The European Foundation Centre (EFC), the principal representative organisation of public-benefit foundations at EU level, welcomes the decision by the European Commission to present a regulation on a European Foundation Statute by the end of 2011 as announced in its communication “Towards a Single Market Act – for a highly competitive social market economy”1 released on 27 October 2010.

The news will rejoice the 110,000 public benefit foundations across Europe which invest over €100 billion annually to address citizens’ needs and well-being and sustainable development. “We now want to ensure that the Commission will deliver on its promises and will pursue our cooperation with its services to help develop an effective EU regulation” commented Gerry Salole, EFC Chief Executive.

The EFC will share its views on what a Regulation on a European statute for foundations should look like, building upon its initial proposals released in 20052. The intention has always been to create a new European legal instrument that is an optional tool, complementary to existing national legislations, which would mainly be governed by European law and would apply to foundations pursuing a public benefit purpose.

The Commission has now given due attention to the clear evidence of the need and support for a European Foundation Statute shown by the European feasibility study and the results of the public consultation released in 2009, not to mention the calls repeatedly made by the foundation sector and its representative organisations. A European Foundation Statute will allow foundations to develop their full potential in the European internal market and will contribute to putting citizens and citizenship action at the heart of the Single Market. The European Parliament and the European Economic and Social Committee have also expressed their support for the Statute3.

The EFC welcomes a shift in focus towards citizens in this new Single Market drive as it believes that all forms of undertakings as well as people have to be at the core of the process. The Single Market is not an end in itself but rather a means to promote a citizens’ Europe of sustainable social and economic development. In this sense, foundations will also contribute to other key Commission proposals in the Single Market Act looking in particular at:

• Solidarity in the Single Market, namely the implementation of rights in the EU Charter of Fundamental Rights, access to employment and lifelong learning and measures on services of general interest.
• Creativity and social innovation, notably the development of the EU patent, the adoption of a social business initiative to support the development of socially innovative corporate projects by means of social ratings, ethical and environmental labelling, public procurement, and the use of dormant savings- as well as corporate governance and social responsibility.
• Promoting a friendly legal and fiscal environment for citizens and foundations in terms of cross-border taxation, review of the VAT regime and the coordination of tax policies with the possible introduction of a common consolidated corporate tax base.

Download the full statement here.

Further details on the European Foundation Statute are available on the dedicated webpage: http://www.efc.be/EuropeanFoundationStatute