Changes from report parliamentary committee draft to plenary report

After successful use and continuation of the European Social Fund for decades, the European Social Fund Plus (ESF+) was last established for the period 2021 - 2027. The ESF+ has the aim to contribute to the social agenda of the European Union and is the key instrument to deliver on the principles as set out in the European Pillar of Social Rights by supporting Member States and local and regional authorities to invest in people through measures supporting high employment levels, fair social protection and a skilled and resilient workforce ready for the future world of work. It has proven to be effective and millions and millions of people have benefited from the possibilities of the ESF+. 6.8 million people found a job, 14.2 million people benefited from food assistance, 10.3 million people gained a qualification and 3 million participants were in education or training with the contributions of the ESF+ fund.

The current programme will come to its end in 2027, which means that we have to think about the future of the fund. The aim of this report of the Rapporteur is to send a clear and strong message to the European Commission on how the future European Social Fund + should be shaped.

It became clear that, especially with the current crises in the world, it will be challenging to deliver on the headline targets set out by the European Pillar of Social Rights, being that by 2030 at least 78% of the population aged 20 to 64 should be in employment, at least 60% of all adults should be participating in training every year and a reduction of at least 15 million in the number of people at risk of poverty or social exclusion, including at least 5 million children. In 2023, nearly 100 million people in the EU were at risk of poverty or social exclusion, which is more than 20% of the population of the European Union. Children end people with low level of education are even more likely to be at risk of poverty or social exclusion. More than 45% of third country nationals living in the EU and 28% of EU Citizens living in another EU country are at risk of poverty or social exclusion and around 10% of the people who do have work live in poverty. The rising prices and cost of living are a main topic of concern for European citizens. The ESF+ after 2027 should be designed taking this worrying reality into account.

In this context, the report underlines that it is of utmost importance that the ESF+ continues to be able to target and reach the people and groups who need the fund the most, such as people living in poverty, elderly people, migrants, women, children, people with disabilities, people in need of the just transition. Together with social partners and civil society organisations, the fund has to suit the needs of these people by investing in the social dimension of the European Union. The fund should be accessible, inclusive and have an intersectional approach. It is important that the ESF+ is there for all kind of social organisations and enterprises, in all Member States and in all regions. The partnership principle should be upheld and strengthened. To achieve all this, the report calls for a doubling of the ESF+ budget.

Furthermore, the report sets out the main objectives, principles, functioning and distribution of the fund, such as the repeated call for a dedicated budget for the Child Guarantee.

The ESF+ is unique in the landscape of European funds, because it specifically targets social policies and initiatives. We therefore urgently call upon the Commission to ensure that the ESF+ continues to function as a fund of its own and will not be split or merged with other funds. A merge or split would complicate to prioritise on social investment, employment projects and social inclusion, and reach the ones that need it most, and with all the challenges ahead we should not let that happen.