The European Network for Social Integration Enterprises, ENSIE, represents the interests of national and regional networks of Work Integration Social Enterprises (WISEs) striving for more inclusive and integrated forms of employment at European level. WISEs are defined by three identifying pillars: they are enterprises whose main objective is the social and professional integration of disadvantaged people; they are at the core of the economic system; they present a strong pedagogical dimension.

ENSIE welcomes the European Commission’s initiative to give feedback and comments for the up-coming review of the de-minimis regulation and wants, together with its members, restate some suggestions to improve the current regulation further, when reviewed for 2023.

First of all, ENSIE and its members agree on the need of a revised threshold, which takes into account inflation for 2014-2030 and reflects economic developments. Added to this it is crucial that if the de minimis threshold is raised under Regulation 1407/2013, the threshold for services of general interest (SGEI) set in Regulation 360/2012 must be raised as well.

Following the EU Action Plan for the Social Economy, which was approved last December 2021, it would be crucial to add another exception in Article 1 of the de minimis Regulation: “aid granted to work integration social enterprises (sheltered workshops and economic operators whose main aim is the social and professional integration of disabled or disadvantaged persons or may provide for such contracts to be performed in the context of sheltered employment programmes, provided that at least 30 % of the employees of those workshops, economic operators or programmes are disabled or disadvantaged workers according to the articles 2 and 20 of the Directive 2014/24/EU). In this framework, the total amount of de minimis aid granted by a Member State must be proportional to the size of the enterprise: a percentage in relation to the number of workers in the enterprise with an established minimum threshold and an established maximum threshold over a period of three fiscal years.”

With this amendment, ENSIE wants to support job creation within social economy, in particular in WISEs (this sector has been recognised within the Blueprint for sectoral cooperation on skills): the more jobs are created by the enterprises, the higher the amount of de minimis aid that should be allowed to increase their social and environmental impact (for more info on environmental impact see also RREUSE network’s call for evidence). ENSIE believes that the use of the same threshold scheme as the one applicable to mainstream businesses is a discouraging approach that does not take into consideration the nature of limited profitability of the non-profit entities and the distribution of the created surplus towards actors other than shareholders characterising the scope of economic activity of work integration social enterprises. In addition, the current threshold scheme does not consider the local/national dimension of WISEs’ economic activities, which does not provide the same risks of distorting the functioning of the internal market. In other words, knowing that their economic activities remain at national or local level, the potential competitive advantage caused by the suggested new de minimis aid scheme would not have a significant impact at the EU level and on other businesses operating a similar economic activity: the EU must not penalise the medium and large work integration social enterprises having inclusive and fair objectives, by creating green jobs for vulnerable categories of people for the sake of an inclusive circular transition. Such a different and proportional approach proposed by ENSIE is, thus, better adapted to the enterprises’ reality.

Concerning the transparency, ENSIE and its members agree and suggest a special section within the single register.

Finally, ENSIE asks for a proper public consultation on the draft review for the regulation. In fact, ENSIE and its members also insist on the need to recognise the specificity of WISEs, which are often depending on other bigger associations or foundations or NGOs, classified as groups of linked enterprises by the European legislation. As linked enterprises, they are considered as one single undertaking for the application of the de minimis rule. In the mainstream businesses, where the profit is the biggest aim, this is correct and understandable; in the WISEs (and other social economy enterprises), which are non-profit enterprises and whose main aim is the employment of people with support need (disadvantaged and severely disadvantaged groups as well as disabled groups), the rule applied should not be the same. In particular, every linked enterprise should be allowed to receive its proper ‘de minimis’ aid provided that this will be used to create new employment opportunities for people in support need, thus for promoting social inclusion and create social cohesion in the local community.