Why Dismantling DG GROW’s Social Economy Unit Matters 

On 1 May 2025, the European Commission disbanded the Social Economy Unit (Unit G.2 on Proximity, Social Economy and Creative Industries) within DG GROW, its department responsible for internal market, industry, entrepreneurship, and SMEs. The new organigramme reflects the priority shifts of the Commission towards simplification and barriers removal, at the expense of the Social Economy. While the Social Economy Action Plan (SEAP) will continue to be implemented until 2030, this restructuring raises serious concerns about how economic policy will now reflect the role of the social economy. 

For more than a decade, DG GROW’s Social Economy Unit has ensured that cooperatives, mutuals, and social enterprises are part of broader EU industrial and single market strategies. It helped link economic policy to people and place, and supported programmes like COSME that benefited cooperatives and social enterprises alike. 

Now, with the unit disbanded, that integration is at risk. Over 230 organisations, including many of our partners, ourselves and members of the Commission Expert Group on the Social Economy and Social Enterprises, have signed an open letter calling on the Commission to maintain a strong presence for the social economy within economic policy structures. The fear is that, without this link, the social economy will be treated solely as a matter of social policy, reducing its visibility in key areas like industrial strategy, market access, and investment. For cooperatives, which are inherently market actors, this is simply unacceptable. 

This move comes at a time when several EU calls and tenders — many of which involved months of preparation by Cooperatives Europe, our members and other social economy actors, — have been cancelled without warning or explanation. This creates uncertainty and undermines trust in EU-level support for the sector. 

Reactions from other organisations across Europe have made it clear: we are not alone in raising the alarm. Many are deeply concerned that this decision undermines years of work to put the social economy at the heart of a sustainable, inclusive EU economy. 

We welcome the continued rollout of the SEAP and the commitment shown by Commissioner Roxana Mînzatu. But this work cannot stand on its own — it must remain connected to the EU’s economic priorities. 

Cooperatives are part of a growing ecosystem that delivers quality jobs, strengthens communities, and supports sustainable economic models across Europe. At a time of multiple crises, cutting this connection would be detrimental as it would undo years of work and advancement for the social economy. 

Find the joint letter here.