Romania’s Ministry of Investments and European Projects has allocated €96m to a scheme designed to support the country’s social economy actors, including some co-ops.
The Support for the Social Economy scheme is financed through the Education and Occupation Programme via the Social European Plus Fund and will be active until the end of 2028.
Under the scheme, work integration and social enterprises, including those operating as co-ops, will receive up to €500.000, through a combined financial instrument including a portfolio guarantee, interest grants, capital rebates and technical assistance.
The scheme specifically includes co-ops among eligible social enterprises, providing they are registered as social enterprises or work-integration social enterprises. Co-ops active in processing, services, or social inclusion qualify for the scheme but agricultural production co-are excluded unless they also have processing or non-primary activities.
To qualify, enterprises must be at least one year old, be an accredited social or insertion enterprise, and be based in Romania. In line with EU law, single enterprise can receive up to €300,000 in de minimis aid from a member state over any three-year, rolling period without needing individual EU clearance.
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Activities that will be funded can focused on three areas: investment and working capital, digitalisation and green transition; and integrating vulnerable people into the labour market.
”It is very important that this product is available as soon as possible for social enterprises, so as to help them develop and become competitive, maximising their social impact,” said Angela Achiței, president of ADV Romania, which represents a group of connected social enterprises. ADV also added that marks an important step forward but should not be seen as an end.
ADV, along with Alternative Financing (AFIN) directly contributed to the design of this financial instrument, providing expertise and technical assistance to the scheme’s administrator.
Meanwhile, the National Union of Cooperatives in the Vegetable Sector (UNCSV), says the scheme “represents an important step towards recognising the role of agricultural co-operatives as important economic and social actors in rural areas” but adds that “many agricultural co-operatives in Romania will not be eligible for this type of support, as most are mainly involved in primary production activities and do not yet carry out processing activities, services, etc”.
“In order for Romanian agriculture to develop sustainably, measures dedicated to agricultural co-operatives in all their forms are needed, not only those with social enterprise status,” said Claudiu Soare, deputy executive director at UNCSV.
“Co-operatives represent the right tool for modernising and making agriculture more efficient, for increasing farmers’ competitiveness and for strengthening economic resilience in the face of current challenges: climatic, economic and geopolitical.
“The co-operative model is, practically, the only viable solution through which farmers can overcome these difficult times and build together a stronger, sustainable and fairer agriculture. Through co-operation, farmers can access modern technologies, negotiate better on the market, invest in processing and generate added value.”
He added: “UNCSV believes that there is a need to expand the types of support measures for co-operatives, so that they can evolve from simple production structures into true engines of rural development.
“We welcome initiatives that recognise the strategic role of co-operatives and remain open to collaboration to promote policies that can support Romanian farmers to succeed through co-operation.”
