The Social Economy Action Plan Mid-Term Review: the right diagnosis, not yet the ambition

Highlights

  1. The mid-term review taking the form of a report, and not of a Communication, risks
    signalling a weaker forward-looking relaunch. A Report is more focused on
    stocktaking and accountability.
  2. The Commission commits to act two main policy files: Socially Responsible Public Procurement and State aid, but there is lack of clarity.
  3. In the midst of MFF negotiations, the report strongly focuses on finance and
    investment instruments, without sufficient guarantees that funding will become
    genuinely more accessible for WISEs and social economy actors.
  4. Social Platform supports the need to expand and promote data and statistical
    knowledge and to build a social economy evidence base with the establishment of a Social Economy Observatory

Following its 2025 review, the European Commission (DG EMPL) published a report summarising the results of the mid-term review of the EU Social Economy Action Plan (SEAP). This constitutes a crucial policy package in support of Work Integration Social Enterprises (WISEs) and Social Economy actors. The report outlines progress to date and future SEAP initiatives based on updated priorities.

The European Commission’s mid-term review of the Social Economy Action Plan names the right challenges. But it does not match the political ambition of the Plan itself.
The social economy puts people before profit. It creates jobs for those furthest from the labour market, delivers services in local communities and gives people a voice. For Social Platform, it is a concrete way of building a Europe where everyone can live in dignity and thrive, not just survive.

The review arrives at a decisive moment. Negotiations on the post-2027 EU budget are intense, DG GROW’s unit working on the social economy has been withdrawn, and the focus on competitiveness and defence risks crowding out social priorities. This was a long-awaited chance for the Commission to reassure the sector. It has only partly taken it.

Real progress worth recognising
The Action Plan has delivered. Most of its 63 actions have been implemented, and the Plan has helped build global momentum, including through a UN General Assembly resolution, ILO conclusions and an OECD Recommendation.
Progress is also visible at national level. Following the 2023 Council Recommendation on social economy framework conditions, 21 Member States had adopted or were preparing national or regional strategies. Mutual learning on state aid, taxation and socially responsible public procurement has helped turn EU policy into practice.
The social economy’s reach is significant too. According to the Eurobarometer, an estimated one in three Europeans has received support from a social economy organisation at some point. Around 13 million people, or 3.3% of Europeans, have received access to training, education or employment.

Five priorities, and what they must deliver
The review sets out a vision of a competitive, robust and recognised social economy, built on five actions. Social Platform together with its members supports this direction, but each action needs more precision and a stronger social focus.

Governance that reaches the ground
We welcome the emphasis on regional and local implementation, and the planned toolkit for local policies. Public authorities closest to people are key to strong social economy ecosystems. These efforts should go further, with real partnerships between local authorities, social economy organisations and wider civil society, including the people they support.

Rules that work for social goals
The Commission commits to act on socially responsible public procurement and state aid, which is welcomed. Yet the proposed actions remain too general. The revisions of the EU public procurement directives and the General Block Exemption Regulation need firm commitments, specific measures and a clear implementation pathway. Quality of services, decent work and collective bargaining should guide how public money is spent, not lowest price alone.

Funding that is truly accessible
The review acknowledges that access to finance remains a structural barrier. It points to around EUR 1.2 billion in guarantees and more than EUR 1.62 billion expected through grants and financial instruments under the current budget, and its greater transparency is welcome.
However, the approach leans heavily on finance and investment instruments. Many social economy organisations and NGOs need non-repayable support, as existing instruments are often too complex or too risk-oriented for their mission. We therefore call for:

  • The social economy to be included in the specific objectives of the National and Regional Partnership Plan Regulation, as it is in the ESF+ Regulation today, to secure sustained grant funding.
  • A strong and ambitious social budget in the next Multiannual Financial Framework.
  • An assessment of InvestEU that shows which organisations are reached, their size and type, and the form and level of support.

Skills for those furthest from the labour market
The focus on inclusive entrepreneurship and incubation is useful, but skills policy cannot stop there. It must also offer tailored upskilling, reskilling and support for people who are long-term unemployed or have support needs. Social economy policy must connect with skills, labour market inclusion and quality jobs policies, so that people move into sustainable, decent work.

Evidence that shows social impact
We strongly welcome the commitment to better data, as gaps in comparability and impact measurement persist across Member States. This work should lead to the creation of a European Social Economy Observatory, with disaggregated data that captures social impact as well as economic weight.

The next chapter needs a stronger social ambition
The format of the review says a lot. It is a Commission Report, not a Communication. A Communication would have signalled a political relaunch, whereas a Report is mainly a stocktaking exercise. The outlined vision also lacks a social dimension. Market integration can help the social economy scale up, but its general-interest mission must be equally recognised, protected and supported.

The Action Plan moved the social economy from the margins towards a more structured place in EU policymaking. What comes next will be decisive. The next phase must be reflected in the EU anti-poverty strategy and the revised Action plan for the European Pillar of Social Rights, and Member States must fully implement the Council Recommendation.
Social Platform will keep working with the EU institutions and Member States, together with our members, so that the next chapter delivers for people and communities across Europe.

Read ENSIE reaction here