European Commission
2024
Antonio Fici, Gianluca Salvatori, and Barbara Franchini
The report assesses the impact of the Council Regulation (EC) No. 1435/2003 on the European Cooperative Society (SCE) two decades after its introduction. It highlights that while there are currently 113 registered SCEs, with 75 active, their adoption remains limited compared to national cooperatives. Key findings indicate that SCEs offer democratic governance and flexibility across EU/EEA member states, but face challenges such as complexity, low awareness, and perceived redundancy. The report recommends simplifying the SCE Regulation by reducing national law references and capital requirements, as well as promoting awareness among stakeholders. Additionally, it emphasizes the potential for SCEs to contribute to community-driven initiatives, particularly in sectors like renewable energy and digital innovation, and underscores the importance of reforms to enhance their practicality while maintaining cooperative values.
Summary of the Synthesis Report on the European Cooperative Society (SCE) Regulation
Published in December 2024 by the European Commission, authored by Antonio Fici, Gianluca Salvatori, and Barbara Franchini (EURICSE).
Key Findings
- Overview of the SCE Regulation
- Established by Council Regulation (EC) No. 1435/2003, the SCE provides a cross-border cooperative legal form for EU/EEA member states.
- Key features:
- Requires members from ≥2 EU/EEA countries.
- Democratic governance (one member, one vote).
- Minimum capital of €30,000 and variable membership.
- Employee participation mandated under Directive 2003/72/EC.
- Current Status of SCEs
- 113 SCEs registered (75 active, 29 dissolved) as of June 2024.
- Germany hosts the highest number (25 active), while 13 countries have no active SCEs.
- SCEs operate in sectors like renewable energy, agriculture, and housing, often emphasizing community-driven goals.
- Positive Drivers for SCE Adoption
- Cooperative principles: Democratic governance and member-centric values.
- Gaps in national laws: SCEs bypass restrictive national cooperative laws (e.g., Bulgaria’s ban on legal entities forming cooperatives).
- Cross-border flexibility: Ability to transfer registered offices across EU/EEA states.
- Challenges
- Complexity: Heavy reliance on national laws and high administrative costs.
- Low awareness: Limited knowledge among professionals and stakeholders.
- Perceived redundancy: National cooperatives often meet similar needs at lower costs.
- Recommendations
- Retain and simplify the SCE Regulation: Reduce references to national laws and lower the capital requirement.
- Promote awareness: Target campaigns for cooperatives, legal advisors, and policymakers.
- Support funding: Encourage SCEs in sectors like energy communities and digital innovation (e.g., blockchain-based DAOs).
Context
The report evaluates the SCE Regulation’s impact two decades after its adoption, highlighting its role in formalizing cooperative values at the EU level. Despite low uptake compared to national cooperatives, the SCE remains symbolically significant for advancing cross-border collaboration and aligning with modern initiatives like the EU’s Green Deal. The authors stress the need for reforms to enhance practicality while preserving the cooperative identity.