Barnier said that if implemented the statute would significantly reduce the costs and obstacles of foundations working across borders in areas such as education, culture and social and health services.
All member states would be required to recognise 'European foundations' as entitled to the same tax regimes and legal benefits, which would fundamentally be the same across the EU.
The Commission also hopes a 'European label' for these foundations would serve as a guarantee of trustworthiness for donor and volunteers. Such a label exists already for environmental standards on products.
"I think we need to encourage donors and do so in a European framework which will add itself to the national framework," Barnier said.
Foundations operating in at least two countries could adopt the statute and become 'European Foundations' or, alternatively, two foundations in one or more countries could merge to form one. They would need assets of €25,000 to be founded and be required to fully report all of their financial transactions.
National barriers
A Commission impact assessment estimated that the cost to foundations due to national barriers was between €90 million and €102 million per year.
Spain's European Foundation for Society and Education, for example, has struggled to establish a branch in neighbouring Portugal due to legal barriers. Under existing law it would be required to create a new foundation in Portugal with a minimum endowment of €250,000.
WWF, the World Wildlife Fund, has expressed interest using such a statute to create an international foundation focusing on the Baltic Sea region.
To be adopted, the proposal would require unanimous approval from the member states and the backing of the European Parliament. "I know there are reservations," Barnier said, without specifying from which countries.
While member states have yet to express themselves formally on the issue, sources said the United Kingdom, Germany and the Nordic countries were among the more sceptical. The biggest area of concern is over tax issues.
The Commission estimates that public-service foundations in Europe hold €350 billion in assets, spend €83 billion per year, and employ around 1 million people.
