Council recommendation

As part of the implementation of the action plan for the social economy, the Commission adopted a proposal for a Council recommendation on developing social economy framework conditions on 13 June 2023. The recommendation was adopted by the Council on 27 November 2023.

The recommendation aims to advance access to the labour market and social inclusion by supporting Member States in integrating the social economy into their policies and creating supportive measures and a favourable environment for social economy entities. By supporting the social economy, the recommendation also aims to drive social innovation, sustainable economic and industrial development, and contribute to territorial cohesion in the Member States. 

The recommendation provides guidance to Member States on

• how public policies and legal frameworks can be tailored to support the actions of the social economy, particularly in areas where it is less developed, and
• how administrative and institutional structures can be adapted to support these entities and engage with social economy stakeholders. 

Considering the diverse array of entities and alternative business models within the social economy, as well as its extensive reach across various sectors, the recommendation covers various topics, including skills, social innovation, access to funding, access to markets (including public procurement), State aid, taxation, social impact measurement and management, and visibility and recognition.

Member States are recommended to adopt or update strategies for the social economy within 24 months after the adoption of the recommendation. The Commission will monitor the implementation of the strategies through regular consultations with Member States via the Employment Committee and the Social Protection Committee.