Social Agenda Issue 52 - EN

On 2 May 2018, the European Commission proposed a long- term budget (Multiannual Financial Framework, MFF) of €1 135 billion in commitments (equivalent to 1.11% of the EU’s gross national income, without the United Kingdom) and €1 105 billion in payments, in 2018 prices, over the period from 2021 to 2027. Taking into account inflation, this is comparable to the size of the current 2014-2020 budget. One of the novelties of this proposal is to give more visibility to social investment. Under a “Cohesion and Values” heading, a cluster called “Investing in People, Social Cohesion and Values” includes a new, single and comprehensive instrument called European Social Fund Plus (ESF+). ESF+ brings together the ESF, the Youth Employment Initiative, the Fund for European Aid to the Most Deprived, the Employment and Social innovation programme and the Health programme. 101 billion euros For the first time, the MMF proposal specifies an amount for ESF+: 101.2 billion in current prices (including €100 billion under shared management with the Member States), bringing the ESF+ share of the overall Cohesion Policy budget from 23% in the current period to 27% from 2021 to 2027. The €1.2 billion under direct management by the Commission would go to the Employment and social innovation (€761 million) and Health (€413 million) strands. At least 25% of the €100 billion under shared management would be allocated to fostering social inclusion and at least 4% to fighting material deprivation. EU countries with a rate of young people neither in employment nor in education or training above the EU average in 2019, would be required to dedicate at least 10% of their ESF+ allocations to supporting youth employment. Overall, the proposed MFF more than doubles the funds dedicated to supporting young people: It doubles the size of the Erasmus budget to €30 billion; and provides the European Solidarity Corps with a budget of €1.26 billion. Steering investment Together with the European Regional Development Fund and the Cohesion Fund, all these funds and programmes would make the European Pillar of Social Rights a reality on the ground. Adopted in 2017 (see Social Agenda n°50), the Pillar will be also be rolled out with the support of Horizon Europe (research), the European Agricultural Fund for Rural Development and the Asylum and Migration Fund. SPECIAL FEATURE A plus for the European Social Fund © Belga Image Steering investment: The European Commission proposes that the European Pillar of Social Rights provide the steer for future investment. Proposal for future EU budget highlights and strengthens social investment 2021-2027 1 4 / SOC I A L AG E NDA / J U LY 2 0 1 8