Provisional deal on new EU Social Fund

The European Parliament and the Council of the European Union have reached a provisional agreement on the new European Social Fund Plus (ESF+).

Within the 2021-2027 Multiannual Financial Framework, the instrument will support social inclusion, employment and poverty reduction with a total allocation of €87.995 billion at 2018 prices.

Children first

The deal significantly strengthens the focus on children and young people.

In Member States where the share of children at high risk of poverty exceeds the EU average, at least 5 per cent of resources must be dedicated to ensuring equal access to free healthcare, free education, childcare services, decent housing and adequate nutrition.

Other Member States will also be required to allocate part of their funding to tackling child poverty.

Tackling youth unemployment 

Youth unemployment, worsened by the pandemic crisis, is another central chapter.

All national programmes must include targeted measures. In countries where the share of young people not in employment, education or training — the so-called NEET rate — exceeds the EU average, at least 12.5 per cent of resources will be earmarked for specific action.

These include vocational education and training pathways, apprenticeships and tools to ease the transition from school to work.

Fighting extreme poverty 

Parliament secured the introduction of a mandatory minimum allocation to combat extreme poverty in each Member State.

At least 3 per cent of resources must go to food aid and basic material assistance, or to measures addressing material deprivation — defined as the inability to cover unexpected expenses, ensure adequate heating, access nutritious meals or purchase essential durable goods.

A significant 25 per cent share of funding will be reserved for social inclusion, including socio-economic integration of disadvantaged groups and third-country nationals.

The agreement also provides adequate resources to strengthen the capacity of social partners and introduces safeguards to ensure all funded projects fully respect fundamental rights.

Political backing

Rapporteur David Casa welcomed the deal, calling it a good day for Europe and underlining that nearly €90 billion will support workers, young people, children and students.

He said he was confident the resources would reach those who truly need them. In his view, the agreement is a clear example of how the European Union can have a tangible and positive impact on citizens’ lives.

The agreement now requires formal approval by Parliament in plenary and by the Council.

The ESF+ merges the existing European Social Fund, the Youth Employment Initiative, the Fund for European Aid to the Most Deprived, the Programme for Employment and Social Innovation and the EU Health Programme into a single instrument.

The ambition is clear: strengthen economic, social and territorial cohesion, and continue a people-focused investment tradition that has lasted for more than sixty years.