European Social Fund Plus
European Council and Parliament reach provisional agreement.
SW – 02/2021
Under the Portuguese Council Presidency,
the Council and the European Parliament reached a political agreement on the
draft of the regulation establishing the ESF+ (European Social Fund Plus) on
the 28th January 2021.
As part of the EU’s long-term budget for
the 2021 to 2027 period, ESF+ is intended to combine the existing ESF, the
existing FEAD (Fund for European Aid to the Most Deprived), the YEI (Youth
Employment Initiative) and the EU’s EaSI (Employment and Social Innovation)
programme. One of the objectives of EaSI is to promote the development of
adequate social security systems and labour market strategies. The ESF+ budget
will be around 88 billion euros.
Specifically, the fund's resources will be
- combat youth unemployment. At least 12.5 per cent of ESF+
funding should be spent on this in EU countries, where the quota of young
people aged between 15 - 29, who are neither in employment nor in
education or training, is above the EU average. This could be, for
example, on vocational and advanced training measures, especially
apprenticeship training, or support during the transition from school to
work. All other EU countries will be called upon to provide an adequate
amount of resources for the fund in order to support youth employment
- support groups in the population that are particularly
vulnerable to job losses and loss of income. In each case, 25 per cent of
ESF+ funding will be used to promote social inclusion.
- provide food and basic material support to the most socially
deprived. At least 3 per cent of ESF+ funds should be earmarked for this
- support young people and children at risk of poverty. For EU
countries with a child poverty rate above the EU average, at least 5 per
cent of ESF+ funding, and an appropriate amount from elsewhere, should be
allocated to targeted measures for tackling child poverty.
- promote social innovation through the new "Employment and
social innovation" area with a special fund of 676 million euros.
ESF+ will be the EU's main instrument for
investing in a more social and inclusive Europe and a key financial tool for
implementing the European Pillar of Social Rights through actions in the
education, employment and skills areas, as well as social inclusion. It will
also aim to support member states in addressing the crisis caused by the
coronavirus pandemic as well as achieving high levels of employment, fairer
social protection and a well-skilled workforce in order to manage the
transition to a green and digital economy. ESF+ will be aligned with the
European Semester, as the fund's resources will also be used to address the
challenges identified in the annual country-specific recommendations.
In the meantime, the EC has evaluated the
ESF and YEI support from the previous programme period in a current report (text only available in English). According to the
report, about 23 million people participated in ESF measures from 2014 to 2018.
About 3.2 million of the participants found employment and 3.9 million
successfully obtained a qualification. Moreover, ESF and YEI are expected to
contribute nearly 0.33% to total GDP growth by 2023. ESF has enabled EU
citizens to train and retrain, remain mobile and find sustainable and
meaningful work, which will also prove crucial in dealing with the impact of
The draft ESF+ regulation now needs to be
formally adopted by the European Parliament and the Council. The long-term EU
budget for 2021 - 2027 was adopted as early as December 2020, so that the EC
could start allocating funds from it on the 1st January 2021.
Further information about ESF+ can be found here and the EC's report and overviews of the ESF here.