EU recognises co-op contribution to overcoming the crisis

The European Parliament’s Committee on Industry, Research and Energy (ITRE) adopted a draft report that highlights the contribution of co-operatives to overcoming the crisis.
The report, drafted by Italian MEP Patrizia Toia, calls on the European Commission to create a Directorate focused on co-operatives and social economy organisation. It also urges EU member states to review their legislation, following the ILO’s guidelines from Recommendation 193.
“The goal is an official recognition, at European level, of the validity of the co-operative model. It is important to remark the fact that, at a time like this, characterised by severe economic crisis, co-operative enterprises are those that are adapting better,” said Patrizia Toia.
The Italian MEP also said that creating a Directorate focused on co-operatives and social enterprises, as well as a dedicated unit within the DG Enterprise and Industry, could stimulate the transfer of business to employees.
The governance model provides co-operative enterprises with the ability to exercise democratic control over common ownership, explained Ms Toia. She added that due to the way in which the accumulated capital, co-operatives were likely to face crisis better.
A key challenge for European co-operatives, says Ms Toia, will be to maintain innovation without losing their identity.
“We live in a society characterised by great changes that are revolutionising the way we act and think. Co-operatives must be able to be competitive whilst maintaining their specific nature of companies managed in a democratic way by their members.”
The report reveals that in spite of the severe economic climate, co-operatives have continued to play an important role in boosting economic growth across the EU. More than 160,000 co-operatives owned by 123 million people provide 5.4 million jobs.
“Co-operatives contribute around five per cent on average to member states' GDP. These numbers demonstrate the importance of co-operatives within the EU and their input into the growth of Europe,” said Patrizia Toia.
She added that worker co-operatives across Europe could provide a viable alternative to bankruptcy, particularly in countries like Greece and Spain. The report calls on the Commission to draw a comprehensive survey comparing national laws that promote the conversion of businesses into co-operatives, particularly in cases of take-overs, bankruptcies.
She gave the example of Italy, France, Belgium or Denmark, where co-operative enterprises are thriving.
Photo: Patrizia Toia presenting the report at the Second Co-operative Banks Day organised by the European Association of Co-operative Banks on 15 May.