Is the European cross-border association the solution for the non-profit sector? I recently took part in a meeting on the subject in Brussels. Associations, foundations and NGOs are under attack from populists. Could a new legal structure help to raise the profile of our actions? And greater flexibility in transnational actions.

A legalistic façade that masks less-than-obvious objectives

Non-profit organisations, and NGOs in particular, are under massive attack from the political parties. European Conservatives (PPE), of the extreme right and their supporters. At issue: 'lack of transparency, misuse of public money'.

We should welcome this legitimate concern for the use of public funds. But behind this legalistic facade lies a reality that is less than forthcoming: for the Conservatives, the aim is to muzzle civil society. It's about cutting off the opposition. It's about destroying uncomfortable, even dissenting, speech. The aim is to further privatise public services that are in difficulty as a result of ultra- and neo-liberal policies.

The European cross-border association: a two-year-old directive

I participated in Mundo Madou, on 19 June at an information meeting on the status of European cross-border association organised by Civil Society Europe. This project for a new trans-European legal form arose from a directive dating from 2023.

This directive has been read by the European Parliament and has been accepted with a few amendments. The Council of Europe is currently discussing the adoption of this text. (If you are unsure of the role of each of these institutions, you can consult our presentations in different languages on the European institutions on our pages Free language resources).

How does the European cross-border association work?

A European legal overlay

The European cross-border association is not a single statute, similar throughout Europe. It is a sort of European "overlay" on top of the national legal entity. In other words, a French 1901 association and a Belgian not-for-profit association will continue to comply with their respective legislation.

Wider transnational action

But the trans-European dimension will allow them to operate in each other's countries without setting up a branch, without a new VAT number or authorisation to recruit staff or volunteers.

This should in no way alter the social or fiscal legislation of the Member States, even if we can guess that, in time, some relaxations are foreseeable.

One of the significant advantages of this transnational dimension is the possibility of making tax-free donations from one country to another. A French donor could therefore more easily support an Italian project or a Spanish initiative.

In this infographic I have summarised the advantages of the European cross-border association.

I made this infographic with Genially based on the documents on the European cross-border association provided by Civil Society Europe at the meeting on 19 June. Click on the icons around the logo to see the explanatory windows.

What is the future of the European cross-border association?

The European Parliament has examined the draft directive on European cross-border associations and accepted its broad outlines. It has proposed a number of amendments aimed at further opening up transnational activities.

The Council of Europe is currently examining this draft directive, which is opposed both by politicians (especially those who wish to gag civil society) and, in some cases, by legal experts, who fear that national standards will be dissolved.

Many politicians and lawyers are not aware of the needs of associations. Some do not understand why many of them need access to transnational activities or sources of funding. Yet these are often the same people who welcome European programmes such as Erasmus, which enable their students to travel across the continent and beyond.

It will undoubtedly be up to the voluntary sector and civil society as a whole to defend this proposal for a directive and explain its usefulness. This is the purpose of this article. I will keep you updated on developments in future articles.

Did you enjoy this article? Subscribe to our newsletter Enjoy this article? and don't miss out on any more publications! It's free and guaranteed spam-free!