1. Programme for Social Change and Innovation – social enterprise support GECES, 6 June 2013 Andrea Maier European Commission - DG Employment, Social Affairs and Inclusion

2. I. Provisions of the Regulation Programme for Social Change and Innovation

3. Support for social entre- preneurship and microfinance Programme for Social Change and Innovation EURES (mobility) PROGRESS 3 axes: Programme for Social Change and Innovation (PSCI)

4. Social enterprise support Primary social mission Market-orientation profit Accountability & transparency shareholders DEFINITION SOCIAL ENTERPRISE:

5. What kind of support? Equity Quasi- equity LoansGrants Up to EUR 500 000 Social enterprises -With a turn-over and balance sheet of max. EUR 30 million -Not listed on the stock market

6. Mode of implementation Commission Other investors Financial institution Fund of funds Delegation agreement(s) Guarantees Social investment funds SE Co-investment

7. Budget 2014-2020 92.28 million ? Commission proposal MFF negotiations

8. II. Design of the financial instruments Programme for Social Change and Innovation

9. Social impact measurement …has as its primary objective the achievement of measurable positive social impacts… [part of the definition] Social enterprise Demonstrates social impact EU support GECES sub-group for social impact measurement

10. Financial instruments 1) Market imperfections and failures 2) Most efficient mode of delivering financial instrument 3) Performance measurement and maximisation of EU added value Study on imperfections of the social investment market Study questions: -> Results expected in autumn 2013 Synergies mapping

11. Market imperfections Excessive focus on debt – lack of a secondary market Excessive focus on debt – lack of a secondary market Mismatch between sustainable and needed investment sizes Mismatch between sustainable and needed investment sizes Mostly short-term funding Mostly short-term funding Lack of Investment Readiness of social enterprises Lack of Investment Readiness of social enterprises

12. Delivery options Point to be taken into account: Leverage effect Social impact Limit in profit distribution

13. Where do we stand ? Commission proposal October 2011 European Parliament Council Opinion expected for 3 rd quarter 2013 Adoption (or second reading ?)

14. Thank you!