Cogeca would, however suggest that the Commission includes the following remarks:

·         On Chapter 2.1, in defining the characteristics of co-operatives, it is important to notice that the primary objective of a co-operative is to serve the interest of the members in relation to market and prices conditions. Related to this, we would also like to stress that, in today’s market environment, successful co-operatives must be able to build up sufficient financial reserves in order to maintain the competitiveness of their business via ongoing investments. Member’s support is therefore mainly provided through co-operative services and activities, rather than through differentiated prices. 

·         Chapter 2.2 should emphasise the importance of the economically largest co-operative sectors. The inclusion of a brief summary with key figures of the different sectors will be a great help to illustrate such importance.

• On Chapter 3, and concerning the Co-operative Legislation in the EU, Cogeca agrees that references to national legislation in the SCE should be as limited as possible. The European Co-operative Statute (SCE) may be an important step in opening the opportunities for transnational cooperatives to eliminate some of the existing obstacles. In our opinion, the SCE should be broad framework legislation, allowing co-operatives to decide for themselves how they want to act on the basis of the interest of their members in an ever-changing market environment. This important principle should be safeguarded by any co-operative regulation at European level.

In addition, Cogeca regrets that there is no concrete proposal on Competition Policy. European co-operatives believe that authorities should consider the European Market, rather than the domestic, as the relevant market (product and geographical), due to the fact that co-operatives are working on a common internal market and with a common agricultural policy, and also to the progressive liberalisation of the world trade.

Cogeca also insists on the fact that the diversity of national competition rules could cause discrimination and distortion of competitiveness due to the different interpretations of competition rules by national authorities.

·         With regard to the contribution of co-operatives to community objectives, Cogeca would like to see, in Chapter 4.1, a mention of the important role co-operatives plays in the development of rural areas providing economical possibilities to their members and keeping rural areas alive.

·         In Chapter 4.2, Cogeca considers it essential that the document underlines the fact that co-operatives offer the potential for vertical integration of the production chain. This not only assists primary producers in adding value, but also enables better co-ordination and control of the primary product. This aspect is important for the quality and traceability of the final product.

Cogeca hopes this document will be use as a tool for a better understanding of co-operatives business, nature and specific needs in the European Union, and once more wants to thank the Commission for this first draft which provides a clear overview of the development of cooperatives in Europe. Cogeca is looking forward to be involved in futures co-operation with the Commission when developing future policies for co-operatives.

Palaa Viikko-Pellervoon, back to Weekly Bulletin