The VYV Group has initiated a collective call for action, and are looking for like-minded organizations willing to join them in their efforts towards the recognition of the notion of “limited profitability”. Here is an excerpt from their letter.
…the specific legal models of companies with limited profitability are not yet recognized by European legislation. This concept is defined in an own-initiative opinion adopted by EESC in 2019 and recognized at international level by the United Nations.
Therefore, our structures are facing an unfair competition with for-profit enterprises caused by the legal oversights on our inner differences: we have a different approach to the distribution of surplus earnings and we have higher constraints on access to capital, which is necessary to grow. The Paint Graphos case law by the CJEU granted a specific regulatory framework to cooperatives regarding those inequalities in EU law and specifically State Aid. It recognized that in view of the constraints to finance their activities, cooperatives are not evolving in a factual and legal situation that is comparable to that for-profit companies
EU and national regulations must more effectively foster the development of limited profitability enterprises by setting a legal and political framework guaranteeing a fair while safeguarding our fundamental values of solidarity, economic resilience, and the absence of the pursuit of profit.
Read the full text HERE, and more about the background of this call in the letter from Thierry Beaudet, president of the VYV Group.
More information about the initiative in their website www.advocatingeurope.eu or directly with:
Dialiha FOFANA for VYV GROUP UMG
This publication has been prepared within SENBS project No. 2020- 1-EE01-KA204-077999. The content of this publication is the sole responsibility of the project coordinator and may not always reflect the views of the European Commission or the National Agency.