Strengthening Europe’s Social Economy: Insights from the SEAP Mid-Term Review
In 2021, the European Commission took a historic step toward building an economy that truly works for people with the launch of the European Social Economy Action Plan (SEAP). The plan represented a unified, ambitious effort by DG EMPL and DG GROW to recognise and strengthen the social economy’s role in shaping a more inclusive, sustainable, and fair Europe.
Now, as we approach the mid-term review of the SEAP, the landscape in which social enterprises (SEs) and social economy support organisations (SESOs) operate has evolved dramatically. From shifts in political priorities to rapid technological advances and changing funding landscapes, Europe’s social entrepreneurs are navigating new challenges and opportunities.
The Euclid Network (EN)—Europe’s network for social enterprise intermediary organisations—has released a series of papers reflecting on the SEAP’s implementation so far. The latest paper focuses on three core themes that are essential to the continued success of the SEAP:
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The European Cross-Border Association (ECBA)
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Labels and verifications for the social economy
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Impact Measurement and Management (IMM)
1. The European Cross-Border Association: Unlocking the Single Market for Social Enterprises
Following the European Parliament’s Lagodinsky Report, the creation of a European Cross-Border Association (ECBA) was introduced as a SEAP action to reduce barriers for social economy actors operating across borders.
The ECBA would provide a common legal framework, enabling associations to function seamlessly across Member States—a move that could also inspire similar initiatives for foundations and philanthropic organisations.
However, progress has been uneven. With institutional shifts within the Commission, the ECBA’s development has lost momentum. To fulfil the SEAP’s promise, finalising and implementing the ECBA before 2030 must be a top priority. Furthermore, a review of its benefits for non-profit organisations should be undertaken to explore broader applications across the social economy.
2. Labels and Verifications: Building Trust in the Social Economy
In an era of increasing “greenwashing” and corporate social claims, reliable labels and verification systems have become vital tools to distinguish genuine social enterprises from those merely adopting the language of impact.
While the European Commission’s recent step back from the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), and Green Claims Directive was disappointing, it underscores an urgent need: to strengthen and scale trustworthy social economy certifications.
Before 2030, the SEAP should help Member States, financiers, and businesses understand the value of recognised certifications—and support their adoption. Clear communication with consumers and enterprises about these labels will foster trust, transparency, and collective impact. EN suggests that such an initiative could be developed through the Social Economy Gateway (SEG) to enhance visibility and engagement across Europe.
3. Impact Measurement and Management: Proving and Improving Impact
One of the SEAP’s most promising achievements to date has been its support for Impact Measurement and Management (IMM). The development of diverse IMM tools enables social enterprises to quantify their social, environmental, and economic contributions—a crucial step in demonstrating the sector’s value to investors and policymakers alike.
As impact-driven organisations face growing pressure to compete with profit-first enterprises, meaningful and interoperable IMM tools are essential to sustaining public and private investment in the social economy. These tools also play a key role in advancing social procurement and supply-chain transparency.
Yet, the responsibility to measure impact shouldn’t rest solely with social enterprises. All businesses—especially those generating negative externalities—should be required to report on their impacts. Extending reporting requirements and sustaining the momentum behind the CSRD and other frameworks will help normalise accountability and reposition social value as a universal business standard.
Key Recommendations from Euclid Network
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Deliver the ECBA before 2030 and ensure it remains within the SEAP framework.
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Support Member States and businesses in adopting and recognising credible social economy certifications.
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Educate consumers and enterprises on the meaning and value of certification schemes, potentially through the SEG.
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Ensure IMM tools are meaningful and interoperable to strengthen impact reporting and social procurement.
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Encourage IMM practices beyond the social economy, applying them across the business ecosystem.
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Sustain momentum toward meaningful reporting requirements for all companies by 2030.
A Renewed Ambition for 2030 and Beyond
The social economy is a powerful driver of inclusion, innovation, and resilience in Europe. But to realise its full potential, the SEAP must evolve with the times—bolstered by a strong ECBA framework, trustworthy certification systems, and robust impact measurement tools.
Euclid Network’s mid-term reflections offer a clear roadmap: one that not only strengthens the foundations of the social economy but also ensures that Europe’s future economy is one that truly works for people and the planet.
Disclaimer: Funded by the European Union. Views and opinions expressed are those of the authors only and do not necessarily reflect those of the European Union or the European Commission. Neither the European Union nor the granting authority can be held responsible for them.
