Member of the European Parliament B. Ondruš criticizes the EC for ending support for the social economy

Brussels/Bratislava – The decision of the Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW) of the European Commission to end its support for the social economy as of May 1, 2025, is “unfortunate and shortsighted.” This was pointed out on Wednesday by Member of the European Parliament (MEP) Branislav Ondruš, who is a member of the EP Committee on Employment and Social Affairs (EMPL), reports the Brussels correspondent of TASR.

Ondruš, as the only Slovak member of the parliamentary group for the social economy in the EP, pointed out that the step taken by the Eurocommission, which includes the abolition of a specialized unit and the cessation of key funding (such as the COSME program), is considered one of the most unfortunate signals that the European Commission could send at this time.

“The social economy is not a supplementary sector for good times. It is a proven pillar of the European economy. In numbers, we are talking about more than four million businesses and organizations that employ over 11 million people across the EU. Its annual turnover reaches nearly one trillion euros, which is more than the GDP of many member states,” explained the MEP. He added that even more important than the numbers are the values of the social economy: dignity, inclusion, solidarity, sustainability, and democracy.

According to him, the EU is currently facing many concurrent crises – from the war in Ukraine, climate threats, inflation, and social inequalities, to a crisis of trust in democratic institutions, and at such a time, Brussels is cutting back where it should be investing the most.

Ondruš claims that the social economy has demonstrated its resilience during all crises, from the financial crisis in 2008, through the coronavirus pandemic, to the current geopolitical tensions.

“It is present everywhere where others are absent: in neglected regions, among vulnerable groups, in communities that help themselves. It is the backbone of innovative solutions in the areas of affordable housing, green transformation, and the integration of people with disabilities,” he said. According to him, these are not “soft topics,” but the hard core of a future competitive and sustainable Europe.

“As an MEP for Slovakia, I reject any weakening of this ecosystem. The decision of DG GROW is not just an administrative reorganization. It is a signal about what type of economy the Eurocommission wants to build. Unfortunately, it sounds like a purely market-oriented, export-driven, and profit-oriented model. However, such a model fails when crises deepen,” Ondruš stated.

He reminded that Slovakia has made several significant steps in recent years – from introducing tax incentives for social enterprises, to supporting disadvantaged groups, to networking actors at the national level, and the EU should not sabotage this effort but strengthen it. (April 30)

“The social economy is not a supplementary sector for good times. It is a proven pillar of the European economy. In numbers, we are talking about more than four million businesses and organizations that employ over 11 million people across the EU. Its annual turnover reaches nearly one trillion euros, which is more than the GDP of many member states.” Branislav Ondruš