1. European Social Fund Cohesion policy 2007-2013 EU FUNDS SUPPORTING THE EUROPEAN RECOVERY PLAN Dominique Bé, European Commission ETUC seminar “The trade union movement facing 2 challenges: recession & employment” 8 & 9 September 2009, Lisbon

2. European Social Fund EU funds supporting the European recovery plan  simplified EU funds management  improved European Globalisation Adjustment Fund (EGF)  new EU microfinance facility

3. European Social Fund EU Recovery Plan main texts  29/10/08From financial crisis to recovery A European framework for action  26/11/08A European Economic Recovery Plan  16/12/08Cohesion Policy Investing in the real economy  04/03/09Driving European recovery  06/05/09Revised EGF Regulation  03/06/09A Shared Commitment for Employment  02/07/09European Microfinance Facility  22/07/09Simplification of EU funds management

4. European Social Fund Driving European recovery (04/03/2009)  restore & maintain stable & reliable financial system  support the real economy  support people through the crisis  promote global recovery

5. European Social Fund Driving European recovery supporting people  alleviate the human cost of the crisis  keep people in employment  activation & income support  retrain & upgrade skills  free movement of workers  reduce non-wage labour cost  youth unemployment / early school leavers  employment protection law  Employment Summit for Europe (7 May 2009)

6. European Social Fund A Shared Commitment for Employment (03/06/2009)  priorities & actions  maintain employment, create jobs & promote mobility  upgrade skills, match labour market needs  increase access to employment  make better use of EU funds  mobilise all available funds  accelerate funding  prepare the future

7. European Social Fund A Shared Commitment for Employment recommendations to MS maintain employment, create jobs, promote mobility  short-time work/training  MS (ESF)  restructuring anticipation/management  SP, local auth. (ESF)  job creation  MS, SP (ESF)  mobility  EURES, MS upgrade skills, match labour market needs  skills needs forecast & training  Commission, MS, SP (ESF)  help young people  MS, (SP) (ESF) access to employment  activation & access to employment  MS (ESF)

8. European Social Fund A Shared Commitment for Employment better use of EU funds  mobilise all available funds  fast-track procedure to adapt ESF OPs  capacity building for social partners  accelerate funding  100% EU funding in 2009-10  EU microfinance facility (€100 mio) + ESF interest-rate support

9. European Social Fund Better use of EU funds  measures to speed up implementation of EU cohesion policy programmes: €347 billion (2007-2013)  recommendations to Member States  specific legislative measures  flexibility  liquidity  smart investment

10. European Social Fund Better use of EU funds Flexibility  “modifiable” OPs  2000-2006 OPs eligible > June 2009 (+/- €7bn ESF)  100% EU financing of public funding of ESF projects (2009-10)  simplify financial management  indirect costs up to 20% of direct costs  flat-rate reimbursement for all costs  lump-sum grants for small projects (<€50K)  simplified rules for “revenue-generating” projects  facilitated contracting with EIB & EIF

11. European Social Fund Better use of EU funds Liquidity  increase cash flow  increase 2009 advance payments +€6.25 bn => €11.25 bn total  accelerate major projects  ex: Commission approval only > €50 million  simplified State aid rules for Cohesion policy (2009-10)  ERDF support for renovation or construction of housing for communities faced with social exclusion, particularly Roma, in both rural & urban areas

12. European Social Fund Better use of EU funds Smart investment  more investment in high growth sectors  energy-efficiency investments in housing in EU-15  promote entrepreneurship  JEREMIE (Joint European Resources for Micro to Medium Enterprises)  JASMINE initiative (Joint Action to support Microfinance Institutions in Europe)

13. European Social Fund EGF regulation  European Globalisation Adjustment Fund (2007)  to retain in or reintegrate into the labour market workers made redundant due to changing global trade patterns  up to € 500 million each year  2007-2008  € 67 million  12 restructuring cases  >15,000 redundant workers  8 Member States: FI, FR, DE, IT, LT, MT, PT, SP

14. European Social Fund Improved EGF 06/05/2009 beforenow ( until end 2011) redundancy causetrade patternscrisis min. redundant workers1,000500 EGF funding rate50%65% EGF support duration1 year2 year

15. European Social Fund Micro-finance facility (02/07/2009)  microcredit to small businesses & unemployed  micro-enterprises (<10 people)  €100 mio > leverage: €500 mio (EIB Group)  +/- 45,000 loans (< €25K) over up to 8 years  financing +  support measures (mentoring, training, coaching, guarantees, assistance in preparing a business plan, etc.)  ESF interest rate rebates  operational in 2010

16. European Social Fund Supporting people Available EU funds in bn € / year

17. European Social Fund More Info http://ec.europa.eu/esf http://ec.europa.eu/esf