Common rules in the EU for associations operating in several countries

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1) Associations and organizations no profit in the EU, scenario

1.1) Numbers

Associations and organizations no profit in the EU they are numerous and participate in the activities of many sectors, with a significant economic impact.

The data collected between 2017 and 2020 refer to 1,3 million associations in France, 604 in Germany, 308 in Italy, 115.000 in Ireland, 34 in Hungary, 11 in Belgium, etc(2-7).

Il no profit in Italy it records the primacy of Lombardy, with over 57 thousand entities. Following Lazio (33 thousand), Veneto, Piedmont, Emilia-Romagna and Tuscany.

1.2) Social activity

The entities no profit play a fundamental role in scientific research and technological innovation, cultural promotion, protection of human rights and the environment. They can therefore help raise public awareness of the values of innovation and sustainable development.

The associations they can also help promote international cooperation and understanding between peoples. In that spirit of 'good neighborliness' to which the Treaty on European Union refers, (8) of which memory has been lost precisely in relations with neighboring Russia. (9)

1.3) Impact on employment and the economy

The so-called Third Sector it is not only a resource in terms of idealism and cultural stimuli. Instead, it fits between the public and private sectors with a significant impact on employment. In France, for example, the no profit it employs 2,2 million people and represents 4,7% of GDP. (6)

Employment in Italy since no profit it is worth 853.476 jobs, equal to about 7% of the total in goods and services production companies. And it records almost constant growth, as observed by Istat in recent years. (5) + 3,9% in 2017, + 1% in 2018, compared to the previous 12 months.

2) Associations operating in several EU countries, the issues to be resolved

Organizations non-profit organizations in the EU still suffer a series of limitations, as regards:

the exercise of certain freedoms (e.g. expression, information, assembly and association) recognized in the European Charter of Fundamental Rights.,
access to the freedoms theoretically linked to the existence of the single market.

2.1) European Parliament, the study

The Research Service of the European Parliament has published a study (2021) which confirms:

the increasingly numerous presence of associations no profit active in multiple sectors of activity,
the absence of a harmonized legal and tax framework at European level,
the heavy legal and administrative burdens borne by associations operating in several EU countries, effectively excluded from the benefits linked to the existence of the single market. (10)

2.2) Legislative initiative of the EU Parliament

The European Parliament adopted on 17.2.22 by a large majority a resolution of legislative initiative (2020/2026 INL) aimed at harmonizing and strengthening the legal situation of non-profit organizations (NPOs), with the dual purpose of:

establish, by means of a regulation, the legal form of the 'European association'. As already established for European enterprises and European social cooperatives,
harmonize a series of 'minimum standards', through a directive, for NPOs in the European Union. (11)

3) Public consultation

All social partners interested parties, including individual citizens, can participate in the public consultation to express their views on:

the need for action by the European legislator,
the options identified to solve the problems identified,
other aspects to consider. (1)

Dario Dongo and Elena Bosani

Programme

Contribution of Égalité to the 'Public consultation on EU framework for cross-border recognition of associations in the EU', 9.8.22

Note

(1) Public consultation open from 5.8.22 to 28.10.22. Single market - Proposal for a legislative initiative on cross-border activities of associations. European Commission. https://bit.ly/3puLq5L

(2) Barometer of associations, 2020, Foundation Roi Baudoin.

(3) Hungarian Central Statistical Institute. https://www.ksh.hu/stadat_files/gsz/hu/gsz0014.html

(4) In Ireland, associations fall under the broader concept of 'charities' and can take different legal forms (unincorporated associations, trusts and limited liability companies). https://www.charitiesregulator.ie/media/2211/final_charitiesregulator-annual-report-2020.pdf

(5) ISTAT. Structure and profiles of the non-profit sector 2019. https://www.istat.it/it/archivio/262507

(6) Sylvie Dumartin, Sandrine Firquet. 1,3 million d'associations: des hôpitaux et Ehpad aux associations de parents d'élèves et aux clubs de gym. INSEE (French National Institute of Statistics). 4.5.21, https://www.insee.fr/fr/statistiques/5365639.

(7) Bertelsmann Stiftung, 2017 ZiviZ survey. https://www.bertelsmann-stiftung.de/de/unsere-projekte/zivilgesellschaft-inzahlen/projektnachrichten/ziviz-survey-2017.

(8) TEU (Treaty on the European Union), consolidated text. https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:C:2016:202:FULL&from=EN

(9) https://www.egalite.org/pace-in-europa-appello-al-cancelliere-olaf-scholz-petizione/

(10) Fernandes Meenakshi, Klaus Müller (2021). A statute for European cross-border associations and non-profit https://www.europarl.europa.eu/RegData/etudes/STUD/2021/662630/EPRS_STU(2021)662630_EN.pdforganisations. European Parliament.

(11) MEPs push for game-changer rules for pan-European civil society. European Parliament. Press release, 17.2.22
https://www.europarl.europa.eu/news/en/press-room/20220210IPR23023/meps-push-for-game-changer-rules-for-pan-european-civil-society

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