José Luis Rodríguez Zapatero has announced that the Government will rule on the specific regulatory framework governing social economy entities before the summer and will recognise its important contribution to developing economic activity and creating jobs.

The President of the Government has taken part in the closing ceremony of an event organised by the Confederación Empresarial Española de la Economía Social (CEPES) [Spanish Business Confederation of Social Economy], which was also attended by the Minister for Work, Celestino Corbacho, and the Minister for Health and Social Policy, Trinidad Jiménez, as well as trade union and business leaders.

At the start of his speech, Mr Rodríguez Zapatero highlighted that the social economy sector comprises a number of like-minded business entities and associations that are characterised by the participatory, cooperative and particularly responsible nature of their business. From among the many entities in this sector, he mentioned the co-operatives, worker-owned companies, insertion companies, associations for the disabled and special employment centres.

After reviewing the main measures adopted by his Government to foster the social economy since it first came to power, José Luis Rodríguez Zapatero underlined that the current legislature has increased the budget commitment to this sector with a 2009 increase of 35% to the funds earmarked for training, movement of workers and employment and of 12.5% to the amount earmarked for running costs. This funding remains unchanged in the 2010 Budget.

Furthermore, he announced that the Government plans to present the first draft of a Social Economy Act to the Council of Ministers before the summer.

Mr Rodríguez Zapatero said that this is something the sector has been demanding for some time and on which the Government has been working over the course of recent months in collaboration with the CEPES. He also said that the Government wants it to be “a pioneering piece of legislation in Europe”.

The President of the Government went on to explain that the regulations will be defined within a legal framework for the social economy, responding to the most characteristic aspects of this sector and considering its diversity. It will recognise its important contribution to socio-economic development and the creation of stable employment. It will also establish the commitment and support measures to be provided by all public powers.

This legislation will be used to define the channels for interaction between the organisations that represent the social economy and the public authorities and will make progress on reducing the bureaucratic red tape that can sometimes get in the way of these companies carrying on their activities.

“It is going to be a law that supports the activity of entities and companies in the Spanish social economy and makes it easier for them to operate; legislation that considers the importance and transcendence that this sector has acquired in our country and that is not as recognised, well-known or valued as highly as it should be”, he added.

During his speech, José Luis Rodríguez Zapatero also stated that the Sustainable Economy Act contains elements for development of the social economy. Furthermore, he announced that the Council of Ministers will approve the Social Inclusion Promotion Plan to support “the activity of those entities that find themselves on the front line in the fight against social exclusion during these times of economic crisis”.

Social economy and the EU

The President of the Government emphasised that Spain will use its Presidency of the European Union to “foster and increase the value of the social economy”.

The European Conference on Social Economy, to be held in Toledo in May, will be an excellent opportunity to achieve this.

He said that the social economy represents 10% of all companies in Europe and 6% of total employment; two million companies and almost twenty million workers.

At the meeting in Toledo, the capacity of this sector to contribute to the development of a sustainable, healthier and more productive growth model for the EU as a whole will be made clear.

Joining forces to escape the crisis

José Luis Rodríguez Zapatero emphasised that the social economy has been very important during the economic growth of Spain and will be again during this period to combat the economic crisis and establish the sustainable economic model we need in order to give solidity and continuity to recovery.

According to the President of the Government, the social economy offers responsibility and commitment, as well as entrepreneurial spirit, imagination and risk; therein lies its great capacity to widen horizons and reveal pockets of economic growth, employment, prosperity and social improvement.

The President of the Government reiterated his call to Spanish society as a whole to overcome this deep economic crisis and return to creating jobs. “We must achieve this with collective responsibility, by joining forces, by giving the best of each of us and by valuing the greater good above personal interests, just as the social economy does”, he concluded.