Time for ambition: The EU needs a strong Social Fund to live up to its commitments
The European Union has begun talks on the next long-term EU Budget, which will determine how billions of euros are invested in Europe’s future. Initial discussions suggest potential cuts to crucial social investment programmes. Proposals to merge funding mechanisms significantly risk weakening support to key actions and programmes for labour market integration, training, and social inclusion.
Europe needs a strong EU budget, alongside broader economic, social and environmental policies. A stand-alone Social Fund will be key to reduce inequalities, promote social innovation and achieve high employment levels, strengthening the Single Market and making Europe more competitive on a global scale. This is echoed by the European Parliament’s Employment and Social Affairs Committee[1].
The European Union has committed to lift at least 15 million people, of which at least 5 million children, out of poverty by 2030. This is an essential and goal that can be achieved only if backed by concrete action, sufficient resources, and political ambition to enable more social cohesion and inclusion.
In 2023, an alarming 94.6 million people in Europe were at risk of poverty or social exclusion. Despite marginal improvements on previous years, shockingly, nearly one in four children are trapped in this cycle. National civil society organisations are also reporting a rise in extreme forms of poverty, with more requests for food support and help with paying bills, in particular for housing and energy.
Rising disparities will deepen even further with no support for those who need it most. This is about the life of people and communities and triggers broader socio-economic concerns and political instability.
Considering the current geopolitical and socio-economic context, it is essential that the EU stands firm and ensures that its social priorities are safeguarded. Decisively investing in people who need more support will strengthen social rights, prevent polarisation, support enterprises, and will ensure that all communities fare well socially and economically.
In the past years, the EU’s Cohesion Policy has proven vital for investing in people, particularly in the most disadvantaged regions. At the core of this success is the European Social Fund+, which has been instrumental in creating jobs, providing critical training, driving social inclusion reforms, and alleviating the most urgent needs of people experiencing or at risk of poverty. This fund has supported each and every one of us, our friends, families and local communities, along with our local businesses, social economy, social and other crucial services. Planned, managed, and monitored in close cooperation with different levels of government and local organisations, it has the ability to adapt to both regional needs and broader global challenges, enhancing employability, and reinforcing the European model of Social Market Economy. There is still time to set the track right and ensure a strong community-driven social fund, well aligned to local and regional needs, that sustainably strengthens societies and invests directly in those who need it most and in their potential.
With strategic use, a stronger European Social Fund can uphold human rights, strengthen social cohesion, build a better skilled workforce, improve long-term economic sustainability, and foster productivity and innovation – ensuring thriving regions and enhancing Europe’s global competitiveness.
To conclude, the next long-term EU Budget must include:
- A strengthened stand-alone European Social Fund, with increased funds, not less.
- Earmarked funding for training and jobs, social inclusion measures, and fighting child poverty including addressing basic needs across key programmes.
- A strong partnership principle, ensuring cooperation between public authorities, local organisations, social partners, social economy and civil society, well aligned to local and regional needs, to maximise impact and efficiency. This should include capacity building programmes.
- Measures that drive quality employment and social reforms to help improve welfare systems, care, training and support services, empowering those at risk of poverty and social exclusion. This means keeping the current enabling conditions, that link eligibility for funding to accessibility, inclusion, and the protection of fundamental and social rights.
- We stand ready to support policymakers in developing and implementing these priorities and ensuring a stronger, inclusive, and more prosperous Europe.
