The social economy’s journey: from foundations to shifting tides in 2025

Across Europe and Western Balkans, numerous associations, cooperatives, social enterprises, and solidarity-based organisations are quietly shaping a different kind of economy, one where people come before capital, and where growth is measured not only in profit, but in purpose. This is the essence of the social economy: an economy that works for citizens, communities, and the planet.

For more than a decade, the European Union has recognised the transformative potential of this model. Starting with the Social Business Initiative in 2011, the first step towards formal recognition of social enterprises within the Single Market, the EU began building a policy foundation for a fairer and more inclusive economy. The Start-up and Scale-up Initiative (2016) further expanded this vision, including measures to improve access to finance and markets for social enterprises, and linking innovation with social impact. The momentum continued with the adoption of the European Social Economy Action Plan (SEAP) in 2021, a landmark framework that placed the social economy at the heart of Europe’s pursuit of sustainable development. Its goals were ambitious yet clear: to improve conditions for social enterprises, empower actors to start and scale their activities, and foster thriving social economy ecosystems across Member States.

The years that followed deepened this recognition. The Transition Pathway for the Proximity and Social Economy Ecosystem (2022) linked the sector to Europe’s green and digital transition. In 2023, the launch of the Social Economy Gateway provided a one-stop EU platform for knowledge and opportunities, while the Council Recommendation on Developing Social Economy Framework Conditions encouraged all Member States to integrate social economy principles into their national strategies.

By 2024, with the appointment of Ms. Roxana Mînzatu as not only responsible for the European Pillar of Social Rights,+ but also for advancing the development of the social economy, and the renewal of the Social Economy Intergroup in the European Parliament, the sector appeared firmly anchored in the EU’s political landscape.

In 2025, the Start-up and Scale-up Initiative 2025 renewed this focus, aligning with the EU’s Industrial Strategy to help mission-driven start-ups and social enterprises expand, innovate, and contribute to the twin green and digital transitions.

Yet, as 2025 unfolds, the horizon looks more complex. The global context, marked by economic pressures, inflation, geopolitical instability, and new security priorities has reshaped the EU’s policy compass. The European Commission’s focus has shifted toward competitiveness, defence, and industrial resilience, leaving many to question whether the social economy will retain its place in the European agenda.

This uncertainty was amplified by the withdrawal of DG GROW’s dedicated commitment to Social Economy Sector in May 2025, a move that, despite reassurances, signalled a loss of institutional continuity and expertise built over a decade. The decision sparked widespread concern among stakeholders, including Social Economy Europe, which mobilised over 230 organisations across the EU and Western Balkans to call through a statement for renewed commitment and clear leadership for the sector within the Commission.

Despite the shake-up, support for the Social Economy continues through Commissioner Mînzatu.

In the wake of this institutional change, the Proximity and Social Economy (PSE) ecosystem, once treated as a distinct EU priority, is now being reframed as an intersectoral ecosystem, integrated across multiple industrial areas such as tourism, textiles, agri-food, and construction. As a result, starting from 17 October 2025, the EU Platform for PSE will no longer be updated, although its existing content will remain accessible online. Going forward, its functions and values will be distributed across six new sectoral platforms: the EU Agri-Food Platform, EU Retail Platform, EU Tourism Platform, EU Textiles Ecosystem Platform, EU Chemicals Platform, and EU Construction Platform. These platforms will continue to promote the principles of the social economy in their respective fields, working in synergy with the Social Economy Gateway.

Alongside this transition, attention is now turning to the EU Agenda 2026 and the upcoming annual budget for priority areas. Social Economy Organisations (SEOs) across Europe are actively advocating for a dedicated EU budget line to sustain and expand social economy actions. However, the outcome remains uncertain as budget deliberations are still on going.

At the same time, the mid-term review of the Social Economy Action Plan (2021–2030) is under way. This review will assess progress on 38 actions and determine how the second half of the plan (2026–2030) will evolve. For many, it is a decisive moment: an opportunity to reaffirm that the social economy is not peripheral to Europe’s competitiveness, but central to it.

Despite institutional turbulence, one truth remains, the social economy has consistently proven its resilience. It endured the financial crisis, the pandemic, and the shocks of digital and green transitions, providing stability, jobs, and solidarity when traditional markets faltered. With more than 4 million enterprises employing over 11 million people, and a turnover of nearly €1 trillion¹, the social economy is not a niche; it is a pillar of Europe’s social market economy.

In the Western Balkans also, despite fragmented legal frameworks and limited statistical visibility, social economy initiatives are increasingly addressing employment, social inclusion, and sustainability challenges. The EU’s new Growth Plan for the region, backed by a €6 billion Reform and Growth Facility, offers a strategic opportunity to embed social economy principles into national reform agendas, aligning local innovation with broader European integration goals.

Therefore, these developments carry both promise and caution for EU and WB countries. On one hand, stronger EU frameworks and visibility can translate into better access to funding, networks, and policy inspiration. On the other, if Brussels’ attention shifts away, the momentum driving national reforms and social economy growth in the region could slow.

As the EU redefines its priorities, it must remember that resilience does not come from protectionism alone, but from inclusion, solidarity, and shared prosperity. Europe’s future competitiveness depends not only on industry and defence, but on communities that thrive together.

And for all of us, the call is clear: to stay connected, to stay engaged, and to show that the social economy rooted in cooperation, democracy, and care is not just a strategic agenda, but a shared vision for a more human economy.

This vision is also at the heart of the CREASSE project, which promotes awareness and recognition of the social economy by fostering dialogue among policymakers, practitioners, and local actors, while also showcasing the sector’s potential in advancing social inclusion and sustainable development. Through capacity-building activities, training and tailored mentoring programs, the project enhances the entrepreneurial and managerial skills of social entrepreneurs, with a particular focus on rural areas, where such opportunities are often limited.