European associations: what’s next after the Commission’s proposal?

Sarah Bertail, chief legal officer at France générosités, provides an update on the state of play with the proposed directive on European cross-border associations.

As we announced in September and October (see our articles here and here), the European Commission published on 5 September 2023 a proposal for a directive on European cross-border associations, already well known by its acronym “ECBA”.

As we already mentioned, there are several advantages to this proposal including:

• Definition of nonprofit purpose and non-profit association (article 2);
• Recognition of the place of associations in the EU and renewal of the essential nature of the freedom of association. An entire chapter is dedicated to the rights of the ECBAs and to prohibited restrictions (chapter 2);
• Mutual recognition of the ECBAs across EU Member States, and possibility of relocation of its registered office within the EU without dissolution or the creation of a new legal person;
• Free and non-discriminatory access to funding from public or private sources.

Agenda

This proposal for a directive is subject to a call for feedback until 8 April 2024. EFA’s contribution is currently under review. European networks as Civil society Europe, Philea and Social Economy Europe are following closely the debates. One could argue that the ECBA status could provide a great basis for European Foundation status in the nearby future.

In the meantime, the Legal Affairs Committee (“JURI committee”) has adopted an amended text which must be submitted to the European Parliament for a vote during the plenary session in April.

On the basis of this voted text and after the European elections (June 2024), the so-called “trilogue negotiations” would start with the Council and the Commission.

Note that the presidency of the Council will be held by Hungary during the second half of 2024. It is not certain that the subject of ECBA will be the priority…

Thus, after European elections, we shall mobilise some allies in the new Parliament and within our own government to ensure the right progress of this subject.

We will keep you posted.

Picture by Lara Jameson on Pexels