Changes from report parliamentary committee draft to plenary report

The proposal for a Directive on European cross-border associations (‘ECBA’) follows the Eu-ropean Parliament’s Resolution of 17 February 2022 with recommendations to the Commis-sion on a statute for European cross-border associations and non-profit organisations, and as well numerous calls over time from the Parliament and civil society to give associations a European legal form.

The Commission estimates the number of non-profit associations in the Member States at 3.8 million, roughly 10% of which are active across the EU. Through their activities in various sectors, they contribute 2.9% to the EU GDP.

Civil society organisations, including but not limited to associations, continue to face various administrative burdens due to a lack of approximation of practices, unjustified restrictions and other hurdles. They are subject to attempts to restrict their activities on political grounds, including the denial, refusal or challenging of their status as public benefit organi-sation.

The rapporteur welcomes the proposal to establish an ECBA by way of establishing a legal form in all Member States.

- In addition to making the same rules applicable to the ECBA that apply to the most similar non-profit association in national law, it should be taken into account which form is the most commonly used. This is to reflect that the Directive should be fit to the established and known practices of associations under existing national rules. The ECBA should therefore be treated equally with the legal form that associations already most commonly choose, providing them with all added benefits of the ECBA.

- The ECBA is a first step to put associations in the EU at the minimum on equal footing with commercial interests, therefore inspiration was taken from the Compa-ny Law Directive in adding provisions for the merger of existing ECBAs.

- The new ECBA Committee will foster the mutual exchange and cooperation of Member States with regards to the implementation and application of the Directive and has an advisory role towards the Commission.

- European civil society is coming increasingly under pressure from governments and administrations, in particular regarding access to funds and donations, and to their status as public benefit organisations. At the same time, associations remain instru-mental for democracy and policy making at all levels. They promote and work for the public good, they are part of the checks and balances necessary for the rule of law, and they are drivers for civic engagement of citizens. Member states should therefore not restrict activities or objectives with regard to participating in matters of public or political debate.