you're reading...
Economic and Social Policies, PUBLICATIONS

The new European Social Fund for 2014-20

The European Social Fund (ESF) is the EU’s main tool to support employment through investing in human capital. Two proposed Regulations for 2014-20 establish new ESF priorities and funding rules. During trilogue negotiations, compromise on several issues proved very difficult to reach.

Common provisions – initial proposal

The new European Social Fund for 2014-20

© Michael Brown / Fotolia

The Common Provisions Regulation (CPR) is a general regulation that aims to establish common provisions for five Funds including the ESF. The original European Commission (EC) proposal establishes ‘thematic objectives’ to prioritise spending in all funds, and allocates to the ESF a minimum overall share of the total cohesion policy resources (originally proposed to be 25%, or €84 billion in 2011 prices). Groups of regions within the EU (less-developed, transition and most developed regions) would be required to allocate specific proportions of cohesion resources to the ESF. The EU’s food aid programme, the Fund for European Aid to the Most Deprived (FEAD), previously funded under the Common Agricultural Policy, would be included in the ESF envelope.

A 2013 revision to the original proposal also dedicated ESF funds to cover half of the €6 billion budget required for the Youth Employment Initiative, a new ESF measure to encourage employment in the age group hardest hit by the financial crisis.

ESF previsions – initial proposal

In parallel with the general CPR Regulation, the EC’s proposal for a European Social Fund (ESF) Regulation aims to align the instrument to Europe 2020 targets (particu­larly as regards employment, education and the fight against social exclusion), strengthen the social dimen­sion and simplify administrative procedures, particularly for beneficiaries of small grants. In line with the general cohesion strategy, each Member State (MS) would have to concentrate ESF resources on four out of 18 ‘investment priorities’ that support four social-related thematic objectives, namely, promoting em­ployment and mobility; investing in education; promoting social inclu­sion; and enhancing institutions. In addition, 20% of ESF funding in all MS would be earmarked for combating social exclusion and poverty.

European Parliament

The report of the Regional Development (REGI) Committee (rapporteurs L. van Nistelrooij, EPP, Netherlands; C. A. Krehl, S&D, Germany) on the CPR replaced mandatory ESF spending levels with ones based on previous spending in 2007-13, and funded FEAD from resources other than those dedicated to the ESF.

The report of the Employment and Social Affairs (EMPL) Committee on the ESF (rapporteur E. Morin-Chartier, EPP, France) re-affirmed the 25% ESF funding level and earmarked 20% of ESF funds for social exclusion and poverty reduction. In addition, it dedicated a small allocation to local and regional partners, encouraged recognition of social innovation and offered MS the ability to concentrate on more options from an increased and expanded set of investment priorities.

Trilogue negotiations

Negotiations between the European Parliament, Council and the EC related to the both the CPR and the ESF Regulation were long and intense. In terms of the CPR, following a June 2013 agreement, only 23.1% of cohesion funding (minus the resources needed for the Connecting Europe Facility and FEAD) would be allocated to the ESF. The minimum ESF allocation for 2014-20 would be approximately €71 billion, lower than the allocation for 2007-13.

In the negotiation of the ESF Regulation, the EP was successful in maintaining the strict 20% minimum allocation for fighting social exclusion and poverty; in increasing MS choice to five out of 19 investment priorities; and in allowing MS to set the upper age limit for the Youth Employment Initiative to 30 years (instead of 25) if they so choose.

About rondavies-eprs

Works at the European Parliamentary Research Service.

Discussion

4 thoughts on “The new European Social Fund for 2014-20

  1. Os estados com problemas económicos deviam criar politicas alternativas com os empresários dos seus paises para uma nova adaptação dentro das empresas como o empresário social dentro dos concelhos a criação de novas oportunidades a todos os desenpregados dos seus paises

    Posted by Eusebio pecurto (@Eusebiopecurto) | November 18, 2013, 15:36

Trackbacks/Pingbacks

  1. Pingback: NEETs: Young people not in employment, education or training | Library of the European Parliament - December 18, 2013

  2. Pingback: EU budget for growth and employment – In Focus | Library of the European Parliament - December 16, 2013

  3. Pingback: Futurology @the Parliament – The Week | Library of the European Parliament - November 22, 2013

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

EPRS logo
European Parliament Logo

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 791 other followers

Disclaimer and Copyright statement

In 'Publications' the summaries of information and other documents do not necessarily represent the views of the authors or the European Parliament. The products in 'Publications' are primarily addressed to the Members and staff of the European Parliament for their parliamentary work. Some links published in these products may be accessible only inside the European Parliament network. Any views expressed in 'Blog' are the personal views of the author, they do not represent the position of the European Parliament. Copyright © European Union, 2014. All rights reserved

Follow

Get every new post delivered to your Inbox.

Join 791 other followers

%d bloggers like this: