RREUSE has joined 235 organisations across Europe in signing a joint statement led by Social Economy Europe, to raise strong concerns over the EU Commission’s decision to disband the social economy unit within DG GROW (Internal Market, Industry, Entrepreneurship and SMEs) as of 1 May.
This decision comes at a critical time. As Europe faces overlapping crises - geopolitical instability, surging inequalities, climate breakdown, and threats to democracy - the European Commission’s decision risks neglecting the social economy’s full potential in addressing many of these challenges
The social economy is far from marginal. With over 4 million enterprises, 11 million jobs, and €1 trillion turnover, it is a key industrial ecosystem. It delivers innovation, resilience, and social impact, supporting the green and digital transitions, empowering underserved communities, and providing quality jobs rooted in local needs.
For RREUSE and our network of social enterprises in the circular economy, this decision is more than symbolic. It risks cutting off crucial institutional support and investments for enterprises working at the intersection of social and environmental action, especially as funding calls like COSME have already been abruptly cancelled.
The removal of the DG GROW unit risks weakening coordination between industrial and social policies, threatening institutional memory, and undermining the Commission’s own 2021 Social Economy Action Plan. It also contradicts Member States’ 2023 commitment to integrate the social economy into national industrial strategies.
We welcome EVP Commissioner Roxana Mînzatu and colleagues’ continued support through DG EMPL, but the social economy cross-sectoral contribution requires a sustained presence in DG GROW to ensure effective policy coordination, and adequate funding.
RREUSE co-signed this position to ensure EU institutions do not sideline the social economy. To genuinely build a fairer, more circular and resilient Europe, we cannot afford this to happen.
© Picture credit - European Union, 2016 -Lucien De Vestel, Jean Gilson, A&J Polak; Renovation: Berlaymont 2000
