Key elements of the Commission proposal for the future ESF 2014-2020 ESF Committee Cracow 1 December 2011

Legislative package The General Regulation Common provisions for cohesion policy, the rural development policy and the maritime and fisheries policy Common provisions for cohesion policy only (ERDF, CF, ESF) Fund specific regulations ERDF regulation CF regulation ESF regulation ETC regulation EGTC regulation

Guiding political principles of the reform Concentration on Europe 2020 Strategy Focus on results Better coordination and harmonisation between the funds Simplification

Geographical coverage of support Three categories of regions Less developed regions (GDP per capita < 75% of EU average) Transition regions (GDP per capita between 75% and 90%) More developed regions (GDP per capita > 90%)

Budget for Cohesion Policy post 2013   billion EUR (2011 prices) Cohesion Fund* 68.7 Less developed regions 162.6 Transition regions 39.0 More developed regions 53.1 Territorial Cooperation 11.7 Extra allocation for outermost and northern regions 0.9 TOTAL** 336.0 Connecting Europe facility for transport, energy and ICT 40.0 TOTAL 376.0 *Cohesion Fund will ring fence 10 billion EUR for the new Connecting Europe Facility **Includes 2,5 billion EUR allocation for food for deprived persons

ESF - minimum shares At least 25% of the Cohesion envelope for the ESF  € 84 billion (25% for the less developed regions, 40% for the transition regions and 52% for the more developed regions) Why? Important contribution to the Europe 2020 strategy and its headline targets Key factor for medium term growth (OECD) Expression of European solidarity In 2010, 10 million people were reached out

Strengthening the Strategic Approach Operational Programmes Partnership contract Common Strategic Framework

Reinforcing Integrated Programming Integrated programme approach The Common Strategic Framework at EU level and the Partnership Contract at national level covering all the CSF Funds Possibility for Member States to prepare and implement multifund programmes combining ERDF, ESF and the Cohesion Fund Possibility for Member States to establish "multi-category" operational programmes which cover less developed, transition, and more developed regions or any combination of these Possiblity to finance operations from more than one fund

Conditionality Ex ante conditionality Conditions to be fulfilled prior to the submission of Partnership Contracts and operational programmes Directly related to the thematic objectives or horizontal conditions of effectiveness Non-fulfillment of conditionality constitutes a basis for suspension of payments Reinforced macro conditionality for the funds Closer link between cohesion policy and the economic governance of the Union

A focus on results (1): Performance framework and reserve Focuses on the achievement of programme objectives with milestones and targets for performance for 2016, 2018 and 2022 In case of significant shortfalls, possible suspension of payment during the implementation or even possible financial correction at the end of the programming period Performance reserve 5% set aside at the beginning of the programming period (exception for ETC and for the EMFF) The performance reserve is established per Fund, per Member State and per category of region

A Focus on Results (2): Indicators Fund Specific Common Indicators Common output and, where appropriate, result indicators Fund specific rules on baselines, targets and reporting Programme Specific Indicators Output indicators, where appropriate Result indicators related to the priority axis

A Focus on Results (3): Evaluation Ex-ante evaluation Evaluation during the programming period Ex-post evaluation by the Commission

A focus on results (4): the Joint Action Plan Optional approach – operation implemented and financed based on outputs and results agreed between the Member State and the Commission JAP adopted by the Commission, based on a proposal by the Member State Payments correspond to the achievement of ‘milestones’

Specific provisions for the ESF

Scope ESF contribution to the other thematic objectives notably: 18 Investment priorities in 4 thematic objectives Promoting employment and supporting labour mobility Promoting social inclusion and combating poverty Investing in education, skills and lifelong learning 4. Enhancing institutional and administrative capacities ESF contribution to the other thematic objectives notably: Supporting an environmentally sustainable economy (low carbon…) Enhancing the accessibility, use and quality of ICT Strengthening research and innovation 4. Enhancing the competitiveness of small and medium-sized enterprises Four core thematic objectives Promoting employment and supporting labour mobility (i) Access to employment for job-seekers and inactive people including local employment initiatives and support for labour mobility; (ii) Sustainable integration of young people not in employment, education or training into the labour market; (iii) Self-employment, entrepreneurship and business creation; (iv) Equality between men and women and reconciliation between work and private life; (v) Adaptation of workers, enterprises and entrepreneurs to change; (vi) Active and healthy ageing; (vii) Modernisation and strengthening of labour market institutions, including actions to enhance transnational labour mobility; 2. Investing in education, skills and lifelong learning (i) Reducing early school-leaving and promoting equal access to good-quality early-childhood, primary and secondary education; (ii) Improving the quality, efficiency and openness of tertiary and equivalent education with a view to increasing participation and attainment levels; (iii) Enhancing access to lifelong learning, upgrading the skills and competences of the workforce and increasing the labour market relevance of education and training systems; 3. Promoting social inclusion and combating poverty (i) Active inclusion; (ii) Integration of marginalised communities such as the Roma; (iii) Combating discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation; (iv) Enhancing access to affordable, sustainable and high-quality services, including health care and social services of general interest; (v) Promoting the social economy and social enterprises; (vi) Community-led local development strategies; 4. Enhancing institutional and administrative capacities Investment in institutional capacity and in the efficiency of public administrations and public services with a view to reforms, better regulation and good governance; (ii) Capacity building for stakeholders delivering employment, education and social policies and for sectoral and territorial pacts to mobilise for reform at national, regional and local level. The regulation has specific provisions to ensure that the ESF contribution to the other thematic objectives is traceable at the programming and implementing stage In the OP, contribution should be described for each priority axis Second dimension of the categorisation table will allow us to get information on these themes.

20% ESF budget on Social Inclusion / poverty reduction Thematic concentration LESS DEVELOPED REGIONS 60% OP budget on 4 investment priorities TRANSITION REGIONS 70% OP budget on 4 investment priorities MORE DEVELOPED REGIONS 80% OP budget on 4 investment priorities 20% ESF budget on Social Inclusion / poverty reduction

Ensuring a strong involvement of social partners and NGOs Reinforced provisions on partnership in the General Regulation Specific provisions in the ESF regulation Possibility to involve social partners and NGOs through global grants In the less developed regions or in the MS eligible for the Cohesion Fund: appropriate amount of ESF resources to be allocated to capacity-building activities and to activities jointly undertaken by social partners appropriate amount of ESF resources to be allocated to capacity-building of NGOs Reinforced provisions on partnership in the General Regulation - In particular, the Commission will propose a code of good practices to help MS in implementing the partnership principle. Specific provisions in the ESF regulation Possibility to involve social partners and NGOs through global grants For social partners: appropriate amount of ESF resources to be allocated to capacity-building activities and to activities jointly undertaken For NGOs: appropriate amount of ESF resources to be allocated to capacity-building

Gender equality and non discrimination at the core of the ESF In the general regulation Mainstreaming the principle for equality between men and women and non discrimination In the ESF regulation Obligation to plan specific targeted actions for equality between men and women and non discrimination (dedicated investment priorities) Dual approach (mainstreaming and specific actions) for both priorities It is today applied in most MS but not all. The regulation makes the obligation to pursue the dual approach much clearer One investment priority dedicated to gender equality and reconciliation between professional and private life Equal opportunity and non discrimination: Clear obligation for MS to mainstream and to plan specific targeted actions One investment priority dedicated to non discrimination

Transnationality and social Innovation A clear requirement for Member States The ESF shall promote social innovation MS shall support transnational cooperation A large range of freedom for Member States in the choice of themes Strengthening the role of the Commission as facilitator

Reinforcing the territorial approach Possibility to continue ESF support to local employment initiatives, territorial employment pacts… Integrated approach to community-led local development Facilitates integrated investment by small communities including local authorities, NGOs, and economic and social partners Integrated approach and common rules = can be financed jointly from ERDF, ESF, EAFRD and EMFF Possible support of sustainable urban development strategies At least 5% of the ERDF resources to be allocated to integrated actions for sustainable urban development The ESF may complement the ERDF for the actions falling under its scope

Specific provisions for financial management Eligibility of expenditure: Equipment is now eligible Simplified cost options : obligatory for small projects higher ceiling for lump sums more legal security provided Financial instruments Possible use of the ESF through risk-sharing schemes, equity and debt, guarantee funds, holding funds and loan fund ESF policy-based guarantee

Timeline 5th Report on Economic, Social and Territorial Cohesion + Public Consultation Proposals for Cohesion Policy 2014-2020 Public Consultation on Common Strategic Framework Entry into force and adoption of Partnership Contracts and programmes March 2010 Nov. 2010 June 2011 Oct. 2011 Dec. 2011 Jan. 2012 2012 – 2013 2014 Adoption of new legislative package and agreement on budget post-2013 Proposal by the Commission of Multi-annual Financial Framework Communication from the Commission: Common Strategic Framework Adoption of Europe 2020 Strategy