The future of the ESF: 2014-2020

In October 2011, the Commission proposed new priorities and rules for the ESF over the next programming period 2014-2020. These will allow the Fund to continue providing concrete support to people who need help to find a job, or to progress in their current job.

The Commission proposal is part of an overall legislative package for the Union's future Cohesion Policy (see the short video introduction).

What are the proposed changes for the ESF?

The role of the European Social Fund is to increase employment opportunities, promote education and lifelong learning, enhance social inclusion, contribute to combating poverty, and improve the capacity of public administrations to serve citizens and job-seekers better. The new proposal reinforces the role of the ESF:

• There would be a minimum share of the budget allocated to each category of regions. It would be higher than before (at least 25% for less-developed regions, 40% for transition regions and 52% for more-developed ones). This share of cohesion funding corresponds to at least €84 billion for the ESF budget, compared to the current €75 billion.
• Member States will have to concentrate ESF funding on a limited number of objectives and investment priorities in line with the Europe 2020 strategy, in order to reach a critical mass and increase its impact.
• A minimum share of 20% of the ESF should be dedicated to social inclusion actions.
• There is greater emphasis on combating youth unemployment, promoting active and healthy ageing, and supporting the most disadvantaged groups and marginalised communities such as Roma. The Youth Employment Initiative would particularly support young people not in education, employment or training by integrating them into the labour market.
• More support will be provided for social innovation, i.e. testing and scaling up innovative solutions to address social needs – for example, improving social inclusion.
• Greater participation by social partners and civil society in implementing ESF activities, and in particular participation by non-governmental organisations (NGOs), will be encouraged through capacity-building, the promotion of community-led local development strategies and the simplification of the delivery system (see also: European Code of Conduct on Partnership). Simpler rules will govern the reimbursement of ESF projects, in particular for smaller beneficiaries who make up at least 50% of recipients of ESF funding – NGOs, small and medium-sized enterprises and others.
• Equipment linked to investments in social and human capital will become eligible for support from the ESF – for example, computers for schools.

The ESF could also be used to guarantee loans taken by Member State bodies to finance measures within its scope of intervention.

Main innovations for EU Cohesion Policy funds

All EU regions will continue to receive support within three defined categories:

• Less-developed regions whose GDP per capita is below 75% of the Union average, will continue to be the top priority for the policy.
• Transition regions whose GDP per capita is between 75% and 90% of the EU-27 average.
• More-developed regions whose GDP per capita is above 90% of the EU-27 average.

The second category – covering 51 regions and more than 72 million people – eases the transition of regions which have become more competitive in recent years, but still need targeted support. As of 2014, 20 regions are forecast to move out of the current ‘convergence’ objective (less-developed regions), reflecting the success of Cohesion Policy.

Partnership Contracts, agreed between the Commission and Member States, will set out the national commitments required to deliver Europe 2020 objectives. ESF investments will be fully aligned with Europe 2020 objectives and targets for employment, education and poverty reduction.

The Common Strategic Framework setting out the EU's top priorities will apply to all funds, including rural development and fisheries. Member States will be allowed to combine ERDF, ESF and Cohesion Fund financing in ‘multi-fund’ programmes to improve coordination on the ground and achieve integrated development.

New conditions will be introduced to ensure that EU funding contributes effectively to delivering Europe 2020 objectives. Some conditions will need to be in place before the funds are disbursed – for example, the proper functioning of public procurement systems.

Next steps

These proposals are now being examined by the Council and the European Parliament, with a view to adoption in 2013. This will allow a new generation of Cohesion Policy programmes to start in 2014.

Key milestones in the consultative process