The European Social Fund Plus (ESF+) Maeva Roulette, DG Employment, Social Affairs and Inclusion

ESF+ POLICY CHALLENGES Evolving technology, productivity and globalisation call for adapted education and training systems Improved employment situation in the EU but still important long-term and youth unemployment People in/at risk of poverty and social exclusion still high Demographic trends (ageing population, migration) affecting society and world of work Constantly evolving technology, productivity and globalisation paradigms  upskilling and reskilling of the workforce to face the new digital and automation challenges and low-carbon and climate resilient transition. 2. The latest employment and social trends - encouraging ; labour market participation has been increasing steadily. disparities and divergence across Member States: significant with unemployment rates and indicators pointing to substantial slack in some labour markets while tightening is evident in others. Unemployment (18 million people in January 2018) and long-term unemployment Despite decrease (from a peak of 24% in January 2013 to 15.6% in March 2018) the youth unemployment rate is still high in the EU - more than double the overall unemployment rate (15.6% compared with 7.1% in March 2018). The NEET rate (age group 15-29) also still very high, at 13.4% in 2017. 3. Number of people at risk of poverty and social exclusion fell by 4.8 million between 2012 and 2015. 118 million people at risk in 2016 - social inequalities remain an important concern. the risk of monetary poverty five times greater for the unemployed than for those in employment. considerable variations across countries: poverty and social exclusion are growing in some areas, such as EU15 cities while in EU13 34% of rural population is at risk of poverty (higher in rural areas than in urban areas). The risk of poverty and social exclusion also affects certain minority groups disproportionately. 4. Long-term demographic trends (less working-age population, more senior workers and changing family structures) - limiting the resources available for distribution across generations increased number of third-country nationals migrating to the EU since 2014, in particular refugees (1.7 million third-country nationals have been granted international or subsidiary protection between 2014 and 2017) need for tailor made labour market integration policies addressing a diversified workforce, including measures to promote gender equality, equal opportunities and combat discrimination.

The ESF+: 5 funds coming together The ESF+ is the result of the merging of 5 EU funds: the ESF, YEI, FEAD, EaSI and EU Health programme. The ESF+ Regulation will replace the current regulations on the ESF, FEAD, EaSI and EU Health programme and will have multiple legal bases. The ESF+ will include different components, ensuring the continuity of the policy priorities of the previous programmes. Beside general provisions applicable to all components of the ESF+, the regulation will establish: common rules for the ESF+ under shared management component. It is important however to note that the Common Provisions Regulation will establish the framework for action for most shared management Funds, including the ESF+ under shared management. In particular, the CPR lays down common rules regarding policy objectives to be supported by the Funds, programming, monitoring and evaluation arrangements, management and control, information and communication, and financial issues. Therefore the ESF+ Regulation establishes rules which are complementary to the CPR which are adapted to the specific nature of the operations it funds. It is useful to read both the CPR and the ESF+ shared management section together in order to have a full understanding of how the implementation and programming will take effect. Compared to the current programming period, there have been substantial improvements and simplifications which should ensure that programme implementation can begin without delay and that the administrative burden for beneficiaries and programme authorities will be significantly reduced. - rules for (in)direct management (ex-EaSI and EU Health programme and specific ex-ESF parts, e.g. transnationality actions). Under the (in)direct management strand, the ESF+ will include a series of improvements, including a sharper focus on disadvantaged groups and gender equality, greater budgetary flexibility and better integration between the current activities. The complementarities between social experimentation, analytical work, capacity-building, transnational activities and greater upscaling/deployment at national level will become clearer within the simplified ESF+ structure.

ESF + €101,2 billion about 27 % of cohesion policy budget Five Funds merged in one Regulation: ESF+ Shared management €100 billion integrates components: Employment, education and social inclusion (ESF) Investing in youth (YEI) Support to the most deprived (FEAD) ESF+ (in)direct management €1,2 billion n Employment and Social Innovation €761 million Health strand €413 million

ESF+ OBJECTIVES General objectives All strands: Support the implementation of the European Pillar of Social Rights Shared management strand: also the Employment Guidelines and Country-specific recommendations under the European Semester Employment and Social Innovation strand: special focus on employment, skills, social protection, social inclusion and working conditions. Health strand: ensure a high level of health protection in the Union Specific objectives 11 specific objectives under the CPR policy objective “a more social Europe” in the policy areas of employment, education and social inclusion, including health Wording closely follows the principles of the Pillar Specific references to migrants and basic material assistance ESF+ also contributes to other CPR policy objectives

ESF+ SPECIFIC OBJECTIVES A more social Europe (European Pillar of Social Rights) EMPLOYMENT Access to employment Modernising labour market Women’s labour market participation, work/life balance, childcare, working environment, adaptation of workers, active and healthy ageing EDUCATION TRAINING Quality and inclusive education and training Labour market relevance of Education and training systems Lifelong learning, upskilling, anticipating change and new skills requirements SOCIAL INCLUSION Active inclusion Integration of migrants and marginalised such as Roma Access to services; social protection healthcare systems and long term care Social integration of people at risk of poverty; Addressing material deprivation Horizontal principles: Gender, Equal opps. Non-discrimination Health Contribution to Smarter Europe; Greener, low-carbon Europe

Consistency and thematic concentration Synergies and coherence with other EU programmes Appropriate amount to support CSR and challenges under the EU Semester at least 25% dedicated to social inclusion at least 2% support to the most deprived MS with above average NEET rates, at least 10% to youth employment Programmed under dedicated priority axes

Partnership Social partners Civil society Partnership agreements Bodies for fundamental rights, gender equality, non-discrimination Partnership agreements and Programmes ESF+ resources for capacity building of partners

Support to policy innovation Member States shall support actions of social innovation and social experimentations and partnerships, under any/all ESF+ specific objective Support to up-scaling of innovative approaches tested on a small-scale (social experimentations) developed under the Employment and Social Innovation strand and other Union programmes. Programmed under dedicated priority axes; higher EU co-financing rate

(In)direct management - Employment and Social Innovation (EaSI) / Health strands Operational objectives: EaSI: evidence-based policy & mutual learning, networking, social experimentation, labour mobility, micro-finance, social investment, transnational cooperation, harnessing globalisation Health: crisis preparedness, health systems, EU health legislation, integrated networks Eligible actions: analysis; policy implementation; capacity building; communication & dissemination Scope: MS, associated countries, other 3rd countries, international organisations

Simplification Simplified rules in the CPR (OP, PA, management and control) Simplified cost options and payments not linked to costs Indicators requirements: from 44 to 23 Member States can also use data from data registers or equivalent sources

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