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BUDGETARY ASSESSMENT (COM(2025)0164 – C100064/2025 – 2025/0085(COD))

On the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2021/1057 establishing the European Social Fund + (ESF+) as regards specific measures to address strategic challenges

BUDG-AD-773410

Committee on Budgets · Rapporteur: JeanMarc Germain

✦ In short · AI summary of this text, generated 4 Sept 2026

Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

The Committee on Budgets gives its budgetary assessment of the proposal to amend the ESF+ Regulation, finding it budget-neutral but flagging risks to payment ceilings, climate spending, and cohesion policy objectives. It recommends safeguards on co-financing, conditionality, and reporting, and submits an amendment adding a recital that the budgetary assessment forms part of Parliament's negotiating mandate.

Committee position. The Committee on Budgets submits a budgetary assessment with conclusions and recommendations, and proposes an amendment adding a recital that the assessment forms an integral part of Parliament's negotiating mandate.

Key points

  1. The proposal is compatible with the MFF Regulation and the Interinstitutional Agreement, and does not top up initial allocations.
  2. Additional human resources of EUR 376 000 per year in 2025-2027 for two posts will be covered by redeployment, but the limit of such redeployments has been reached.
  3. Calls on the Commission to prevent a potential reduction in climate spending and to assess the impact of revised plans on climate expenditure shares.
  4. Urges compliance with the Charter of Fundamental Rights and EU values, and rigorous enforcement of rule-of-law conditionality across all EU funds.
  5. Expects the Commission to consider updated ESF+ payment needs in the 2026 budgetary procedure and to keep Parliament informed of the mid-term review.
  6. Regrets the lack of an impact assessment and warns that using cohesion policy as a crisis tool risks undermining its long-term objectives.
  7. Underlines that ESF+ should support social inclusion and the European Pillar of Social Rights, and that safeguards are needed to prevent dismantling core objectives.
  8. Warns that reallocating at least 15% of resources and lifting the 20% STEP transfer ceiling may harm initial targets and delay planned actions.
  9. Notes the risk of exceeding payment ceilings due to frontloading and low early payments, and calls for close monitoring and remedial action if needed.
  10. Insists that 100% co-financing without extra resources reduces total support and must not cut funding for employment, social services, education, and the most vulnerable.
  11. Requests traceable reports on transfers and further analysis of the mid-term review's impact on the European Union Recovery Instrument.
  12. Considers the 15% reallocation threshold possibly too high for single national programmes and stresses preventing double financing with other EU programmes.

Who is affected

  • Member States: must ensure safeguards, comply with conditionality, and avoid double financing when reallocating ESF+ funds.
  • Commission: must monitor payments, report on transfers, and assess climate and rule-of-law impacts.
  • Beneficiaries of ESF+ programmes: may see changes in funding priorities and timing of payments.

Figures and deadlines

  • 30% pre-financing and 100% co-financing for new EU priorities.
  • Additional one-off pre-financing of 4.5% (9.5% for NUTS 2 regions bordering Russia, Belarus or Ukraine).
  • Reallocation of at least 15% of resources to new priorities.
  • EUR 500 million in payment appropriations frontloaded in 2026.
  • Eligibility period extended by one year, from end of 2029 to end of 2030.
  • EUR 376 000 per year in 2025, 2026 and 2027 for two establishment plan posts.
  • 20% ceiling for transfer towards STEP objectives.