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DRAFT REPORT (COM(2025)0558 – C100172/2025 – 2025/0239(COD))

On the proposal for a regulation of the European Parliament and of the Council establishing the European Social Fund as part of the National and Regional Partnership Plan set out in Regulation (EU) […] [NRPPlan] establishing conditions for the implementation of the Union support to quality employment, skills and social inclusion for the period from 2028 to 2034

EMPL-PR-784181

Committee on Employment and Social Affairs · Rapporteur: David Casa, Marit Maij

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The draft report sets out Parliament's position on the proposed regulation establishing the European Social Fund for 2028 to 2034. It keeps the ESF as a standalone fund with its own budget and rules, and adds ringfenced spending for social inclusion, child poverty, homelessness and youth employment. It sets a financial envelope of EUR 124 190 000 000, with EUR 20 000 000 000 for the Child Guarantee and EUR 1 000 000 000 for the ESF Committee. It requires Member States to allocate minimum shares of their ESF resources to social inclusion, child poverty, homelessness, youth employment and material deprivation. It lays down rules on shared and direct management, eligibility of costs, partnership, programming, monitoring and information, and requires respect for fundamental rights and the rule of law.

Committee position. The rapporteurs propose to keep the ESF as a standalone fund with its own budget and rules, retain current ESF+ objectives with a new focus on reskilling, job creation, women's employment, homelessness and inclusion, and reinforce ringfencing for the Child Guarantee, Youth Guarantee, social inclusion, material deprivation and homelessness.

Key points

  1. The regulation establishes the European Social Fund (ESF) and lays down its objectives, budget for 2028 to 2035, methods of implementation, forms of Union funding and rules for providing such funding.
  2. It defines terms including lifelong learning, third-country national, basic material assistance, group in a disadvantaged position and key competences.
  3. The ESF aims to support high employment, fair social protection, a skilled workforce and inclusive societies, and to complement Member States' policies on equal opportunities, access to the labour market, fair working conditions and social protection.
  4. It lists specific objectives covering access to employment, modernising labour market institutions, gender-balanced participation, adaptation of workers, quality education and training, and social inclusion.
  5. The financial envelope is EUR 124 190 000 000, with a dedicated budget of EUR 20 000 000 000 for the Child Guarantee and EUR 1 000 000 000 for Article 8(1).
  6. Member States must allocate at least 30% of ESF resources to social inclusion, 5% to child poverty (10% for those above the Union average), 5% to homelessness, 15% to youth employment, and 5% to material deprivation.
  7. The ESF is implemented under shared management for specific objectives and under direct management for Article 8 objectives.
  8. Member States must set out an integrated approach to demographic transition in labour markets and pensions, and programme actions addressing country-specific recommendations under any specific objective.
  9. Horizontal principles require respect for the rule of law and the Charter of Fundamental Rights, gender equality and non-discrimination throughout preparation, implementation, monitoring, reporting and evaluation.
  10. Costs for land, real estate, infrastructure, furniture, equipment and vehicles are generally not eligible, while contributions in kind and direct staff costs may be eligible under conditions.
  11. Member States must organise comprehensive partnerships including public authorities, social partners, civil society and research organisations, and allocate at least 0.25% of ESF resources to capacity building of social partners and civil society.
  12. Each Member State must prepare and submit an ESF Programme for 1 January 2028 to 31 December 2034, with specified content, Commission assessment within three months, and a monitoring committee.

Who is affected

  • Member States, which must allocate minimum shares of ESF resources, prepare ESF Programmes and set up monitoring committees.
  • Social partners and civil society organisations, which must be involved in comprehensive partnerships and can receive capacity-building funding.
  • Children at risk of poverty or social exclusion, who benefit from the dedicated Child Guarantee budget and ringfenced spending.
  • Young people, especially those not in employment, education or training, who benefit from the Youth Guarantee and ringfenced youth employment spending.
  • Third-country nationals, persons with disabilities, Roma communities and other groups in vulnerable situations, who are targeted by social inclusion measures.

Figures and deadlines

  • EUR 124 190 000 000 in current prices — financial envelope for the ESF.
  • EUR 20 000 000 000 — dedicated budget for the Child Guarantee.
  • EUR 1 000 000 000 — part of the financial envelope for Article 8(1).
  • At least 30% of ESF resources — for social inclusion objectives.
  • At least 5% of ESF resources — for tackling child poverty; 10% for Member States above the Union average.
  • At least 5% of ESF resources — for tackling homelessness.
  • At least 15% of ESF resources — for youth employment, vocational education and training.
  • At least 0.25% of ESF resources — for capacity building of social partners and civil society.

Legal basis: Article 294(2) and Articles 164 and 175(3) of the Treaty on the Functioning of the European Union.