1. Which alternatives to mix European public subsidies with private social financing? Alternative and complementary approaches for funding social entreprises sector in Europe Polish Social Economy Meeting (OSES), Krakow, 11 Oct.2012 Karol SACHS, Crédit Coopératif, TISE, European Federation of Ethical and Alternative Banks/FEBEA

2. From European subsidies towards European facilities o European structural Funds (ESF + ERDF) Uncertain future in the context of financial and debt crisis Reliance of the organisations on public funds Risk of financial difficulties due to EU/national delay on payment (Chênelet group) o Other systems of special favourable refund conditions (« repayable public money ») are used by the EU Ex: JEREMIE-Joint European Resources for Micro to medium Enterprises o System of « repayable public money » enables a leverage effect on loans and credits from the banks. Ex: France Initiative

3. o Private donation/philantropy, related with: - quality / transparency ; tax incentives Ex: Saving account « Agir » (meaning « Acting ») proposed by Crédit Coopératif bank (FR) : the client can donate a percentage of its interest for an NGO that he choses. In 2011, 3.8 M of grants as total amount for NGOs in partnership with Crédit Coopératif. o Social investments, related with: - capacity building ; quality / transparency ; tax incentives Ex: 90/10 Fund: every Mutual Fund in EU can invest 5 to 10% in not listed companies. In France, if 5-10% of the total assets are invested in solidarity based companies (1) with a social/environmental added-value, the Fund gets Label of « Solidarity-based Fund » + 90-95% invested in Socially Responsible Investment shares, bonds or money market. (1) To get Solidarity-based company accreditation from the State department : Or 30% of workers send by the social services (contracts for inclusion, professionalization, disabled) Or the company is managed according to democratic principles + the average salary for the 5 best paid employees does not exceed 5 times of the minimum salary for full time employee (5*1425=7125 ). Or the financial institution portfolio is made up of 35% of assets from solidarity-based companies Or the credit institution provides at least 80% of loans/investments for solidarity-based companies. Other possibilities of financial ressources

4. Positive dynamic OF the sector and FOR the sector : the French case 1983 : Credit cooperatif + Catholic NGO CCFD created the 1st solidarity-based mutual fund « Faim et Développement » (Hunger and Development) for developping countries 1995 : FINANSOL, created by and for the actors of solidarity-based finance 2001-2002 + 2008 : 2 laws to boost private funds for social finance Since 01/01/2010, all the asset managers have to propose to the workers at least 1 pension fund (= OFE in Poland) with social option among the choice : it is called Solidarity-based pension fund. 2003 : 1 st publication of « Solidarity-based finance Barometer », a database of social finance published in the national newspaper La Croix 2012 : 10 th Anniversary of « Solidarity-based finance Barometer » Total amount of solidarity-based savings has reached ± 3.5 billion Over a ten years period, solidarity-based savings have increased twelvefold. 2012 : 1 st social/environmental impact assessment of solidarity-based finance. - 82.700 enterprises supported (= 201.000 jobs) - 1.000 projects for international solidarity - 33.500 persons rehoused - 3.600 KWc green energies installed capacity

5. What is FINANSOL ? Association created in 1995 by the actors of social and solidarity-based finance in order to develop solidarity in savings and finance activities. Group of 70 members working with solidarity in finance (asset management companies, banks, mutual insurance company) Other activities to raise awareness, to increase the size of the sector and to work on lobbying towards European and national policies A Label launched in 1997 for the solidarity-based saving products (128 products in 2012) + An independant committee. Annual publication of « Solidarity-based finance Barometer » providing statistical data + good practices of the sector

6. Need for a Social finance Observatory In France (2012) = 3.5 billion in solidarity-based savings and 897 million for solidarity-based investments 10 years of Solidarity-based savings = 12 times more money Total donations from share interest products (in M) Solidarity-based investments (in M) Solidarity-based savings (in M)

7. Proposals for Poland Polish Social Economy Meeting (OSES), Krakow, 11 Oct.2012 Karol SACHS, Crédit Coopératif, TISE, European Federation of Ethical and Alternative Banks/FEBEA

8. 1) To allocate 2% of the obligatory reserves of the banks for microcredit Polish Social Economy Meeting (OSES), Krakow, 11 Oct.2012 Karol SACHS, Crédit Coopératif, TISE, European Federation of Ethical and Alternative Banks/FEBEA Policy launched in 2003 by Ignacio Lula da Silva, President of Brazil, with 12% of unemployment rate (6% recently). In comparison, in France, such a measure could provide 540M (so ± 50.000 microcredits delivered and 60.000 jobs created/maintened) France average: 1 microcredit = 11 K + 1,2 job created/maintened. And in Poland?

9. 2) To implement pension fund with social/solidarity-based option Polish Social Economy Meeting (OSES), Krakow, 11 Oct.2012 Karol SACHS, Crédit Coopératif, TISE, European Federation of Ethical and Alternative Banks/FEBEA 1994: 1st solidarity-based pension fund (1) (by France Active) 2001-2002: Possibility to introduce solidarity-based pension fund. 2008 : All French managers of pension funds have to introduce at least one solidarity-based pension fund among the choice for their clients. 2003 2011, solidarity-based savings increase (44,3% growth in 2011). Growing number of subscribers to social pension funds: 500.000 workers. Huge potential without any public money. Only investment = a law. What can be done in Poland with OFE? (1) Called in France « Fonds salarial » = workers funds

10. 3) To create a mutual fund to support the development of social entreprises sector. Polish Social Economy Meeting (OSES), Krakow, 11 Oct.2012 Karol SACHS, Crédit Coopératif, TISE, European Federation of Ethical and Alternative Banks/FEBEA Italian successfull examples of CoopFond and Fundo Sviluppo for the cooperative sector (law of Romano Prodi government). = 3% of the annual benefits of the cooperatives members dedicated to the fund for development of cooperative entreprises. 120 K of initial capital in 1993, now ± 400M of total assets for each fund. How this mechanism can be adapted to the cooperative sector?

11. 4) To create a cross-border fund for social entrepreneurship (European label EuSEF) Polish Social Economy Meeting (OSES), Krakow, 11 Oct.2012 Karol SACHS, Crédit Coopératif, TISE, European Federation of Ethical and Alternative Banks/FEBEA EuSEF label = European Social Entrepreneurship Fund. 70% of social entrepreneurship + 30% of Socially Responsible Investments assets Private investors Managers of collective investment undertakings such as UCITS. Objective is to facilitate access to financial markets for social enterprise, EUSEF label creation is one step forward to support social entreprises in Europe through PRIVATE Social Investment Funds. Poland is the biggest market in Central and Eastern Europe. That is why EuSEF fund could be crossborder to develop the social entreprises in that zone.

12. Karol SACHS Chief of the Innovation and Research Mission at Credit Coopératif Honorary Chairman of FEBEA Tel: +33 1 47 24 85 26 Mobile: +33 6 85 43 55 71 Email: karol.sachs@credit-cooperatif.coopkarol.sachs@credit-cooperatif.coop For any question, please contact : Polish Social Economy Meeting (OSES), Krakow, 10 Oct.2012 Karol SACHS, Crédit Coopératif, TISE, European Federation of Ethical and Alternative Banks/FEBEA