ANNUAL REPORT

&
ACTIVITY FOCUS
2008-2009
OUR SPONSORS:
CONTENTS

Pauline GREEN’s address 04

Etienne PFLIMLIN’s address 05

Director’s report 06

Activities 2008-2009 09

Governance 15

Auditor’s report 17

Financial statements 19

Secretariat 26
FOREWORD

Pauline GREEN
Co-president

I am pleased to introduce the Activity Report for COOPERATIVES EUROPE for 2008 - 9. This
year proved to be the one in which COOPERATIVES EUROPE began to demonstrate the
potential that we all believed it had when we set it up in November 2005 in Manchester.
In 2006 and 2007, we undertook much solid work to build up our knowledge of the co-
operative family of businesses across the European continent. That work has served us
well, providing an informed and quality backdrop to our representative work with the
institutions of the European Union. At the same time it has provided the raw information
from which we have started to build added value services for our members.

The detailed work on the engagement of European co-operatives in development projects

across the world has provided a European compendium of over 300 projects in countries
from the Balkans to Africa, Asia to Latin America, which together is worth over 80 million
Euros. This coupled with the local network of co-operative partners that we work with
across the world has made the European Commission sit up and listen. We are now
seeking to take part in the new development action plans for 2010 – 2013. Our mapping
of the co-operative pharmacy and energy sectors across Europe has given us the first set
of raw data that has encouraged those involved to develop a common approach to policy
issues with the European Commission. Just as important, it has also led to beneficial
business relationships being developed, with the potential for so much more.

Our invitation to members to view our investment portfolio with an eye to supporting the
areas of work in which they might have a particular interest, has led to funding support
for both the pharmacy and the energy sector and the establishment of our campaign
against the climate threat.

Although still a small team, the COOPERATIVES EUROPE staff group has made a good start.
Most importantly, without the support of our members, none of this would be possible.
We are grateful for your commitment to COOPERATIVES EUROPE and look forward to
working with you in the coming year.
 Etienne PFLIMLIN
Co-president

At the moment when looking at accomplished results of the annual work program and
future actions, it appears more and more evident that the mission to defend and promote
our co-operative values in front of the European Institutions is becoming a major priority
for COOPERATIVES EUROPE and its EUCC. Global participation in civil society dialogue is as
important as we need to convince that co-operatives are contributing actively to the
European objectives of development and solidarity in an economy hit by the economic
downturn.
Co-operatives have been affected by this crisis also through the impact on their
members. Because of the fact that the co-operatives themselves had nothing to do with
the reasons of this economic downturn, they must stress the solidity of the principles of
their organizations, the quality of their democratically-controlled governance structures
and the relevance of their unique business model.
Confronted by new waves of regulations and therefore an increased risk of threatening
our particular business model, we need to be even more attentive in its defense.
Doing a constant alert exercise, COOPERATIVES EUROPE has done an in depth follow up of
EU regulations such as the Small Business Act, EPC (European private company), the
Green book on territorial cohesion...), has responded to calls for contributions stressing
the need to respect entrepreneurial diversity when drafting EU documents. The
evaluation process on the EU communication on the promotion of Co-operatives and the
European Co-operative Society (SCE) has started.
Due to a common effort of consultation and expertise COOPERATIVES EUROPE has produced
numerous opinions, as the tax regime of co-operatives and the so-called State-aids, has
made inputs to relevant documents from the European Parliament and the EESC in
particular to the “Toia report”. It liaised closely with the EACB building a set of
arguments on international accounting standards with success. COOPERATIVES EUROPE
Memorandum for the European Elections and largely disseminated, summarizes our
proposals.
Together, we have been able to prove that we are able to work in accordance with the
principle of subsidiarity, sharing our skills and delegating when necessary. Due to this
collective intelligence we succeeded mobilizing means to promote our values and
organizations, building member loyalty, and strengthen our credibility.
It is through our internal cohesion and our capacity to build alliances that we will improve
our visibility and our efficiency. We need to create an equal level playing field for our
enterprises taking in account our particular business model. In the context of the
economic downturn and the renewal of the Commission and the European Parliament we
need to show that the co-operative business model is a model for the future.
Therefore I want to extend my warmest appreciation to the team of COOPERATIVES
EUROPE following successfully all these issues for our members and with the members of
COOPERATIVES EUROPE.
DIRECTOR’S REPORT
From Brussels BE (April 2008) to Sofia BG (June 2009)

In February 2005, the European Council of ICA Europe met in Bratislava and the main
decision taken was to officially launch the integration process between the Coordination
Committee of the Co-operative Associations of the EU (CCACE) and the European region
of the ICA (ICA Europe). The allocated budget for this integration process was a 25%
redistribution of the ICA Europe membership fees and some contributions from the
CCACE, totalling €265.000. In 2005 there were 15 withdrawals from ICA membership in
Europe, 3 expulsions and 3 new members, counting for a net loss of more than 17% of
members.

Also in 2005, at the European Convention in June the new identity of ICA Europe as
COOPERATIVES EUROPE was launched with a new logo and the first performance report on
the European Co-operative movement gave key figures for the region of 263.000 co-
operative enterprises, 5,4 million jobs, 163 million members -the biggest membership
organisation in the EU.

To strengthen its visibility two more objectives were agreed:

1. to create a European Co-operative House in Brussels, and
2. to create a European Co-operative Research Centre and Think Tank for
knowledge building and political support of the COOPERATIVES EUROPE lobby work
towards the European Union Institutions.

It was also decided to develop more added-value services to the members.

At this time COOPERATIVES EUROPE took a strong leadership in the ICA to speed up its
restructuring and regionalisation process and presented its first resolution to the ICA
General Assembly in Carthagena (September 2005) on the need for a more decentralised
ICA built around the capacity and competence of the regions and the sectors, increasing
the membership fee redisribution to the regions, and last but not least the need for a
separate legal structure for the European region of the ICA.’

Reflecting on those ambitious objectives of four years ago it is satisfying to note that
almost all have come to fruition during 2008-09.

A YEAR OF ACHIEVEMENTS
- In May 2008, COOPERATIVES EUROPE, together with the University of Trento and the
Co-operative Federation of Trentino, founded EURICSE, the European Research Centre
for Co-operative and Social Enterprises, based in Trento and supported financially for
6 years by the Province of Trentino with a budget of €6 million for the period. The
objective of EURICSE is building an integrated research network in Europe on co-
operatives. A first common seminar was organised on the legal cases and fiscal
issues with the European Union that showed the importance of linking research and
policy making together.
- In June 2008 in Rome, at the Extraordinary General Assembly of the ICA adopted the
new ICA structure, statutes and membership fee system incorporating all the
European suggestions but also building on the European proposal for a new and
fairer membership formula.
- Alerted in 2007 by its Italian members on the complaints against Italian co-
operatives(later enlarged to the Spanish, French and Norwegian cases) in the
consumer and banking sector of the EU and in the frame of European Competition
Policy questioning the fundamental elements of the co-operative model of enterprise,
 COOPERATIVES EUROPE launched its first public internet and written petition « Hands
off our co-operatives, they compete fairly » collecting strong political support by
many national and European officials and elected representatives but also gathering
around 100.000 signatures from members of co-operative enterprises. This political
campaign made COOPERATIVES EUROPE known throughout Europe and positioned it as
the cross sector voice of the European co-operative movement. It stopped the
process within the Commission that was trying to qualify the special fiscal treatments
of co-operatives - on indivisible reserve, co-operative dividend and limited interest on
member shares as state aid.
- With a capital base of €1.3 million collected by 14 co-operative investors from our
member organsiations, the first COOPERATIVE HOUSE EUROPE in the European area of
Brussels was purchased at the beginning of 2008 and renovation started in April
2008. After 6 months of work, COOPERATIVES EUROPE together with CECOP, moved into
the new COOPERATIVE HOUSE EUROPE in November 2008. The COOPERATIVE HOUSE is
becoming the meeting place for COOPERATIVES EUROPE member organisations when
they are visiting the EU institutions or are organising meetings in Brussels. Several
member organsiations are holding their meetings in the house helping to reinforce
the common identity of the movement. In 2009 a Scandinavian co-operative
representation, EURICSE Brussels office and COOPERATIVES EUROPE HOUSING will join the
House.
- Launched since the last General Assembly, COOPERATIVES EUROPE has initiated new
added value areas for its members.
- After completing the ‘Development Compendium’ with more than 300 co-
operative development project and the creation of the COOPERATIVES EUROPE
Development Policy Group, COOPERATIVES EUROPE has strengthened its relationship
with the EU in the field of the EU Development Policy and is now recognized as a
European organisation invited to all consultative meetings on EU Development
Policy for civil society, NGOs and non state organisations. COOPERATIVES EUROPE
will sign its first development project in the Balkans: »Building a modern co-
operative system in Montenegro » in June 2009.
- In Rome, at the end of March, COOPERATIVES EUROPE with the support of
CONFCOOPERATIVE organised a first European business meeting with pharmacies
co-operatives, a sector where co-operatives have a significant market share with
a turnover of more than €18 billion.
- After a first mapping exercise, COOPERATIVES EUROPE in partnership with
ECOPOWER, a Belgian co-operative and INNOVA, a German co-operative
development agency organized a European seminar on ‘Energy Co-operatives’ at
the European Parliament with the support of the European Greens. The seminar
brought together more than 60 organisations from 9 EU countries active in this
field. At the seminar COOPERATIVES EUROPE launched its ‘climate threat campaign
and project’ supported financially by the CO-OPERATIVE GROUP UK.

To support these new growth areas, which are not or not yet within its core business,
COOPERATIVES EUROPE has launched this year a call for financial support from its members.
To-date, more than €100.000 have been added to the 2009 budget to support these new
development areas for co-operatives.

- Reducing dependency on membership fees, the growth and service financing

mechanism together with the 3 EU projects of over €300.000 has built a more
sustainable organisation with less than 50% of resources from the membership.
- After a loss of around 20% of its membership base in 2005 and 2006, COOPERATIVES
EUROPE has once more a net increase in members in the European region.

Whilst almost all of the objectives formulated at the dawn of the creation of COOPERATIVES
EUROPE have been achieved, the consolidation of COOPERATIVES EUROPE as the European
Co-operative cross sector representative organisation is not yet fully completed. Tensions
still continue to exist with some of the European sectors and COOPERATIVES EUROPE as we
work towards a new distribution of roles in the relationship with the European Union
institutions i.e. COOPERATIVES EUROPE as the voice of the co-operative business model in
Europe and the cross-sector representative organisation of co-operatives - promoting and
defending the co-operative identity and its particular business model, and the European
sectors responsible for their professional areas and subjects. This appears all the more
prevalent in the context of the recent global crisis. Whilst the sectors are being extremely
timid in affirming their co-operative business difference, COOPERATIVES EUROPE is
convinced that the new trust of European citizens in co-operative values will not last and
that it is essential to create a better understanding about co-operatives and their ethical
business nature. There is a risk of loosing a greater opportunity to attract public and
institutional support that might not be achievable in the near future.

Concluding my Director’s report, I would like to thank all the team members for their
commitment to achieve these objectives and to applaud the leadership of Pauline Green
and Etienne Pflimlin, co-Presidents of COOPERATIVES EUROPE on reaching them in such a
short term. This is all the more evident when considering some key indicators of the
achievements of the initial phase of 4 years since the integration process started.

INDICATORS 2004-5 2006 2007 2008 2009(*) INCREASE

MEMBERS +1/-17 +2/-5 -1 +3/-5 -2/+2
REDISTRIBUTION % 25% 25% + R 31,7% 40% 42,5% 70%
REDISTRIBUTION € 222.705€ 307.183€ 308.350€ 331.877€ 394.324 77,1%
P&L - 489.205€ 644.753€ 628.711€ 950.116 94,2%
SURPLUS/DEFICIT - -16.595€ -27.953€ +16.797€ +27.943 0
PROJECTS 182.707€ 113.100€ +430.372 135%
GROWTH +121.858 200%
5,1 EFT +1
STAFF IN EFT 1,75 EFT 1,75 EFT 4,8 EFT 5,31 EFT 248,5%
secondement

(*) estimaded

Rainer Schlüter
Director
ACTIVITIES 2008-2009

LOBBY ACTIVITIES
Throughout the year the objective was to pursue the building of support for the co-
operative model of business at the national and European levels and to promote the co-
operative form of enterprise and to protect and defend it as and when necessary.

A broad campaign was launched to get support from the member organisations to defend
the 'co-operative difference’, this included a paper and on-line petition – “Hands off our
Coops! – they compete fairly” that resulted in over 100,000 signatures. This action,
reinforced by the actions of the national organisations involved in the different cases,
were sufficient to push the European Commission to reconsider its approach. It published
a communiqué where the ‘co-operatives difference’ was recognised and asked for a
dialogue with the co-operatives organisations. As a follow up, COOPERATIVES EUROPE
adopted a position paper on the approach of the Commission on the legal action against
the preferential tax regime for co-operatives in the retail banking and retail distribution
sectors.

We adopted several position papers on cross-sectoral issues, mainly on regional

development, Company Law and enterprise policy. Concerning the Commission proposal
on the Small Business Act, we adopted a position paper and a communiqué that called
for the SBA to take into account a differentiated approach regarding the legal form of the
SME. This position was promoted inside the European Parliament and the rapporteurs
final report mentioned the co-operative form of doing business. The draft regulation for a
SPE regulation (European Private Company statutes) remains a major concern for
COOPERATIVES EUROPE due to the fact that it may have a negative impact on the European
co-operatives statutes. We had several meetings with the European Commission and
followed up the draft reports within European Parliament and secured the withdrawal of
some amendments that were unsatisfactory for co-operatives societies.

COOPERATIVES EUROPE was also very active in the accounting standards issue and adopted
several positions presented to the IASB or FASB on the distinction between liabilities and
equities and the characteristic of co-operatives shares.

All the draft positions were adopted by the European Union Coordination Committee
(EUCC), the committee of COOPERATIVES EUROPE responsible for all aspects concerning the
preparation, analysis, decision-making and communication related to the consultation
process vis-à-vis the European Union’s institutions. 25 representatives from national apex
and European sectoral federation actively participate to its work under the presidency of
E. Pflimlin. Positions papers were prepared within working groups such as the Legal
Working Group and the Accountancy (coordinated with the EACB) Working Group. We
have started to follow the reporting of the Communication on the Promotion of Co-
operatives in Europe and participated in the first informal working group on the issue.

A specific working group was set up to prepare the Memorandum from COOPERATIVES
EUROPE for the European Parliament elections. The document, “Building the Europe of
tomorrow with co-operatives” presents our vision of Europe and outlines the major
concerns for the continuing development of co-operatives enterprises at the European
level.

Co-operative positions or requests for opinions were also promoted throughout the
European institutions. While still following the work of the social economy category, the
co-operative contact group within the European Economic and Social Committee (EESC)
is a channel for co-operative issues. This contact group initiated an own initiative opinion
on the plurality of the form of enterprises. COOPERATIVES EUROPE is the expert for the co-
rapporteur representing the co-operatives movement. Contact with MEPs was
consolidated and expanded through the involvement of COOPERATIVES EUROPE in the
intergroup for Social Economy within the European Parliament but also through direct
contacts with MEPs. We collaborated in the drafting of the Report on the social economy,
ensuring the entrepreneurial approach of the text. Concerning the European Commission,
COOPERATIVES EUROPE is a member of different 'experts groups' such as that co-ordinated
by the SMEs Envoy and the group on Company Law. We meet regularly with Directors
and Heads of Unit with the aim of consolidating the recognition of the co-operative
business model within all the Directorates of DG Enterprise, Employment and DG Internal
Market.

This year we followed attentively the proposals for the restructuring of Social Economy
Europe (SEE) and its ongoing activities through the attendance at many meetings and
working groups. As a member of the steering committee, COOPERATIVES EUROPE organised
a workshop on ‘competition and social economy enterprises’ in the framework of the
European conference on social economy under the auspices of the French Presidency in
November 2009 with the participation of Deputy Director DG Competition, Lowry Evans.

We participated at different events and were invited to make a presentation. E.g. “Action
on European public policies” Workshop Mercosur – Brussels October 08; “Challenges for
the Co-operative Sector in Europe”, Social economy conference in Murcia December
2008; “Towards a plural corporate Law” European conference on social economy
Strasbourg November 08; “Transnational partnership and European co-operative
societies” Seminar LEGACOOP October 08; “social enterprises and co-operatives: a reaction
to the study on social enterprises practices”. European Commission March 09. These
actions enabled us to establish networks and to disseminate about our activities.

Project proposal documents are in preparation following a call for tender on the
implementation of the directive of the worker participation within the SCE and a proposal
with EURICSE and EZAI Foundation following a call for tender on the implementation of the
regulation on the SCE.

BUSINESS TO BUSINESS MODELS

COOPERATIVES EUROPE has been working to create an environment in which co-operative
businesses working in the same field can come together, to meet and see whether there
are some working synergies. In particular COOPERATIVES EUROPE has been working on two
main sectors: Energy and Pharmacies.

PHARMACIES
With the financial support of CONFCOOPERATIVE, the European Seminar ‘Co-operatives in
the Pharmacy Sector – Opportunities & Challenges’ was held in Rome on 30-31 March
2009. The meeting enabled co-operative businesses and federations coming from Italy,
Belgium, Portugal, France, United Kingdom and Greece to meet and to plan a common
working plan for the future. At the seminar COOPERATIVES EUROPE presented a first
mapping exercise of co-operatives working in the pharmacy sector in Europe. Results
show that co-operatives work in the pharmacy sector in at least 11 countries, they have
an annual turnover of about 18 billion Euros, 20.000 employed people and business
relationships with more than 65.000 pharmacies.

The participants exchanged experiences and opinions and analyzed threats and
opportunities. The meeting was attended also by delegates of countries where co-
operatives still do not work in the pharmaceutical sector but where the legal framework is
experiencing relevant changes opening up some opportunities them.
ENERGY
In collaboration with the Belgian energy co-operative ECOPOWER, the German co-operative
development agency INNOVA and of the EU Parliamentary group of the Greens-EFA,
COOPERATIVES EUROPE organized on 30th April a European Seminar called “Co-operatives in
the Energy Sector”. Some 70 participants from 9 countries took part in the event.
Representatives from the European Parliament, the EC’s Executive Agency for
Competitiveness & Innovation, the European Economic & Social Committee and of the DG
Energy and Transport accepted to participate in the conference to discuss the role of co-
operatives in the EU energy strategy. In addition, best practice cases of some co-
operative initiatives in the consumer, agriculture, housing, banking, energy
production/distribution sector were presented. Not only did this event increase the
visibility of the co-operative contribution to EU energy strategy, but it also permitted
practitioners directly working on the ground to know each other, to exchange opinions
and to consider the possibility of working together in future.

ERASMUS FOR YOUNG ENTREPRENEURS – COOPERASMUS

“Erasmus for Young Entrepreneurs” is a new European exchange programme aimed at
helping new entrepreneurs to acquire relevant skills for managing a small or medium-
sized enterprise (SME) by spending time working in another EU country with an
experienced entrepreneur in his or her company.

COOPERASMUS is the consortium composed of COOPERATIVES EUROPE together with 7 other

partner organisations from 6 European countries: INFORCOOP-LEGACOOP and ELABORA-
CONFCOOPERATIVE from Italy, CEPES-ANDALUCIA and UNCCUE from Spain, CO-OPERATIVES UK
from the UK, CENTRAL CO-OPERATIVE UNION from Bulgaria and COOMPANION from Sweden.
The members of the consortium have been selected to act as intermediary organisations,
and they will allow young European co-operators and entrepreneurs to participate in the
programme. The members of the COOPERASMUS consortium are entitled to manage 39
relationships.

The project will foster the creation of new co-operative enterprises and the consolidation
of existing ones. Secondly, the exchanges represent a first step towards the creation of
an international network of nascent co-operatives. Thirdly, the traditional private form of
enterprise will be confronted with another way of doing business.

REPORTS FOR JAPAN

Following an agreement signed by COOPERATIVES EUROPE and the Japanese research
center JA SOKEN, COOPERATIVES EUROPE provide the Japanese institute with 4 written
reports on the co-operative movement in Europe. The topics covered by the articles are
as follows:
- Facts & Figures: an Overview of the European Co-operative Movement today
- The EU Energy Strategy & Co-operatives in the Energy Sector
- The Social Service Sector: a new growth sector for co-operatives
- School Co-operatives – Bringing co-op values into the education system
The two first articles have already been delivered to the JA SOKEN, which has
translated them into Japanese, and distributed them amongst its members.
DEVELOPMENT
After the development seminar “COOPERATIVES EUROPE: Social Innovation & Partnerships
for Development” held on 29th April 2008, at which occasion the Development Projects
Compendium was presented, COOPERATIVES EUROPE has received a mandate by its General
Assembly to work on the development issue. The seminar (145 participants from 22
countries) and the Development Projects Compendium greatly contributed in increasing
the visibility of the potential of the co-operative movement on the development issues.

To effectively work on a co-operative strategy for development the COOPERATIVES EUROPE

Development Policy Group met in Brussels on 26 September 2008. Representatives of the
DG Enlargement, DG External Relations and DG Development as well as of the EuropeAid
office took part in the meeting. The Development Policy Group gave a mandate to a
smaller Advisory Committee to closely follow the meetings and to elaborate a strategy.
The Advisory Committee, which is composed of 6 representatives, has met 3 times and
has worked on the elaboration of an action plan based on the agreed strategy and
priorities.

After different contacts, the three EC Directorate Generals mainly dealing with
development – DG External Relations, DG Enlargement and the EuropeAid office – have
been inviting COOPERATIVES EUROPE to participate in several consultative committees and
meetings on the EU development strategy, such as:
- Evaluation of the Commission’s aid delivery through Civil Society Organisations
(Europe Aid)
- Meeting on the Mid-Term Review of the 2007-2013 Strategy Papers under the
Development Co-operation Instruments (DG External Relations)
- Preparatory meeting and participation at the 2009 program of Regional Seminars on
“Thematic Instruments and Programmes: reinforcing the Civil Society” (EuropeAid)

EU PROJECT ON SOCIAL DIALOGUE

The COOPSEUROPE/SPP-C project is part of the first sub-programme “Support for European
Social Dialogue” of the EU programme “Industrial Relations and Social Dialogue”. It has
been introduced in July 2008 and is running over a period of 15 months. The European
Trade Union Confederation ETUC and the European Centre of Enterprises with Public
Participation and of Enterprises of General Economic Interest CEEP are active partners
within this project and is also supported by Social Economy Europe SEE. The direct
partners involved are 14 national member organizations and 3 European sector
organizations.

The project COOPSEUROPE/SPP-C is a follow-up project of COOPERATIVES EUROPE Social

partner program VP/2006/001 run in 2006-2007. It builds on its encouraging results in
the field of representativeness and participation of co-operative organizations within the
social dialogue across the EU 27. After a rather quantitative analysis of the situation, the
SPP-C program aims to improve the qualitative knowledge about the situation of national
and European Sector dialogue of the co-operative organisations (members of
COOPERATIVES EUROPE), to evaluate and demonstrate added value of national and
European participation of co-operatives in their respective Social Dialogues, and to
strengthen co-operation with other European Social Partners. This is being reached
through diverse activities as seminars, working groups, expertise and a reinforced co-
operation with the other European Social Partners.

The first steps being undertaken have been different regional seminars in Stockholm,
Nicosia, Rome and Paris, bringing together representatives of the co-operative
organisations and trade unions of the different EU countries; at these seminars, the
participants were invited to present the situation of the social dialogue and industrial
relations in their countries and describe possible future perspectives. A reflection seminar
with the participation of Maria Helena André, Secretary General of the ETUC, and
Commissioner Špidla, was organized, confirming that the shape of the world after the
crisis will be different and that now there is the potential to introduce new actors and
open up the dialogue to other partners such as co-operatives.

LE GRAND MAGASIN
COOPERATIVES EUROPE actively participates in the project entitled “LE GRAND MAGASIN”, in
collaboration with the Cultural Department Neuköln Berlin, the Federal Cultural
Foundation Germany and the EU Culture program.

LE GRAND MAGASIN, which opened its doors on the 9th October 2008, is a shop displaying
and selling only products manufactured by European co-operative enterprises. Whilst
containing all the facilities of a usual shop, LE GRAND MAGASIN also acts as a forum for
various activities, including lectures, round tables, conferences and exhibitions.

A special feature of the project is the interaction between designers and the worker co-
operatives. Around 20 designers and artists have been selected to generate and develop
hand in hand with the co-operatives new products and marketing strategies. The results
of these collaborations will be presented at 3 exhibitions and illustrated in a catalogue.

The transformation of the shop into a new model of consumer co-operative - LE GRAND
MAGASIN COOPERATIF - will expand the activities and grow it from a pilot project into a
continuous initiative and model. An e-shop is being developed, which will be run in
parallel to the shopping mall activity.

Thanks to a strong presence in the media, the project has also recently gained ground
and experienced much attention from television, radio, newspapers, activists and
reviewers. It is a successful attempt of reinforcing the collaboration between worker and
consumer co-operatives, supporting the interactions between designers and co-operators,
exposing co-operative products and presenting the co-operative model as a alternative
form of enterprise.

CO-OPERATIVE DEVELOPMENT IN THE BALKANS - MONTENEGRO

Together with COSV, an Italian Development NGO active in Montenegro for the last ten
years and with the support of an Italian/Swiss Foundation (FAI), COOPERATIVES EUROPE
supported different activities for co-operative development in the country. The aim of this
initiative is to analyze the feasibility of modernizing the co-operative system in
Montenegro and the possibility of creating a positive legal framework for co-operatives
and to develop new sectors.

Different meetings with the ministries of Agriculture, of Work, Health and Social Affairs,
of Economy, of Tourism and Environment and of Finance took place, as well as a close
collaboration with the Delegation of the European Commission to Montenegro. A
feasibility study considering the specificities of the countries and the socio-economic
situation has been carried out with different national and European experts, analysing the
legal context of the country in relation to co-operatives. Following a positive evaluation
and reception of the report, the COSV, EURICSE, the Union of Montenegrin Co-operatives,
several Ministries, CECOP and COOPERATIVES EUROPE introduced a project to foster the co-
operative development in the country.

The project is called “Support to comprehensive Rural Development in Montenegro,

through rehabilitation of the co-operative system”. It was introduced at the end of April
and is to be signed in the next few weeks. The main objectives of the project are the
elaboration and definition of a general law on co-operative enterprises, capacity building
by training of key civil servants on strategic and operative management of co-operative
entrepreneurship and the dissemination and sensitization of the legislative instruments
and about the possibility of creating co-operative business in the organic producers and
the social service sectors.

YOUTH ACTIVITIES - EUROPEAN YOUTH SEMINAR, 20-21 JUNE

2008
“Young co-operative decision makers” was the title of the very first European co-
operative youth conference organized by the CENTRAL COOPERATIVE UNION (CCU) of
Bulgaria, with the participation of COOPERATIVES EUROPE. About 60 participants from 12
different European countries (Belgium, Bulgaria, Czech Republic, Cyprus, Finland, France,
Hungary, Italy, Poland, Portugal, United Kingdom and Ukraine) gathered in a lovely resort
of the Bulgarian co-operative movement on the southern side of the country.

The program included 2 main working sessions: the first one dealt with the involvement
of young co-operators in the decision making process and in the second several
European best practice cases were presented. During the many discussions, the young
co-operators raised important questions, shared their own experiences and reflected on
the initiatives undertaken within their national or European organisations to promote the
integration of young people within the co-operative movement. The CCU President Mr.
Petar Stefanov invited other European co-operative organisations to follow their initiative
and to organise seminars aimed at a young audience.

ACT - ADDRESSING THE CLIMATE THREAT

There is clear consensus amongst the world’s leading climate scientists that we are facing
a very real threat of devastating and adverse consequences from changes to the world’s
established climate patterns. The climate in all regions of the world will change, with
dramatic, mostly adverse impacts for their populations with more volatile weather, more
severe storms and floods, but with severe droughts in some regions – and all of this is
mainly because of the way we live now. Our excessive use of the earth’s resources,
especially of fossil fuels, is the main cause of the harmful effects of changes in our
climate systems that will be experienced by future generations.

Some co-operatives are already doing many things to address the climate threat, but
usually on their own. ACT is being launched to encourage more co-operatives to be like
the leaders and do more and to do it together within a framework. This way, the co-
operative economy will have more impact and will also achieve recognition for its
contribution.

ACT will try to:

1. Provide a European framework to encourage co-operatives to do more:

- to reduce their own energy consumption and carbon emissions

- to inform, educate and motivate their members and workers to reduce their own
emissions
- to lobby politicians to do the right things, especially in the lead up to the
Copenhagen Climate Conference in December 2009

ACT will provide information and guidance to help co-operative enterprises to do

these things not only more easily but more effectively, and with maximum impact
from doing them together.

2. Lobby and campaign with the EU political institutions, and seek funding

3. The EU sets many laws and targets that directly affect many of our co-operatives and
their members (recognising that some countries represented in COOPERATIVES EUROPE are
not members of the EU). The EU will be an important contributor at the Copenhagen
Conference, it is therefore vital that our collective voice is heard by, and has an impact
on, our political leaders. There are EU funds available that we will try to access to help
pay for some of our work in this area. This is all only possible if we work together.

ACT will be formally launched at the General Assembly in Sofia on 23rd June 2009.

GOVERNANCE

Since our General Assembly in Brussels in April 2008, the Board of COOPERATIVES EUROPE
has met twice: in Brussels 7 October 2008 where it analysed the multiannual budget
scenarios and adopted the multiannual strategy plan 2009-2012 and COOPERATIVES EUROPE
2009 budget; in Prague 17 April 2008 where the European Manifesto for ICA Elections
was adopted and the COOPERATIVES EUROPE accounts for 2008 were closed.

The Executive Committee held 3 meetings: in Brussels 23 June 2008, where the
committee worked on the follow up of ICA General Assembly (Rome, 5-6 June 2008) and
worked on the E-Petition against EU complaints; in Strasbourg 20 November 2008 the
executive committee worked on COOPERATIVES EUROPE communiqué to the G20,
considered the first draft of the 2009 budget and on the follow up of the ICA Board
(Lisbon, 21-22 October 2008); on 9 March 2009 in Brussels the executive committee
closed the accounts 2008, prepared COOPERATIVES EUROPE work in preparation for the EU
elections.
MEMBERS OF BOARD/EXECUTIVE COMMITTEE
CO-PRESIDENTS
DAME PAULINE GREEN • ETIENNE PFLIMLIN

BOARD
BERTINELLI GIORGIO • CORNELY MARC-HENRI • DETILLEUX JEAN-CLAUDE • DOMAGALSKI ALFRED •
CSOLLAR GABRIEL • GREEN PAULINE • HOFFELT JEAN-FRANÇOIS • KUZTNETSOV EVGENY • LEHNOFF
DIRK • LINDE LEIF • PEDRENO JUAN ANTONIO • PFLIMLIN ETIENNE • SANTAMÄKI ANNE • SCALVINI
FELICE • STEFANOV PETAR • Zs. SZÖKE ZOLTAN • HACHMANN CLAUS-JÜRGEN • WIESNER JAN

EXECUTIVE COMMITTEE
GREEN PAULINE • HOFFELT JEAN-FRANÇOIS • KUZTNETSOV EVGENY • PFLIMLIN ETIENNE •
SANTAMÄKI ANNE • SCALVINI FELICE • WIESNER JAN

EUROPEAN AUDIT AND CONTROL COMMITTEE

HOLMES PHILIP • WIDEBECK NIKLAS

OBSERVERS
THE EUROPEAN MEMBERS OF THE ICA BOARD AND THE ICA DIRECTOR
DVERGSDAL STEINAR • MARTENSSON GUN-BRITT • PASZKOWSKI JANUSZ • MACDONAL IAIN
AUDITOR’S REPORT
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31.12.2008(1)

COOPERATIVES EUROPE, a non-profit-making association, was incorporated on 16th February

2006.

The statutes of the association were registered at the office of the clerk of the
commercial court of Brussels on 9th March 2006. The statutes were modified the 11th
November 2006. The modifications were published at the Belgian official journal on 10th
January 2007.

As from 7th March 2006, the European office function has been transferred completely
from the ICA Central Office in Geneva to COOPERATIVES EUROPE. As COOPERATIVES EUROPE
has a separated legal entity, its accounts need to be presented according to the country
in which the organization is being based, being the Belgian accountancy principles. A
transfer of these accounts into the Swiss accounting system is being undertaken at the
end of each quarter, to guarantee a complete image of the consolidated accountancy
within the Central office.

--------
1
Note to the financial statement are in the dossier of the General Assembly and can be viewed in
our premises.
Balance Sheet (in EUR) Statement of Income and Expenses (in EUR)

31.12.2008 31.12.2007 31.12.2008 31.12.2007

Assets Incomes

Fixed Assets Net redistribution 331.878 290.222

Intangible assets 1.833 3.667 Regional membership fees 49.434 31.500
Property, furniture and equipment 20.783 6.448 Meeting revenues 52.444 49.250
Sale of services & others 81.855 19.559
Current Assets Contribution by the EU project 113.100 182.707
Stocks 748 748
Amounts receivable within one year 55.156 183.236 TOTAL 628.711 573.238
Current investments 50.000 -
Cash at bank and in hand 52.368 4.803
Deferrals and accruals 10.706 6.368 Expenses

TOTAL 191.594 205.270 Personnel expenses 360.757 333.750

Travel expenses 45.482 46.565
Premises & general office expenses 17.008 16.829
Liabilities IT & telecom 13.708 10.968
External services 38.987 48.741
Funds Meeting expenses 72.503 36.139
Initial capital 109.896 109.896 Other expenses 17.790 12.525
EU project costs apart staff &
Accumulated profits / losses -45.069 -17.116 overhead 45.680 95.674
Net surplus / deficit for the year 16.797 -27.953
TOTAL 611.915 601.191
Amounts payable within one year
Financial debts - 41.048
Trade debts 47.409 83.036 Net surplus / deficit for the year 16.797 -27.953
Remunerations and social security 42.252 14.638
Advances on contracts in progress 20.311 -
Other amounts payable - 1.721

TOTAL 191.594 205.270

NOTES TO THE FINANCIAL STATEMENTS

ASSETS
FIXED ASSETS

Intangible assets
Intangible assets are entered at their acquisition value. As the use of intangible assets is
limited in time, they are the subject of depreciations that is calculated linearly over 3 to 5
years beginning the month they are activated.

Software - Alpha Centaury

Acquisition 5.500
Previous depreciations 1.833
Balance at 31.12.2007 3.667
Depreciations of the year 1.833

Balance at 31.12.2008 1.833

Property, furniture and equipment

These tangible assets are entered at their acquisition value, incidental expenses included.
Tangible assets – the use of which is limited in time – are subject of linear depreciation,
beginning the month they are activated.

Furniture
Acquisition 14.152
Previous depreciations -
Balance at 31.12.2007 -
Depreciations of the year 449

Balance at 31.12.2008 13.703

Equipment
Acquisition 11.026
Previous depreciations 2.084
Balance at 31.12.2007 8.942
Depreciations of the year 1.862

Balance at 31.12.2008 7.080

CURRENT ASSETS

Stocks
Stocks of consumable and supplied materials are evaluated on the basis of the acquisition
price by application of the FIFO method, or of the market price if this one is inferior.

Amounts receivable within one year

The accounts receivable within one year include miscellaneous debtors. The main
categories are the trade debtors – customers and income receivable – and the other
amounts receivable, as sundry amounts and staff advances.
 31.12.2008 31.12.2007

Customers 54.539 29.726

Income receivable - 2.500
Staff advances 617 -
Sundry amounts - 153.510

Total 55.156 183.236

Current investments
The current investments may be fixed income securities or term accounts.

31.12.2008 31.12.2007
Account
479-0663319-62 50.000 -

Total 50.000 0

The head office in Geneva transferred the reserves owned by the European region to an
account in Brussels. COOPERATIVES EUROPE allocated part of the reserve to a separate
capital-guaranteed investment account, to make it visible separately in the accountancy.

Cash at Bank and in Hand

Cash and cash equivalents consists of cash in hand, bank current accounts and short-
term deposits. The cash and all liquid investments with an initial maturity of three
months or less are being considered to be cash equivalents.

31.12.2008 31.12.2007

Current accounts 52.360 4.472

Cash in hand 8 331

Total 52.368 4.803

Deferrals and accruals

The main issue is to represent the fact of receiving goods or services which have not
been invoiced yet, or vice-versa, to pay in advance for them. The same applies to
revenues, for which the goods or services have not yet been delivered, or the other way
round.

LIABILITIES
FUNDS

Initial capital
In accordance with a signed memorandum of understanding, which is in place to
formalize the relationship between COOPERATIVES EUROPE and the Central Office in Geneva,
75% of the reserves attributed to Europe, or 109.896 Euro, have been transferred to a
COOPERATIVE EUROPE bank account the 16th May 2007.

Accumulated profits / losses

The accumulated profits or losses are those which have been acted since 2006, the year
COOPERATIVES EUROPE has been constituted.
 31.12.2008 31.12.2007

Accumulated profits / losses -45.069 -17.116

Net surplus / deficit of the year 16.797 -27.953

Total -28.272 -45.069

AMOUNTS PAYABLE WITHIN ONE YEAR

Financial debts
Debts are entered at their nominal value, provided the notation of a correction if the
estimated value of the debt is higher than the book value at the year-end closure. The
financial debts consist on fixed term loans, promissory notes and current accounts
payable at the credit institutions.

31.12.2008 31.12.2007

Current accounts payable - 41.048

Total 0 41.048

Trade debts
The trade debts contain the suppliers which have not yet been paid, the bills of exchange
payable and the invoices to be received.

31.12.2008 31.12.2007

Suppliers 11.039 38.399

Invoices to be received 36.370 44.637

Total 47.409 83.036

Remunerations and social security

Social provisions are established on the basis of rates that are usually allowed. The social
secretariat calculates the salaries using recognised payroll software and calculates also
the end-of-year holidays accruals.

Advances on contracts in progress

The advances on contracts in progress concern the reception of a certain amount of
money by a third party dedicated to the activities specified within the contract. These
sums are essentially linked to direct contracts with member organisations, the European
Commission or other third parties.
INCOME

Actual 2007 Actual 2008

700,000
600,000
500,000
400,000
300,000
200,000
100,000
0

The Incomes can be regrouped in 5 main categories:

1) Net redistribution
The net redistribution is the part of the European membership fees perceived by the ICA
Central Office and redistributed to the Regional offices. The rate of redistribution has
been growing from 35% in 2007 to 40% in 2008. The longer term strategy is to in increase
it from 2009 to 2012 with 2,5% each year, to reach a balanced 50% redistribution.

2) Regional membership fees

The regional membership fees are directly transferred by the European Co Co-operative
Sector organisations to COOPERATIVES EUROPE. Additionally,, new European members can
choose to be affiliated to COOPERATIVES EUROPE in a transitional period before entering the
ICA membership.

3) Meeting revenues
The meeting revenues are the incomes linked to the General Assembly
ssembly or other seminars,
mainly under the form of sponsorship and registration fees.

4) Services & growth activities

This category consists on the services provided by COOPERATIVES EUROPE as well as the
growth activities, which are some specific areas of activity financed by the European
members directly interested in their development.

5) EU projects
Some activities are
re supported by EU funds, which cover then all the components linked to
them.
EXPENSES
Actual 2007 Actual 2008

700,000
600,000
500,000
400,000
300,000
200,000
100,000
0

The Expenses can be regrouped in 8 main categories:

1) Personnel expenses
The human resources at COOPERATIVES EUROPE have grown from 4.6 FTE in 2007 to 5.1
FTE in 2008.
2) Travel expenses
The travel
avel expenses consist on flight, train and taxi tickets, as well as the accommodation
and subsistence costs linked to the missions of participation or representation.
3) Premises & general office expenses
All acquisition of furniture, small office utensils, documentation and photocopies, but also
the rent and maintenance of the offices, electricity and water are included within this
category.
4) IT & Telecom
The IT & Telecom expenses are formed by the phone, mobile phone phone, fax and internet
costs, as well as the IT material (soft- and hardware).
5) Externall services
The External Auditor,
Auditor, External accountant service, IT services, S Social secretariat and
some legal services are forming this category.
6) Meeting expenses
The meeting expenses consist on the different working groups, statutory meetings and
the general ral assembly, including the services of catering, interpretation and rent of the
meeting rooms and the technical equipment.
7) Others & Growth activity
The other expenses contain the financial costs, the subscription fees paid by
COOPERATIVES EUROPE to SOCIAL ECONOMY EUROPE, the depreciations of the assets and the
insurances. Further, the direct costs
costs linked to the growth activities are included in this
category.
8) EU project apart staff and overhead costs
The costs which are directly linked to the EU projects projects are represented under this
category,, as the travels, accommodation, renting of meeting rooms or technical
equipment. The he other costs
cost as the overhead and staff costs, even though they are linked
to the project activities, are not reflected in this category;
egory; this is to assure a better
visibility
isibility in the personnel costs category,, making them otherwise fluctuate heavily. The
cost coverage for overhead and staff corresponds therefore exactly to the difference of
the costs covered by EU projects on the income
income side and the EU project expenses.
SECRETARIAT
Director - Rainer Schlüter
r.schluter@coopseurope.coop

Deputy Director and Consultation - Agnès Mathis

a.mathis@coopseurope.coop

Communication - Ray Collins

r.collins@coopseurope.coop

Members` Services & Statutory Activities - Antonina Guarrella

office@coopseurope.coop

Finance & Project Development - Marc Noel

m.noel@coopseurope.coop

Research & Development – Mirko Nodari

m.nodari@coopseurope.coop

Addressing the Climate Threat (ACT) Campaign – Richard Mason (seconded from
THE CO-OPERATIVE GROUP UK)
richardmason.climatethreat@coopseurope.coop

COOPERATIVES EUROPE ASBL

Cooperative House Europe
Avenue Milcamps 105
BE - 1030 Brussels
Tel: + 32 2 743 10 33
office@coopseurope.coop
http://coopseurope.coop/

June 2009