Antonio Fici, Gianluca Salvatori, Barbara Franchini & others
European Commission
2024
🌍 Context of the Report The "Synthesis Report on Council Regulation (EC) - Statute for a European Cooperative Society (SCE)" was published in December 2024 by the European Commission, authored by Antonio Fici, Gianluca Salvatori, and Barbara Franchini from EURICSE. This report assesses the impact of the SCE Regulation two decades after its adoption, focusing on its significance in fostering cooperative values across Europe, particularly in the context of sustainable initiatives such as the EU’s Green Deal. 🏢 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. One of its key features is that it mandates members from at least two different EU/EEA countries, promoting democratic governance through a "one member, one vote" principle. Additionally, it requires a minimum capital of €30,000 and allows for variable membership, with a focus on employee participation in line with Directive 2003/72/EC. 📊 Current Status of SCEs As of June 2024, there are 113 registered SCEs, with 75 currently active and 29 dissolved. Germany leads with the highest number of active SCEs (25), while 13 EU/EEA countries have no active SCEs at all. These cooperatives operate in various sectors, including renewable energy, agriculture, and housing, often highlighting community-driven goals that align with sustainable practices. 🚀 Positive Drivers for SCE Adoption The SCE's cooperative principles, which emphasize democratic governance and member-centric values, are significant drivers for its adoption. Furthermore, SCEs help circumvent restrictive national laws that could hinder cooperative formation, such as Bulgaria’s ban on legal entities forming cooperatives. The SCE format also offers cross-border flexibility, allowing for the transfer of registered offices across EU/EEA states. ⚠️ Challenges Facing SCEs Despite their potential, SCEs face several challenges, including a heavy reliance on national laws, high administrative costs, and low awareness among professionals and stakeholders. Many perceive SCEs as redundant since national cooperatives often fulfill similar needs at lower costs. 💡 Recommendations for Improvement To enhance the effectiveness of the SCE framework, the report recommends retaining and simplifying the SCE Regulation by reducing references to national laws and lowering the capital requirement. It also suggests promoting awareness through targeted campaigns for cooperatives, legal advisors, and policymakers, while encouraging funding support for SCEs in sectors such as energy communities and digital innovation, including blockchain-based decentralized autonomous organizations (DAOs).
European Commission
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.