Read the latest publication: FINANCING SOCIAL ECONOMY IN EUROPE – THE NEED FOR A STRONGER INVESTEU PROGRAM

Read the latest publication: FINANCING SOCIAL ECONOMY IN EUROPE – THE NEED FOR A STRONGER INVESTEU PROGRAM

THE SOCIAL ECONOMY EUROPE’S SOCIAL FINANCE WORKING GROUP gathers members representing both the demand and the supply sides of social economy finance, the so-called social finance providers. Within this context, we employ the term “social finance provider” to encompass the comprehensive range of financial entities supporting social economy organisations, inclusive of ethical finance providers, microfinance institutions, foundations(1), national development banks and philanthropic institutions.

THE PRIMARY OBJECTIVE OF THIS PAPER is to highlight the barriers faced by social finance providers in accessing and using the InvestEU fund, with a particular focus on the Social Investment and Skills windows specifically designed for social economy organisations and enterprises(2). The underlying rationale stems from the recognition that InvestEU has the potential to significantly strengthen the social economy ecosystem by providing dedicated funding to social finance providers. However, various challenges prevent a thorough assessment of its effectiveness in promoting and sustaining the social economy ecosystem. For reference, the social economy gap was estimated at EUR 1 billion in 2022(3). While in the field of microfinance, the gap was estimated at EUR 12.9 billion per year across the EU(4) as reported in the Social Economy Action Plan (SEAP, 2021).