European Social Fund: fighting poverty and unemployment 

 
 

The European Social Fund plays a major role in fighting poverty and unemployment in Europe. MEPs wants to upgrade its role so that more people can be helped. Find out how.

On 3 December Parliament's employment committee voted in favour of updated rules to tackle unemployment and high rates of poverty in the EU. The report proposes to increase funding for the European Social Fund in the EU’s budget for 2021-2027, especially to help children and tackle youth unemployment.

Many people in the EU are concerned about employment and poverty. This is why Parliament wants the EU to upgrade its social policy by supporting plans to create a streamlined version of the fund known as the European Social Fund Plus (ESF+).

The new version of the fund could then help to create full employment, boost the quality of work, increase productivity, make it easier for people to find work in a different part of the EU, improve education and training as well as promote social inclusion and health.

What is the European Social Fund?  
  • It is the EU's oldest financial instrument to invest in people, improve job opportunities for workers and raise their standard of living  
  • Funding is distributed to EU countries and regions to finance operational programmes and employment-related projects, from helping to create work to addressing educational gaps, poverty and social inclusion 
  • Beneficiaries are usually people, but funding can also be used to help companies and organisations 

More flexibility, simplicity and efficiency


The updated European Social Fund Plus will merge a number of existing funds and programmes, pooling their resources:


This will allow more integrated and targeted support. For instance, people affected by poverty would benefit from a better mix of material assistance and comprehensive social support.


Because of these more flexible and simpler rules, it should be easier for people and organisations to benefit from the fund's funding.


Young people and children key priority


ESF+ will invest in three main areas: education, training and lifelong learning; effectiveness of labour markets and equal access to quality employment; social inclusion, health and combatting poverty.


MEPs want to ensure that ESF+ continues to support youth employment with a particular focus on inactive young people and the long-term unemployed, as well as create better measures to implement the European Child Guarantee in order to contribute to children’s equal opportunities and access to free education.


Support to health and social innovation


The ESF+ funds would also support initiatives enabling people to find better employment or work in a different region or country of the EU.

The  ESF+ programme would support the digital transformation of health and care services as well as investment in early diagnosis and screening, enhance cooperation between EU countries,, for instance on rare and complex diseases.


Next steps


Parliament will now have to negotiate the regulation with the Council and the European Commission before it can enter into force.