Call for Evidence Single Market Strategy 2025 Cooperatives Europe position

Cooperatives Europe has published a document titled "Call for Evidence Single Market Strategy 2025 Cooperatives Europe position." This resource highlights the priorities and insights of Cooperatives Europe as they respond to the upcoming Single Market Strategy for 2025. It emphasizes the need for an SME perspective in the EU's strategy while maintaining social cohesion and not sacrificing social conditions.

The document addresses significant barriers that impede the cross-border movement of goods and services for cooperative enterprises. It notes the lack of recognition of the cooperative business model across different EU Member States, resulting in various legal requirements and uncertainties for transnational operations. Currently, transnational cooperatives are sparse and mainly concentrated in a few countries such as Belgium, Germany, and Denmark, particularly in sectors like dairy and fruit & vegetable. The European Cooperative Society was introduced to facilitate cross-border operations, but its effectiveness has been limited due to complex requirements and national laws often taking precedence over EU regulations.

Cooperatives Europe emphasizes the necessity of securing better access to finance for SMEs and capital-patient business models like cooperatives. Many cooperatives struggle with liquidity and funding, which are essential for developing cross-border operations and scaling up. The document calls for enhanced access to capital markets for SMEs and a reform of public procurement rules to systematically include social clauses or reserved contracts for social economy entities. Tools like the Public Procurement Data Space (PPDS) could facilitate access to tenders for SMEs but require further promotion and awareness.

The organization welcomes the European Commission's initiatives to simplify reporting and administrative burdens. However, it stresses the importance of maintaining the "one in, one out" principle and adhering to the Better Regulation guidelines, including the SME test. The document points out that excessive reporting often leads to double reporting and additional costs for cooperatives, which already have specific legal reporting requirements.

Cooperatives Europe highlights that the Omnibus package, aimed at rationalizing reporting requirements, is crucial for reducing regulatory burdens. The organization calls for timely and coherent efforts in this regard, cautioning against delays in implementing processes that have already begun at the national level. The Omnibus Package also presents an opportunity to incorporate Voluntary SME reporting standards within the Corporate Sustainability Reporting Directive (CSRD) to limit the extent of data requests from SMEs.

The document critiques the narrow focus on GDP growth without considering societal factors like wealth distribution and sustainable resource use. It argues that cooperatives align more closely with principles of equity and solidarity, advocating for the inclusion of social conditions in EU economic policies. Cooperatives work towards sustainable community development, and the organization emphasizes the need for a shift in priorities to focus on social and environmental goals.

Lastly, Cooperatives Europe calls for a stronger social dimension within the European Semester, advocating for concrete recommendations that go beyond mere economic tools. The document points out the need for the next multiannual financial framework (MFF) to advance strategic objectives while transforming the Single Market sustainably and equitably. It stresses the importance of maintaining SME-specific funding within InvestEU and developing social impact investing to support impact-driven enterprises and the implementation of the European Pillar of Social Rights.