Michel Barnier, European Commissioner for Internal Market and Services,

On Wednesday, February 8, Michel Barnier, European Commissioner for Internal Market and Services, presented his proposal for a regulation instituting a statute for European foundations.

As part of the Single Market Act, this statute aims to considerably reduce costs and obstacles encountered by public purpose benefit foundations in the fields of “research, culture and humanitarian law” in several European Union countries. This legal form would exist in parallel with domestic foundations, and the status would be entirely voluntary.

The statute “will also allow foundations to benefit from more visibility to promote their activity and attract more funding thanks to a European label,” said the European Commissioner. To be eligCOUNCIL REGULATION on tue Statute for a European Foundationible for such a label, which would strengthen confidence among donors and volunteers, foundations must possess minimum founding assets of €25,000 and keep full and accurate records of all financial transactions.

Because of insufficient harmonization at the European level, European foundations will be subject to the tax system of the Member State where they are located and will be supervised by the relevant national authorities.

The legislative proposal for the creation of this statute must now be presented to the European Parliament for majority approval. It must also be submitted to the Council of the European Union, representing the governments of the 27 Member States, for consideration and unanimous approval.

Foundations could thus become the second form of entrepreneurial organization in the social economy to enjoy an explicit European legal status. Such a status was granted to cooperatives in 2003. However, such regulations to benefit mutuals and associations are still on the waiting list.

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Proposal for a Council Regulation on the Statute for a European Foundation

Michel Barnier, European Commissioner for Internal Market and Services,

On Wednesday, February 8, Michel Barnier, European Commissioner for Internal Market and Services, presented his proposal for a regulation instituting a statute for European foundations.

As part of the Single Market Act, this statute aims to considerably reduce costs and obstacles encountered by public purpose benefit foundations in the fields of “research, culture and humanitarian law” in several European Union countries. This legal form would exist in parallel with domestic foundations, and the status would be entirely voluntary.

The statute “will also allow foundations to benefit from more visibility to promote their activity and attract more funding thanks to a European label,” said the European Commissioner. To be eligCOUNCIL REGULATION on tue Statute for a European Foundationible for such a label, which would strengthen confidence among donors and volunteers, foundations must possess minimum founding assets of €25,000 and keep full and accurate records of all financial transactions.

Because of insufficient harmonization at the European level, European foundations will be subject to the tax system of the Member State where they are located and will be supervised by the relevant national authorities.

The legislative proposal for the creation of this statute must now be presented to the European Parliament for majority approval. It must also be submitted to the Council of the European Union, representing the governments of the 27 Member States, for consideration and unanimous approval.

Foundations could thus become the second form of entrepreneurial organization in the social economy to enjoy an explicit European legal status. Such a status was granted to cooperatives in 2003. However, such regulations to benefit mutuals and associations are still on the waiting list.

.

Proposal for a Council Regulation on the Statute for a European Foundation