The social economy is gaining ground in the European Union

The social economy forms part of the European Union’s (EU) economy and in recent decades it has been climbing positions. In Europe there is a wide range of organisations included in this category, such as cooperatives, mutual societies, foundations or non-profit making associations, all of which pursue a social objective.

The social economy was acknowledged by the European Parliament in 1980 and since then, it has not stopped growing in the region. In the EU it is estimated that there are 2.8 million social economy entities, employing around 13.6 million people. Their activities cover sectors ranging from industry and trade to healthcare services.

The social economy contributes to the building of the United Nations’ Sustainable Development Goals (SDGs). Amongst many others, it can help to reach the SDGs related to the following:

• Health and wellbeing.
• Reduction in poverty.
• The promotion of the transition towards sustainable cities and communities.
• The promotion of responsible consumption and production.
• Defence of sustainable finance.

Social Economy in Europe: cooperatives

There are up to 250,000 cooperatives located in countries throughout the EU, belonging to 163 million people, meaning a third of the population of the 27 Member States.

The economic sectors with the largest participation in the social economy in the EU are agriculture, finance, the retail trade and the healthcare sector. In fact, Spain stands out as one of the countries with greatest weight in cooperatives in the health area, with 21% of the business, alongside Belgium, with 18%.

Sources in the EU indicate that there has been a considerable increase in cooperatives in the healthcare sector over the past few decades:

“Their growth has been a clear reaction to the demand for health services and the growing difficulties of the public authorities to fund healthcare expenditure. Particularly since the Covid-19 crisis, there has been a rising pressure on health expenditure in virtually all the Member States, sources in Brussels state.

Cooperatives and European principles

For 2030, the EU has proposed fostering an inclusive, sustainable growth, in order to create stable, quality employment and to promote social innovation. With this purpose in mind, the EU Action Plan for Social Economy (2021-2030) has been prepared, which seeks to push forward an economic model based on social values.

The pillars of this European plan are:

• Improving Member States’ policies and legal frameworks.
• Creating opportunities for the social economy companies to be able to start up and grow.
• Increasing the recognition and value of the social economy.

The social economy has been consolidated as a driving force for transformation in the European Union, combining innovation, solidarity and sustainability. When facing up to today’s social, economic and environmental challenges, this model shows that it is possible to generate economic value without giving up the common good. 

With institutional backing and citizen commitment, the social economy will continue to play a fundamental role in the building of a more inclusive, resilient and human future for Europe.irá jugando un papel fundamental en la construcción de un futuro más inclusivo, resiliente y humano para Europa.