In its recently published 2026 Work Programme, the European Commission announced its intention to withdraw the proposal for a Directive on European Cross-Border Associations (ECBA) within the next six months.
The news has caused deep concern across Europe’s civil sector. Many organisations warn that such a step would contradict the EU’s own commitments to democracy, social cohesion and the single market.
A vital yet invisible sector: 6.2 million jobs, but no place in the single market
Across the European Union, there are around 3.8 million non-profit organisations employing more than 6.2 million people, together contributing nearly 3% of EU GDP through the social economy. These organisations provide essential social services and support employment, culture, education and research.
Despite this significant role, Europe’s civil society remains fragmented. With no common EU legal framework, organisations must comply with national legislation, even when their work crosses borders.
The ECBA Directive was designed to remedy this situation by establishing a clear, transparent legal framework for cross-border civic cooperation. It would have allowed citizens – regardless of nationality – to form associations pursuing shared social, cultural or environmental goals, without being hindered by differing national rules.
What the ECBA would have offered to the civil sector:
- Recognise the distinct nature of non-profit organisations, ensuring that associations with a public-benefit purpose are treated differently from commercial enterprises.
- Guarantee mutual recognition and equal treatment across borders, enabling European cross-border associations to access funding and operate without discrimination.
- Reduce administrative burdens and legal obstacles, such as the need for multiple registrations or inconsistent treatment between Member States.
- Advance the creation of a ‘single market for the public good’, in which philanthropic and civic actors could cooperate under consistent legal conditions.
The Commission’s reasoning – and a political contradiction
The reason for the withdrawal seems to be an insufficient support from EU member states. In a more diplomatic way, the European Commission refers to a “lack of progress in the legislative process”. Several Member States have questioned the EU’s competence to legislate in this area, leading to political deadlock.
However, civil society organisations see the withdrawal as a contradiction of the EU’s stated ambitions. At a time when transnational civic cooperation and solidarity are more needed than ever, many argue that the EU should be strengthening, not retreating from, a legal framework that enables cross-border collaboration.
A missed opportunity for cohesion and unity
During the 2022 public consultation on the ECBA proposal, numerous organisations – including European House Budapest – stressed that stronger cross-border cooperation among civil organisations could reinforce EU cohesion policy, reduce regional disparities, and help prevent a renewed East-West divide, particularly in Central and Eastern Europe.
The planned withdrawal, critics warn, would therefore be a missed opportunity – not only for the civil sector, but for the EU’s cohesion, democracy, and competitiveness as a whole.
What happens next
The Commission’s final decision is expected within six months. Until then, civil society networks are mobilising to defend the ECBA and the principle it represents: a free and vibrant European civic space.
