The European Social Economy Action Plan (SEAP), adopted in 2021, marked a turning point for the recognition and growth of Europe’s social economy. It set an ambitious agenda to strengthen and mainstream social enterprises (SEs) by 2030. But as Europe’s political, economic, and technological landscapes continue to evolve, so too must the SEAP.
At Euclid Network (EN) — the European network for social enterprise intermediary organisations — we are proud to contribute to this reflection process through a new series of papers examining the implementation of the SEAP to date. Each paper offers concrete insights and recommendations to ensure that the SEAP continues to empower the social economy in the years ahead.
A closer look: Access to State Aid for social enterprises
Our latest paper focuses on one of the most complex yet crucial aspects of the SEAP: State Aid. Access to State Aid can be a vital tool for social enterprises, enabling them to scale impact, create quality jobs, and address social and environmental challenges. However, navigating the EU’s State Aid framework remains a significant hurdle for both SEs and the policymakers who support them.
The European Commission’s Study on State Aid for access to finance for social enterprises and for the recruitment of disadvantaged workers (2024) and accompanying Mutual Learning Workshops (MLWs) have shed light on these challenges. The findings point to an overreliance on De Minimis rules and underuse of frameworks such as the General Block Exemption Regulation (GBER) and Services of General Economic Interest (SGEI) — mechanisms that could better serve the social economy if applied effectively.
Why this matters now
With a wider revision of the EU’s State Aid rules currently underway, there is a unique window of opportunity to ensure that the social economy’s needs are represented. The evidence gathered through the SEs and State Aid report should directly inform this review process.
At the same time, the gap in expertise between State Aid specialists and social economy policymakers remains a barrier. Strengthening mutual understanding and showcasing successful national examples of State Aid schemes for social enterprises is essential to unlock the full potential of these tools.
EN’s key recommendations
To ensure that State Aid truly works for social enterprises, our paper highlights four key actions:
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Leverage the current State Aid review to integrate insights from the SEs and State Aid report and ensure the social economy’s voice is heard.
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Build policymakers’ awareness of the opportunities within existing State Aid rules to support SEs.
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Promote peer learning by sharing examples of successful State Aid schemes under GBER and SGEI provisions.
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Champion the role of State Aid in supporting the social economy even amid challenging economic conditions.
Looking ahead
State Aid will always be complex but with the right knowledge and collaboration, it can become a powerful enabler of social innovation and impact. Through continued dialogue, evidence-sharing, and policy engagement, the social economy can secure the supportive regulatory environment it needs to thrive.
