At its April 2026 plenary session, the European Economic and Social Committee (EESC) adopted an exploratory opinion on EU competitiveness and youth entrepreneurship. Requested by the Cyprus Presidency of the Council of the EU, the opinion sets out how supporting young entrepreneurs can strengthen innovation, foster sustainable growth and help secure the future of Europe’s SMEs.
Europe is facing a pivotal moment. Social and economic inequalities, rapid technological change, anti-democratic forces and geopolitical instability are straining the foundations of the European project.
With democracy and civic space under mounting pressure, civil society organisations, human rights defenders and free media face growing constraints - from restrictive laws and disinformation campaigns to underfunding and public distrust. Deepening polarisation and eroding trust in institutions further undermine Europe’s democratic model.
The European Economic and Social Committee (EESC) has called for changes to the European Union’s State aid rules in order to recognise and better accommodate the needs of social economy entities, which play a critical role in tackling societal challenges.
stresses the importance of reconciling the need for strong public support for social economy entities – which often perform functions and roles formerly performed by the State – with the EU rules on State aid, and welcomes the proposal made in the Letta report on the single market regarding the need to adapt the current legal framework on State aid in order to facilitate better access to credit and funding for social economy entities;
believes that the rules for granting aid for the recruitment of disadvantaged workers or workers with disabilities set out in Section 6 of the General Block Exemption Regulation should be strengthened and simplified. As suggested in the Letta Report, and in the communication on criteria for the analysis of the compatibility of State aid for the employment of disadvantaged and disabled workers subject to individual notification, these rules should be updated to reflect the current economic situation;
notes that the legal framework for aid for services of general economic interest (SGEIs) is not being properly harnessed by public authorities, which often fail to give sufficient attention to the high degree of discretion that is conferred on them by the Treaties with regard to the power to classify certain activities as SGEIs.
Public Procurement was better framed in successive EU regulations and, with a view to more accessible and transparent access to it, the procedures were formulated in a more supportive manner. Its importance will continue to increase, both at a national level in the Member States and at a more local level.
Several challenges remain Particularly at the national level, the size and volume play to the advantage of larger companies that can rely on experience and expertise when drawing up files. At a more local level, there are opportunities for MSMEs and, even more specifically, for companies in the social economy. These opportunities require active attention and guidance from both the requesting and offering parties.
The EESC is convinced that islands, mountainous regions and sparsely populated areas face significant challenges and that there is a solid legal basis that obliges the EU to take action in order to tackle these challenges. In this context, the organised civil society has an important role to play and through this debate, the aim is to find the best practices and solutions so that these regions can perform better and recover from the multiple crises. Therefore the EESC- ECO section has decided to organise this public debate in the framework of the EESC own-intiative opinion on "Main challenges that EU islands, mountain and sparsely populated areas face.
The Belgian presidency asked the EESC to provide an opinion on how to tackle poverty through social innovation and the development of the social economy. The fight against poverty and social exclusion must take into account the numerous dimensions of the concept of poverty that affect access to employment, education, healthcare, housing, food, mobility, digital tools, energy and culture, among other things. A cross-cutting approach to poverty is therefore essential in order to ensure social inclusion. Even though all economic actors are involved in the fight against poverty, it is up to the state to exercise its full responsibility in this area. The social economy contributes to this fight in an organic and cross-cutting way, through its diverse activities and social orientation.
Insularity is considered to be a permanent and unchangeable geographical feature which involves additional costs (transport, energy, waste management, public services, necessity goods and services) that hamper the development and competitiveness of the islands, while particularly exposing them to biodiversity loss and climate change. The organised civil society has an important role to play and tackle all these challenges and through this debate. The aim is to find the best practices and solutions so that EU islands can preform better and recover from the multiple crises.
How can these regions become drivers for growth and development?
Event type
Public hearing
Location
Umeå Folkets hus,
Skolgatan 59
Umeå
Sweden
The European Economic and Social Committee (EESC) will be producing an own-initiative opinion on the main challenges faced by EU islands and mountainous and sparsely populated areas, which is scheduled for adoption at the EESC's September plenary session. In this context, the EESC, along with the Conference of Peripheral Maritime Regions (CPMR) and the North Sweden European Office (NSEO), will be holding a public hearing in Umeå (Sweden) on 4 May 2023 entitled "Challenges and opportunities that the digital and energy transitions present to the northern sparsely populated areas and islands. How can these regions become drivers for growth and development?". The hearing is an event under the Swedish Presidency of the Council of the EU.
