---------- Forwarded message ----------
Date: Tue, 06 Oct 1998 14:46:52 +0100 GMT
From: [EMAIL PROTECTED]
To: [EMAIL PROTECTED], [EMAIL PROTECTED]
Subject: Third system "needs legal definition"
Third system can create jobs, but needs a legal definition
If the "third system" is to maximise its economic potential and create
more jobs, it will need to be defined unambiguously and have a clear
legal status. The terms "third system" and "social economy" (which
refer to the non-profit-making sector of the economy) are sometimes
used interchangeably at present but their practical nature varies
greatly from country to country. They also take different legal forms
(cooperatives, NGOs, charity organisations etc.) in different Member
States, which can lead to fiscal and administrative problems.
These were the broadly shared conclusions of experts who addressed the
seminar "The Third System and Employment" held jointly by the
Committee on Employment and Social Affairs and the Commission's DG V
on 24 and 25 September. The starting-point for the seminar was the
Commission's pilot scheme "The Third System and Employment", which was
launched with Parliament's support in 1996 with the aim of supporting
local job-creation projects. The scheme lasts from 1997 to 1999 and 52
projects are currently up and running. Its main aim is the creation of
new jobs based on identifying unmet needs in the areas of personal
social services, the environment and cultural and leisure activities.
Stephen HUGHES (PES, UK), Chair of the Committee on Employment and
Social Affairs, reminded the audience that in 1996 some Member States
had fiercely opposed the pilot scheme. A Eurostat survey and a study
done by Johns Hopkins University showed, however, that the third
system did have considerable potential for job-creation. At the
Luxembourg Employment Summit, the Member States acknowledged the
opportunities offered by the system.
Commissioner Padraig FLYNN told those present that the Commission was
trying to simplify the arrangements relating to ESF funding available
for third system projects. Another Commission representative said
that, under the new ESF regulation, approximately 1 per cent of the
total amount should be available for local projects.
According to experts, third system organisations have several things
in common. They regard democracy and solidarity as more important than
making a profit, they operate wherever disadvantaged groups are to be
found, they do not depend solely on private or public funding and they
emphasise smallness of scale, innovativeness and partnership.
As expectations concerning the employment potential of the third
system grow, the organisations face many challenges, such as financing
and the quality of the services provided. It can be difficult to
reconcile the twin aims of integrating the disadvantaged into the
labour market and providing high quality services. If the third system
is to create jobs, someone has to be ready to pay for the services it
provides.
Further information: Virpi KOYKKA, tel. +32 2 284 6222 or
e-mail [EMAIL PROTECTED]
Source: EU press release, 29/09/98
