Co-ops could benefit from funding through the extension of the Investment Plan for Europe

The action plan put forward by European Commission president, Jean-Claude Juncker could be an opportunity for co-operatives and other social economy actors to “contribute towards shaping a better Europe,” according to Cooperative Europe.

Mr Juncker presented the Commission’s policy proposals in his State of the Union speech at the European Parliament in Strasbourg. Cooperatives Europe, the regional organisation of the International Co-operative Alliance, has welcomed the policy agenda.

“Although we regret that entrepreneurship was addressed only through start-ups and Capital Market Union, Cooperatives Europe welcomes Juncker’s plan of action. It could be an opportunity for co-operatives and other social economy actors to contribute towards shaping a better Europe. It is, however, important to mainstream the co-operative model within EU policies,” reads Cooperatives Europe’s statement.

The speech delivered by Mr Juncker on 14 September marks the start a dialogue with the European Parliament and Council to prepare the Commission’s 2017 work programme. In his speech, the president proposed to double the duration of the Investment Plan for Europe, providing a total of at least €500bn of investments by 2020. The Investment Plan is aimed at removing obstacles to investment, providing visibility and technical assistance to investment projects and making smarter use of new and existing financial resources.

An initial €315bn Investment Plan for Europe was agreed 12 months ago. The plan has so far raised €116bn in investments, helping over 200,000 small firms and start-ups to secure loans.

Mr Juncker has also called for a Capital Markets Union to offer alternative, vital sources of funding to help start-ups get started through business angels, venture capital and market financing. “A Capital Markets Union will make our financial system more resilient. It will give companies easier and more diversified access to finance,” he said.

Commenting on the speck, Dirk Lehnoff, president of Cooperatives Europe, said: “The plan should allow all economic actors to build up a Europe that, as mentioned by Jean-Claude Juncker, empowers its citizens. In that regards, we welcome the proposal to double the duration and the financial capacity of Fund of the Investment Plan for Europe. It should be an opportunity to support entrepreneurial projects, such as co-operative ones, that put people’s needs first.”