Source: European Parliament
The Commission’s proposal for a directive on European cross-border associations (2023/0315(COD)) (ECBA Directive[1]) aims at improving the functioning of the internal market by removing legal and administrative barriers for non-profit associations that operate or wish to operate in more than one Member State, thus promoting the role non-profit associations play in generating economic and societal values in the EU and allowing a level playing field between them.
The Commission’s proposal introduces an additional legal form of a European cross-border association (ECBA) in Member States’ national legal systems, which is specifically designed for cross-border purposes and will reduce legal and administrative burden when it comes to the recognition and establishment of non-profit associations engaging in activities in another Member State.
Once established in one Member State, an ECBA will be recognised automatically and will be able to operate in all Member States as well as transfer its registered office in another Member State, thereby allowing non-profit associations to drive prosperity and unleash their full societal and economic potential in the EU.
In March 2024, the Council started examining the proposal. The Commission urges the Council to adopt its position and stands ready to assist the Council for this purpose and support the co-legislators through the negotiation process.
- [1] The proposal for a directive is accompanied by Regulation of technical nature amending the internal market Information System (IMI) and the Single Digital Gateway (SDG) Regulations, to allow cooperation and exchange of information among competent authorities through the IMI system and to conduct digital operations through the SDG allowing access to information about ECBAs available online; https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52023PC0516