Social enterprises cannot survive in the marketplace without legislation

The social economy law has been before decision-makers for a long time, and the delay in adopting it is an obstacle to the development of social enterprises, which are considered to be the future of the Romanian economy, given that investments in the economy have decreased over the last five years.

However, in its current form, the law does not provide any benefits for social enterprises, nor any tax breaks. Without support, these enterprises will not survive and even disappear altogether. At European level, in an economy that is contracting and where employment is falling, traditional methods of mediation between vulnerable people and the job market through the social economy have started to be replaced, as this is a sector that creates jobs.

In Romania, the social economy is a sector that has worked well over the last five years. The availability of credit has convinced many organisations to enter this market, even though they were unprepared and it was not part of their long-term strategy. As a result, many social enterprises have only survived for a couple of years at most.

What measures can the Commission take to optimise legislation on the social economy sector?