FEPS Fringe event at the Congress of Economic Democracy

In collaboration with the IED, FEPS and Open Society Foundations (OSF) organised a fringe event on “Tackling Challenges of Local Communities Through Employee Ownership in the EU” at the 3rd Slovenian Congress of Economic Democracy 2024. This interactive expert workshop brought together representatives from European municipalities that pioneered policies promoting employee ownership to discuss their implementation, strategies, and results. Additionally, EU representatives provided guidance on available tools and relevant EU legislation to design such policies. 

Over the past decades, European local communities have experienced increasing instability resulting from globalisation. Larger conglomerates or private equity firms are increasingly taking over local businesses. This trend weakens local economies and puts pressure on authorities as businesses are often at risk of relocating production.

Simultaneously, individuals increasingly seek opportunities abroad or in larger urban centres offering better career prospects. This migration leaves smaller towns and rural areas struggling to retain skilled workers and develop their economies organically. Unable to compete on salary alone, these communities must find alternative ways to encourage people to build their careers locally.

Employee ownership offers a solution by anchoring business ownership within local communities, aligning company interests with those of the broader community. It also attracts skilled workers by providing them a stake in their companies beyond just a paycheck, ensuring the long-term presence of businesses.

Many European municipalities have recognised the value of employee ownership in creating resilient and thriving local economies. Especially during times of austerity when national governments shy away from ambitious social programs, many cities have successfully promoted inclusive forms of business ownership to rebuild their economic and social fabric, improving local living standards.

The 3rd Slovenian Congress of Economic Democracy 2024 was organised by the Institute for Economic Democracy (IED) and aimed to foster dialogue on the challenges local communities face and the developmental opportunities that supporting employee ownership can create. The Congress will present employee ownership as a solution to local economic development challenges and initiate discussions between local companies and representatives of local, national, and European policies.

For more information, please do not hesitate to contact Anna Kolesnichenko, FEPS Policy Analyst on Economy (anna.kolesnichenko@feps-europe.eu), and Vanessa Zwisele, FEPS Project Officer (vanessa.zwisele@feps-europe.eu).