solidarity-based activity, i.e. via its activities it should aim to provide support to vulnerable groups, to combat social exclusion, inequality and violations of fundamental rights, including at the international level, or to help protect the environment, biodiversity, the climate and natural resources; it should be subject to an at least partial constraint on profit distribution and to specific rules on the allocation of profits and assets during its entire life; in any case, the majority of the profits made by the undertaking should be reinvested or otherwise used to achieve its social purpose; it should be governed in accordance with democratic governance models involving its employees, customers and stakeholders affected by its activities.

In addition, the legislative act should:

establish a mechanism of certification and of supervision and monitoring of the legal label with the involvement of Member States and representatives of the social economy; be valid in all Member States . An enterprise bearing that label should be recognised as a social and solidarity-based enterprise in all Member States; require social and solidarity-based enterprises willing to maintain the label to issue on an annual basis a social report on their activities, results, involvement of stakeholders, allocation of profits, salaries, subsidies, and other benefits received; authorise the Commission to establish guidelines regarding good practices for social and solidarity-based enterprises in Europe; include a list of legal forms in Member States of enterprises and undertakings qualifying for the European social economy label. The list should be published on the European Commission website.

Increasing support : Parliament stressed the need to support social and solidarity economy enterprises with sufficient funding , as their financial viability is crucial for their survival. The Commission is invited to promote the European social economy label and to highlight the beneficial social and economic effects of social and solidarity economy enterprises, to better integrate the social economy into relevant EU legislation, policies and programmes and to explore the possibility of creating a line of financing to support innovation in enterprises based on the social economy and solidarity.

Lastly, Parliament strongly emphasised that the rules on how social and solidarity-based enterprises operate must respect the principles of fair competition and must not permit unfair competition, in order to allow proper functioning of traditional small and medium-sized enterprises.

Documents
2018/07/05
   EP - End of procedure in Parliament
2018/06/27
   EP - Committee report tabled for plenary
Details

The Committee on Legal Affairs adopted a report by Jiří MAŠTÁLKA (GUE/NGL, CZ) with recommendations to the Commission on a Statute for social and solidarity-based enterprises.

The Committee on Employment and Social Affairs, exercising its prerogative as an associated committee in accordance with Article 54 of the Rules of Procedure, also gave its opinion on the report.

The social and solidarity-based economy makes a major contribution to the Union economy . Parliament highlighted in its resolutions of 19 February 2009, 20 November 2012 and 10 September 2015 , that the social and solidarity-based economy provides employment for more than 14 million people, which represents around 6.5 % of workers in the EU and 10 % of EU undertakings.

Members stressed that sector has proved particularly resilient to the economic and financial crisis and has potential for social and technological innovation, decent, inclusive, local and sustainable job creation, fostering economic growth, environmental protection and strengthening social, economic and regional cohesion.

There are substantial differences among Member States in the way they regulate social and solidarity-based enterprises and the organisational forms available to social entrepreneurs under their legal systems. This diversity and the innovative character of certain of these legal forms indicate that it will be difficult to find consensus in Europe as to whether it is convenient or necessary at the present moment to set up at EU level a specific legal form of social enterprise.

This is why Members suggested adopting a more cautious approach that they consider could help build more political consensus and, more importantly, that can have substantial benefits for social enterprises.

The Commission is requested to submit, on the basis of Article 50 of the Treaty on the Functioning of the European Union, a proposal for a legislative act on the creation of a European social economy label for enterprises based on the social economy and solidarity.

The legislative act should aim to create an optional European social economy label for enterprises based on the social economy and solidarity, regardless of the legal form they decide to adopt in accordance with national legislation.

The label should only be awarded to enterprises complying with the following criteria in a cumulative manner:

the organisation should be a private law entity established in whichever form available in Member States and under EU law, and should be independent from the State and public authorities; its purpose must be essentially focused on the general interest or public utility ; it should essentially conduct a socially useful and solidarity-based activity, i.e. via its activities it should aim to provide support to vulnerable groups, to combat social exclusion, inequality and violations of fundamental rights, including at the international level, or to help protect the environment, biodiversity, the climate and natural resources; it should be subject to an at least partial constraint on profit distribution and to specific rules on the allocation of profits and assets during its entire life; in any case, the majority of the profits made by the undertaking should be reinvested or otherwise used to achieve its social purpose; it should be governed in accordance with democratic governance models involving its employees, customers and stakeholders affected by its activities.

In addition, the legislative act should:

establish a mechanism of certification and of supervision and monitoring of the legal label with the involvement of Member States and representatives of the social economy; be valid in all Member States . An enterprise bearing that label should be recognised as a social and solidarity-based enterprise in all Member States; require social and solidarity-based enterprises willing to maintain the label to issue on an annual basis a social report on their activities, results, involvement of stakeholders, allocation of profits, salaries, subsidies, and other benefits received; authorise the Commission to establish guidelines regarding good practices for social and solidarity-based enterprises in Europe; include a list of legal forms in Member States of enterprises and undertakings qualifying for the European social economy label. The list should be published on the European Commission website.

Lastly, the Commission should ensure that its policies reflect the commitment to create an ecosystem for social enterprises and take steps to promote cooperation between social enterprises and solidarity-based enterprises across national and sectoral boundaries.

Documents
2018/06/20
   EP - Vote in committee
2018/05/23
   EP - Committee opinion
Documents
2018/01/17
   EP - Amendments tabled in committee
Documents
2017/10/23
   EP - Committee draft report
Documents
2016/10/06
   EP - Committee referral announced in Parliament
2016/10/06
   EP - Referral to associated committees announced in Parliament
2016/04/14
   EP - BECKER Heinz K. (PPE) appointed as rapporteur in EMPL

Documents

Votes

A8-0231/2018 - Jiří Maštálka - Résolution 05/07/2018 12:44:58.000 #

2018/07/05 Outcome: +: 398, -: 78, 0: 44
DE FR IT ES RO AT PT HU PL BG BE CZ HR SK FI LT DK SI LV EE SE LU NL MT IE EL CY GB
Total
76
62
48
28
25
16
18
12
33
12
19
13
10
10
10
7
11
6
6
5
10
4
18
3
8
6
1
42
icon: PPE PPE
142

Finland PPE

For (1)

1

Lithuania PPE

1

Estonia PPE

For (1)

1

Sweden PPE

For (1)

1

Luxembourg PPE

2

Malta PPE

1

Ireland PPE

2

Greece PPE

1

United Kingdom PPE

1
icon: S&D S&D
136

Bulgaria S&D

2

Czechia S&D

For (1)

1

Croatia S&D

2

Slovakia S&D

2

Lithuania S&D

1

Latvia S&D

1

Estonia S&D

For (1)

1

Luxembourg S&D

For (1)

1

Netherlands S&D

For (1)

1

Malta S&D

2

Ireland S&D

For (1)

1

Greece S&D

2

Cyprus S&D

1
icon: ALDE ALDE
54
3

Romania ALDE

For (1)

1

Portugal ALDE

1
3

Croatia ALDE

For (1)

1

Slovenia ALDE

For (1)

1

Latvia ALDE

1

Estonia ALDE

2

Sweden ALDE

2

Ireland ALDE

For (1)

1

United Kingdom ALDE

1
icon: Verts/ALE Verts/ALE
34

France Verts/ALE

4

Austria Verts/ALE

3

Hungary Verts/ALE

1

Belgium Verts/ALE

2

Croatia Verts/ALE

For (1)

1

Finland Verts/ALE

For (1)

1

Lithuania Verts/ALE

For (1)

1

Denmark Verts/ALE

For (1)

1

Estonia Verts/ALE

For (1)

1

Sweden Verts/ALE

For (1)

1

Luxembourg Verts/ALE

For (1)

1

Netherlands Verts/ALE

For (1)

1

United Kingdom Verts/ALE

3
icon: GUE/NGL GUE/NGL
34

Italy GUE/NGL

1

Portugal GUE/NGL

For (1)

4

Czechia GUE/NGL

1

Finland GUE/NGL

For (1)

1

Denmark GUE/NGL

Abstain (1)

1

Sweden GUE/NGL

Abstain (1)

1

Netherlands GUE/NGL

2

Ireland GUE/NGL

4

Greece GUE/NGL

1

United Kingdom GUE/NGL

Against (1)

1
icon: NI NI
12

Germany NI

2

France NI

Against (1)

1

Hungary NI

For (1)

1

Greece NI

2

United Kingdom NI

3
icon: EFDD EFDD
29

Germany EFDD

Against (1)

1

France EFDD

Against (1)

Abstain (1)

5

Czechia EFDD

Against (1)

1
icon: ENF ENF
29

Germany ENF

Against (1)

1

Poland ENF

2

Belgium ENF

Abstain (1)

1

Netherlands ENF

4
icon: ECR ECR
49

Romania ECR

For (1)

Abstain (1)

2

Bulgaria ECR

Against (1)

1

Czechia ECR

Against (1)

1

Croatia ECR

Abstain (1)

1

Slovakia ECR

Against (1)

2

Finland ECR

Against (1)

2

Lithuania ECR

Abstain (1)

1

Denmark ECR

3

Latvia ECR

Abstain (1)

1

Sweden ECR

2

Netherlands ECR

Against (1)

1
AmendmentsDossier
286 2016/2237(INL)
2018/01/17 JURI 165 amendments...
source: 616.605
2018/04/11 EMPL 121 amendments...
source: 619.151

History

(these mark the time of scraping, not the official date of the change)

committees/0/associated
Old
True
New
 
committees/0/rapporteur
  • name: MAŠTÁLKA Jiří date: 2016-10-12T00:00:00 group: European United Left - Nordic Green Left abbr: GUE/NGL
docs/0/docs/0/url
Old
http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE612.248
New
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Old
http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE616.605
New
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events/0/type
Old
Committee referral announced in Parliament, 1st reading/single reading
New
Committee referral announced in Parliament
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Old
Vote in committee, 1st reading/single reading
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date
2018-06-27T00:00:00
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2018-06-27T00:00:00
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summary
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2018-07-05T00:00:00
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summary
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2018-07-05T00:00:00
type
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summary
procedure/Modified legal basis
Rules of Procedure EP 159
procedure/Other legal basis
Rules of Procedure EP 159
docs/3/body
EC
events/3/docs/0/url
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New
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events/5/docs/0/url
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New
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committees/0
type
Responsible Committee
body
EP
associated
True
committee_full
Legal Affairs
committee
JURI
rapporteur
name: MAŠTÁLKA Jiří date: 2016-10-12T00:00:00 group: European United Left - Nordic Green Left abbr: GUE/NGL
shadows
committees/0
type
Responsible Committee
body
EP
associated
True
committee_full
Legal Affairs
committee
JURI
date
2016-10-12T00:00:00
rapporteur
name: MAŠTÁLKA Jiří group: European United Left - Nordic Green Left abbr: GUE/NGL
shadows
committees/1
type
Committee Opinion
body
EP
associated
True
committee_full
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committee
EMPL
rapporteur
name: BECKER Heinz K. date: 2016-04-14T00:00:00 group: European People's Party (Christian Democrats) abbr: PPE
committees/1
type
Committee Opinion
body
EP
associated
True
committee_full
Employment and Social Affairs
committee
EMPL
date
2016-04-14T00:00:00
rapporteur
name: BECKER Heinz K. group: European People's Party (Christian Democrats) abbr: PPE
commission
  • body: EC dg: Internal Market, Industry, Entrepreneurship and SMEs commissioner: BIEŃKOWSKA Elżbieta
committees
  • type: Responsible Committee body: EP associated: True committee_full: Legal Affairs committee: JURI date: 2016-10-12T00:00:00 rapporteur: name: MAŠTÁLKA Jiří group: European United Left - Nordic Green Left abbr: GUE/NGL shadows: name: RADEV Emil group: European People's Party (Christian Democrats) abbr: PPE name: ROZIÈRE Virginie group: Progressive Alliance of Socialists and Democrats abbr: S&D name: DZHAMBAZKI Angel group: European Conservatives and Reformists abbr: ECR name: CAVADA Jean-Marie group: Alliance of Liberals and Democrats for Europe abbr: ALDE
  • type: Committee Opinion body: EP associated: True committee_full: Employment and Social Affairs committee: EMPL date: 2016-04-14T00:00:00 rapporteur: name: BECKER Heinz K. group: European People's Party (Christian Democrats) abbr: PPE
docs
  • date: 2017-10-23T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE612.248 title: PE612.248 type: Committee draft report body: EP
  • date: 2018-01-17T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE616.605 title: PE616.605 type: Amendments tabled in committee body: EP
  • date: 2018-05-23T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE615.243&secondRef=02 title: PE615.243 committee: EMPL type: Committee opinion body: EP
  • date: 2018-11-08T00:00:00 docs: url: /oeil/spdoc.do?i=31353&j=0&l=en title: SP(2018)630 type: Commission response to text adopted in plenary
events
  • date: 2016-10-06T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
  • date: 2016-10-06T00:00:00 type: Referral to associated committees announced in Parliament body: EP
  • date: 2018-06-20T00:00:00 type: Vote in committee, 1st reading/single reading body: EP
  • date: 2018-06-27T00:00:00 type: Committee report tabled for plenary, single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2018-0231&language=EN title: A8-0231/2018 summary: The Committee on Legal Affairs adopted a report by Jiří MAŠTÁLKA (GUE/NGL, CZ) with recommendations to the Commission on a Statute for social and solidarity-based enterprises. The Committee on Employment and Social Affairs, exercising its prerogative as an associated committee in accordance with Article 54 of the Rules of Procedure, also gave its opinion on the report. The social and solidarity-based economy makes a major contribution to the Union economy . Parliament highlighted in its resolutions of 19 February 2009, 20 November 2012 and 10 September 2015 , that the social and solidarity-based economy provides employment for more than 14 million people, which represents around 6.5 % of workers in the EU and 10 % of EU undertakings. Members stressed that sector has proved particularly resilient to the economic and financial crisis and has potential for social and technological innovation, decent, inclusive, local and sustainable job creation, fostering economic growth, environmental protection and strengthening social, economic and regional cohesion. There are substantial differences among Member States in the way they regulate social and solidarity-based enterprises and the organisational forms available to social entrepreneurs under their legal systems. This diversity and the innovative character of certain of these legal forms indicate that it will be difficult to find consensus in Europe as to whether it is convenient or necessary at the present moment to set up at EU level a specific legal form of social enterprise. This is why Members suggested adopting a more cautious approach that they consider could help build more political consensus and, more importantly, that can have substantial benefits for social enterprises. The Commission is requested to submit, on the basis of Article 50 of the Treaty on the Functioning of the European Union, a proposal for a legislative act on the creation of a European social economy label for enterprises based on the social economy and solidarity. The legislative act should aim to create an optional European social economy label for enterprises based on the social economy and solidarity, regardless of the legal form they decide to adopt in accordance with national legislation. The label should only be awarded to enterprises complying with the following criteria in a cumulative manner: the organisation should be a private law entity established in whichever form available in Member States and under EU law, and should be independent from the State and public authorities; its purpose must be essentially focused on the general interest or public utility ; it should essentially conduct a socially useful and solidarity-based activity, i.e. via its activities it should aim to provide support to vulnerable groups, to combat social exclusion, inequality and violations of fundamental rights, including at the international level, or to help protect the environment, biodiversity, the climate and natural resources; it should be subject to an at least partial constraint on profit distribution and to specific rules on the allocation of profits and assets during its entire life; in any case, the majority of the profits made by the undertaking should be reinvested or otherwise used to achieve its social purpose; it should be governed in accordance with democratic governance models involving its employees, customers and stakeholders affected by its activities. In addition, the legislative act should: establish a mechanism of certification and of supervision and monitoring of the legal label with the involvement of Member States and representatives of the social economy; be valid in all Member States . An enterprise bearing that label should be recognised as a social and solidarity-based enterprise in all Member States; require social and solidarity-based enterprises willing to maintain the label to issue on an annual basis a social report on their activities, results, involvement of stakeholders, allocation of profits, salaries, subsidies, and other benefits received; authorise the Commission to establish guidelines regarding good practices for social and solidarity-based enterprises in Europe; include a list of legal forms in Member States of enterprises and undertakings qualifying for the European social economy label. The list should be published on the European Commission website. Lastly, the Commission should ensure that its policies reflect the commitment to create an ecosystem for social enterprises and take steps to promote cooperation between social enterprises and solidarity-based enterprises across national and sectoral boundaries.
  • date: 2018-07-05T00:00:00 type: Results of vote in Parliament body: EP docs: url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=31353&l=en title: Results of vote in Parliament
  • date: 2018-07-05T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2018-0317 title: T8-0317/2018 summary: The European Parliament adopted, by 398 votes to 78, with 44 abstentions, a resolution containing recommendations to the Commission on a statute for social and solidarity-based enterprises. Importance of the social economy : Members recalled that the social and solidarity-based economy makes a major contribution to the Union economy. Parliament highlighted in its resolutions of 19 February 2009, 20 November 2012 and 10 September 2015 , that the social and solidarity-based economy provides employment for more than 14 million people, which represents around 6.5 % of workers in the EU and 10 % of EU undertakings. The mutual societies operating in the healthcare and social assistance sectors in the Union employ 8.6 million people and provide support to 120 million citizens. These mutual societies have a market share of 24 % and generate over 4 % of the Union GDP. Members stressed that sector has proved particularly resilient to the economic and financial crisis and has potential for social and technological innovation, decent, inclusive, local and sustainable job creation, fostering economic growth, environmental protection and strengthening social, economic and regional cohesion. Diversity of the sector : there are substantial differences among Member States in the way they regulate social and solidarity-based enterprises and the organisational forms available to social entrepreneurs under their legal systems. This diversity and the innovative character of certain of these legal forms indicate that it will be difficult to find consensus in Europe as to whether it is convenient or necessary at the present moment to set up at EU level a specific legal form of social enterprise. This is why Members suggested adopting a more cautious approach that they consider could help build more political consensus and, more importantly, that can have substantial benefits for social enterprises. European label : Parliament considered it desirable to move towards better recognition of the term ‘social and solidarity-based enterprise’. The Commission is requested to submit, on the basis of Article 50 of the Treaty on the Functioning of the European Union, a proposal for a legislative act on the creation of a European social economy label for enterprises based on the social economy and solidarity. The legislative act should aim to create an optional European social economy label for enterprises based on the social economy and solidarity, regardless of the legal form they decide to adopt in accordance with national legislation. The label should only be awarded to enterprises complying with the following criteria in a cumulative manner: the organisation should be a private law entity established in whichever form available in Member States and under EU law, and should be independent from the State and public authorities; its purpose must be essentially focused on the general interest or public utility ; it should essentially conduct a socially useful and solidarity-based activity, i.e. via its activities it should aim to provide support to vulnerable groups, to combat social exclusion, inequality and violations of fundamental rights, including at the international level, or to help protect the environment, biodiversity, the climate and natural resources; it should be subject to an at least partial constraint on profit distribution and to specific rules on the allocation of profits and assets during its entire life; in any case, the majority of the profits made by the undertaking should be reinvested or otherwise used to achieve its social purpose; it should be governed in accordance with democratic governance models involving its employees, customers and stakeholders affected by its activities. In addition, the legislative act should: establish a mechanism of certification and of supervision and monitoring of the legal label with the involvement of Member States and representatives of the social economy; be valid in all Member States . An enterprise bearing that label should be recognised as a social and solidarity-based enterprise in all Member States; require social and solidarity-based enterprises willing to maintain the label to issue on an annual basis a social report on their activities, results, involvement of stakeholders, allocation of profits, salaries, subsidies, and other benefits received; authorise the Commission to establish guidelines regarding good practices for social and solidarity-based enterprises in Europe; include a list of legal forms in Member States of enterprises and undertakings qualifying for the European social economy label. The list should be published on the European Commission website. Increasing support : Parliament stressed the need to support social and solidarity economy enterprises with sufficient funding , as their financial viability is crucial for their survival. The Commission is invited to promote the European social economy label and to highlight the beneficial social and economic effects of social and solidarity economy enterprises, to better integrate the social economy into relevant EU legislation, policies and programmes and to explore the possibility of creating a line of financing to support innovation in enterprises based on the social economy and solidarity. Lastly, Parliament strongly emphasised that the rules on how social and solidarity-based enterprises operate must respect the principles of fair competition and must not permit unfair competition, in order to allow proper functioning of traditional small and medium-sized enterprises.
  • date: 2018-07-05T00:00:00 type: End of procedure in Parliament body: EP
procedure
reference
2016/2237(INL)
title
Statute for social and solidarity-based enterprises
subject
type
INL - Legislative initiative procedure
subtype
Request for legislative proposal
legal_basis
Rules of Procedure EP 47
Modified legal basis
Rules of Procedure EP 159
stage_reached
Procedure completed
dossier_of_the_committee
JURI/8/07988