Europe on fire: why the EU should partner with the social economy to face its hardest challenges

Both figuratively and literally, over the summer Europe has been facing the fiery consequences of a breakdown of both the natural and geopolitical environment. Any Eurocrat left in the city was undoubtedly exposed to the baking heat exacerbated by the concrete jungle that is Brussels. Looking beyond the city’s limits would cool anyone’s optimism for the global outlook with continuing disruption to global trade and energy supplies. Is this finally the wake-up call that will cut through to policymakers that we can’t carry on with business as usual? Are we then ready to look internally within Europe at how we can engage communities in collective solutions, embrace the transition to clean power and build our resilience from the ground up? And, above all, is the social economy ready to reach its potential in addressing Europe’s policy priorities beyond its traditional realm? 

With the negotiations on the next EU budget intensifying towards the end of 2026, now is the time for the social economy and social enterprises to get the message out: we can be partners for the public sector in delivering the Europe we want to see. 

Housing, physical spaces and climate change 

People and the planet are at the heart of the social economy. Housing and the physical environments where we live should therefore be an obvious place where the social economy can contribute to addressing Europe’s social and environmental priorities. It has become increasingly evident across Europe that housing is a problem for citizens. There are often shortages, it's too expensive (especially for young people) and it’s not designed for our changing climate. Fundamentally: the housing ‘market’ is not meeting the needs of citizens. Social economy models such as housing co-operatives and social renting schemes are already being drawn on by the Commission – but where is the recognition of the social economy as a solution to a key priority in a new area for European action? 

Only in partnership with the social economy will local, regional and national public authorities be able to take the rapid steps required to protect people and the environment

Beyond housing itself, urban and rural environments alike are not ready for the impacts of our changing climate. Whether it is a lack of greenery in cities (Brussels being a prime example) to keep them cool in the summer, adequate water storage and flood defences or fire breaks in rural areas, citizens are facing the real consequences of climate change. They must be involved in the redesign and protection of public spaces. 

At a time where public budgets are increasingly squeezed while the need for action only increases, it is likely that only in partnership with the social economy will local, regional and national public authorities be able to take the rapid steps required to protect people and the environment. 

Energy security and European resilience 

In an environment where competitiveness, defence, resilience and strategic autonomy are central to Europe’s priorities, energy might emerge as the biggest opportunity for the social economy. 

The centrality of energy to all aspects of life and the economy has become painfully clear through the series of energy shocks that have hit Europe over the past five years. Ever more expensive energy undermines Europe’s competitiveness and exacerbates issues such as fuel poverty and social exclusion. Without a sovereign energy source, Europe lacks resilience and is strategically vulnerable. 

Social economy business models encourage engagement between local citizens, businesses and government

The solution: democratise energy ownership, production and consumption. Social economy business models such as energy communities and co-operatives have the potential to address many of the issues facing public authorities as they struggle to keep pace with energy demand: more locally-produced energy means less impact from global supply shocks, and reduces how far energy needs to travel through overcongested grids. Social economy business models also encourage engagement between local citizens, businesses and government – sharing the production, ownership and benefits of their common energy system. 

Energy co-operatives and communities are not new and their support at EU level is only increasing following the recent adoption of the Citizens Energy Package – a set of recommendations from the Commission to lower energy bills and empower consumers in the clean energy transition. Energy is a clear and tangible policy area where the social economy can make a difference – now is the time to make sure that policymakers and citizens hear about it. 

• Read more: Opinion: Why we must unlock the potential of community-led energy

The luck of the Irish: a pot of gold for the social economy?  

All eyes are now trained on the Emerald Isle (as well as Brussels) as Ireland takes up the mantle of the rotating EU Council Presidency until the end of the year. It will be for the Irish to set the agenda and chair the meetings, searching for compromises between EU member states to agree the next EU Multiannual Financial Framework (MFF) (the EU’s next seven-year budget that will operate between 2028-34) before the end of 2026. 

Could this be another opportunity for the social economy? Ireland is one of the few countries to already be implementing their second social enterprise strategy with strong links between policymakers and stakeholder networks. The potential contribution of the social economy to addressing issues of housing should also be of great interest for the country, given challenges in housing markets on the island. 

• Read more: Ireland’s first social enterprise census reveals ‘dynamic’ sector

If no agreement is reached before the end of the year and negotiations continue into 2027, all bets are off as to what the shape of the next MFF will look like. With upcoming elections in 2027 in many countries, including key states such as France, it will not just be social economy stakeholders pinning their hopes on the Irish presidency to conclude these negotiations this year. 

So now is the time to get in touch with national politicians and members of the European Parliament to make sure that the social economy and social enterprises receive the funding they need to help Europe achieve its objectives in the next MFF.