Antonio Fici, Gianluca Salvatori, Barbara Franchini & others
European Commission
2024
🌍 Context The "Report on Council Regulation (EC) - Statute for a European Cooperative Society (SCE)" was published by the European Commission in December 2024. Authored by Antonio Fici, Gianluca Salvatori, and Barbara Franchini from EURICSE, the report assesses the impact and relevance of the SCE regulation two decades after its adoption. The SCE serves as a cross-border cooperative legal framework applicable in EU/EEA member states, aiming to facilitate collaborative efforts toward sustainable development. 🏛️ Overview of the SCE Regulation Established by Council Regulation (EC) No. 1435/2003, the SCE provides a legal structure for cooperatives that operate across national borders within the EU/EEA. It mandates that members come from at least two different EU/EEA countries, ensuring democratic governance with a principle of one member, one vote. The regulation requires a minimum capital of €30,000 and allows for variable membership. Additionally, it enforces employee participation as per Directive 2003/72/EC. 📊 Current Status of SCEs As of June 2024, there are 113 registered SCEs, of which 75 are active and 29 have been dissolved. Germany leads in the number of active SCEs, hosting 25, while 13 member countries currently have no active SCEs. These cooperatives primarily operate in sectors such as renewable energy, agriculture, and housing, often focusing on community-driven objectives, which aligns with sustainable housing initiatives. 🚀 Positive Drivers for SCE Adoption Several factors encourage the adoption of SCEs. The cooperative principles of democratic governance and member-centric values are significant draws. SCEs also provide a viable alternative to restrictive national laws, allowing cooperatives to form in countries where such entities might face legal barriers. Furthermore, the cross-border flexibility of SCEs enables the transfer of registered offices across EU/EEA states, enhancing collaborative efforts in sustainable practices. ⚠️ Challenges Despite these advantages, SCEs face challenges such as complexity due to heavy reliance on national laws and high administrative costs. There is also low awareness among professionals and stakeholders regarding the benefits of SCEs. Additionally, perceived redundancy exists, as national cooperatives often fulfill similar needs at lower costs. 💡 Recommendations The report recommends retaining and simplifying the SCE Regulation by reducing references to national laws and lowering the capital requirement. It emphasizes the need for targeted awareness campaigns aimed at cooperatives, legal advisors, and policymakers. Moreover, it advocates for increased support and funding for SCEs, particularly in sectors like energy communities and digital innovation, which could further promote sustainable housing initiatives.
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.