1. Socialising the EU budget
Conference
‘Integrating the European Pillar of Social Rights into the roadmap for deepening Europe’s Economic and Monetary Union’
Brussels, 4 July 2019
Bart Vanhercke, European Social Observatory

2. Net contributors vs. net beneficiaries
27/07/2019
The Multiannual Financial Framework (MFF) as a political arena constrained by overlapping sets of interests
Net contributors vs. net beneficiaries
Member States like to control the spending (‘their money’)
New social needs/programmes to be added
Brexit (?)

3. A conservative approach in the MFF: “carry on”
27/07/2019
A conservative approach in the MFF: “carry on”
(or in fact doing more with less?)

4. European structural and investment (ESI) funds:
27/07/2019
European structural and investment (ESI) funds:
new features
Simplified rules to access ESI funds (“revolution”?)
Creation of the ESF+: increased policy complementarity, more flexibility, enhanced link with the European Pillar of Social Rights
Stronger link with the European Semester: targeting and increased steering capacity (but maintaining macroeconomic conditionality, at least on paper)
New allocation criteria in the Common Provisions Regulation

5. “Social investment” in the proposed MFF (with a magnifying glass)
27/07/2019
“Social investment” in the proposed MFF
(with a magnifying glass)
Erasmus +: increased investment in human capital
European Globalisation adjustment Fund (EGF): higher budget, larger scope, simplified rules
New social investment and skills: (small) window in “InvestEU”: 4 billion EUR

6. A budget falling short of ambition?
27/07/2019
ESI funds’ goal is regional cohesion and convergence, but its allocation remains largely GDP-led
Also youth unemployment, low education level, climate change and the reception and integration of migrants
Persistence of “macroeconomic conditionality” attached to the funds
Continues to make cohesion funding dependent on respecting the European economic governance rules
Integration of the Youth Employment Initiative (YEI) and Fund for European Aid to the Most Deprived (FEAD) into the ESF+
Risks undermining the initial objectives and visibility of these “flagship” programmes
Price to be paid for increased policy complementarity?

7. A budget falling short of ambition?
27/07/2019
A budget falling short of ambition?
Erasmus +
Still lack inclusiveness (disadvantaged groups, persons with disability etc.)
European Globalisation Adjustment Fund (EGF):
Budget too low: EP proposal to create an ‘EU Transition Support Fund’ (budget tripled for period)
Child Guarantee:
Missing (EP proposed 5.9 bn EUR budget)
InvestEU:
Will mobilize 50 bn public/private investments, but EU needs 142 bn per annum in social investment
High-Level Task Force on Investing in Social Infrastructure in Europe

8. Questions/recommendations for the debate
27/07/2019
Questions/recommendations for the debate
Increase overall allocation of resources to the ESF+ with a view to introducing a budgetary line on a ‘Children’s Initiative’ to finance a Child Guarantee, in line with European Parliament proposal.
Introducing an exemption from the application of macroeconomic conditionality for all ESF+ spending.
Increase the EU contribution to the ESF+ when a country is experiencing a macroeconomic downturn.

9. European Social Observatory
27/07/2019
European Social Observatory
Authors:
Sebastiano Sabato, Francesco Corti,
Bart Vanhercke and Slavina Spasova
Free download of the report from the EESC website

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