Changes from plenary report to adopted text

RemovedDRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

AddedP10_TA(2025)0176

Changedon the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2021/1057 establishing the European Social Fund + (ESF+) as regards(ESF+): specific measures to address strategic challenges

Removed(COM(2025)0164 – C100064-2025 – 2025/0085(COD))

AddedCommittee on Employment and Social Affairs

AddedPE774.605

AddedEuropean Parliament legislative resolution of 10 September 2025 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2021/1057 establishing the European Social Fund + (ESF+) as regards specific measures to address strategic challenges (COM(2025)0164 – C10-0064/2025 – 2025/0085(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2025)0164),

Changed– having regard to Article 294(2) and Articles 164, 175, 177 and 322 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C100064-2025),(C100064/2025),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to the budgetary assessment by the Committee on Budgets,

Added– having regard to the opinion of the European Economic and Social Committee of 29 April 2025,

Added– having regard to the opinion of the Committee of the Regions of 15 May 2025,

Added– having regard to the provisional agreement approved by the responsible committee under Rule 75(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 23 July 2025 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

▸5 unchanged paragraphs

– having regard to Rules 60 and 58 of its Rules of Procedure,

– having regard to the opinion of the Committee on Security and Defence,

– having regard to the letter from the Committee on Regional Development,

– having regard to the report of the Committee on Employment and Social Affairs (A10-0122/2025),

1. Adopts its position at first reading hereinafter set out;

Change 1

Added2. Takes note of the statement by the Commission annexed to this resolution, which will be published in the C series of the Official Journal of the European Union;

3. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

4. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Change 2

RemovedRecital 1: (1) Given the major geopolitical and economic events that have reshaped some of the Union’s strategic political priorities, it is necessary to provide for more structural possibilities for Member States to address those strategic challenges and the investment needs of industries and to refocus their resources to newly emerging priorities in an inclusive manner and only where those challenges have not been addressed in the current programmes, while safeguarding cohesion, creating quality jobs and preserving a level playing field in the internal market.

AddedP10_TC1-COD(2025)0085

RemovedRecital 1 a (new): (1a) The ESF+ is an essential pillar of cohesion policy. The main objectives of the ESF+ are to support Member States and regions to achieve social inclusion, social cohesion, to activate the labour market and to deliver on the principles and the headline targets of the European Pillar of Social Rights by supporting investments in people and structures in the policy area of employment and social policies, which are far from met yet. ESF+ funding should support those objectives. The reprogramming of resources under the ESF+ should ensure that adjustment measures in response to strategic challenges do not undermine its social approach, but strengthen its capacity to combat inequality.

AddedPosition of the European Parliament adopted at first reading on 10 September 2025 with a view to the adoption of Regulation (EU) 2025/… of the European Parliament and of the Council amending Regulation (EU) 2021/1057 establishing the European Social Fund Plus (ESF+) as regards specific measures to address strategic challenges

RemovedRecital 1 b (new): (1b) The European Court of Auditors’ adopted on 6 May 2025 the opinion on the legislative proposal forming the basis for this Regulation.

Added(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2025/1913.)

RemovedRecital 1 c (new): (1c) Cohesion policy is often used as an emergency response tool, which risks undermining the primary longer-term policy and objectives of cohesion policy, as underlined in the European Court of Auditors’ opinion of 6 May 2025. It is essential to ensure that any measures taken in the context of emergencies do not interfere with the objectives of cohesion policy. Member States should ensure safeguards in the regulatory framework to prevent the dismantling of the core objectives of the cohesion policy.

AddedANNEX TO THE LEGISLATIVE RESOLUTION

RemovedRecital 1 d (new): (1d) The Union and its Member States continue to show that they can rapidly react to geopolitical events and are willing to use sufficient financial resources towards strengthening our defence industry through different Union and national programmes, which is positive and needed for the security of the Union. It is important to strengthen our defence sector through competitiveness programmes. At the same time, it is of utmost importance to continue to invest in the social objectives of the Union through the ESF+, as social cohesion is a cornerstone of the Union’s democratic and societal resilience which is essential in facing threats of aggression.

AddedStatement of the Commission on the respect for rule of law on the occasion of the adoption of Regulation (EU) 2025/1913

RemovedRecital 2: (2) It is already possible to support the development of skills in the defence industry under the ESF+ established by Regulation (EU) 2021/1057 of the European Parliament and of the Council2a, to facilitate the development of skills and training in the defence industry, while safeguarding social standards. Together with the Niinisto Report, ‘Safer Together’, the EU Preparedness Strategy, and the European Defence Industrial Strategy, the White paper for European Defence – Readiness 20303 paves the way for a true European defence union, including by suggesting to Member States to heavily invest into defence, civil defence, the defence industry, dual use technologies and civil preparedness capabilities, which should be carried out together with social spending, creating employment and up- and reskilling opportunities . In that regard, the Communication from the Commission - the Union of Skills of 5 March 20254 (‘the Union of Skills Communication’) sets out actions to address skills gaps and shortages in the Union, also through the Pact for Skills Initiative referred to in that Communication, and its large-scale partnerships, including one on the defence ecosystem. / 2a Regulation (EU) 2021/1057 of the European Parliament and of the Council of 24 June 2021 establishing the European Social Fund Plus (ESF+) and repealing Regulation (EU) No 1296/2013 (OJ L 231, 30.6.2021, p. 21, ELI: http://data.europa.eu/eli/reg/2021/1057/oj). / 3Joint White Paper for European Defence Readiness 203…

AddedThe Commission underlines that the respect for rule of law and fundamental rights is of utmost importance for the European Union. The Commission understands the intention of the co-legislators to ensure the protection of the Union budget with its amendments to the Commission proposal. The Commission remains committed to ensuring the Rule of Law is upheld in the implementation of the Funds and will assess any request for programme amendments in line with the Common Provisions Regulation (CPR), the Rule of Law Conditionality Regulation and the provisions of the Mid-Term Review Regulation.

RemovedRecital 3: (3) It is already possible to support the adaptation of workers, entrepreneurs and enterprises to change under the ESF+. In line with the decarbonisation measures proposed by the Communication from the Commission – the Clean Industrial Deal: A joint roadmap for competitiveness and decarbonisation of 26 February 20256 and to further facilitate industrial adjustment linked to the decarbonisation of production processes and products, in the context of the objective of providing lifelong opportunities to regularly upskill and reskill people, as set out in the Union of Skills Communication, including through a newly proposed Skills Guarantee, the ESF+ should facilitate the skilling, job maintenance and quality job creation throughout the decarbonisation process by providing flexibilities to implementation. Particular consideration should be given to the specific needs and circumstances of less developed regions and rural areas, which should benefit from the green transition and to ensure their integration into the Union’s broader economic, social and environmental development. In accordance with Article 5(1), second subparagraph, of Regulation (EU) 2021/1060, the ESF+ contributes to the specific objective of enabling regions and people to address the social, employment, economic and environmental impacts of the transition towards the Union’s 2030 targets for energy and climate and a climate-neutral economy of the Union by 2050, based on the Paris Agreement. / 6 COM (2025)0085

RemovedRecital 4: (4) It is already possible, under ESF+, to support investments contributing to the objectives of the ‘Strategic Technologies for Europe Platform’ (STEP) established by Regulation (EU) 2024/795 of the European Parliament and of the Council7 which aims to strengthen the Union’s technological leadership and the development of skills. In order to further incentivise investments from the ESF+ in those critical fields, the possibility for Member States to receive a higher pre-financing for related programme amendments should be extended.

RemovedRecital 8 a (new): (8a) Skills development and the training of young talent and entrepreneurs through incentives and targeted training are essential for job creation, and institutions working on skills creation and uptake should cooperate closely to align with labour market needs. Especially, vocational education and training institutes, given their direct links to the labour market and this should be supported through the ESF+.

RemovedRecital 5: (5) In order to enable Member States to carry out a meaningful and just reprogramming without losing focus on the main objectives of the fund and focus resources on strategic Union priorities set out in recitals 2, 3 and 4 without causing further delays in implementation, it is appropriate to provide for further flexibilities. The mid-term review should serve as an opportunity to address emerging strategic social challenges and new priorities therefore, Member States should benefit from additional time to complete the assessment of the outcome of the mid-term review and the submission of related programme amendments. While aligning with new Union priorities, diverting attention to global strategic challenges should not change the primary mission of the ESF+. The cohesion policy must remain firmly rooted in its core objective: reducing regional disparities.

RemovedRecital 6: (6) NUTS2 regions bordering Russia, Belarus or Ukraine are disproportionate heavily impacted by Russian war of aggression, experiencing job losses, less economic activity and social exclusion. In order to accelerate the implementation of cohesion policy programmes and alleviate the pressure on national budgets and to inject the necessary liquidity for the implementation of key investments, an additional one-off pre-financing from the ESF+ should be paid for programmes. Because of the adverse impact of the Russian aggression in Ukraine, the pre-financing percentage should be further increased for certain programmes covering one or more NUTS2 regions bordering Russia, Belarus or Ukraine, with no specific conditions to reallocate financial resources of the programme to dedicated priorities.

RemovedRecital 8: (8) It should also be possible, while taking into account the current differentiation between categories of regions, to apply a maximum co-financing rate of up to 95% to programmes covering one or more NUTS2 regions bordering Russia, Belarus or Ukraine, given the adverse impact of the Russian aggression on those regions.

RemovedRecital 9: (9) Since the objectives of this Regulation, namely to address strategic social challenges, refocus investments on critical new priorities and simplify and accelerate policy delivery, cannot be sufficiently achieved by the Member States but can rather be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

RemovedRecital 9 a (new): (9a) This Regulation has implications for the Union budget. Accordingly, the European Parliament’s Committee on Budgets adopted a budgetary assessment, which forms an integral part of Parliament’s mandate for negotiations.

RemovedRecital 11: (11) [Given the increased need to enable crucial investments in specific skills in the critical industries, including the defence industry, as well as in adaptation to change linked to decarbonisation in the context of pressing strategic geopolitical challenges, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union,]

RemovedRegulation (EU) 2021/1057

RemovedArticle 1 – paragraph 1 – point 1, Article 5a – paragraph 1 – subparagraph 1: In 2026, the Commission shall pay 4,5 % of the total support from the ESF+ as set out in the decision approving the programme amendment as additional one-off pre-financing.

RemovedThe minimum reprogramming threshold to be eligible to the 4,5% pre-financing should be lower as Member States should be incentivised to reprogramme to reasonable level. The one-off pre-financing for Eastern bordering regions should not be submitted to minimum reprogramming threshold taking into account the major challenges that these regions face, and the related subparagraph is moved in a new paragraph.

RemovedRegulation (EU) 2021/1057

RemovedArticle 1 – paragraph 1 – point 1, Article 5a – paragraph 1 – subparagraph 2: The additional pre-financing shall only apply where reallocations of at least 10% of financial resources of the programme from the ESF+ to one or more dedicated priorities established in accordance with Articles 12a 12c and 12d have been approved and provided that the measures supporting the dedicated priorities established in accordance with Articles 12a, 12c and 12d target smaller beneficiaries and provided that the request for a programme amendment is submitted by 31 December 2025. / For the purpose of calculating the total reallocations of the financial resources of the programme from the ESF+ to one or more dedicated priorities established in accordance with Articles 12a, 12c and 12d, as referred to in the first subparagraph, the Commission shall assess the measures and take into account only the measures responding to the strategic priorities identified.

RemovedRegulation (EU) 2021/1057

RemovedArticle 1 – paragraph 1 – point 1, Article 5a – paragraph 1 a (new): 1a. The one-off pre-financing percentage in 2026 shall be increased to 9,5% for programmes covering one or more NUTS2 regions bordering Russia, Belarus or Ukraine, provided that the programme does not cover the entire territory of the Member State. Where, in a Member State, NUTS 2 regions bordering Russia, Belarus or Ukraine are included exclusively in programmes covering the entire territory of that Member State, the increased pre-financing set out in this paragraph shall apply to those programmes. NUTS 2 regions bordering Russia, Belarus or Ukraine require special attention and exceptional support as they are often at the frontline of potential conflicts and they are vulnerable to external threats, making it crucial to supporting their resilience in countering hybrid attacks. / The pre-financing due to the Member State which results from programme amendments pursuant to reallocation to the priorities referred to in the second subparagraph of this paragraph shall be counted as payments made in 2025 for the purposes of calculating the amounts to be de-committed in accordance with Article 105 of Regulation (EU) 2021/1060, provided that the request for programme amendment was submitted in 2025.

RemovedRegulation (EU)2021/1057

RemovedArticle 1 – paragraph 1 – point 1, Article 5a – paragraph 1 b (new): 1b. Before disbursing payment for the pre-financing pursuant to this Article, the Commission shall assess the Union’s overall budgetary situation, in particular with respect to the principle of the sustainability of the Union budget. Where, on the basis of that assessment, the Commission identifies a risk to the Union budget arising from paying the full pre-financing amount in 2026, the Commission is empowered to adopt a delegated act in accordance with Article 37 to provide for only part of the pre-financing amount to be disbursed to the Member States in 2026, with the remaining part disbursed in 2027.

RemovedRegulation (EU) 2021/1057

RemovedArticle 1 – paragraph 1 – point 1, Article 5a – paragraph 2: (2) By way of derogation from Article 63(2) and Article 105(2) of Regulation (EU) 2021/1060, the deadline for the eligibility of expenditure, the reimbursement of costs as well as for decommitment shall be 31 December 2030. That derogation shall only apply where programme amendments reallocating at least 10% of the ESF+ financial resources of the programme to one or more dedicated priorities established in accordance with Articles 12a, 12c and 12d of this Regulation in the context of the mid-term review have been approved.

RemovedThe minimum reprogramming threshold to be eligible to the 4,5% pre-financing should be lower as Member States should be incentivised to reprogramme to reasonable level.

RemovedRegulation (EU) 2021/1057

RemovedArticle 1 – paragraph 1 – point 1, Article 5a – paragraph 2 a (new): (2a) When amending programmes, the Member States shall include, with the close and meaningful participation of social partners, for the dedicated priorities, obligations to the beneficiaries to respect working and employment conditions under applicable Union and national law, conventions of the International Labour Organization (ILO) and collective agreements.

RemovedIn line with Articles 33 and 169 of the Financial Regulation.