(*) Key achievements in the table state which period they relate to. Some come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.
Budget for 2021-2027
ESF+ (million EUR)
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Recovery assistance for cohesion and the territories of Europe programme (REACT-EU) under the ESF (million EUR)
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ESF+ (million EUR)
[notranslate]ESFWeb:budg_01:table[/notranslate]
Recovery assistance for cohesion and the territories of Europe programme (REACT-EU) under the ESF (million EUR)
[notranslate]ESFWeb:budg_11:table[/notranslate]
Rationale and design of the programme
The European Social Fund+ (ESF+) is the EU's main instrument for investing in people’s employment, education and skills, and in social inclusion to support economic, social and territorial cohesion in the EU.
The EU’s relevance, resilience and success in the decades to come will depend on its ability to remain competitive in the global economy and to ensure high levels of employment, education and training, health, social inclusion and active participation in society. The European working age population will, in the period up to 2040, decrease by some 15 million (- 7%). In a context of already increasing skills shortages, this development will place a strain on growth. Investing in pulling inactive persons into the labour market, including through social inclusion pathways, and investing in reskilling and adult education, as well as in the quality of regular and vocational education and training education, is increasingly of strategic importance for sustainable growth in the EU. This requires the EU to invest in people, tackle various social challenges (including unemployment and persistently high rates of poverty and social exclusion especially of marginalised groups, such as Roma and migrants) and ensure fair labour mobility.
Ample evidence demonstrates that, given the scale and effect of the challenges, EU policies aiming at promoting social cohesion and social rights would not have been implemented without complementary EU investment. EU-level support of Member States’ efforts helps promote reforms that are beneficial to individual Member States and the EU as a whole. Also, these measures that have a focus throughout the territories of the EU have an importance for the broader democratic construct of the European Union.
There is a need both for policy initiatives and for targeted supporting actions to address the above challenges. The European Social Fund Plus (ESF+) aims to support Member States and regions to achieve high employment levels, fair social protection and a skilled and resilient workforce ready for the future world of work, as well as inclusive and cohesive societies aiming to eradicate poverty and delivering on the principles set out in the European Pillar of Social Rights (1).
The specific objectives of the ESF+ are to:
- improve access to employment and activation measures for all jobseekers in the labour market, in particular young people, especially through the implementation of the ‘Youth Guarantee,’ for long-term unemployed people, disadvantaged groups and inactive people, and promote self-employment and the social economy;
- modernise labour market institutions and services to assess and anticipate skills needs and ensure timely and tailor-made assistance and support for labour market matching, transitions and mobility;
- promote a gender-balanced labour market participation, equal working conditions and a better work–life balance, including through affordable care for children and other dependent persons;
- promote the adaptation to change by workers, enterprises and entrepreneurs, active and healthy ageing and a healthy working environment that addresses health risks;
- improve the quality, inclusiveness, effectiveness and labour market relevance of education and training systems, so as to support the acquisition of key competences and promote dual-training systems and apprenticeships;
- promote equal access to and completion of quality and inclusive education, training and learning, in particular for disadvantaged groups, from early childhood education and care through general and vocational education and training, to tertiary level, as well as adult education and learning, including facilitating learning mobility for all and accessibility for persons with disabilities;
- promote lifelong learning, in particular flexible upskilling and reskilling opportunities for all, taking into account entrepreneurial and digital skills; better anticipate change and new skills requirements based on labour market needs; facilitate career transitions; and promote professional mobility;
- foster active inclusion with a view to promoting equal opportunities, non-discrimination and active participation and improving employability, in particular for disadvantaged groups;
- promote the socioeconomic integration of non-EU nationals, including migrants;
- promote the socioeconomic integration of marginalised communities, such as Roma people;
- enhance equal and timely access to quality, sustainable and affordable services, including services that promote access to housing and person-centred care, including healthcare; modernise and promote access to social protection, with a particular focus on children and disadvantaged groups; and improve accessibility (including for people with disabilities) to and the effectiveness and resilience of healthcare systems and long-term-care services;
- promote the social integration of people at risk of poverty or social exclusion, including the most deprived people and children;
- address material deprivation by providing food or basic material assistance to the most deprived, including children, and to provide accompanying measures supporting their social inclusion.
The ESF+ strand under shared management carries out a variety of interventions described in national and regional programmes, including quality and inclusive (vocational) education and training, the implementation of the Youth Guarantee, lifelong learning and career transitions, active labour market policies, adaptation of workers and enterprises to change, modernising and building the capacity of public employment services, equal access to quality social and healthcare, social inclusion activities, including social integration of people at risk and the fight against child poverty, integration of non-EU nationals and marginalised communities distribution of food and goods, etc.
The employment and social innovation (EaSI) strand of the ESF+ supports under (in)direct management (1) analytical activities, including in relation to non-EU countries (e.g. studies, social experimentation evaluating social innovation, monitoring and assessment of the transposition and application of Union law), (2) policy implementation (e.g. cross-border partnerships, labour-targeted mobility scheme), (3) capacity building (e.g. networks at Union level, national contact points, stakeholders' transnational cooperation) and (4) communication and dissemination activities (e.g. mutual learning through exchange of good practices, guides, events, events of the Presidency of the Council etc.).
The ESF+ is the main instrument of the EU for investing in people’s employment, education and skills, and social inclusion (2) to support economic, social and territorial cohesion in the EU.
The ESF+ is composed of two strands: the ESF+ strand under shared management encompassing the previous European Social Fund (ESF), the youth employment initiative (YEI) and the Fund for European Aid to the Most Deprived (FEAD); and the EaSI strand, implemented under direct and indirect management.
DG Employment, Social Affairs and Inclusion is the lead DG for the Commission.
The responsibility for employment and social policy lies primarily with the Member States. The European Union mostly supports and complements Member States’ efforts by co-financing projects with ESF+ resources at national and regional level, therefore operating under shared competence.
The EU may also adopt minimum requirements in the form of directives, which enable EU Member States to adopt additional stricter provisions. Still, no financing is directly linked to the implementation of directives. Furthermore, in the context of the European Semester, underpinned by the employment guidelines, the Council on the proposal of the Commission may adopt country-specific recommendations for areas covered by named guidelines. These recommendations play an important role in setting the priorities for ESF+ support.
In addition to the ESF+ regulation, the shared management strand of the ESF+, as part of the cohesion policy, is mainly regulated by the common provisions regulation. The rules on management, programming, implementation, monitoring, and auditing to be applied are provided for in the common provisions regulation, whereas the specific objectives, fund-specific rules on the methods of implementation, programming, thematic concentration, eligibility, indicators and reporting are provided for in the ESF+ regulation.
The ESF+ merges several funds/programmes from the 2014-2020 multiannual financial framework, namely the ESF, the YEI, the FEAD and the EaSI programme. The merging of the funds is expected to reduce the administrative burden linked to the management of different funds. The merger is based both on the results of evaluations and on stakeholder consultations.
ESF+ offers an optimised design compared to the 2014-2020 period. In the 2014-2020 multiannual financial framework, the above programmes were addressing similar policy objectives but were implemented independently according to different sets of rules, making it difficult to develop synergies. In the 2021-2027 multiannual financial framework, these funds are merged into a single programme to pool available resources to support integrated investments in people, to streamline and simplify the funding landscape and to create additional opportunities for synergies. The ESF+ has thirteen specific objectives that have a broader scope but are fewer and more streamlined than the previous ESF, which had nineteen specific objectives.
Furthermore, the ‘categories of regions’ apply less stringently on the ESF+ strand’s programming compared to its predecessor programmes, as the funding follows the end beneficiary. Member States are allowed to use funding from any category of region of the programme to provide support to operations across the territory of the Member State. The only condition is that these operations contribute to the objectives of the programme, irrespective of where they are implemented.
Programme website:
Impact assessment:
- The impact assessment of the ESF+ was carried out in 2018 (3).
Relevant regulations:
- Regulation (EU) 2021/1057 of the European Parliament and of the Council;
- Regulation (EU) 2021/1060 of the European Parliament and Council (the common provisions regulation –for the shared management strand of ESF+).
Evaluations:
(1) European Social Fund.
Four thematic evaluations on ESF support between 2014 and 2018 were finalised in 2020:
- evaluation of the ESF/YEI support to youth employment (4);
- evaluation of the ESF support to employment and labour mobility (Thematic Objective 8 excluding support to youth employment) (5);
- evaluation of ESF support to social inclusion (Thematic Objective 9) (6); and
- evaluation of ESF to education and training (Thematic Objective 10) (7).
Their key findings were presented in the ESF+ Programme Statement for the 2022 Draft Budget.
In 2022, DG Employment, Social Affairs and Inclusion carried out an evaluation and a study in preparation of the ESF ex post evaluation.
- The evaluation of the Coronavirus Response Investment Initiative and the Coronavirus Response Investment Initiative Plus, which focuses on whether the ESF has been able to provide the necessary type of support to the right target groups in a timely manner. The related staff working document will be finalised by the second quarter of 2023.
- The meta-analysis of ESF evaluations, which attempts to generalise national ESF evaluations’ findings through statistical methods.
(2) FEAD.
The key findings of the latest evaluation (8) have been presented in the ESF Programme Statement accompanying the 2020 Draft Budget.
In 2022, managing authorities of FEAD operational programmes type I (i.e. providing food and/or basic material assistance and accompanying measures) carried out a structured survey on end-recipients, to be reported to the Commission in June 2023.
According to Article 18 of the FEAD regulation, the Commission shall carry out an ex post evaluation to assess the effectiveness and efficiency of the fund and the sustainability of results obtained, as well as to measure the added value of the fund. This ex post evaluation shall be completed by 31 December 2024.
(3) EaSI programme.
The EaSI programme’s midterm evaluation covered the implementation 2014-2016 period (9) and the findings were included in the ESF Programme Statement for Draft Budget 2020.
In 2022, the EaSI ex post evaluation, covering the overall implementation 2014-2020 period, and the European Progress Microfinance Facility final evaluation were completed. For further information please consult the evaluation supporting study (10).
The third EaSI performance monitoring report covering the activities in 2017 and 2018 was published in March 2020 (11) and the conclusions were presented in the ESF+ Programme Statement accompanying Draft Budget 2022.
The fourth EaSI performance monitoring report covering the 2019-2020 period was published in 2022 (12).
Ex post evaluation of the Programme for Employment and Social Innovation for 2014-2020 and the final evaluation of the European Progress Microfinance for 2010-2016 will be completed in the second quarter of 2024.
Budget
Budget programming of the ESF+ (million EUR):
[notranslate]ESFWeb:budg_02:table[/notranslate]
Financial programming:
- EUR 3 035.2 million (- 3%)
compared to the legal basis *
(*) Top-ups pursuant to Article 5 of the multiannual framework regulation are excluded from financial programming in this comparison.
- Due to the late adoption of the ESF+ in 2021, its implementation had a slow start in 2022, but all programmes are now adopted and implementation on the ground started in 2023. Member States submitted close to EUR 197 million in their interim payments until December 2023. In some cases, the multiple transmissions of data already have the number of selected operations listed together with the total eligible cost of selected operations. These data signal that the implementation is quickly picking up the pace.
- Like in the previous year, the implementation of the 2014-2020 programmes was still ongoing. In particular, Cohesion’s Action for Refugees in Europe (CARE), Flexible Assistance to Territories (FAST-CARE) introduced the necessary flexibility for Member States to reallocate the remaining budget of the 2014-2020 period. This is also the case for REACT-EU, which bridges the two programming periods and allows for 100% co-financing of Member States actions.
- The difference between the financial programming and the reference amount in the legal basis relates to budget transfers between the ESF+ budget and other EU funds, in particular the European Regional Development Fund and the Cohesion Fund, but also the Border Management and Visa Instrument, Erasmus+ and the Just Transition Fund.
- In total, nine countries (Czechia, Greece, Croatia, Lithuania, Hungary, Poland, Romania, Slovenia and Slovakia) transferred ESF+ budget to the European Regional Development Fund and the Cohesion Fund, amounting to a total transfer of EUR 3.9 billion. With budget transfers, Member States made good use of the flexibility offered in the common provisions regulation to adjust their national envelope to their national specificities. Budget transfers to the European Regional Development Fund and Cohesion Fund were made, among other reasons, to invest more in the reduction of regional disparities, invest in the construction of transport and environmental infrastructure, and to improve the interconnection between the ESF+, the European Regional Development Fund and the Cohesion Fund. For example, for the activities planned through the ESF+, a complementary infrastructure needs to be provided, which oftentimes corresponds with the European Regional Development Fund and the Cohesion Fund. Other transfers from the ESF+ took place to (in)direct funds (EUR 57 million), to the Border Management and Visa Instrument (EUR 175 million), and Just Transition Fund (EUR 109 million).
- Nine Member States proposed transfers from the European Regional Development Fund to increase the ESF+ allocation (Belgium, Germany, Estonia, Spain, Italy, Latvia, Luxembourg, Austria and Portugal). The transfers from other funds to the ESF+ amounts to EUR 1.4 billion in total. The rationale for transfers to the ESF+ could be found in lower allocations in certain tranches, and, in some cases, less general allocation compared to previous years, which would impede the continuity of policies developed in the previous programming period. Moreover, certain Member States want to allocate more funding to ESF+ to address pressing labour market constraints and thus respond to structural challenges in fields of employment, skills and social inclusion, made worse in the wake of the pandemic that has exacerbated inequalities and social exclusion.
- The previously mentioned reallocations from and to ESF+ were made to better suit the different needs of Member States and specificities of their respective regions, but they should not negatively impact the performance of the ESF+ programme and the overall objectives of the respective funds.
- It should be recalled that 50% of the allocations corresponding to 2026 and 2027 represent the flexibility amounts, which will definitely be allocated to the cohesion policy programmes after the midterm review of March 2025. The midterm review, which will be carried out by the Member States, may results in reallocations, depending on the conclusions of this process.
Budget programming of the recovery assistance for cohesion and the territories of Europe programme (REACT-EU) under the ESF (million EUR):
[notranslate]ESFWeb:budg_12:table[/notranslate]
- Due to the late adoption of the ESF+ in 2021, its implementation had a slow start in 2022, but all programmes are now adopted and implementation on the ground started in 2023. Member States have already signalled close to EUR 1 billion in their payment forecasts for January-October 2023. In some cases, the first transmission of data of 31 January 2023 already has listed the number of selected operations together with the total eligible cost of selected operations. This data signals that the implementation is quickly picking up the pace.
- Like in the previous year, the implementation of the 2014-2020 programmes was still ongoing. In particular, the Cohesion’s Action for Refugees in Europe (CARE), Flexible Assistance to Territories (FAST-CARE) introduced the necessary flexibility for Member States to reallocate the remaining budget of the 2014-2020 period. This is the case also for REACT-EU, which bridges the two programming periods and allows for 100% co-financing of Member States actions.
- The difference between the financial programming and the reference amount in the legal basis relates to budget transfers between the ESF+ budget and other EU funds, in particular the European Regional Development Fund (ERDF) and the Cohesion Fund (CF), but also the Border Management and Visa Instrument (BMVI), Erasmus+, and the Just Transition Fund.
- In total, nine countries (CZ, EL, HR, HU, LT, PL, RO, SI, and SK) transferred ESF+ budget to the ERDF and the CF, amounting to a total transfer of EUR 3.9 billion. With budget transfers, Member States made good use of the flexibility offered in the common provisions regulation to adjust their national envelope to their national specificities. Budget transfers to the ERDF and CF were made, among other reasons, to invest more in the reduction of regional disparities, invest in the construction of transport and environmental infrastructure, and to improve the interconnection between the ESF+, the ERDF, and the CF. For example, for the activities planned through the ESF+, a complementary infrastructure needs to be provided, which oftentimes corresponds with the ERDF and the CF. Other transfers from the ESF+ took place to (in)direct funds (EUR 57 million), to the Border Management and Visa Instrument (EUR 175 million), and Just Transition Fund (EUR 109 million).
- Nine Member States proposed transfers from ERDF to increase the ESF+ allocation (AT, BE, DE, EE, ES, IT, LU, LV and PT). The transfers from other funds to the ESF+ amounts to EUR 1.4 billion in total. The rationale for transfers to the ESF+ could be found in lower allocations in certain tranches, and, in some cases, less general allocation compared to previous years, which would impede the continuity of policies developed in the previous programming period. Moreover, certain Member States want to allocate more funding to ESF+ to address pressing labour market constraints and thus respond to structural challenges in fields of employment, skills and social inclusion, made worse in the wake of the pandemic that has exacerbated inequalities and social exclusion.
- The previously mentioned reallocations from and to ESF+ were made to better suit the different needs of Member States and specificities of their respective regions, but they should not negatively impact the performance of the ESF+ programme and the overall objectives of the respective funds.
Budget performance – implementation
Cumulative implementation rate of the ESF+ (million EUR): at the end of 2023 (million EUR):
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Cumulative implementation rate of REACT-EU under the ESF (million EUR): at the end of 2023 (million EUR):
[notranslate]ESFWeb:budg_13:table[/notranslate]
Voted budget implementation (million EUR) (*):
[notranslate]ESFWeb:budg_04:table[/notranslate]
- The implementation of the shared management strand of the ESF+ started slowly in 2022 after it was significantly delayed in 2021. All programmes with an ESF+ contribution (except for one technical assistance programme which was carried over to 2023 and adopted in the beginning of the year) were adopted. As a result, the relevant budget appropriation was fully committed in 2022 (budget commitment) and the pre-financing amount of 0.5% was paid, complemented by an additional 0.5% pre-financing for the FAST-CARE Initiative.
- For 2023, the budget implementation of the ESF+ programmes continued. The relevant budget allocation can be committed and the outstanding pre-financing payments were executed, including a second additional pre-financing of 0.5% under the FAST-CARE initiative. In addition, close to EUR 197 million of interim payment requests will be submitted by the Member States and paid.
- Despite the slow start in implementation of the 2021-2027 ESF+ programmes, a smooth transition between the 2014-2020 programmes and the new programmes was ensured. In addition to REACT-EU, which was adopted in 2022, and one in 2023 to support Member States’ recovery from the economic and social consequences of the COVID-19 crisis, three other amendments to the common provisions regulation were adopted in 2022. These allowed for the increase in flexibility of the 2014-2020 cohesion policy rules necessary to react to crises. Namely, the CARE and FAST-CARE initiatives allow Member States to reallocate available funding from the 2014-2020 programming period to provide emergency assistance to people fleeing Ukraine and to address the consequences. In addition, the SAFE (Supporting affordable energy) amendment introduces further flexibility, allowing Member States to use available funds under their 2014-2020 allocation to provide direct support to vulnerable families and small and medium-sized businesses to help them face increased energy costs.
- The request for 2025 draft budget builds on the adopted financing plans for the 2022-2027 period accompanying the programmes. In total, it amounts to EUR 17.1 billion for 2025.
- The main implementation challenges mentioned by the Member States relate to the complexity of programming and planning the measures, delays due to consultation of different public administrations, administrative issues related to tender procedures, problems with the payment system, administrative burden for applicants, requirements from the general data protection regulation, and delays at governance level due to a focus on preparing or setting up organisational or programme management, rather than on attracting proposals. In 2023, additional and considerable obstacles to the successful implementation of programmes were the continued high inflation rates and, the end of the eligibility period for the expenditure, and preparation for closure of the 2014-2020 programmes.
- All these issues faced by the programme authorities have been addressed with DG Employment, Social Affairs and Inclusion during regular meetings, such as the annual review meetings and monitoring committee meetings. Where necessary, the programmes have also been adapted to better address new challenges for changes in the socioeconomic context, such as those arising from the Russia’s war of aggression against Ukraine.
- In 2023, DG Employment, Social Affairs and Inclusion continued to work towards simplification for the implementation of ESF+. The Commission adopted a new delegated act on simplified cost options and financing not linked to cost schemes for operations in the field of social inclusion – Commission Delegated Regulation (EU) 2023/1676 of 7 July 2023. The act also introduced increased rates for operations in the field of education, employment counselling services and training to employed or to unemployed persons to meet the specific needs of non-EU nationals or refugees, including people having fled the Russian war of aggression against Ukraine. The delegated act aims to simplify the financial management of the Member States and is expected to help with the implementation of the 2021-2027 period.
- Concerning the EaSI strand, the delays in the 2021 budget implementation due to the late entry into force of the ESF+ regulation, the impact of the pandemic and the launch of a new IT tool for submitting and managing grants (eGrants) have been partially compensated. The execution in commitments reached 100% of the 2023 credits and a similar amount was requested for 2024.
- Under the EaSI strand, the Commission awarded 23 calls for proposals from 2021. Regarding 2023, the Commission already awarded five calls for proposals and three more are under evaluation or under the award process. The Commission will continue to support the implementation of the European Pillar of Social Rights. In 2024 through the implementation of activities to support the effectiveness of employment and social policies; keeping the support to evidence-based policymaking, and supporting initiatives of the Commission work programme relating to EaSI, and the European Pillar of Social Rights action plan (13), either through preparatory work or monitoring and assessing the implementation. It includes the following.
- Social investment market and microfinance ecosystem. EUR 20 million is dedicated to enhancing the social investment market and microfinance ecosystem through improved collaboration between the EaSI strand and InvestEU. This will provide much-needed support to microfinance institutions, microenterprises, and social enterprises, and will facilitate the funding of projects that are typically considered too risky.
- Advancing social innovation and impact accountability. With EUR 4.5 million, this focuses on refining social impact measurement to better inform sustainable investments, an essential part of the Commission’s sustainable finance package.
- Fair transition towards climate neutrality. An allocation of EUR 0.8 million supports the goal of reaching climate neutrality by 2050. This includes implementing and monitoring the Fair Transition Recommendation and establishing a fair transition observatory.
- In 2024, the Commission will allocate through the ESF+ under direct and indirect management (EaSI strand) EUR 127 105 890, from which EUR 40 985 000 in grants and 25 260 750 in procurement under direct management, and EUR 37 675 140 in actions under indirect management.
- Supported by an ambitious draft work plan for the start of the new Commission, DG Employment, Social Affairs and Inclusion expects to return to the full programming amounts for the remainder of the multiannual financial framework.
- In 2023, DG Employment, Social Affairs and Inclusion also worked towards the implementation of the ALMA initiative, under both shared and indirect management. Whereas 15 Member States have committed to implement ALMA at national or regional level, a total of 4 managing authorities (Brussels Region (Belgium), Catalunya (Spain), Czechia, Germany) have started implementing the initiative so far.
- Moreover, an ALMA call was launched at EU level by the Lithuanian ESF+ Agency, an entrusted entity under indirect management. The agency selected 29 projects, involving implementers from 16 Member States and targeting around 800 young people. 26 projects have already entered the start-up phase, where they are creating new transnational partnerships and potentially involving new Member States.
Since its launch, the ALMA initiative has raised increasing interest from several Managing Authorities. The ALMA Network – bringing together ESF+ Managing Authorities and Implementing Bodies that are currently implementing or planning to implement ALMA – includes 37 active members. In 2024, DG Employment, Social Affairs and Inclusion will continue to actively promote and support ALMA’s implementation in Member States and regions.
Contribution to horizontal priorities
Green budgeting
Contribution to green budgeting priorities (million EUR):
[notranslate]ESFWeb:budg_05:table[/notranslate]
- The ESF+ fully supports the climate change objectives by promoting green skills jobs and contributing to the green economy. Climate actions can be undertaken under the majority (if not all) of the ESF’s investment priorities (whether in the context of support for small and medium-sized enterprises, vocational education and training systems, lifelong learning or youth employment measures, among other things). It is for this reason that the Commission decided to add a dimension to the ESF to track climate change expenditure: the ESF+ secondary theme. All expenditure under the ESF secondary theme has a 100% coefficient.
- This contribution corresponds to the amount earmarked for the secondary theme (01) ‘Contributing to green skills and jobs and the green economy’ in the ESF + programmes.
- The ESF+ promotes green skills and jobs and contributes to the green economy by:
- (1) supporting the labour force by enhancing knowledge and skills to develop, produce, use and apply new efficient and low-carbon technologies in a broad range of sectors and by matching these skills to jobs;
- (2) offering support to the labour force to alleviate any negative impact on employment as a result of shifting to a low-carbon and climate-resilient economy, namely job cuts in energy-intensive industries.
- Through this type of investment, the programme also partially supports the development of biodiversity-relevant skills and jobs. However, the contribution of the ESF+ to biodiversity is marginal compared to the broader contribution to climate mainstreaming and cannot be tracked, as tracking is not envisaged in the regulation.
Gender
Contribution to gender equality (million EUR) (*):
[notranslate]ESFWeb:budg_06:table[/notranslate]
| Gender disaggregated information: |
|---|
| All common indicators on participants are broken down by gender. In ESF+ shared management, Member States transmit data twice a year on supported participants with a gender breakdown. By the end of 2023, ESF+ had supported 1.4 million participants, of whom 680 000 were women, 690 000 were men and 10 000 were non-binary. Of these participations, 310 000 led to an active job search, entry into education or training, the gaining of a qualification or employment, 130 000 (42%) of which were by women. |
- Under ESF+ shared management, Member States were obliged to programme targeted actions aimed at increasing sustainable participation, making progress in terms of women in employment and guaranteeing that all ESF+ selection criteria and procedures ensure gender equality. Gender equality is one of six thematic enabling conditions used for the first time in the 2021-2027 period. This means that gender equality is a prerequisite for the effective and efficient implementation of the specific objectives of the fund(s). Member States had to assess in their programmes whether the enabling conditions linked to the selected specific objectives were fulfilled. DG Employment, Social Affairs and Inclusion reviewed Member States’ own assessments on the fulfilment of enabling conditions and, when necessary, recommended possible remedies. Moreover, the directorate-general sits as an advisor on the monitoring committees with Member States, the task of which is to ensure the correct application of selection criteria and procedures. It is also important to underline that all ESF+ personal data and indicators are broken down by gender (female, male, non-binary). The amounts provided correspond to those earmarked for the gender codes of the common provisions regulation: ‘01’ for gender targeting (corresponding to a score of 2), ‘02’ for gender mainstreaming (corresponding to a score of 1) and ‘03’ for gender neutral (corresponding to a score of 0).
- To strengthen gender equality in the 2021-2027 partnership agreements and programmes, DG Employment, Social Affairs and Inclusion has given dedicated presentations on this topic during several technical webinars and meetings addressed to the managing authorities of all common provisions regulation funds. The directorate-general requested that all Member States include a strong commitment in their partnership agreements to respect horizontal principles. It also asked the Member States for more specific information in each common provisions regulation programme to make sure that gender mainstreaming is taken into account at all stages of programming and implementation. Specific questions on this topic have been included in the partnership agreements and programme internal checklists to ensure that all geographical desk officers assess this. The arrangements set out by managing authorities are also assessed in the context of the horizontal enabling conditions, which are prerequisite conditions for the effective and efficient implementation of the specific objectives of the funds. Horizontal enabling conditions include the implementation of the Charter of Fundamental Rights and the implementation and application of the United Nations Convention on the Rights of Persons with Disabilities. A dedicated procedure was set up for the horizontal enabling conditions and their implementation that involves all relevant Commission services at both the technical level and the cabinet level.
- The COVID-19 crisis has disproportionally affected people in our society, including women, and in particular single mothers, the low skilled, those with a migrant background or with a disability and older women living in institutional care. Member States have been invited to pay particular attention to the needs of these groups when programming the additional resources provided for through the funding instruments aiming to support recovery from the crisis, including the recovery assistance for cohesion and the territories of Europe programme and the ESF+.
- Gender equality is also a horizontal priority for the direct management strand of the ESF+, and should be taken into account in all activities. To identify to what extent the employment and social innovation strand is successful in mainstreaming horizontal principles in EaSI-supported activities, the performance framework of the strand includes an indicator on the percentage of stakeholders who declare that the activities funded through EaSI promote gender equality and non-discrimination. This indicator is directly linked to sustainable development goal (SDG) 5 (14).
Digital
Contribution to digital transition (million EUR):
[notranslate]ESFWeb:budg_07:table[/notranslate]
- The digital transition is supported by the ESF+ through its investment in digital skills. In particular, the amounts provided correspond to those earmarked for ‘Developing digital skills and jobs’ (secondary theme 02) in the ESF+ programmes. Digital-relevant activities are well represented by the Recovery and Resilience Facility intervention field grid, a detailed and specific methodology for tracking digital expenditure used to provide estimations of the financial contribution to the digital transition in 2022 and 2023.
Budget performance – outcomes
[notranslate]ESFWeb:budg_09:progress[/notranslate]
[notranslate]ESFWeb:budg_09:table[/notranslate]
Link to file with complete set of EU core performance indicators
- The COVID-19 pandemic has shown that special attention needs to be paid to vulnerable groups, as they have been hit the hardest by the crisis and risk being left behind. The need to further support the development of digital skills across the EU has also become evident. Member States should focus on these target groups and priorities for medium- and long-term recovery through the ESF, the recovery assistance for cohesion and the territories of Europe programme and ESF+ programming. The ESF+ regulation sets out thematic concentration requirements that will ensure an increased focus on actions promoting social inclusion, fighting poverty and developing the skills needed for the digital and green transitions. It also includes a more ambitious requirement for investing in young people and addressing child poverty. Moreover, learning from the COVID-19 crisis, a derogation article was added to the ESF+ regulation setting out the possibility to adopt temporary measures to respond to future exceptional and unusual circumstances.
- All of the national programmes including an ESF+ contribution were adopted by the Commission at the end of 2022, with one technical assistance programme adopted in early 2023. This means that pre-financing amounts were paid to Member States and that they recently started to implement the programmes. DG Employment, Social Affairs and Inclusion is attending the Monitoring Committee meetings for the 2021-2027 programming period and working together with the Member States on addressing any arising issues. So far, the focus of the monitoring committee meetings was on discussing the committee’s rules of procedure and the selection criteria of operations with the Member States, along with measures to address any implementation issues. The performance of programmes is normally discussed during the annual performance review meetings, in accordance with Article 41 of the common provisions regulation. Given the adoption of the ESF+ programmes in late 2022, the period for achieving the milestones was reduced from 4 years to a little more than 2 years; however, the managing authorities were aware of the difficulty of setting milestones under such circumstances.
- As previously mentioned, the Commission is trying to simplify the financial management aspects of the ESF+ strand, for example with Commission Delegated Regulation (EU) 2023/1676 of 7 July 2023 on simplified cost options and financing, which is not linked to cost schemes for operations in the field of social inclusion. The act also introduced increased rates for operations in the field of education, employment counselling services and training for employed or to unemployed people to meet the specific needs of non-EU nationals or refugees, including people who have fled the Russian war of aggression against Ukraine. The act is expected to help improve the delayed implementation of the ESF+ and to achieve with its expected performance.
- For the 2021-2027 programming period, at least 25% of the budget is planned to be implemented through financing not linked to cost and simplified cost options. This represents a budget of approximately EUR 17.5 billion for simplified cost options and financing not linked to cost approved by the Commission and an estimated EUR 17 billion for operations below EUR 200 000, for which the use of simplified cost options is compulsory. This excludes operations based on off-the-shelf tools provided for in the common provisions regulation (e.g. flat rates) or simplified cost options and financing not linked to cost under the delegated-act projects that need no approval at the programme level. DG Employment, Social Affairs and Inclusion is currently assessing the approximate value of this group, which is likely to be considerable.
- With regard to the direct and indirect management strand of the ESF+ (EaSI), support structures have been established, such as the EaSI national contact points in EU Member States providing information about EaSI calls, projects and results. These will serve to improve participation in the EaSI strand and to assist in upscaling, mainstreaming and replicating EaSI project results, for instance by using other funds.
- DG Employment, Social Affairs and Inclusion has designed a set of indicators for the EaSI strand based on the principle of proportionality, simplifying the collection of data and shortening the content of questionnaires to the minimum necessary for monitoring and evaluation. This proposal considers the limitations offered by the current sources available to the directorate-general and avoids placing any additional burdens on operational units to perform desk research and administrative checks. Automation using existing IT tools (such as the financial programming tool FINAP) and existing data from other studies and monitoring reports is prioritised to save time and increase the coherence of results.
- The number of EaSI/ESF+ information-sharing and mutual-learning activities is making progress, even though it remains slightly below the expected average per year (27). The figures can partially be explained by the low number of activities in 2021 (only 15, almost half of the indicative average of 27). DG Employment, Social Affairs and Inclusion will closely follow its evolution from the programming phase 2025 (now under discussion) and subsequent programming processes (2026 and 2027 annual work programmes).
- The number of EaSI/ESF+ social experimentation activities is on track. The current level of execution per year should allow the target to be reached by the end of the current multiannual financial framework (14 activities).
- Horizontal synergies
- The ESF enables synergies between different horizontal priorities, and quite a few projects exploit the synergies between at least two horizontal priorities. Digital and green priorities frequently go hand in hand, as there is a need for digital skills to work in renewable energy sectors. Moreover, the pairing of gender equality and digital skills is a common occurrence, as some of the training activities provided by the funds and targeting disadvantaged women include digital skills, which are often a prerequisite for today’s labour market.
- For example, the renewable energy new electric skills (15) project addresses the need for new skills by creating training courses for electrotechnical roles. The new skills are acquired through augmented reality, which makes the training more engaging and ensures that it remains relevant in a rapidly advancing digital landscape. Therefore, the participants are continually working on updating their digital skills while acquiring knowledge and skills that will help them work in renewable energy sectors such as wind and solar, along with the electric vehicle technology sector.
- Another example of a project is Línia Dona (16), which helps disadvantaged women find work in Catalonia, Spain. Those supported by the project include victims of gender violence, older women and women with disabilities. The training complements the job placement and includes digital skills, languages, social and basic skills, and health and safety, and therefore contributes to two horizontal priorities: gender and digital.
MFF 2014-2020 – European Social Fund
The ESF is the EU’s main 2014-2020 multiannual financial framework instrument for supporting jobs, helping people get better jobs, ensuring fairer job opportunities for all and supporting upskilling and reskilling. It works by investing in the EU’s human capital – its workers, its young people and all those seeking a job. ESF financing improves job prospects for millions of people, in particular those who find it difficult to get work.
Budget implementation
Cumulative implementation rate at the end of 2022 (million EUR):
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- The ESF implementation is on course, with, end 2023, no decommitments of funding in Member States due to delays in implementation.
- Implementation progress and challenges were addressed in the regular ESF Technical Working Group under the ESF Committee and the ESF Committee Plenary meetings. Discussions focused, for example, on promoting the use of simplified cost options in ESF programmes and getting all relevant stakeholders more involved by sharing best practices. Also more emphasis is being placed in this group on exchanges between Member States, so that good practices are widely promoted. This practice will continue, with the aim of continuing the sharing of innovative ways and to simplify the implementation in the 2021-2027 period. For example, this includes Member State presentations on their experience with the use of financing not linked to cost, reception of refugees fleeing the war of aggression against Ukraine or electronic vouchers in FEAD/food and material support for the most deprived implementation.
- By the end of 2023 the overall ESF project selection rate, including for the additional allocation for REACT-EU, stood at 114%. In 2022, nearly EUR 9.1 billion had been paid to the 2014-2020 ESF programmes, along with nearly EUR 5.6 billion for REACT-EU, lifting the absorption rate to 87.13% (total payments made compared to allocation, including REACT-EU). The level of ESF expenditure certified to the Commission remained high in 2023. This confirms that a mature phase of implementation has been reached for the majority of the programmes. Implementation has not been affected by the COVID-19 health crisis thanks to the effects of the programme amendments under the Coronavirus Response Investment Initiatives and the higher flexibility provided for all European structural and investment funds.
- In regard to the YEI, the mature phase of implementation continued in 2023. By the end of 2023, the total eligible cost of YEI operations selected for support was EUR 12.2 billion, and more than EUR 8.3 billion had been declared by beneficiaries. By the end of 2023, nearly EUR 5.1 billion had been paid to the Member States in relation to the YEI (including interim payments and pre-financing).
- According to the 2021 annual implementation reports, most ESF programmes advanced with implementation rates increasing by 10-20 percentage points compared to 2020. However, differences still exist in terms of expenditure declared as some Member States achieved full budget implementation and others are still lagging behind on implementing their ESF and/or YEI budget. The most common reason for this is capacity constraints on the part of Member State authorities. Implementation weaknesses are regularly addressed bilaterally by DG Employment, Social Affairs and Inclusion’s geographical desk officers in the context of ESF implementation and ESF+ programming negotiations with managing authorities.
- The use of financial instruments also increased. Eleven Member States included them in 31 operational programmes for the 2014-2020 programming period; overall, 94 financial instruments were set up. Operational programme contributions of EUR 866 million were committed to these financial instruments including EUR 629 million of ESF. Most financial instruments supported by ESF and YEI were established under Thematic Objective 8 ‘promoting sustainable and quality employment and supporting labour mobility’. There were also financial instruments under Thematic Objective 9 ‘promoting social inclusion, combating poverty and any discrimination’ in BG, CZ, HU, IT and PL. Thematic Objective 10 ‘investing in education, training and lifelong learning’ was addressed by financial instruments in IT, MT and PT. Managing authorities mainly established loan or micro-loan with some exceptions, including equity and guaranty schemes. In 2014-2020 their use was extended to all thematic objectives and was intensified thanks to an improved regulatory framework and more flexible implementation options. The increased take-up of financial instruments was also supported by fi-compass (17) advisory platform, a joint initiative of the European Commission and the European Investment Bank aiming at building capacity within the ESF managing authorities.
- In 2023, DG Employment, Social Affairs and Inclusion continued providing technical and policy guidance on the programmes through the monitoring committees to ensure that they are on track to deliver the expected results.
- For the 2021-2027 period, transnational cooperation activities are taking place under the ESF+ social innovation initiative. With a budget of EUR 197 million, this initiative is implemented under indirect management by the Lithuanian European Social Fund Agency (EFSA) and has been officially launched in November 2022. In this frame, EFSA is organising transnational exchange and cooperation through knowledge sharing, mutual learning, and capacity building for social innovation stakeholders. This includes five Communities of Practice on Employment, Education and Skills, Social Inclusion, Social Innovation, Migrant Integration and Material Support. In addition, EFSA supports the work of the ALMA network and the EU Roma network.
- Secondly, EFSA has launched three calls for proposals with a total budget of EUR 28 million to support transnational, social innovation projects with a focus on upscaling and transferring promising models and approaches.
- The gap between the project selection rate on the ground and the implementation rate of the ESF is expected to reduce significantly in 2024. According to the Member States’ forecasts, EUR 6.8 billion is expected to be sent to the Commission for reimbursement in 2024, lifting the implementation rate to 97% of the total envelope. Moreover, DG Employment, Social Affairs and Inclusion will continue its work on assessing programme amendment requests submitted by Member States to ensure that the ESF and YEI programmes are policy and result oriented.
- In March 2022, in order to help Member States and regions to provide emergency support to people fleeing from Russia's invasion of Ukraine, the Commission adopted CARE. The initiative introduced the necessary flexibility into the 2014-2020 cohesion policy rules to allow the swift reallocation of available funding to provide such emergency support. It was extended in June 2022 with the adoption of the FAST-CARE initiative. It added further flexibility to the rules of cohesion policy for those welcoming and integrating displaced persons. In particular, it introduced the possibility of a 100% co-financing option for priorities promoting the socioeconomic integration of non-EU nationals and introduced EUR 3.5 billion of additional pre-financing available to Member States in 2022 and 2023. As part of the repowerEU legislative package, the Commission proposed the ‘Supporting affordable energy’ initiative which aims to introduce further flexibility, allowing Member States to use unspent funds under their 2014-2020 allocation to provide direct support to vulnerable families and small and medium-sized businesses to help them face increased energy costs.
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Link to file with complete set of EU core performance indicators
- The ESF has been successfully promoting sustainable and quality employment (in line with specific objective 1). Operations that promote sustainable and quality employment supported almost 18.5 million participations and led to over 7.1 million positive results (i.e. people either found a job, gained a qualification or otherwise improved their labour market position). Almost 3.9 million participants entered employment after participating in an ESF-supported intervention, which amounts to a total of 32% of participations recorded for unemployed and inactive persons. This is well above the target of the core performance indicator set in the 2014-2020 multiannual financial framework for this objective (24%).
- 18
- In the field of social inclusion (specific objective 2), the ESF contributes to reducing poverty in the EU, typically through attention for active inclusion, by targeting specific groups such as low-skilled people, (long-term) unemployed, older people, people with disabilities, and people with a migrant/foreign background. In 2022, this specific objective supported almost 14.9 million participations and led to 4.1 million positive results. A total of 0.7 million of inactive participants were engaged in job searching upon leaving, which amounts to 13% of all participations recorded for inactive persons. Consistent progress was made towards the targets defined for output indicators. At the end of 2022 at least half of all indicators had achieved 103% of their defined output targets. The achievements for results were not as far, reaching a median of 60.9% by the end of 2022. This underlines that also in the field of social inclusion, challenges remain to reach their targets by the end of 2023.
- 19Implementation of the key investment priorities focusing on education and training (specific objective 3) steadily progressed each year. By the end of 2022, a total of 23.7 million participations were recorded for all operations in education, of which 8.2 million had achieved an individual short-term result. More than 5.8 million participants gained a qualification through ESF investments with an education objective, which represents 25% of all participations recorded in this objective. This is already above the target defined as core performance indicator by 2023 (23%). Another 1.4 million persons were in education/training when they left the intervention. As expected, the numbers of people engaged in education were higher than those engaged in job search or those that had entered employment. Another relevant result recorded in various education programmes relates to improved skills (not necessarily leading to a qualification), which was recorded by another 5.3 million participants. The implementation rate for education investments was about average across all investment priorities, with higher implementation rates in measures focusing on labour market relevance of education (91.5%), while those funding measures supporting access to higher education were at 77.1%.
- Institutional capacity investments (specific objective 4) have supported projects targeting public administrations or public services at the national, regional or local level. Interventions mainly contributed to public officials gaining a certain type of qualification (325 000 participants). The most meaningful results were procedural, such as improvements in the administrative time required for certain procedures, or specific positive results for organisations, public administrations, the judiciary, and civil society organisations. Good examples include the numbers of institutions implementing certain IT systems, revised and/or simplified procedures, and increased regulatory scrutiny. Implementation was slightly behind, with an overall implementation rate of 71.2%. More specifically, investments in capacity-building have not progressed as much as others, with an implementation rate of 61.2% at the end of 2022.
- Regarding fostering crisis repair and resilience, the programme amendments across the EU after the introduction of REACT-EU in 2020 resulted in an aggregated additional EUR 19.8 billion of European funds available for implementation of ESF across the various objectives (EUR 20.2 billion when including national co-financing). Most of these funds were allocated to supporting employment objectives (EUR 12.8 billion), followed by investments in education (EUR 3.4 billion) and social inclusion (EUR 2.5 billion). Remaining investments were reserved for institutional capacity (EUR 0.8 billion) and technical assistance (EUR 0.5 billion).
- While the investments under this objective are directed to existing investment priorities, they focused transversally on crisis repair and fighting the COVID-19 pandemic, as well as future-oriented investments. They were also used to finance emergency support measures for Ukrainian refugees in 2022. For the latter, it is too early to report on the specific approaches taken; so far only four Member States report a small number of Ukrainian refugees reached.
- As the investments for REACT-EU are only recently programmed and are linked to the financial years 2021 and 2022, implementation cannot be expected to have reached similar levels as other ESF budgets. By the end of 2022, a total of EUR 2.6 billion (16%) had been declared as expenditure (compared to 83% of original ESF investments). Implementation of the transversal REACT-EU investments with employment objectives show the lowest implementation rates to date (9%).
- In the field of support for young people not in employment, education or training (specific objective 5), by the end of 2022 a total of 3.7 million young people had benefited from YEI support. At the EU level, participants are well balanced from a gender perspective. Out of the 432 common result indicator records measuring progress for the YEI, Member States set targets for a total of 371 indicators. By the end of 2022, 356 indicators are progressing towards their final targets. Overall the implementation rates of YEI by 2022 are behind of ESF overall (79% against 83%), due to significant delays in some Member States.
MFF 2014-2020 – Fund for European Aid to the Most Deprived
FEAD supports EU Member States’ measures to provide assistance (including food, clothing and other essential items for personal use, such as shoes, soap and shampoo) to the most deprived. Material assistance goes hand in hand with social inclusion measures, such as guidance and support to help people out of poverty. National authorities may also support stand-alone social inclusion measures that help the most deprived people integrate better into society.
Budget implementation
Cumulative implementation rate at the end of 2022 (million EUR):
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- In 2022, a total of 14.2 million individuals received food assistance through FEAD, and another 0.8 million persons received basic material assistance. A total of 9 127 persons received social inclusion support. This total is slightly lower than the high figures in COVID-19 years of 2020 and 2021 but lies above the average estimates for 2017-2019. Among this total of 15.0 million persons, 49% were women, 30% children and 10% above 65 years old. 12% were migrants, people with a foreign background or minorities, 5% persons with disabilities and 6% homeless.
- By the end of 2021, the total approved expenditures reached EUR 5 468 million, which is the equivalent of 109% of the total resources allocated for the 2014-2020 programming period by 2022, or EUR 5.0 billion. This total budget includes both EU funds and national co-financing of FEAD programmes by the end of 2021, as well as an increase of 0.5 billion related to REACT-EU.
- The annual amount of expenditure incurred by beneficiaries and paid for the implementation of operations in 2022 has increased considerably in comparison to earlier years to EUR 593.2 million reaching a total of EUR 4 215 million by the end of 2022 (or 84% of the total budget). In terms of declared expenditure, an acceleration in comparison to earlier years can be observed as well, reaching an annual amount of declared expenditures of EUR 668.9 million, reaching EUR 3 778 million in total, or 76% of the total budgets.
- By 2023, Denmark, Germany, Estonia, Ireland, Cyprus, Lithuania, Latvia, Hungary, Malta, the Netherlands, Austria, Poland and Portugal had fully implemented their budget from the food and/or basic material assistance operational programme. The average implementation rate at EU level is 92%. Currently, Bulgaria, Greece (99%), Spain (95%), Luxembourg (97%) and Slovakia (95%) are advancing relatively well and on the current track of implementation are projected to receive payments at the level of their entire budgets by the end of 2024. Additional efforts will be necessary particularly in France (86%), Croatia (74%) and Italy (c.82%) to accelerate implementation to avoid decommitment of FEAD budgets at closure.
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Link to file with complete set of EU core performance indicators
- FEAD remains an important instrument to support the ambitions in the European Pillar of Social Rights’ Action Plan to reduce the number of persons at risk of poverty and social exclusion. It presents a versatile way of implementing the additional crisis budget made available by REACT-EU and to address the increased levels of precariousness across the EU caused by COVID-19 in 2021 and 2022 and the inflation of basic goods that was observed as sanitary restrictions ended.
- Annual implementation reports for 2022 also provide clear examples how FEAD was used to provide food aid and basic material assistance to people fleeing Russian’s war of aggression against Ukraine.
- In the last year before the final implementation reports are due, implementation of FEAD still needs to accelerate substantially to ensure that all budgets are spent. Austria, the Netherlands, Sweden, and Ireland report to have concluded all operational activities for FEAD before the end of 2022. However, FEAD programmes in most other Member States are still in implementation. Annual declared expenditures continued to advance in 2022 but have not accelerated sufficiently to ensure that implementation goals can be reached by the end of 2023. Annual implementation reports in 2022 declared expenditures of a total of EUR 669 million in 2022, slightly lower than the EUR 704 million in 2021, resulting in a total implementation rate of 7% by the end of 2022. With only the last year to go in which expenditures can be declared, many programmes still have substantial ground to cover. So far, a cumulative total of EUR 5.6 billion (109% of the allocated budget) is reported as approved budgets, and a total of EUR 4.2 billion (or 82% of the allocated budgets) had been incurred or paid by beneficiaries by the end of 2022.
- The estimated number of recipients of food support (14.2 million) and basic material assistance (0.8 million) is slightly lower in comparison to the previous year. COVID-19 restrictions in 2020 and 2021 had major impacts on FEAD, both by increasing demand for FEAD support as well as in limiting the ability to adequately respond to precariousness. As these restrictions were lifted in the course of 2022, the Russian’s war of aggression against Ukraine and flow of people that followed created another additional demand, to which Member States were able to respond with the additional budgets made available through REACT-EU. The amount of food counted in tonnes has provided in 2022 is estimated at almost 400 thousand tonnes in 2022, which is slightly lower than in pandemic years 2020 and 2021, but above that of the years before. The overall monetary value of basic material assistance shows a rising trend over practically the entire programming period and reached to a level of EUR 40.6 million of basic material, of which half is taken up by voucher schemes in Romania. No major changes to the types of recipients before and during the pandemic were observed either, except in a small number of Member States.
- Based on the above, the final year of implementation of FEAD will not be without its challenges. While budgets have been allocated beyond the existing financial envelopes, it seems that reaching full implementation will require a remarkable increase in implementation in the final year, which may prove difficult in at least half of the Member States. In the meantime, implementation may already have started of ESF+ programmes, where under SO(m) programmes addressing material deprivation will be continued.
MFF 2014-2020 – Employment and Social Innovation
The EaSI programme is a financing instrument at the EU level promoting a high level of quality and sustainable employment, guaranteeing adequate and decent social protection, combating social exclusion and poverty and improving working conditions. EaSI has three axes, supporting respectively the modernisation of employment and social policies (progress axis), job mobility (EURES axis) and access to microfinance and social entrepreneurship (microfinance / social entrepreneurship axis).
Budget implementation
Cumulative implementation rate at the end of 2022 (million EUR):
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- Up to the end of 2023, EaSI had committed close to EUR 898 million. Of this, 56% supported activities under the progress axis, 20% supported activities under the EURES axis and 22% supported activities under the microfinance / social entrepreneurship axis. Therefore, the commitments made under all three axes were well in line with the indicative percentages envisaged in the EaSI legal basis.
- The Progress axis has supported actions in three thematic sections. Over the whole period of the programme, the thematic section of social protection received the largest share of funding (50%), with the thematic section of employment accounting for 28%. The thematic section of working conditions received the smallest share of funding per axis (10%). The shares of funding for the three thematic sections under the progress axis exceeded the minimum shares of financial commitments envisaged in the EaSI legal basis. In 2021, the progress axis focused on gathering evidence through studies, analyses and statistics to shape policy developments. The axis fostered a shared understanding of policy options through policy debates. It also promoted the involvement of civil society by providing financial support for 23 key EU-level non-governmental organisations via 23 operating grants.
- The EURES axis has supported actions in three thematic sections. Over the whole period of the EaSI Programme, the development of services for the recruitment and placing of workers in employment through the clearance of job vacancies and applications at the EU level received the largest share of funding (49%), while activities to induce transparency of job vacancies and applications accounted for 33%. The smallest share of funding was dedicated to cross-border mobility (10%). The committed funding for activities related to transparency of job vacancies and the development of services doubled the minimum shares set in the EaSI legal basis while commitments made for cross-border partnerships were below the set target (Figure 2). The minimum target of the cross-border partnerships (> 18%) was not reached, and this was mainly because of the quantity and quality of applications received. The intra-mobility report explaining the mobility flows of cross-border workers revealed that cross-border commuting is more frequent between Member States such as Belgium, Czechia, Denmark, France, Luxembourg and the Netherlands while it is less frequent between newer Member States. Therefore, there was less demand and equally fewer proposals submitted. In 2022, the EURES axis supported the European Job Mobility Portal and training courses on EURES services and provided horizontal support to the member organisations of the EURES network. It continued financing cross-border partnerships supporting mobility for frontier workers in the cross-border regions, along with targeted mobility schemes. The 13 EURES calls for proposals launched between 2014 and 2020 resulted in 94 contracts. Activities under the thematic section focusing on cross-border partnerships have not reached the minimum indicative target for financial commitments, mainly due to the quality of the applications received under the call for proposals. Furthermore, as indicated in the intra-mobility report, cross-border commuting affects certain Member States to a higher degree, with newer Member States affected to a much lesser extent. This affects the level of demand, the proposals submitted, and the projects implemented.
- The Microfinance and Social Entrepreneurship axis supported actions in two thematic sections. Over the period of the EaSI programme, the thematic section of Microfinance received 48% of funding while the activities under the thematic section of Social Entrepreneurship accounted for 38%. The shares of funding committed for both Microfinance and Social Entrepreneurship thematic sections exceeded the minimum shares of financial commitments envisaged in the EaSI legal basis (>35%)
- In the 2021-2027 programming period, EaSI is a strand of the ESF+ and is no longer structured in axes. The financial instruments under the former microfinance and social entrepreneurship axes will be implemented under the InvestEU Fund.
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Link to file with complete set of EU core performance indicators
- Compared to 2019, values for the integration of all the horizontal principles showed an increasing trend, paying particular attention to vulnerable groups. However, the scaling-up of EaSI projects is hindered by inadequate follow-up in terms of promoting the projects and their results. EaSI’s efforts to this end will be amplified under the ESF+ through the European Competence Centre on Social Innovation, a database of social innovation projects and the creation of national contact points to guide applicants and beneficiaries. Furthermore, EaSI calls for proposal will be published on the Funding and Tenders portal. This will provide each project with a dedicated place to make its results available to a wider audience. Furthermore, the merger of EaSI into the ESF+ could facilitate the uptake of EaSI projects by the ESF+ managing authorities for further support.
- Progress axis. The 2020 EaSI stakeholder surveys show that EaSI’s stakeholders provided positive feedback on its deliverables. Throughout the reporting period, EaSI continued to support the development and dissemination of both high-quality comparative analytical knowledge and policy initiatives in the field of employment and social affairs.
- EURES axis. In 2019-2020, EURES acted as a catalyst for the provision of transparent labour market information and for the effective recruitment and placing of workers. In 2020, 1 189 798 jobseekers were registered on the EURES portal. This marks a significant increase (+ 110.2%) compared to 2019. However, the number of employers registered increased by only 3%. The major increase in the number of registered jobseekers can be directly related to changes in the labour market due to the COVID-19 crisis and its dampening immediate effect on mobility patterns. Cross-border partnerships reported 195 060 contacts with jobseekers and job changers in 2019-2020. Targeted mobility schemes (such as ‘your first EURES job’), in comparison, provided services to several hundred jobseekers per year / per scheme, but were more targeted and customised. 0.76% of contacts facilitated by cross-border partnerships resulted in actual placements, along with 29.1% of targeted mobility schemes.
- Microfinance / social entrepreneurship axis. In the reporting period, EaSI continued to provide added value to expand access to and the availability of microfinance, while support for increasing the overall availability of and access to finance for social enterprises gained momentum. A significant increase in support for people from non-EU countries was observed (22.1% in 2020, compared to 14.3% in 2019 and 11.9% in 2018). A slight but steady increase in the category of people aged 51 years and above can also be seen. However, support for women, unemployed or inactive people and people aged less than 25 years is decreasing, while people with disabilities received a somewhat equal amount of financing from 2018 to 2020. The reporting is subject to limitations because a large number of applicants for EU microfinance and social entrepreneurship support under the EaSI programme are legal persons (enterprises) and therefore do not provide social data (e.g. gender, age, employment status).
- Regarding the efficiency of the programme, overall the activities implemented helped increase awareness and ownership of EU policy inputs into social inclusion and poverty reduction (benefiting to EU-level and national policy makers but also to individual citizens). They facilitated notably policy change through comparative perspectives and capacity building, helping stakeholders (in particular EU-level non-governmental organisation networks and national administrations) to formulate and implement socioeconomic policies in the participating countries. They also improved the perceptions and use of cross-border potential for employment (from both the jobseeker’s and the employer’s perspective) and allowed to test rapidly innovative approaches (beneficial to policymakers, notably to the national authorities). Despite their small scale/budget, the European Progress Microfinance Facility and EaSI also contributed to social and economic inclusion, through the support to social enterprises and specific categories of social entrepreneurs. A number of shortcomings undermined however the EaSI programme’s effectiveness and efficiency. The evaluation underscored notably the insufficient communication/dissemination of results and of mutual learning opportunities, the unexploited scalability of social experimentations, the incomplete posting of national vacancies on the EURES Portal, the insufficient visibility of the EURES placement services to the employers as well as the fact that women and unemployed still encounter barriers in accessing microfinance. Moreover, disability and accessibility matters were mainstreamed to a more limited extent through the EaSI-funded actions compared to the other horizontal principles.
Sustainable development goals
Contribution to the sustainable development goals
| SDGs the programme contributes to | Example |
|---|---|
| SDG1 End poverty in all its forms everywhere | ESF+ (EaSI strand), 2021-2027 The ESF+ funding supports the European Anti-poverty Network (EAPN), which aims to promote a socially inclusive and sustainable Europe, free from poverty and inequalities. Their 2023 work plan focuses on defending the rights of people experiencing poverty, counting on their voices and the political analysis of 32 national networks and 13 European organisations that form EAPN. Their plan supports the implementation, awareness raising and dissemination of adopted or upcoming EU policy initiatives (notably those announced in the Action Plan of the European Pillar of Social Rights) and monitors the poverty target, both at EU and the Member States level. Member State: Belgium EU Contribution: EUR 1 129 412.25 Duration: 1 January 2023 – 31 December 2023 |
| SDG2 End hunger, achieve food security and improved nutrition and promote sustainable agriculture | ESF+ (EaSI strand), 2021-2027 The fund supports the ‘Food4Inclusion’ project that aims to upscale food systems for the mitigation and exclusion of poverty. The project revolves around two focus areas: 1) vulnerable children food literacy and 2) food accessibility and redistribution. The former aims to break off malnutrition trends by developing training and workshops offering proper education on food and related health issues. The latter focuses on food redistribution and accessibility for at-risk populations to guarantee equal access to healthy foods. Member State: Belgium EU contribution: EUR 269 100.00 Duration: 1 January 2023 – 31 December 2023 |
| SDG3 Ensure healthy lives and promote well-being for all at all ages | EuroHealthNet is the European Partnership for health, equity and wellbeing. It is made up of 64 national and regional organisations, agencies and statutory bodies working on public health, disease prevention, promoting health, and reducing inequalities. EuroHealthNet’s mission is to help build a sustainable, fair, and inclusive Social Europe through healthier communities, and to tackle health inequalities within and between European States. EuroHealthNet contributes to EU social and health policy objectives by improving understanding of ‘what works’ to promote health and social equity. Member State: Belgium EU Contribution: EUR 773 919.00 Duration: 1 January 2023 – 31 December 2023 |
| SDG4 Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all | ESF+ (2021-2027) The investment in education, training and vocational training is one of the core objectives of the ESF. Therefore, the ‘Further Studies Made Affordable’ (FSMA) scheme and its successor, FSMA+, have created a financial lifeline for nearly 530 Maltese students over four years, offering loans amounting to around EUR 20 million. The initiative, in collaboration with the Malta Development Bank (MDB) and Bank of Valletta (BOV), has opened doors for students that once seemed firmly shut. They’ve enabled students to pursue courses in innovative fields like environmental economics, climate change, and health management. The financing model stands out for its comprehensive support, covering not just tuition fees but also accommodation, living, and travel expenses for overseas studies. This holistic approach eases the financial burden on students, allowing them to focus on their education. Member State: Malta EU contribution: 3 000 000 Project duration: 2021-2027 |
| SDG5 Achieve gender equality and empower all women and girls | ESF+ (EaSI strand) Project titled ‘For a Social Economy that Reduces Gender Inequalities in Europe,’ aims to develop new data on and investigate the impact of the social economy on gender equality to identify areas of improvement and to make social economy stakeholders more aware and knowledgeable about the topic. It also aims to develop hands-on pedagogical contents to help European social enterprises push for more gender-equal practises and develop fairer and more women-inclusive business models. Finally, it strives to contribute to the emergence of 30 women-inclusive businesses in France, Italy and Portugal to generate a wider ripple effect on women’s economic empowerment and shed light on business champions leading the way towards a more inclusive European social economy. Member States: France, Italy, Portugal EU Contribution: EUR 628 861.15 Duration: 2023 – 2025 |
| SDG7 Ensure access to affordable, reliable, sustainable and modern energy for all | ESF+ (2021-2027) GESEK, one of eight business lighthouses established by the Danish Business Promotion Board is a project aiming to accelerate the transition to green energy and share South Jutland’s experiences on both national and international platforms. It aims to identify sustainable frameworks that support forward-looking solutions in the green sector. GESEK recognises the importance of a skilled workforce in the green transition. Thus, it strives to make the energy sector an attractive career path by bolstering vocational education and training, upskilling the current workforce, and attracting international talent. Member State: Denmark Duration: 2023-2026 |
| SDG8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all | ‘Robo CO. – Robotics and AI as future colleagues’ – a collaborative effort among the city of Riihimäki, Häme University of Applied Sciences, and Hyria Education in Finland – was designed to advance expertise in robotics and AI withing a changing workforce. It is increasingly clear that the transformation of work will affect every sector, reducing routine tasks, increasing productivity, and opening new possibilities for creative, AI-supported thinking. A basic understanding of application of robots and AI will therefore be a fundamental skill in almost every job. Collaborations with industry players provide invaluable hands-on experience, bridging the gap between theoretical knowledge and practical application, and allowing students to connect with the world of work. Member State: Finland EU Contribution: EUR 433 133 Duration: 2023-2026 |
| SDG10 Reduce inequalities within and among countries | ESF+ (EaSI Strand), 2021-2027 period ESF+ supports the YES Forum with an operating grant. YES Forum is a European network of organisations working with and for young people with fewer opportunities. By promoting their social inclusion and developing their professional skills, YES Forum acts to improve the life chances of vulnerable young people, hence combating poverty and inequalities. YES Forum implemented activities that provided access to opportunities for rural and remote areas, enhanced the promotion and recognition of education professionals, worked on decreasing NEETs rate by improving vocational education and training. Member State: Germany EU Contribution: EUR 209 728.00 Duration: 01 December 2022 – 31 December 2022 |
| SDG11 Make cities and human settlements inclusive, safe, resilient and sustainable | ESF+ (2021-2027) The project titled ‘Business Lighthouse for Sustainable Construction and Business Development’ aspires to make Denmark a leader in sustainable construction, paving the way towards a greener future. At the heart of this project is the Fehmarnbelt tunnel, Northern Europe’s largest construction endeavour, extending 18 km under the sea between Denmark and Germany. The tunnel is a bridge to new opportunities – fostering growth, generating employment, and expanding export potential for Zealand and the islands. The project aims to leverage the Fehmarnbelt tunnel as a springboard for future regional development, nurturing innovation, and green solutions in the construction industry. A key focus is on strengthening the recruitment and upskilling of skilled labour, particularly from overseas, and establishing a knowledge and teaching hub for sustainable construction. Member State: Denmark EU Contribution: EUR 4 000 000 Duration: 2023-2026 |
| SDG12 Ensure sustainable consumption and production patterns | ESF+ (2021-2027) The renewable energy new electric skills project addresses the need for new skills by creating training courses for electrotechnical roles. These courses cover key areas such as the installation of photovoltaic systems and the conversion of traditional vehicles to electric models. The project aims to equip the local workforce with the skills needed to thrive in this evolving sector. Member State: Germany EU contribution: EUR 199 130 Duration: 2022-2024 |
| SDG13 Take urgent action to combat climate change and its impacts | ESF+ (EaSI strand), 2021-2027 period. ESF+ is contributing to the Green and Social Hub, which aims to integrate local actions supporting changes toward the green transition into the overall strategy to remove inequalities and poverty. The Hub is expected to improve the knowledge and competences of local administrators, provide tools and strategies to tackle energy poverty in the overall multidimensional concept of poverty and make local communities more sustainable, preparing three local communities to become an energy community, equip disadvantaged groups with knowledge and skills to actively face and contribute to the green transition. Member States: Italy, Belgium EU Contribution: EUR 727 401.20 Duration: 1 September 2023 – 31 August 2025 |