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
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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
- The proposal is compatible with the MFF Regulation and the Interinstitutional Agreement, and does not top up initial allocations.¶¶
- 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.¶
- Calls on the Commission to prevent a potential reduction in climate spending and to assess the impact of revised plans on climate expenditure shares.¶
- Urges compliance with the Charter of Fundamental Rights and EU values, and rigorous enforcement of rule-of-law conditionality across all EU funds.¶¶
- Expects the Commission to consider updated ESF+ payment needs in the 2026 budgetary procedure and to keep Parliament informed of the mid-term review.¶
- Regrets the lack of an impact assessment and warns that using cohesion policy as a crisis tool risks undermining its long-term objectives.¶
- Underlines that ESF+ should support social inclusion and the European Pillar of Social Rights, and that safeguards are needed to prevent dismantling core objectives.¶
- Warns that reallocating at least 15% of resources and lifting the 20% STEP transfer ceiling may harm initial targets and delay planned actions.¶
- Notes the risk of exceeding payment ceilings due to frontloading and low early payments, and calls for close monitoring and remedial action if needed.¶¶
- 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.¶
- Requests traceable reports on transfers and further analysis of the mid-term review's impact on the European Union Recovery Instrument.¶¶
- 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.¶