MEPs support creation of the European legal status for associations to facilitate their cross-border mobility, activities and access to funding.
With 490 votes for, 69 against and 64 abstentions, MEPs approved draft rules on the new legal form of the European cross-border association (ECBA) to be recognized across the EU. The aim of the draft law is to overcome diverging national rules and save 770 million euro annually on administrative costs related to setting up a national branch. The status of the European cross-border association should improve its mobility and facilitate its cross-border activities without hampering iits potential.
Non-profit character and ECBA certificate
According to the draft rules, an ECBA would be created by registration with at least three founding members (either natural or legal persons), with links to at least two EU countries. It could also be established by merger or conversion. An ECBA must have a non profit character and a decision-making and executive body. It would be recognized by an ECBA certificate available in a unified template in all EU languages. An ECBA can be dissolved voluntarily, or when decided so by the member state in limited and clearly defined cases such as when it breaches EU values or is convicted for serious criminal offenses such as terrorism.
No restrictions on access to funding
ECBAs could not be subject to member state restrictions when it comes to nationality, residence or participation in public debate and would have a right to apply for and receive funding from public and private sources without discrimination. In case of transfer of its office between member states, ECBA would have to prepare a safeguard report for its creditors and employees. Member states would be required to create an ECBA register and establish an authority responsible for enforcing rules related to ECBAs. The Commission would be tasked with establishment of an ECBA committee in charge of issuing guidelines and monitoring implementation of the directive.
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Following the plenary vote, lead MEP Sergey Lagodinsky (Greens/EFA, DE) said:
“Today, the European Parliament adopted my report on European Cross-Border Associations. Associations and non-profit organizations in the EU are key for democracy, accountability and participation. They deserve a special European legal form. Today is a great day for civil society and democracy in Europe!”
Next steps
Report adopted by the plenary now constitutes the Parliament´s position at first reading. The file will be followed up by the new Parliament after the European elections on 6-9 June.
Background
There is around 3.8 million non-profit associations in the EU contributing 2.9% to EU GDP. Around 310 000 non-profit associations are active in more than one EU country in sectors with a societal impact such as healthcare, education, social inclusion or sports. The European Parliament has consistently stressed the role of non-profit organizations in building up a democratic civil society and the European Commission responded to its call with a proposal submitted in September 2023.
By advancing this legislation, MEPs respond to citizens’ concerns as outlined in proposals 12 (15) and 25 (2) of the report on the final outcome of the Conference on the Future of Europe.
Source – EU Parliament