Is there a new far-right threat to EU social economy commitments?
BRUSSELS BRIEFING: As Patriots for Europe looms large in the European Parliament, and Hungary takes on the presidency of the European Council, how might policies that favour the social economy fare, asks our correspondent in Brussels, Euclid Network policy lead Toby Gazeley.
It is the beginning of a new year in Brussels – no it’s not January, but September. This is the time of the year here where things start to begin and a new sense of energy returns to the streets. This September is unlike the previous few years, as not only do Eurocrats return to work after a summer break, but also this year Brussels will be graced by the presence of the new cohort of members of the European Parliament (MEPs) and new commissioners.
Although some key figures are staying in post, under the surface much is still uncertain. Ursula von de Leyen will return to the top job as president of the European Commission and Roberta Metsola will also return as president of the European Parliament, while the European Council selected António Costa as their new President. While things may be on the precipice of change, one constant is true: the EU still has three presidents and three institutions which to most people sound identical. (If you’re confused about all the different organisations and roles within the European Union, there’s a helpful guide on the EU website.)
Two big changes that have occurred while people may have been avoiding the news in an attempt to relax this summer is the start of the Hungarian presidency of the European Council and the formation of the Patriots for Europe group in the European Parliament, spearheaded by Hungarian prime minister Viktor Orbán’s Fidesz party.
The Patriots for Europe group will have the ability to chair more Parliamentary committees and propose more Parliamentary reports. This could see a push back against recent progress in European policy
While the Hungarian presidency will only last until the end of 2024, the new Eurosceptic, far-right parliamentary block could be around until 2029 or longer. As it is now the third largest political grouping, the Patriots for Europe group will have the ability to chair more Parliamentary committees and propose more Parliamentary reports. This could see a push back in the coming months and years against recent progress in European policy, including the establishment of cross-border associations to reduce administrative burdens on non-profit organisations operating in more than one member state, or other measures which recognise social enterprises.
At present, it is too early to tell with certainty what the formation of this new group will mean for the social economy. The Commision is in the driving seat for the implementation of the EU Social Economy Action Plan but the Parliament and member states will continue to play a vital role in its further delivery. The parliamentary term has yet to begin in earnest and the Commissioners have yet to be selected, so we will have to see how this progresses.
Goodbye to Nicolas Schmit, a champion of the social economy
While we eagerly anticipate the formation of the next European Commission, a sad farewell to one of the cornerstones of the European social economy seems inevitable. Nicolas Schmit (pictured, from Luxembourg) has been the Commissioner for Jobs and Social Rights since 2019 and has been a champion for more European action and support for the social economy.
- Read how Nicolas Schmit was backing social enterprises at the launch of the Social Economy Action Plan
It goes without saying that recent progress was not only due to the work of Commissioner Schmit, but his top-level endorsement, vision and belief in the social economy will likely be sorely missed. Who will take over the portfolio that includes the social economy remains to be seen. Whether they will be such a vocal supporter is also a concern.
With the new Commission comes a new discourse and a new focus on competitiveness (read more in April’s Brussels Briefing about this). While this could be seen as a step back, it perhaps presents an opportunity for social enterprises. As we know, social enterprises are often businesses which are competing in open markets and doing so with a consideration of their impact on people and the planet. If increased competition and the pursuit of the ambitions of the European Green Deal are to be achieved, surely this new competitive economy must be one that ensures the interests of people and the planet are reflected in balance sheets?
If competition is the new buzz word, perhaps now is the opportunity to showcase the solutions social enterprises are already offering in being competitive and innovative while also putting people and planet first.
- Toby Gazeley is the Brussels-based policy lead at Euclid Network.
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