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CONTENTS

Etienne Pflimlin’s address 03

Director’s report 06

Activity Focus 08

Governance 13

Auditor’s report 14

Financial Statements 15

Secretariat 26

2
CO-PRESIDENT INTRODUCTION

In 2010, I believe that we can take some time to review the journey travelled together. The
co-operative world has undergone many changes and, at times, has experienced several difficulties.
However, today it is both strong and universally recognised.

1895 and 1995 are two founding dates. The former marks the foundation of the International
Co-operative Alliance in London, making the ICA, together with the Red Cross, the oldest NGO in
Europe. The second date is important since it gave the international co-operative world the
opportunity to consider its principles once again, to reaffirm them and also to impulse a new dynamic
process for the whole of the movement.

2005 marked the beginning of a new era, an era that sees our forces united and renewed
within COOPERATIVES EUROPE, a European co-operative association that is unique in terms of the
diversity of its members and the number of its component parts, but moreover in terms of its avowed
intention to ensure that COOPERATIVES EUROPE becomes an institution recognised in Europe and
beyond. Although this journey may seem somewhat modest in the context of our co-operative
history, the fact is that, united in our diversity, we have made an effective contribution to a new co-
operative development.

The co-operative world has already experienced several phases of major development: first
of all there was the original association-creating wave that saw the creation, in particular, of the first
producer associations in the middle of the 19th century, followed by a second large wave that led,
notably, to the creation of consumer co-operatives at the beginning of the 20th century and which
was successively recognised by the legislator, culminating in the introduction of general co-operative
legislation in the majority of our countries. Following a period of years in which the unbridled
promotion and development of individualism resulted in co-operative solidarity being mistreated and
misunderstood, a period during which our enterprises were often labelled as being ageing, the
rediscovery of the modern nature of the co-operative model is both genuine and real.

Our movements have experienced diverse forms of wealth and we have often witnessed an
acceleration of working methods, a standardisation of practices, of services and certainly of
mentalities. Many co-operatives have lived through these years by becoming economically stronger,
whilst at the same time minimising their co-operative dimension in order to adhere to the prevailing
rhetoric that placed the focus firmly upon economic performance. The sole expectation that both
public opinion and the very times themselves had of enterprises appeared to be the provision of
services or of products, with no particular attention being given to the legal forms adopted by these
very same enterprises.

Indeed, in some countries we even saw a wave of demutualisation of healthy co-operative

enterprises or mutuals. This period also witnessed the collapse of the Soviet bloc, the arrival of the
free market in the East and also the rejection of any collective form of enterprise. The co-operatives
that had sometimes been instrumentalized by the State authorities blacklisted and some even faced
with the threat of disappearance, both from an economic and legal point of view. It required all of
the persuasive powers and the autonomous rebirth of these movements in order to enable them to
obtain the right to envisage a new development. The moral and political support of the large co-
operative movements in Western Europe has contributed to this rebirth.

However, the clear-sightedness of consumers or producers and sometimes the will of the
State and the local and regional authorities to maintain and to develop local employment, to promote
forms of cooperation between enterprises and public/private partnerships, the successive jolts given
to the system, first of all by a growth crisis and then by an economic and social crisis, have favoured a
rediscovery of the virtues of the co-operative form.

3
 Our movement has been capable of growth away from the limelight. It has consolidated its
position over the course of the years and has become hardened through its contact with an
increasingly competitive economy. Social difficulties and the current economic crisis would appear to
be encouraging political representatives and a part of the population to once again recognise co-
operatives as organisations that are capable of providing an effective response to the current social
and economic challenges. This revived interest in co-operatives is primarily related to their good
degree of economic resilience, the fact that they are anchored at the local level and their regular
introspection that is fostered by their democratic governance. Today, co-operatives would appear to
be widely appreciated by the general public. They are recognised as being a model for the future.

Co-operatives are being established in the construction sector and in the areas of consultancy
and new technologies and they also make it possible to bring individual workers together in different
sectors of activity, thereby enabling them to pool their skills for everyone’s benefit. For example,
craftsmen and tradesmen may freely pool their skills. Co-operatives are also finding their place in the
gaps left behind by the State authorities that are withdrawing from certain social sectors. There is no
doubt that co-operatives are more complex today than they were in the past, but they are still the
result of the very same reflex that is based upon cooperation, mutual aid or working together.

Co-operatives find themselves in the limelight once again because they represent a way of
living and acting a form of economic conduct that is more in phase with people’s expectations. Our
capacity to organise ourselves and to enter into dialogue has certainly facilitated the development of
this better public recognition that enables us to compete on the market on an equal footing.

Within the Europe Region of the ICA, since 2005 COOPERATIVES EUROPE has succeeded in
bringing together the energies of the European sectoral organisations and of the national intersectoral
organisations. First of all we had to define our operating rules as well as the organisation of relations
with the members, the ICA and the European institutions. The opening of the European Co-operative
House in Brussels is a strong symbol of our unity. At the same time, our association has also
undertaken joint reflections and shared actions in order to both reinforce and to develop the co-
operative movement in Europe. The ECS, State aids and the status of social shares are just a few
examples from a wider range of our lobbying and communication activities. Through the reaffirmation
of a plural identity, an identity that is more respectful of our fellow citizens, there is no doubt that we
a writing a new and important page in co-operative history in a Europe that is, by and large, at peace.

Numerous initiatives have been undertaken in recent years and particularly over the course of
the last few months in order to take into account the new composition of the European Parliament
and of the Commission. A contact group has been set up within the Parliament and a first meeting has
been organised in Strasbourg. Several exchanges have been held with the Commission, notably on
issues that are of great importance to our movements and to our enterprises. Not only do we work as
a team, but we also entrust particular tasks to groups that have a particular area of expertise.
Accordingly, the EACB has worked hard to raise awareness of the accounting specificities of co-
operatives’ social shares. CECOP has helped to shed light on the dynamics of SGIs. The various co-
operative families have proven themselves capable of keeping a very close eye on a whole range of
issues and this process has, in most cases, been accompanied by an appropriate response to the
European institutions. Indeed, throughout 2009 a whole series of positions were drafted on a wide
variety of subjects such as the Lisbon and EU 2020 strategies, social services of general interest, the
small business act, the internal market and State aids, social inclusion or the services directive, the
European Co-operative Statute. The sheer number of issues covered is a reflection of the attention
and commitment of the co-operative movement to transversal subjects that have an impact on all co-
operatives. We have also developed a system to monitor the Commission’s documents and have
responded to several calls for consultation. We have systematically reminded all concerned that co-
operatives are guided by principles that have been defined at an international level and that the
Commission may not claim to make a distinction based on criteria such as that of size.

Driven by the conviction that the co-operative model may live and thrive in all countries,
several development projects have been launched: the COOPERASMUS project, cooperation with the
Balkans...

4
 However, none of this work could have taken place without the professionalism and energy of
our permanent staff, led by Rainer, and we would like to take this opportunity to extend our warm
thanks to them. This work has been made possible by the climate of mutual trust and the active
support provided by all of the movements who have demonstrated their willingness to suggest,
respond, ask questions and to make proposals. Finally, we should both recognise, and pay tribute to,
the enthusiasm and dynamism that Pauline has been able to inspire (co-inspire) throughout her term
of office as co-president.

We must ensure our future development whilst at the same time safeguarding our
specificities. In order to achieve this, our enterprises have several assets at their disposal to respond
to the expectation of the citizens, entrepreneurs, consumers and workers and the public authorities.
By remaining true to their values, today’s co-operatives represent a new form of modernity.
In the context of the current crisis, the original model of the co-operative enterprise would appear to
be a factor of stability, security and solidarity that is capable of contributing to economic development
as well as to social progress within living communities.

The affirmation of our models of enterprise as an example of resilience and as an opportunity

for diversity and creativity in a world in which there is a prevailing tendency towards uniformity and
standardisation, is a challenge that we should take up together. We have already begun to do so in
our sectoral and national organisations and this is a task that we must pursue on a daily basis within
COOPERATIVES EUROPE at the service of all European co-operators. This action feeds upon our shared
values and personal commitment. We must believe in what we are doing and realise that our strength
lies within us.

Etienne PFLIMLIN
Co-President

5
DIRECTOR’S REPORT

2009, as the final full year of the current mandate for COOPERATIVES EUROPE, has inevitably been one
composed of the consolidation of work practices and the culmination of the previous 3 years rolling
work programmes. Our life cycle has partially converged with that of the two major institutions of the
European Union that COOPERATIVES EUROPE interacts with, namely the European Parliament and the
European Commission. The new parliament (June 2009) and the nomination of the new Commission
gave the opportunity to layout the framework and content that we see as the foundation for the work
with these institutions for the next 4 years.

A contact group has been formed with Members of the European Parliament to give us an audience of
‘friends of the co-operative business model’ that will assist us in getting our message into the
legislative process and equally, acting as an alert system to keep COOPERATIVES EUROPE and its
members aware of the current political debates and strategies that are forming the basis of growth
and development in the EU.

The new mandates and new Commissioners taking office at the beginning of 2010 give us the
opportunity to reformulate our own lobby and communication strategies to ensure that the voice of
the European Co-operative Movement will be heard at all levels of the executive bodies of the EU. Our
continuing presence and visibility in these centres of policy development and implementation must
remain our prime concern in the coming years.

The full commissioning of the ‘Cooperative House’ in Brussels is now providing an efficient home for
the governing structures of COOPERATIVES EUROPE and it enables the secretariat team to maintain a fully
functional visibility to the outside world whilst providing a supportive centre for delivering services to
our members.

The establishment of EURICSE as a centre for research and innovative thinking will increasingly fill the
gap that has existed in our own planning and development processes. All member organisations are
encouraged to take full advantage of the Centre’s research programmes and events and to actively
consider the mainstreaming of this approach to their own development strategies.

The current economic climate following the disastrous effects of the crisis within the financial
institutions has heightened the need for an effective and respected lobbying function for COOPERATIVES
EUROPE. The consultation committee – EUCC - continues to rise to this challenge, be it at the
consultative level of providing opinions on Commission legislative proposals or the timely defense of
co-operative values and principals at the executive decision making levels. The legal challenges before
the European Commission have not all as yet run their full course and still demand the attention of
the EUCC. The experience and expertise of the sector organisations and the national apex bodies
continue to prove their worth in the formulation of the considered positions of COOPERATIVES EUROPE.
We now play an active role in EU working groups in the Development field and are called upon as
experts to develop policy and opinions.

Whilst the European Union is a focus of much of our work, co-operative development in the wider
Europe is not forgotten. The emerging economies in the Balkans region have the potential of
providing fertile ground for new co-operative initiatives. An EU funded project in Montenegro could
well provide a model for co-operative development in the region. Similarly, the holding of the 2010
Regional Assembly in Μοscow will hopefully be the start of an enhanced relationship with members in
that part of our European region.

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Externally funded projects (e.g. Coop Erasmus and Territorial Quality Standards in Social services)
contributed to the scope of activities with the second EU funded Social Dialogue project providing
significant interaction with our member organisations. The three year involvement with the Social
Partner Programme has given us valuable information and an understanding of the role co-operatives
play in the national and European Social Dialogues. Currently there is no consensus in the national
and European member organizations to give a mandate to COOPERATIVES EUROPE as the cross sector co-
operative organization in the context of the European Social Dialogue. This is particularly so in the
field of negotiation, but also initially even as a European Social Partner in the consultation process.
Therefore the idea to create an optional cross-sector Co-operative Employer Association to start a
reinforced co-operation between co-operatives and trade unions was considered at the European
conference in Sofia.

The introduction of ‘growth and development’ funding streams have enabled individual member
organisations to contribute resources to COOPERATIVES EUROPE for support for particular issues of
concern to them that can be addressed at the European wide level. This funding has enabled us to
take initiatives in the pharmacy and energy sectors that bring together networks of service providers
for joint engagements. The ACT! Project, providing a common voice for co-operators in ‘Addressing
the Climate Threat’ has formed working relationships with other campaigning groups and international
organisations whilst aiming to enable co-operatives and their members to monitor and reduce their
own carbon footprints.

On the overall management front, the Board of Directors, the Executive Committee and the staff have
diligently addressed the financial management and budgetary control issues presented by the
increasing demands on the limited available funds. An active involvement in the management and
development of the global ICA has likewise demanded committed efforts to attain a mutually
productive working relationship. A measure of the magnitude and professionalism of the input that
COOPERATIVES EUROPE has made to the global organisation is reflected in the election, with no opposing
candidates, of Dame Pauline Green as President of the ICA. We can all be assured that COOPERATIVES
EUROPE will continue to benefit from Dame Pauline’s passion and expertise in co-operative matters that
she will undoubtedly be using to address the issues of concern to all co-operative organisations and
their members.

As this will be my last report as Director, I must record my thanks and appreciation for the support
and guidance the Board, under the formidable leadership of your co-Presidents: Etienne Pflimlin and
Dame Pauline Green have extended to me. Together we have achieved the majority of our goals and,
as equally important, have done so in a cordial and co-operative manner. That said, it would be
remiss of me not to acknowledge the major contribution that my staff team had to all our successes
and to the amenable working relationships that have produced the results that were demanded of us
all.

I wish COOPERATIVES EUROPE well for the future and I will continue to watch with some pride as you
develop and extend your support for Europe’s co-operative business model.

Rainer Schlüter
Director

7
ACTIVITY FOCUS
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.

As the effects of the credit crisis of previous years took hold and European economies grappled with
the effects of deep recession, co-operative enterprises redoubled their efforts to prove their
sustainability and their worth as a safe haven. COOPERATIVES EUROPE attempted to support these
individual efforts by building support for the co-operative business model at the European and
national levels. The need to protect and defend the co-operative values and principles unfortunately
did not go away but in some instances that need was brought into sharper focus.

LOBBY ACTIVITIES
COOPERATIVES EUROPE adopted and promoted several position papers on cross-sectoral issues, mainly
on territorial cohesion, enterprise policy, civil dialogue and the new EU2020 strategy for Europe. The
main message running through all these papers was that in the current economic climate, co-
operatives show their stability and sustainability and represent a model of enterprise particularly fit to
tackle and overcome the present crisis. Defending and promoting co-operatives is necessary for the
maintenance of the European Social Model and for a competitive economy in Europe. The plurality of
forms of doing business must be implemented in the different European policies.

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. Twenty five representatives from national apex and European sector federations actively
participated in its work under the presidency of Etienne Pflimlin. There were four physical meetings.

The COOPERATIVES EUROPE’s Accounting Working Group (supported by the EACB and working primarily
by email co-ordination) worked on the accounting standards issue of the distinction between liabilities
and equities and the characteristic of co-operatives shares. The issue on accounting standards for
SME’s was also addressed.

The ongoing state aid issue continued to demand attention and fine analysis as decisions and
announcements by the European Commission were made. Members were kept informed of
developments and provided with the analysis and facts to enable them to be prepared if similar
attacks were made at the local level. A draft manifesto is in preparation that will contain the political
orientations and arguments of the co-operative movement and will serve as guideline for all
organizations vis-à-vis the European and national institutions. A coherent political approach in all
member states and at EU level will increase the credibility of the co-operative movement and its
chance of influence the decision-making process. Two reports on the legal actions against co-
operative were made for the Co-operatives Research Institute of Japan.

An essential feature of the strategy to promote and to defend the co-operative business model is to
have direct contact with representatives in the European economic and Social Committee (CESE) and
the European Parliament. Following the model of the contact group within the CESE a co-operatives
contact network has been established in the European Parliament to give us an audience of ‘friends of
the co-operative business model’ that will assist us in getting our message into the legislative process
and equally, acting as an alert system to keep COOPERATIVES EUROPE and its members aware of the
current political debates and strategies that are forming the basis of growth and development in the
EU. A further contact point in the European Parliament is the Social Economy intergroup.

8
COOPERATIVES EUROPE is a member of different 'experts groups' such as SMEs envoy and the group on
Company Law. COOPERATIVES EUROPE meets regularly with the Directors and Heads of Unit in the
European Commission 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. Contacts with
key European Commissioners and their offices are also taken when issues of relevance to us arise.

COOPERATIVES EUROPE initiated the idea of an own initiative opinion by the European Economic and
social Committee on the plurality of entrepreneurial form of enterprise. The initiative was supported
by the co-operative members and the proposal was accepted. The co-rapporteur was Marie Zvolska
from the Czech co-operative movement with A. Mathis of COOPERATIVES EUROPE as an expert. The
opinion described the diversity of forms of enterprise that are found in the European Union and
endorses the often stated view of COOPERATIVES EUROPE that there is a need for a legal framework,
along with a competition policy, that is instrumental in creating a level playing field for all the different
forms of enterprise whilst taking into consideration the characteristics of each form.

COOPERATIVES EUROPE is an active member of Social Economy Europe where the co-operative
representatives defend the entrepreneurial approach of the concept of social economy under the
principle of subsidiarity. A large amount of time was devoted to the follow up of the restructuring
process but unfortunately no agreement could be reached on the draft statute.

The 2004 Communication of the Commission on the promotion of Co-operative societies in Europe
[com (2004) 18 final] established a major action plan for the development of co-operative enterprises
across the European Union. The Communication stated that the Commission, closely associating all
stakeholders, should assess the progress made in relation to the objectives set out. COOPERATIVES
EUROPE and its members strongly reacted to the first draft of the assessment report for it contained
several points of concern. A specific working group has been set up to deal with this issue with the
objective of drafting a proposal for a new communication for co-operatives to be discussed with the
Commission. To-date the working group has met twice and will present a document in June.

As a member of the consortium with EURICSE and foundation EZAI, a study on the implementation of
the Regulation 1435/2003 on the statute for European Co-operatives Society (SCE) for the European
Commission will be undertaken. The actions to be undertaken are:

Mapping of the relevant legislation implementing SCE in EU and EEA countries;

Mapping of the national legislation on co-operatives;

Inventory of SCEs and related information;

Analysis of the degree of success of the Regulation;

Other issues concerning visibility of the co-operatives sector.

As Member of the Scientific Committee, COOPERATIVES EUROPE is charged with the preparation and
adoption of the working programme; the follow up of the work undertaken by national experts and to
contribute to the writing of the final recommendations. The first interim report was presented on 31
March to the Commission and the project should be completed by October 2010.

In order to establish networks and to disseminate information about co-operativess and Cooperatives
Europe activities we participated in different events with presentations such as ‘Context and
Perspectives for the European Cooperatives Statutes –SCE’ (Amice December 2009) or the
‘Contribution of the co-operatives to the global social and economical development’ (CUS Portoros
March 2010).
PROJECTS
TERRITORIAL QUALITY STANDARDS IN SOCIAL SERVICES OF GENERAL INTEREST

COOPERATIVES EUROPE is partner of the project TQS in SSGI – Territorial Quality Standards in Social
Services of General Interest. The project, co-financed by the European Commission, is lead by REVES,
the European Network of Cities and Regions for the Social Economy and includes 16 partners from 7
countries.

9
The project aims to develop local mechanisms for a participatory redefinition and measuring of local
quality standards for social services of general interest (SSGI). These mechanisms would be oriented
to service users, service providers, local authorities and the local community and would try to respond
in a more effective way to their needs.

More specifically, the project foresees to develop and test mechanisms to identify criteria for the
definition of local quality standards (who should participate in the definition of these standards? How?
When?), to ensure that local quality standards comply with national and EU requirements, to identify
indicators for quality in SSGI and to improve local policies concerning the SSGI provision.

At the European Conference in Marseille in spring 2009, when the project was launched, the role of
co-operatives was highlighted in the provision of social services and their capacity to build quality in a
different way by associating users.

At the second conference, held in Faenza in Fall 2009, COOPERATIVES EUROPE together with CECOP
presented the study on how co-operative principles influence quality criteria in the social services
provided by co-operatives. The analysis shows for instance how the 2nd Co-operative principle –
Democratic member control is then translated into criteria having an effect on quality in SSGI
provision: members’ need satisfaction, empowerment, self efficiency and autonomy of workers as well
of service users and promotion of economic, social and cultural interests of the members.

COOP ERASMUS

Erasmus for Young Entrepreneurs is a European exchange programme aimed at helping new
entrepreneurs to acquire relevant skills for managing a small or medium-sized enterprise by spending
time (1 to 6 months) in an enterprise managed by an experienced entrepreneur in another European
country.

COOPERATIVES EUROPE and the other 7 European partners of the consortium COOPERASMUS (CO-
UK
OPERATIVES , CEPES ANDALUCIA, UNCCUE, ELABORA-CONFCOOPERATIVE, INFORCOOP-LEGACOOP, CCU-BULGARIA,
COOMPANION) have been selected to be Intermediary organisations. Intermediary organisations help
new and host entrepreneurs in getting in contact and assist them during the relationship. On 1st
March 2010 more than 80 applications have been collected and 15 relationships are ongoing.

This is a great opportunity for the co-operative movement. Firstly, this project responds to a need
which our businesses have been expressing several times in the past i.e. new entrepreneurs/co-
operators, especially in the start-up phase, need to exchange experience with experienced
entrepreneurs. Secondly, this is another official recognition of co-operatives as key actors in the
European economy and lastly, it is a great chance to foster the creation of new co-operative
businesses and to enable our co-operatives to gain an international dimension.

JAPAN

Two further reports for the Co-operatives Research Institute of Japan were completed : “The social
service sector – a new growth sector for co-operatives” and “School co-operatives – bringing co-op
values into the education system”. The reports are then translated in Japanese and distributed to all
the members of the research institute.

The JA Soken Institute is extremely satisfied with the work done by Cooperatives Europe and during
their visit to the Co-operative House Europe in March 2010 they expressed their will to further work
with us.

10
EU PROJECT ON SOCIAL DIALOGUE - SPP-C

The project COOPSEUROPE/SPP-C was the follow-up project of COOPERATIVES EUROPE Social partner
program VP/2006/001 run in 2006-2007. It builds on the first results in the field of representativeness
and participation of co-operative organizations within the social dialogue across the EU 27. After a
quantitative analysis of the situation, the SPP-C program aimed to improve the qualitative knowledge
about the situation of national and European Sector dialogue of the co-operative organisations, to
evaluate and demonstrate added value of national and European participation of co-operatives in their
respective Social Dialogues, and to strengthen cooperation with other European Social partners. This
was reached through activities such as seminars, working groups, expertise and a reinforced
cooperation with the other European Social Partners.

The main components 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 how it could be further developed. A reflection
seminar with the participation of Maria Helena André, secretary general of the ETUC, and
Commissioner Špidla, was also 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 as the co-operatives.

The final project publication, presented in October 2009 in Brussels, highlighted the different cases of
co-operative participation within the Social Dialogue and the added value brought by these specific
employer organizations to the dialogue. Even if the co-operative movement is heterogeneous, it
distinguishes itself by the same clear values for all the co-operative enterprises, traceable in their
contribution to the social dialogue at different levels.

This qualitative work on the co-operative employer organizations will be followed during the next
years and ongoing cooperation with the social partners further been enhanced.

LE GRAND MAGASIN

COOPERATIVES EUROPE is an active partner 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 is a shop displaying and selling only products manufactured in
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. It is a successful collaboration between worker and consumer co-operatives.

A conference is being organized in May 2010 to conclude the project cycle, along with a publication on
the project achievements and a description of the different stakeholders which have been involved,
with a foreword by Cooperatives Europe.

ACT! – CO-OPERATIVES ADDRESSING THE CLIMATE THREAT

A website was created to provide visibility to the project and a platform for co-operatives and co-
operators to interact. www.actonclimate.coop has utilised new media technologies such as twitter and
facebook to gather support for co-operative action and has provided daily blog articles updating
people on global climate news, relative to co-operative organisations and co-operators.

A partnership was formed with the UN ‘Seal the Deal’ campaign prior to the Copenhagen Climate
Summit Dec 2009. Many co-operatives showed their support towards creating a European Co-
operative Voice on the issue. ACT! became a founding member of the 10:10 campaign, in the UK- It is
hoped that this relationship will lead to Co-operatives Europe being a significant partner in spreading
the campaign globally.

11
The project researched and identified significant campaigning and project actions for 2010 and
beyond to be discussed by a political steering group. These will include; Involvement in 10:10 global,
Greener Together Europe and co-ordination of a European co-operative closed loop ‘offset’ scheme.
The political steering group will be formed at the Moscow GA to strategically plan the future direction
of ACT!

LOBBY ON DEVELOPMENT

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

Policy Group met several times. Representatives of the DG Enlargement, DG External Relations and
DG Development as well as of the EuropeAid office took part in some of the meetings.

After different contacts, the three EC Directorate General 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 (DG Development)

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)

The lobby activities have also strongly been enhanced with the launching of a EU structured dialogue.
The aim of this process is to build consensus on the main issues concerning the role of Civil Society
Organisations (CSOs) in development cooperation and to find ways to improve the involvement and
efficiency of EU cooperation, to advance and strengthen partnerships and adapt finally EU strategies
and modalities accordingly. The stakeholders participating in this also so-called “Quadrilogue” are
from the Civil Society Organisations (CSO) – including COOPERATIVES EUROPE – and Local and Regional
authorities (LRA), the European Commission, the Members states and the European Parliament. This
dialogue started officially the 23rd of March 2010, shaping the programs 2014-2020 of the aid delivery
by the Commission and is the first one year-cycle of a long term dialogue on development strategy
with the different stakeholders.

COOPERATIVES EUROPE became simultaneously a member of the EU CSO Group on International

Development, composed by the dozen of main European Civil Society networks. The CSO Group has
no formal structure, no membership fee nor a secretariat. The objective is to learn from each other,
pool knowledge and challenge some EU thinking in a holistic and coherent way. The added value of
this group is a real constructive exchange between CSO networks, learning from each other, create
alliances and better follow the structured dialogue. These monthly meetings permit to build a common
position between CSOs and to speak with one voice at the Quadrilogue meetings.

12
GOVERNANCE

MEMBERS OF BOARD/EXECUTIVE COMMITTEE

In 2009, the Board of COOPERATIVES EUROPE met 4 times (17/04 - Brussels; 27/06 - Sofia; 27/10 -
Brussels; 15/12 -Strasbourg) with 3 Executive Committees (14/01; 9/03; 06/10 Brussels)

CO-PRESIDENTS
DAME PAULINE GREEN (UNTIL DEC 2009) • 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 KLAUS-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 (UNTIL NOV 2009) • MARTENSSON GUN-BRITT (UNTIL NOV 2009) • PASZKOWSKI JANUSZ
(UNTIL NOV 2009) • MACDONALD IAIN

13
FINANCIAL REPORTS

14
15
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31.12.2009

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.

PREAMBLE
For the last 2 years the ICA has applied a new formula to calculate the membership fees. This formula
consists of three different parameters, which are multiplied:

Membership fee = Base Fee x Number of Members x World Bank Income Index

The more members an organization has and the higher the WBII applied in the country is, the higher
will also be the final membership fee for an organization.

In May 2008, it had been decided to change the fee system to one unique fee paid to the ICA centre,
and to abolish the multiple fees paid by some organizations to the center and/or to the sectors. The
organizations not being a direct member of the ICA should therefore become a member and pay,
according to the formula, the membership fee to the centre. In order to implement these changes, the
head office should provide the sectors during 2009 and 2010 with the same amount of money that
these sector organizations had at their disposition before this unique fee system. The difference of the
amount redistributed to the sectors should have been assured through the new members of the ICA,
which were members of a sector organization before, and the higher incomes through the formula.
This procedure was supposed to be neutral for the ICA regional offices.

Nevertheless, due to the fact that some major organizations paid now only one unique fee (and no fee
anymore to the sectors) and some organizations did not join the ICA because they were members
through a national apex, the incomes have finally been much lower. This effect has been particularly
true in the European Region, reducing the redistributed membership fees by some €50.000 for
Cooperatives Europe.

To compensate that lack of income to COOPERATIVES EUROPE, the ICA Board meeting on the 15th
November 2009 took the decision to “use special fund and non-earmarked donations to ensure no
deficit regionally and globally.” This is the reason why a projected positive result of €20.000 became a
negative one of €31.000, compensated by the ICA reserves and resulting in a balanced result for
2009.

16
Balance Sheet 2009 (in EUR) Statement of Income and Expenses 2009 (in EUR)

31.12.2009 31.12.2008 31.12.2009 31.12.2008

Assets Incomes

Fixed Assets Net redistribution 380.918 331.878

Intangible assets - 1.833 Regional membership fees 38.500 49.434
Property, furniture and equipment 34.541 20.783 Meeting revenues 38.921 52.444
Billing & Sponsorship 18.476 12.500
Current Assets Sale of services, growth & others 107.283 69.355
Stocks - 748 Contribution by the EU project 193.896 113.100
Amounts receivable within one year 27.303 55.156
Current investments 50.071 50.000 TOTAL 777.994 628.711
Cash at bank and in hand 118.318 52.368
Deferrals and accruals 32.978 10.706
Expenses
TOTAL 263.211 191.594
Personnel expenses 391.330 360.757
Travel expenses 59.322 45.482
Liabilities Premises & general office expenses 57.771 17.008
IT & telecom 19.768 13.708
Funds External services 27.561 38.987
Initial capital 109.896 109.896 Meeting expenses 30.617 72.503
Accumulated profits / losses -28.272 -45.069 Services, growth costs & others 62.462 17.790
EU project costs apart staff &
Net surplus / deficit for the period 0 16.797 overhead 129.163 45.680

Amounts payable within one year TOTAL 777.994 611.915

Financial debts 10 -
Trade debts 33.159 47.409
Remunerations and social security 60.274 42.252
Advances on contracts in progress 88.019 20.311
Other amounts payable 125 -

TOTAL 263.211 191.594

17
NOTES CONCERNING THE BALANCE SHEET

ASSETS
1. 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

Acquisitions 5.500
Previous depreciations 3.667
Balance at 31.12.2008 1.833
Depreciations of the period 1.833

Balance at 31.12.2009 0

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. The equipment is composed by mainly IT material, which has been acquired to renew the
computer park in the new offices.

Furniture

Acquisitions 14.152
Previous depreciations 449
Balance at 31.12.2008 13.703
Acquisitions of the period 7.823
Depreciations of the period 2.127

Balance at 31.12.2009 19.399

Equipment (mainly IT)

Acquisitions 11.026
Previous depreciations 3.946
Balance at 31.12.2008 7.080
Acquisitions of the period 11.603
Depreciations of the period 3.541

Balance at 31.12.2009 15.142

18
2. CURRENT ASSETS

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.

The amount of 20.908 Euro is mainly composed by an advance towards the Cooperative House Europe
(7.620 Euro) and a co-financing to the SPP-C project not yet perceived amounting to 5.000 Euro.

31.12.2009 31.12.2008

Customers 22.216 54.539

Income receivable 2.000 -
Staff advances 546 617
Sundry amounts 2.541 -

Total 27.303 55.156

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

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, making it visible separately in the accountancy.

31.12.2009 31.12.2008

Account 479-0663319-62 50.000 50.000

Interests 71

Total 50.071 50.000

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.

COOPERATIVES EUROPE disposes today of 6 different current accounts at the Belgian bank KBC.
The accounts are managed as follows:
- one account for all the day-to-day management of COOPERATIVES EUROPE;
- one account for the special events, as the general assembly or other conferences, organised by
COOPERATIVES EUROPE;
- one account concerning the growth activity;
- three current accounts for the European projects (Social Dialogue with the DG Employment,
COOPERASMUS with DG Enterprise, and SCE with DG Enterprise).

19
 31.12.2009 31.12.2008

Current accounts 118.019 52.360

Cash in hand 299 8

Total 318.191 52.368

Deferrals and accruals

Deferred charges and accrued income (as accrued charges and deferred income on the liabilities) involves
recording financial transactions within the period in which they take place, and not when the payment
itself is made. This responds to the need to be able to compare the income / expenses from one period
with another or with the budget.

For 2009, this category shows accrued incomes for €31.000,14 which is exactly the deficit covered by the
ICA central office reserves.

LIABILITIES
1. FUNDS

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

The result for 2009 has been 0 €. For further information concerning this section, please consult the
comments at the beginning of the paper or the incomes and expenditures.

31.12.2009 31.12.2008

Accumulated profits / losses -28.272 -45.069

Net surplus / deficit of the period 0 16.797

Total -28.272 -28.272

20
2. AMOUNTS PAYABLE WITHIN ONE YEAR

Financial debts
Debts are entered at their nominal value. The financial debts consist on fixed term loans, promissory
notes and current accounts payable at the credit institutions. COOPERATIVES EUROPE does not have any
financial debts since the end of 2007, apart from a minor amount due to the opening of a new current
account end of 2009.

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.

The suppliers are mainly composed by invoices received at the end of December, as for example the
renting costs, the phone bill and its annual subscription fee or the renewal of the documentation
subscriptions. Further, amounts concerning the social charges and withholding taxes on professional
income are automatically debited from the COOPERATIVES EUROPE account, but there persists a delay of
several weeks.

The invoices to be received are mainly linked to the cost of the auditor for controlling the 2009 accounts,
as well as a publication issued at the end of the year.

31.12.2009 31.12.2008

Suppliers 27.733 11.039

Invoices to be received 5.426 36.370

Total 33.159 47.409

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.

For COOPERATIVES EUROPE, these advances concern mainly the European exchange program COOPERASMUS
and the project on SCE (European Co-operative enterprise).

Other amounts payable

The other amounts payable are composed by payments yet perceived, but affected to a later time period.
They are composed by interests received in December, but related to 2010.

21
NOTES CONCERNING THE INCOMES & EXPENSES

INCOMES

Actual 2008 Actual 2009

800.000
700.000
600.000
500.000
400.000
300.000
200.000
100.000
0
Net Regional Meeting Billing & Sale of Contribution TOTAL
redistribution membership revenues Sponsorship services, by the EU
fees growth & project
others

The Incomes can be regrouped in 6 main categories:

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 40% in
i 2008
to 42.5%
5% in 2009. The longer term strategy is to incre
increase it from 2010 to 2012 with 2.5%
2. each year, to
reach a balanced 50% redistribution.

In 2009, the exchange rate between the Euro and the Swiss Franc has been fixed at 1.44. 1 The
redistribution in the last quarter was lacking €51.000
51.000 but encloses then the €31.000 from the ICA
reserves to compensate the COOPERATIVES EUROPE deficit (cf. Preamble note, p.1). Therefore, redistribution
in the last quarter is still €80.971
80.971

Regional membership fees

The regional membership fees are directly transferred by the European Co-operative
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.

The regional membership fees have been those perceived

perceived by the European sector organizations (€28.000)
(
and by the new members KFO and CERA (€10.500).
(

22
Meeting revenues
The meeting revenues are the incomes linked to the general assembly or other seminars, mainly under
the form of registration fees. These incomes have been acted in the second quarter of 2009, as they are
linked to the general assembly organised in Sofia (110 participants paying a registration fee of €350).

Billing and sponsorship

These revenues are linked to the sponsorship of events and the rebilling of costs linked to them. In 2009,
they are mainly composed by the sponsorship for the General Assembly (€15.000) and the rebilling of
some costs linked to the opening of the Cooperative House Europe (€3.264).

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
specific development.

In 2009, the growth activities were the COOPERASMUS project financed by the DG Enterprise, the ACT
Program, financed by the CO-OPERATIVE GROUP, CRÉDIT MUTUEL, CCW and MIDCOUNTIES, the Energy and
Pharmacy activities, financed by CONFCOOPERATIVE and the GENDER&YOUTH supported by CCU Bulgaria.
Some services were undertaken, under which several reports for the Japanese co-operative organisation
JASOKEN and several smaller mappings.

EU projects
Some activities are supported by EU funds, which cover then all the components linked to them. In 2009,
there has been one major project, which has been the Social Partner Program – Consolidation, a program
to enhance the collaboration between co-operative employer organisations and the other social partners.

23
EXPENSES

Actual 2008 Actual 2009

800.000
700.000
600.000
500.000
400.000
300.000
200.000
100.000
0
Personnel Travel Premises IT & External Meeting Services, EU project TOTAL
expenses expenses & general telecom services expenses growth & apart staff
office exp. others &
overhead

The Expenses can be regrouped in 8 main categories:

Personnel expenses
The human resources at COOPERATIVES EUROPE have grown from 5.1 FTE in 2008 to 5.3 FTE in 2009. The
overall personnel expenses corresponded though almost exactly with the ones budget budgeted, and were
slightly lower, due to a prudent calculation, integrating a possible indexation of the salaries, being binding
in Belgium.

Travel expenses
The travel expenses consist on flight, train and taxi tickets, as well as the accommodation and subsistence
costs linked to missions or representation duties.

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.

The 2009 premises costs rose of course, as COOPERATIVES EUROPE is now paying a monthly rent of €2.260.
Before, COOPERATIVES EUROPE has been hosted by the CONFCOOPERATIVE and offices were provided for free.
The actual
ctual expenses are though close to the budgeted ones.

24
IT & Telecom
The IT & Telecom expenses are formed by the phone, mobile phone, fax and internet costs, as well as
the IT material (soft- and hardware).

IT and Telecom expenses rose in 2009, but less than expected; new IT material had to be acquired with
the moving into the new offices.

External services
The External Auditor, the External accountant service, IT services, Social secretariat and some legal
services are forming this category.

The external accountant working since September 2009 also in house increased these costs in the last
quarter, along with the auditors control of the 2009 accounts starting in December.

Meeting expenses
The meeting expenses consist on the different working groups, statutory meetings and the general
assembly, including the services of interpretation, rent of the meeting rooms and the technical equipment.
It has to be noted, that the expenses for the General Assembly and the European Conference, which took
place the 22nd and 23rd of June in Sofia, have been covered completely by CCU Bulgaria. This is also why
the actual expenses are lower than the budgeted ones. The last quarter saw a rise in these expenses, as
a board meeting and a EUCC were organised in Strasbourg, which have been compensated by the CRÉDIT
MUTUEL.

Services, growth costs & others

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
linked to the growth activities are included in this category.

EU project apart staff and overhead costs

The costs which are directly linked to the EU projects are represented under this category, as the travels,
accommodation, renting of meeting rooms or technical equipment. The other costs as the overhead and
staff costs, even though they are linked to the project activities, are not reflected in this category; this is
to assure a better visibility 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 side and the EU project expenses.

25
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 Noël

m.noel@coopseurope.coop

Project 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
c/o Cooperative House Europe
Ave Milcamps 105
BE - 1030 Brussels
Tel: + 32 2 743-10-33
Fax: + 32 2 743 10 39
office@coopseurope.coop

Website: http://coopseurope.coop/
Facebook: http://www.facebook.com/pages/Cooperatives-Europe/144455497832/
Twitter: http://twitter.com/coopseurope/

26