The proposed European Association: a symbol in need of friends?

Abstract

The 1991 proposal on a European Association (EA) was revised in 1993. It has not yet been adopted. The UK and Germany appear to be negative, while France and Spain, who are holding the presidencies of the European Union in 1995, supposedly are more positive. Nobody knows if and when the European Association regulation will be adopted. On many points the proposal is flawed, too bureaucratic and detailed. Too much attention is paid to the internal procedures of the Association, and too little to the possibilities for tax evasion and the exploitation of lax regulatory environments for non-profit organisations (NPOs) in some member countries. The EA regulation matters most to small and medium NPOs. For these organisations the costs of establishing themselves in other jurisdictions and complying with foreign laws might be disproportionately high. For the truly big NPOs the costs may be more marginal. Despite all its faults, not adopting the proposed European Association statute will be another lost opportunity in the modern saga of NPOs.