Agreement reached on the European Social Fund+ for 2021-2027

European Parliament and European Council reached a provisional agreement on the EU Social Fund+ that contributes to social inclusion, job opportunities, and fighting poverty. The new ESF+, part of the Multiannual Financial Framework for 2021-2027, will amount to €87.9 billion in 2018 prices.

According to the deal, EU countries where the number of children at a high risk of poverty is above the EU average will have to spend a minimum of 5 percent of the ESF+ resources on actions that contribute to children’s equal access to free healthcare, free education, free childcare, decent housing, and adequate nutrition. Other member states also have to allocate part of their funds to beating child poverty.

All member states will have to address youth unemployment in their spending programs, a problem that has been aggravated by the Covid-19 crisis. In countries where the number of young people currently not in employment, education, or training (NEET-rate) is above the EU average, 12.5 percent of the fund will be spent on combating youth unemployment. These can be measures such as vocational education and training, in particular apprenticeships, and school-to-work transition.

The Parliament negotiated to have a budget dedicated to combating extreme poverty in each member state. At least 3 percent will be spent on those who need it most through food and basic material assistance or by addressing material deprivation, which is defined as an inability to pay for unexpected expenses, adequate heating, nutritious meals, or durable goods.

(WBJ)