If properly inspired, the European Parliament (EP) can be the catalyst for the strengthening of the social economy. This is the kind of economy which bolsters sustainable growth and full employment, by tackling many of the imbalances in the labour market. It encourages female employment and the creation of welfare, while at the same time it strengthens the social and economic fabric by invigorating local development and social cohesion.
In such a scenario, an adequately motivated EP should strive to voice its enthusiasm for improvements in the context of the Small Business Act, which aims at Europe-wide rules for small and medium-sized enterprises. The Small Business Act for Europe, passed in June 2008, applies to all companies which are independent and have fewer than 250 employees: 99 per cent of all European businesses.
Social economy structures providing socio-economic activities may be of particular interest to SMEs. The reasons for this are many: the strengthening of local and EU competitiveness and capacity for innovation; the generation of stability in a context of eminently cyclical economies, through the redistribution and reinvestment of profits locally; the promotion of an entrepreneurial culture; the linking of economic activities to local needs; the sustenance of activities at risk (e.g. crafts); and the generation of social capital.
A socially-guided EP can promote the role of women in the social economy, in quantitative and qualitative terms. There are already many women in all fields of the labour market, and thus the quality and organisational aspects of work and service provision need to be ameliorated. Also, the EP can be instrumental in solving the other, persistent problem: vertical integration. Women should be given the opportunity to take part in decision-making, thus translating lofty ideals into tangible facts.
Equal impetus can also be given, if the EP is socially-minded, to training projects involving higher education. There is the need to offer incentives to university and vocational training courses meant to instil awareness of the social economy and of business initiatives based on its values.
Most importantly, however, an EP with the proper set of priorities can bring about change. It can insist on easing access to credit and tax relief, on the development of microcredits, and the creation of European statutes for associations, foundations, and other societies. It can also trigger the creation of tailored EU funding and incentives in order better to support social economy organisations operating within market and non-market sectors, constituted for social utility purposes.
Ultimately, if the balance tilts to one part, the EP can put its weight behind proposals to help SMEs overcome the considerable difficulties they encounter at present in accessing EU funding.
It is only with a Socialist majority that these objectives can be achieved. A vote for Labour in the forthcoming elections will signify Malta’s desire to see these objectives turned into policy. The tide is changing all over Europe – the Right is in decline, mostly because European electorates are realising who is to blame for deregulation and all that which ignited the present crisis. Europe wants the Left to take the driver’s seat again, and to get us out of the present rut. The Maltese can join the majority of Europeans in this important step. Our future and our children’s future is at stake.
Joseph Cuschieri is PL candidate for the EP
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