Strengthening social economy and rural development: key messages for forthcoming Action Plan updates
For the first time, a Rural Pact Community Group has been directly involved in shaping EU policy. Over 30 members of the social economy group joined the European Commission in an online consultation to share insights for the mid-term review of the Social Economy Action Plan (SEAP) and the update of the EU Rural Action Plan (RAP).
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The two-hour online consultation, held on 1 October 2025, brought together the social economy group members to discuss enabling conditions for successful and resilient initiatives, pointed to the most promising sectors, and proposed priority actions for the SEAP and RAP. It further suggested how EU tools such as the Rural Pact could further strengthen cooperation between rural and social economy actors.
Read on to discover the key messages emerging from the discussion.
Policy integration and local delivery tools
Better integration of the social economy into EU and national rural development strategies – including the common agricultural policy (CAP), cohesion policy, and regional programmes – is key to unlocking its full potential in rural areas. According to the EU definition, social economy actors include cooperatives, mutuals, associations, foundations and social enterprises whose activities prioritise social and environmental goals over profit maximisation.
LEADER and Community-led Local Development (CLLD)
Considered as particularly effective tools for supporting the social economy in rural areas, the bottom-up and flexible design of LEADER and CLLD enables them to reach small, community-rooted initiatives that often fall outside larger funding schemes.
LEADER and CLLD are valuable in fostering projects that reflect the diversity and cross-cutting nature of social economy initiatives – such as renewable energy cooperatives, local care services, cultural hubs or short supply chains.
Both LEADER and the social economy share key principles – local empowerment, participation, and sustainability – which makes them natural allies. Strengthening the links between the two can enable LEADER to animate and implement projects that generate strong social, environmental, and economic value.
The cross-sector contribution of the social economy
The social economy plays a crucial multisectoral role in rural areas, contributing to care and social services, energy communities, local mobility, tourism, cultural heritage, sustainable food systems, the circular economy, and more.
Its ability to integrate economic, environmental, and social objectives offers a unique strength, enabling holistic responses to local challenges. Maximising this potential requires strong interdisciplinary collaboration across sectors to prevent siloed approaches and ensure coordinated, effective impact.
Funding access and administrative barriers
Many social economy actors in rural areas are small-scale, multi-purpose initiatives that often face difficulties navigating complex or sector-specific funding schemes. Simplified procedures, clearer and more inclusive guidance, and funding criteria focused on impact and mission rather than legal form or size are essential. Targeted support for women and young entrepreneurs is also crucial to foster innovation, enhance social inclusion, and promote generational renewal.
Innovation and peer learning
Peer-to-peer learning, cascade funding models, and interdisciplinary research involving academia, cooperatives, and public authorities are highly valuable for rural social economy initiatives. Establishing ‘safe spaces’ for experimentation is essential, allowing these actors to innovate freely without being limited by rigid regulatory frameworks or administrative burdens.
National Rural Pact engagement
Strengthening the Rural Pact at national level is essential to ensure more consistent enabling conditions across Member States and to support the long-term engagement of rural social economy actors in the policy process.
The input gathered through the consultation meeting will inform the ongoing SEAP mid-term review and the forthcoming update of the Rural Action Plan. Additional opportunities for stakeholder engagement are foreseen in 2026.
The online consultation meeting was jointly organised by the Rural Pact Support Office, the Community Group coordinating organisations – DIESIS Network and REVES – and the Commission’s DG EMPL and DG AGRI.
If you wish to learn more about the social economy, visit the EU Social Economy Gateway.