Social Economy in Europe: Contributing to Competitiveness and Prosperity, Local Economic and Employment Development (LEED)

The document "Social Economy in Europe: Contributing to Competitiveness and Prosperity" is published by the OECD and the European Union, highlighting the role of the social economy in driving economic growth, social cohesion, and community resilience across Europe. It reflects the collaborative efforts to support local economic and employment development (LEED) through strategic frameworks and innovative practices.

The social economy plays a crucial role in addressing housing challenges in Europe, where many individuals face issues related to affordability, availability, and quality. Social economy entities, including cooperatives and non-profit organizations, contribute significantly to the housing sector, providing affordable and inclusive housing solutions for vulnerable groups. In the Netherlands, social economy entities account for 82% of the social rental housing stock, while in Austria, they provide 61% of the housing.

Europe faces four main housing challenges: affordability, lack of quality housing supply, homelessness, and inadequate access to services. The 2025 Eurobarometer indicates that 40% of respondents view the lack of affordable housing as an urgent problem. Additionally, 15.6% of the EU population lives in poor-quality housing, exacerbating health issues and social exclusion.

Social economy entities actively address these challenges by offering innovative housing solutions that prioritize community needs. They often engage in constructing new housing units and renovating existing properties to meet the growing demand. For instance, housing associations in the Netherlands aim to build 250,000 new social housing units by 2030, while limited-profit housing associations in Austria constructed 16,800 new units in 2021.

Many social economy entities are committed to sustainability, employing energy-efficient and environmentally friendly building practices. The Circle House project in Denmark, for example, aims to be constructed using circular principles with 90% reusable materials. This focus on sustainable construction not only benefits the environment but also reduces costs for residents.

In addition to housing solutions, social economy entities often provide support services such as care, financial education, and legal aid to enhance community development. They foster participatory governance, enabling residents to have a voice in decision-making processes, thus strengthening community ties and ensuring services are tailored to local needs.

The social economy contributes significantly to local economies, generating jobs and promoting social inclusion. It is estimated that social economy entities generate over EUR 912 billion in turnover across various sectors, including housing. By focusing on quality and community-oriented services, these entities help to enhance the overall resilience of communities, especially in the face of crises like the COVID-19 pandemic.

To maximize the impact of the social economy in housing, policymakers are encouraged to create supportive legal and regulatory frameworks. This includes providing access to affordable land, facilitating long-term funding, and prioritizing quality over cost in public procurement processes. Such measures will not only enhance the capacity of social economy entities but also contribute to sustainable housing solutions across Europe.