Since 2018, the Institute for Economic Democracy (IED) has been at the forefront of advancing employee ownership in Europe. We've worked with businesses, social movements, and policymakers to revive a model long overlooked - carving out space for it in both practice and policy.

Seven years on, our commitment is as strong as ever. As a small, dedicated team, we've helped bring employee ownership back into mainstream policy conversations. And throughout, we've stayed independent and true to our founding mission. Every initiative we pursue is part of a carefully crafted, long-term strategy - with no exceptions.

But staying mission-driven comes at a cost. Financially, sustaining this work isn't easy.

That's why we're launching our first Annual Fundraising Campaign - to seek support from organizations and individuals who share our vision of a fairer, more sustainable, and competitive economy that serves both people and the planet.

In this blog post, we make the case for why it's worth becoming our patron.

"Today nearly one-third of European corporate assets are estimated to be owned by US-based asset managers."

Ownership Matters

Ownership distribution is one of the key drivers of societal development. It determines the winners and losers in our economy - who gets heard, who benefits, and who gets left behind. And yet, in this era marked by polycrisis, this crucial issue often gets lost in the noise.

If there's one lesson we've learned from recent decades, it's that patching up systemic issues is no longer enough. We must go deeper - addressing the root causes of the economic, social, and environmental crises we face today. Economic, racial, and gender inequality; climate change; deindustrialisation; democratic disenfranchisement; financialisation; neo-colonialism - these are all symptoms of a global ownership structure that marginalises local communities and concentrates power in the hands of a few.

Despite the widespread demand for systemic change, justice often feels more out of reach than ever. Established redistributive tools - progressive taxation and collective bargaining - are losing their effectiveness, as states struggle to confront corporate tax avoidance, wealth migration, and offshoring. These trends are eroding our social contracts and fuelling disillusionment with democratic institutions.

In Europe, financialisation has significantly expanded the influence of index and private equity funds across our economies. This trend is further compounded by a mounting succession crisis: each year, hundreds of thousands of European business owners retire, and private equity is increasingly stepping in, acquiring local businesses. Today, nearly one-third of European corporate assets are estimated to be owned by U.S.-based asset managers. These financial actors are not only exacerbating extractive practices but actively working to undermine corporatist institutions, as highlighted in recent research. Businesses controlled by foreign or hostile entities can also collect sensitive data or deploy technology in ways that undermine democracy. In today's data-driven economy, where early movers entrench market dominance, the window to address extreme concentration of power is closing fast.

At IED, we are committed to reversing these trends - and we have a plan.

Our solution

We believe it starts with going back to the basics: the question of ownership.

Most people have little control over their working lives. They often aren't rewarded fairly for their work, nor can they influence the behaviour of their companies - even when those companies harm the very communities they depend on. But it doesn't have to be this way.

A proven solution exists: broad-based employee ownership. This ownership model empowers workers, democratizes wealth, and strengthens communities. In the United States and the UK, employee buyout mechanisms such as ESOPs (Employee Stock Ownership Plans) and EOTs (Employee Ownership Trusts) have enabled thousands of businesses to transition to employee ownership - creating real, tangible impacts. In most cases, these models have addressed business succession.

In the US, thousands of businesses are now employee-owned through ESOPs. In the UK, over 1,500 businesses have adopted the EOT model in just the past four years, making it the second most popular succession tool in 2023 and 2024. Employee ownership is changing lives - promoting inclusive growth and shifting the balance of power back to local people and places -, all while strengthening the economic fabric.

Our plan

At IED, we've spent years studying these success stories - analysing their strengths and shortcomings, and adapting them to the European context. This work led to the development of the European ESOP model - an innovative buyout mechanism inspired by its Anglo-American counterparts but adapted to EU legal frameworks and designed to ensure long-term sustainability.

We began by piloting the model in four Slovenian companies. Today, we are working closely with the Slovenian government to enshrine the European ESOP into law, with dedicated legislation expected by the end of 2025.

And we're not alone. Countries including Denmark, Spain, and France are also exploring employee ownership as a solution to their succession crises. Momentum is building across the continent. Now is the time to connect these efforts - to learn from each other and push for coordinated EU-level action.

That's why we're calling for the creation of a pan-European coalition committed to promoting broad-based employee ownership, advocating at the EU level, and facilitating knowledge exchange.

IED has already established a presence in Slovenia, Germany, and Serbia. We're now seeking to partner with like-minded organizations and individuals across Europe - to scale our impact together.

Why the Institute for Economic Democracy?

Since our founding in 2018, the Institute for Economic Democracy has emerged as a leading voice on employee ownership - not just in Slovenia, but across Europe. With no major financial backers and a small team sustained by project-based funding, we've accomplished in a few short years what others take decades to achieve.

Some of our key milestones include:

These achievements inspire us to go further - and we need your support to do so.

If you'd like to collaborate or contribute, get in touch at info@ied.si.

Individual donations can be made at ied.nationbuilder.com