Toelichting bij COM(2025)558 - European Social Fund as part of the National and Regional Partnership Plan set out in Regulation (EU) […] [NRPPlan] establishing conditions for the implementation of the Union support to quality employment, skills and social inclusion for the period from 2028 to 2034

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1. CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

This proposal establishes the European Social Fund (ESF), the main instrument to invest in Europe’s people, their future and preparedness. The proposal reflects the current social and economic context and provides a concrete response to the call from the European public for a more social Europe and for greater investments in people in the European Union. The ESF is the EU’s main instrument to promote and strengthen social cohesion in Europe’s societies. This proposal accompanies the proposal for the National and Regional Partnership regulation. Both regulations are mutually reinforcing and complementary. The ESF, as part of cohesion policy, will be implemented as one element of the overarching [National and Regional Partnership Plans] and complements the [NRP Regulation] on ESF specific policy elements. The ESF supports the objectives of the NRP Plan within its scope of support, as set out in this Regulation.

The strength of Europe is its people. On 17 November 2017 the European Parliament, the Council and the Commission jointly proclaimed the European Pillar of Social Rights. [1] Its targets set clear and ambitious goals for employment, skills and poverty reduction. Reaching these goals is not only a moral imperative; it is also an economic necessity. The Political Guidelines 2024-2029 note that our unique social market economy gives Europe many advantages over competitors.

The Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions on the Competitiveness Compass [2] states, “effective social policies built around the European Pillar of Social Rights are central to shaping a competitive Europe. A more competitive economy with high productivity will ensure that our social model is financially sustainable in the long term and that citizens see clear pathways to their own economic success. All Europeans must be able to contribute to and benefit from greater competitiveness improvements”. Indeed, it has consistently been shown that economies with the most effective investments in human capital are also amongst the most competitive, resilient and economically sound.

The European Council Conclusions of 20 March 2025 highlight that “following the Commission communication of 5 March 2025 on a Union of Skills, further efforts should be made to enhance the acquisition, recognition and retention of skills across the EU, from the building of basic skills to engaging in life-long learning, reskilling and upskilling, in line with the European Pillar of Social Rights and its Action Plan”. The same Conclusions refer to the Budapest declaration on specifically the need to “harness […] Europe’s talent and investing in skills to foster high-quality jobs throughout the Union”. Furthermore, beyond ensuring people are skilled, a strong labour force participation in the current demographic context, is required.

Despite progress, tackling unemployment, skills gaps, labour shortages and persistently high rates of poverty remain a priority throughout the EU. This not only threatens the prospect of reaching the headline targets set for the European Pillar of Social Rights, but also hampers progress in strengthening the competitiveness of Europe in an increasingly globalised world.

Social issues and services for citizens, such as education, including early childhood education and care and health and long-term care, as well as the availability of social housing and lacking progress in poverty reduction are a primary concern of European citizens [3] . More is expected in these areas from the Union. There is an increased need for targeted actions to address these challenges.

In addition, in a context of increased geo-strategic uncertainty and an increased frequency of extreme weather events, it is crucial to be prepared for the unexpected. [During the coronavirus outbreak the temporary Support to Mitigate Unemployment Risks in an Emergency (SURE) showed the importance of protecting employees and the self‐employed, and thus reducing the incidence of unemployment and loss of income. This proposal establishes a confirmation of European solidarity which can also be provided in the future when circumstances duly justify the need].

The ESF will support EU policy implementation, and national or regional structural reforms in the areas of employment, education and skills, social inclusion, and care services including long term and healthcare. This corresponds to the remit of the Employment Guidelines (Article 148 TFEU). It will contribute to Member States’ efforts to reduce unemployment, advance quality and equal opportunities in education and training and improve social inclusion and integration. The ESF will specifically also contribute to the implementation of the Skills Guarantee in line with the Union of Skills. Supporting Individual Learning Accounts should in this regard be an important dimension, assisting Europe’s strategic business investments to progress in the immediate future by having access to the right skills. It will furthermore support sustaining and further developing open, rights-based, democratic, equal and inclusive societies which are based on the rule of law and on social dialogue. Additionally, to support integrated approaches, investments in both infrastructure and people are encouraged from the Funds.

Therefore, the ESF will help to build an empowering social Europe and contribute to economic, social and territorial cohesion in accordance with Article 174 TFEU, which is a necessary condition for the proper functioning of the EU as a stable and viable economic and political union.

Consistency with existing policy provisions in the policy area

The ESF, as part of cohesion policy, will be operating within the National and Regional Partnership Plan (NRP Plan) and its single rulebook. The ESF builds upon the long-standing visibility and proven success of the European Social Fund Plus (ESF+) as a trusted framework for investing in people, in line with the European Pillar of Social Rights, European Semester and Employment Guidelines. Therefore, while tightly connected to the NRP Plan, the ESF will maintain its independent legal base as set out in Article 162 of the Treaty on the Functioning of the European Union (TFEU).

Efficient and effective implementation of actions supported by the NRP Plan, including the ESF, depends on good governance and partnership between all actors at the relevant territorial levels and the socio-economic actors, in particular the social partners and civil society organisations.

The ESF supports policies and priorities which aim to help create 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 intergenerational fairness, social inclusion and health.

The overarching policy objective of the ESF Regulation is to create a more performing and resilient ‘Social Europe’ and implement the European Pillar of Social Rights, as well as the social and employment priorities endorsed by the European economic governance process. The ESF will contribute to implementing the Integrated Guidelines adopted in accordance with Articles 121 and 148 i TFEU and the relevant country-specific recommendations adopted in the context of the European semester. It will also feed into the overall objective of smart, inclusive and sustainable growth beyond 2030 (the UN’s sustainable development goals2) and upward convergence.

Furthermore, the ESF will help to improve employment opportunities, raise the standard of living and health, and help increase labour mobility and economic, social and territorial cohesion as set out in the TFEU and the EU Charter of Fundamental Rights as well as the UN Convention on the rights of persons with disabilities. The ESF also aims to contribute to the Union of Skills and the integration of third country nationals. Setting a minimum share and amounts for the ESF will ensure that the EU’s priorities described above are adequately reflected in the volume of investment that directly target European citizens.

Consistency with other Union policies

The ESF aims to improve synergies and coherence with other measures investing in human capital development under the National and Regional Partnership (NRP Plan), in particular within the framework of cohesion policy, fisheries and agriculture policy support, as well as with the European Competitiveness Fund.

The ESF will continue to complement the support by Erasmus. The ESF and Erasmus are active in similar fields, notably helping people gain new skills, upskilling to answer the need of industrial sectors, improving digital competences and quality of education and training.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

The Treaty on the Functioning of the European Union (TFEU), in particular, Articles 164, 174, and 175 of TFEU, provide the legal framework for the measures covered by this proposal. The ESF is based on Articles 162 and 164 TFEU and support to fight poverty, notably by addressing food and basic material deprivation, and support to promote fundamental values of the EU is based under Article 175(3) TFEU.

This proposal defines the scope of support of the ESF in relation to the specific objectives defined in the NRP Plan Regulation, as well as targeted actions in the area of social innovation. It also makes reference to the ESF Committee under Article 163 TFEU.

Additionally, the Commission adopted on 16 July 2025 a proposal for a National and Regional Partnership Plan Regulation in order to improve the coordination and harmonise the implementation of support under shared management, with the main aim of simplifying policy delivery. The ESF is also covered by these common provisions.

·Fundamental rights

Alongside the Conditionality Regulation which will continue to apply to the whole of the EU budget, this Regulation includes strong safeguards to ensure that the funds are implemented in compliance with the Charter of Fundamental Rights of the European Union and the principles of the rule of law, as set out in Article 2(a) of Regulation (EU, Euratom) 2020/2092. This initiative will also respect the principles of the United Nations Convention of Rights of persons with disabilities.


Subsidiarity (for non-exclusive competence)

In the areas of social and employment policy and public health, the EU has either shared competence with Member States (Article 4 TFEU), competence to lay down arrangements within which they must coordinate their action (Article 5 TFEU) or competence to carry out actions to support, coordinate or supplement the actions of the Member States (Article 6 TFEU).

The ESF is underpinned by the subsidiarity principle. Under shared management, the Commission delegates strategic programming and implementation tasks to the EU Member States and regions. It also limits EU action to what is necessary to achieve its objectives as laid down in the Treaties. Shared management aims to ensure that decisions are taken as closely as possible to the citizen and that EU-level action is justified in light of the possibilities and specificities at national, regional or local level. Shared management brings Europe closer to its citizens and connects local needs with European objectives. Moreover, it increases ownership of EU objectives, as Member States and the Commission share decision-making power and responsibility.

Proportionality

1.

In accordance with the principle of proportionality, this proposal does not go beyond what is necessary to achieve its goals


Choice of the instrument

The choice of instrument is a Regulation of the European Parliament and the Council to establish the European Social Fund.

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

[Please see NRP Plan regulation IA]

4. BUDGETARY IMPLICATIONS

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The total budget allocated for the ESF amounts to EUR XX billion (in current prices) for the 2028-2034 period.

Details on financial and staffing needs can be found in the Legislative Financial and Digital Statement of the NRP Plan Regulation.

5. OTHER ELEMENTS

Implementation plans and monitoring, evaluation and reporting arrangements

[Please see NRP Plan regulation IA]

Detailed explanation of the specific provisions of the proposal

The ESF Regulation includes the subject matter and defines the scope of support of the ESF in relation to the objectives defined in the NRP Plan Regulation. It also includes provisions social innovation. Finally, it outlines the Committee under Article 163 TFEU and the date of entry into force.