Brussels, 24/07/2003 (Agence Europe) - The Council of Ministers of the EU adopted on Tuesday 22 July the status of the European co-operative society (ECS). This status will allow co-operatives operating on the territory of more than one Member State to acquire a single legal identity in application of Community law. And so, according to a press release by a Commission spokesperson, "co-operatives will be able to carry out their activities throughout the internal market with a single legal identity, regulation and structure; they will be able to expand and restructure their cross-border operations without having to set up a network of subsidiaries, which takes a great deal of time and money". The Member States now have three years in which to transpose the provisions of the directive into national law. The status of the ECS will thus become operational in 2006.
Welcoming the conclusion of this agreement, Commissioner Erkki Liikanen noted that "the EU has 300,000 European co-operatives, which play an important part in the economy, as they employ 2.3 million people and provide services to 83.5 million members". He added that "the Commission has resolved to make adequate tools available to them to allow them to take full advantage of the internal market". The Commission spokesperson states in a press release that this new status "will also constitute an ideal legal instrument for companies of any kind, which hope to regroup to ensure a joint future" and "will allow groups of at least five European citizens from several Member States to create an ECS". It was also pointed out that an ECS could be created starting from zero (but also via a merger or by converting an existing company), either by physical or legal persons. The minimum capital will be set at 30,000 EUR (i.e. one-quarter of that required for a European limited company).
It is worth noting that June's Employment and Social Affairs Council reached political agreement on the draft regulation granting company status to the ECS, and the draft directive completing the ECS status for workers' involvement. Both of these instruments are modelled on the ones on the European company, adopted in 2001, with the modifications called for by the specific nature of co-operative societies (see EUROPE of 4 June p.10).