Explanatory Memorandum to COM(2011)607 - European Social Fund - Main contents
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| dossier | COM(2011)607 - European Social Fund. |
|---|---|
| source | COM(2011)607  |
| date | 06-10-2011 |
Unemployment and persistently high rates of poverty call for action at EU and national level. Almost 23 million people are today unemployed and over 113 million are estimated to be living at risk of poverty or exclusion. Social and employment issues are a primary concern of European citizens, and an area where more is expected from the Union. Additional challenges that the Union faces relate to: shortfalls in skill levels, under-performance in active labour market policy and education systems, social exclusion of marginalised groups, and low labour mobility. There is a need both for policy initiatives and for concrete supporting actions.
Many of these problems have been exacerbated by the financial and economic crisis, demographic and migratory trends and the fast pace of technological change. Unless tackled effectively, they constitute a significant challenge for social cohesion and competitiveness. It is therefore essential to accompany growth-enhancing investment in infrastructure, regional competitiveness and business development with measures underpinning sustainable job creation in the areas of labour market policy, education and training, social inclusion, adaptability of workers, enterprises and entrepreneurs, and administrative capacity.
The European Social Fund (ESF) supports policies and priorities aiming to achieve progress towards full employment, enhance quality and productivity at work, increase the geographical and occupational mobility of workers within the Union, improve education and training systems, and promote social inclusion, thereby contributing to economic, social and territorial cohesion.
As the ESF should be fully aligned with the Europe 2020 Strategy and its headline targets, it should support the policies pursued by the Member States under the Integrated Guidelines adopted in accordance with Articles 121 and 148 i of the Treaty and the Recommendations on the National Reform Programmes. The setting of minimum shares and amounts for the ESF as one of the Structural Funds will ensure that the Union priorities are adequately reflected in the volume of investment that directly targets European citizens.
The ESF will also make a valuable contribution to other important priorities of the Europe 2020 Strategy, such as strengthening our investment in research and innovation, enhancing the accessibility and use of information and communication technologies, increasing the competitiveness of small and medium-sized enterprises, supporting the shift towards a low-carbon economy, protecting the environment, and promoting the sustainable use of resources. The ESF will work in synergy with the new integrated Programme for Social Change and Innovation. Together, they will constitute the comprehensive European Employment and Social Inclusion Initiative.
Contents
- RESULTS OF CONSULTATIONS
- LEGAL ELEMENTS OF THE PROPOSAL
- BUDGETARY IMPLICATIONS
- WITH INTERESTED PARTIES AND IMPACT ASSESSMENTS
- 5. SUMMARY OF THE CONTENT OF THE REGULATION
- Concentration of funding is required to achieve a sufficient and demonstrable impact. In order to ensure this concentration, it is proposed that
The results of the public consultations for the 5th Progress Report on Economic, Social and Territorial Cohesion i , the EU Budget Review i and the proposals for the multi-annual financial framework i have all been considered for the present proposal.
The public consultation on the conclusions of the 5th Cohesion Report was held between 12 November 2010 and 31 January 2011 and concluded with the Cohesion Forum. A total of 444 contributions were received. Respondents included Member States, regional and local authorities, social partners, European interest organisations, non-governmental organisations, citizens and other stakeholders. The consultation put forward a series of questions about the future of cohesion policy. A summary of the results was published on 13 May 2011 i.
In addition, specific conferences and seminars were organised focusing on the future of the ESF. In June 2010 the conference ‘ESF and Europe 2020’ brought together over 450 high-level representatives from public authorities, social partners and civil society at EU and national level as well as from third countries. In addition, a seminar with NGOs and social partners on the future of the ESF took place in December 2010.
Furthermore, on 7 October 2010, the European Parliament adopted a resolution on the future of cohesion policy and the ESF[5]. The European Commission has also asked for and received exploratory opinions from the Economic and Social Committee[6] and the Committee of the Regions[7].
Expert advice was provided through the ESF Committee ad-hoc group on the future of the European Social Fund, an informal group of experts from the Member States and the social partners. The ad hoc group met 7 times between December 2009 and March 2011. In addition, a working group with Member States representatives was set up to discuss common indicators. It met four times and laid the ground for the proposed indicators. The ESF Committee itself issued opinions on the future of the ESF at its meetings of 3 June 2010 and 10 March 2011. Both the Employment Committee (EMCO) and the Social Protection Committee (SPC) also issued specific opinions, in January and March 2011, respectively.
The results of the ex-post evaluations carried out on the 2000-2006 programmes, and a broad range of studies, were used as input. An impact assessment has been specifically conducted for the ESF Regulation, as part of a package of three impact assessments also covering the ERDF and the Cohesion Fund Regulations and the impact assessment for the General Regulation governing the ESF, ERDF and Cohesion Fund.
The impact assessment for the ESF Regulation mainly addressed the scope of the instrument and one specific aspect of simplification. It also discussed the articulation between and complementarity with the financial instruments available to the Commission’s Directorate-General for Employment, Social Affairs and Inclusion, notably the ESF, the European Globalisation Adjustment Fund, the PROGRESS programme, EURES and the PROGRESS Microfinance Facility.
There is very broad support for the role of the ESF. The ESF is seen as providing considerable European added value in allowing Member States and regions to address key European priorities through European funding. It is considered an essential building block for addressing the main challenges faced by Europe citizens and for progressing towards the targets set in the Europe 2020 strategy. Concentration on the main challenges and Council Recommendations is widely seen as an important precondition for the effectiveness of support. Reducing the complexity of support and the related audit burden, notably for smaller beneficiaries, is also seen as an important area that needs to be addressed.
The European Social Fund (ESF) is established by Article 162 of the Treaty on the Functioning of the European Union (TFEU). The timing of the review of EU funding to promote cohesion is linked to the proposal for a new Multiannual Financial Framework, as contained in the Commission’s Work Programme.
The present proposal for a Regulation is based on Article 164 TFEU. Council Regulation (EU) No […] establishes the framework for action by the Structural Funds and the Cohesion Fund and lays down, in particular, the thematic objectives, the principles and the rules concerning programming, monitoring and evaluation, management and control.
Within this general framework, the present proposal defines the ESF’s mission and scope, together with the associated investment priorities addressing the thematic objectives, and lays down specific provisions concerning operational programmes co-financed by the ESF and concerning eligible expenditure.
The ESF will operate within the context of Article 174 TFEU, which calls for action by the European Union to strengthen its economic, social and territorial cohesion and promote overall harmonious development by reducing disparities between the levels of development of the regions and promoting development in the least-favoured regions.
As the EU Budget Review has highlighted, the ‘EU budget should be used to finance EU public goods, actions that Member States and regions cannot finance themselves, or where it can secure better results’[8]. The present proposal respects the principle of subsidiarity as the tasks of the ESF are set out in the Treaty and policy is implemented in accordance with the principle of shared management and respecting the institutional competences of the Member States and regions.
The Commission’s proposal for a Multiannual Financial Framework includes EUR 376 bn for cohesion policy for the period 2014-2020.
Proposed budget 2014-| EUR bn| Minimum ESF share| Resulting minimum ESF amount EUR bn
Less developed regions Transition regions More developed regions Territorial cooperation Cohesion fund Extra allocation for outermost and sparsely populated regions| 162.6 38.9 53.1 11.7 68.7 0.| 25 % 40 % 52 % - - -| 40.7 15.6 27.6 - - -
Connecting Europe Facility for transport, energy and ICT| EUR 40 bn (with an additional EUR 10 bn ring-fenced inside the Cohesion Fund)| -|
*All figures in constant 2011 prices
With the aim of enhancing the ability of the Funds to deliver on the headline targets of the Europe 2020 strategy, the present proposal establishes minimum shares for the ESF for each category of regions defined in the proposal for a General Regulation. This results in a minimum overall share for the ESF of 25 % of the budget allocated to cohesion policy (excluding the allocation to the Connecting Europe Facility), i.e. EUR 84 billion. The indicated minimum ESF allocation includes the budget (EUR 2.5 billion) for a forthcoming Commission proposal regarding food support for the most deprived persons.
In terms of scope, the draft ESF Regulation for 2014-2020 proposes to target the ESF on four ‘thematic objectives’ throughout the European Union: (i) promoting employment and labour mobility; (ii) investing in education, skills and lifelong learning; (iii) promoting social inclusion and combating poverty; (iv) enhancing institutional capacity and an efficient public administration. Each thematic objective is translated into intervention categories or ‘investment priorities’. In addition, the ESF should contribute also to other thematic objectives such as supporting the shift towards low-carbon, climate resilient and resource efficient economy, enhancing the use of information and communication technologies, strengthening research, technological development and innovation and enhancing the competitiveness of small and medium-sized enterprises.
Concentration of funding is required to achieve a sufficient and demonstrable impact. In order to ensure this concentration, it is proposed that
– support for administrative capacity should be limited to Member States with less developed regions or eligible to the Cohesion Fund;
– at least 20 % of the ESF allocation should be dedicated to ‘promoting social inclusion and combating poverty’;
– operational programmes should concentrate funding on a limited number of ‘investment priorities’.
Furthermore, the draft Regulation clarifies and strengthens the ESF contribution to the Union's commitment to eliminate inequalities between women and men and prevent discrimination. Member States should combine a robust mainstreaming approach and specific actions to promote gender equality and non-discrimination.
Likewise, the draft Regulation aims to reinforce social innovation and transnational cooperation under the ESF, through an incentive in the form of a higher co-funding rate for priority axes dedicated to them, specific programming and monitoring arrangements, and a stronger role for the Commission in the exchange and dissemination of good practices, joint actions and results across the Union.
Concerning monitoring and evaluation systems, the draft Regulation proposes minimum quality standards and a set of compulsory common indicators. This should ensure that monitoring produces robust and reliable data that can easily be aggregated at EU level and that evaluation focuses on assessing the effectiveness and impact of ESF support.
The draft Regulation attaches great importance to the involvement of social partners and non-governmental organisations in the programming and implementation of ESF priorities and operations.. To this end, for the less-developed regions and countries, the draft Regulation calls for an appropriate amount of ESF resources to be allocated to capacity building actions for social partners and non-governmental organisations. Joint activities undertaken by the social partners will also be supported, considering their vital role in the field of employment, education and social inclusion.
In the same spirit, the draft Regulation proposes a limited number of specific eligibility rules to facilitate access to ESF funding for smaller beneficiaries and operations and to take account of the different nature of ESF operations and the different type of ESF beneficiaries as compared to other Funds. In order to ensure that simplification reaches the beneficiaries, the draft Regulation proposes to extend the use of simplified cost options, including by making their use obligatory for smaller operations. These provisions will reduce the administrative burden on beneficiaries and managing authorities, strengthen the results orientation of the ESF and will contribute to reducing error rates.
Finally, specific provisions are introduced for financial instruments to encourage Member States and regions to leverage the ESF and thus increase its capacity to finance actions supporting employment, education and social inclusion.