Quo vadis ESF? -
Conference and study on the future of the ESF

Datum

2025.05.02

Against this background, high-ranking representatives from Germany, the EU Commission and the EU member states discussed the future of the ESF and the Multiannual Financial Framework (MFF) in Brussels on 5 February 2025 under the title 'Quo vadis ESF?'.

Specifically, the questions were: 'What's next for the European Social Fund (ESF)? What measures are needed at national and European level to make it fit for the future? How can bureaucracy be reduced, legal obstacles removed, administrations streamlined and more digitalisation promoted?'

The Federal Ministry of Labour and Social Affairs (BMAS) has been discussing these questions for two years in a joint working group with the federal states. It has commissioned a study on the subject. The study analyses the strengths and weaknesses of the ESF in Germany and at European level.

The results and recommendations of the study were presented at the conference. For this purpose, Dr. Rolf Schmachtenberg, State Secretary at the BMAS, as well as high-level representatives and experts from the Länder, the European Parliament (EP), the Member States Netherlands, Spain and Bulgaria as well as the EU Commission and relevant actors from practice discussed. The focus was on the future planning, implementation and financing of the ESF from 2028 onwards.

The results of the BMAS study show that there is an urgent need for reform to reduce the complexity of ESF funding. The study presents three different scenarios at European and national level on how the ESF can be further developed and optimised for the funding period 2028-2034.
Against this background, Secretary of State Dr. Schmachtenberg and Secretary of State Matthias Heidmeier from the Ministry of Labour, Health and Social Affairs of the State of North Rhine-Westphalia discussed how ESF funding complements national instruments and helps to balance the regions, how to build on experience and reduce bureaucracy, and what new perspectives can be created for better and more targeted implementation of the ESF.

State Secretary Dr. Schmachtenberg stressed that the ESF was an anchor of stability for social Europe. However, its administrative requirements are becoming increasingly complex. He called for a people-centered ESF. The legal bases for the new funding period should be adopted at an early stage, overlapping audits and controls should be reduced, and a mandatory performance-based financial reimbursement of EU funds would have to be dispensed with. The aim must remain to keep an eye on all people across Europe - so the ESF should continue to support all regions.

Matthias Heidmeier, Secretary of State for North Rhine-Westphalia, emphasised the cooperation between the Federal Government and the Länder and the common interest in working together on the findings of the ESF Future Study: 'We will ensure that we take the ESF issue forward in the Conference of Ministers of Labour and Social Affairs (ASMK).' He supported State Secretary Dr Schmachtenberg's proposal to create a 'seal of trust' in the implementation of the ESF in order to reduce bureaucracy. A meaningful division of tasks between audit authorities was important to avoid duplication of structures.

The other representatives from politics and practice also saw a need for concrete reforms in the planning and implementation of the ESF.

Joaquín Pérez Rey, Secretary of State at the Spanish Ministry of Labour, Family, Social Affairs and Equal Opportunities, stressed the importance of the ESF as a link between the EU and its citizens. In order to maintain and strengthen the ESF, it was important to focus on a few key policy areas, to make it more flexible and to simplify its administration. Flexibility has proved to be key to coping with changes in the labour market. 'The ESF builds confidence for people in Europe. It must be able to adapt. But we are convinced that the instrument as such will be preserved.'

The Dutch Minister of Social Affairs and Employment, Eddy van Hijum, stressed that the cooperation and collaboration of all EU countries is vital when it comes to the social protection of individuals. 'With the ESF, we can invest accourding to their needs.' That is why it is important that support continues to be available in all regions. 'We want to reach people in every region and leave no one behind.'

Natalia Efremova, Bulgarian Deputy Minister of Labour and Social Affairs, called for the ESF to be reformed as a clear and user-friendly set of rules. Cohesion policy needs to be made simpler, but remain true to its core principles. If the ESF were designed to be simple and flexible, its implementation could be adapted more quickly accurately to local conditions. Member States would then have the freedom to design their programmes according to their specific challenges and opportunities.

The European Commission was represented by Mario Nava, Director-General of the Directorate-General for Employment, Social Affairs and Inclusion, took part for the European Commission. He called for all parts of the population to be taken into account and for Europe to be made strong both internally and externally. An important aspect of this is for Europe to actively shape change together. In order to attract ‘talents’ and workers for the future, the three objectives of fighting poverty, investing in skills and labour market policies should be pursued. In view of the results of the German study on the future, he pointed out that this year's work programme of the EU Commission would soon be presented and discussed on the way to the next Multiannual Financial Framework.

The role of the European Parliament (EP) in shaping the future of the ESF was discussed by MEPs Dennis Radtke (EPP) and Gabriele Bischoff (S&D): The EP should work across the political groups to strengthen the ESF in the next budget period in order to further empower and support people to manage change in the world of work.

In a further round of discussions, representatives from the field spoke. It became clear that the complexity of the ESF is already currently leading to even established and long-standing project and programme managers to shy away from ESF funding and that smaller project promoters without extensive knowledge of funding are no longer participating in the ESF. This shows that the ESF is slowly withdrawing from the field. This needs to be addressed. This must be prevented as a matter of urgency, because the ESF - like no other instrument - opens up individual opportunities and possibilities for people to take their professional and entrepreneurial future into their own hands. The aim of ESF funding must remain to promote social cohesion and to make a significant contribution to the positive perception of a social Europe on the ground.

The conference showed that there is a common ground and good ideas on how to meet the challenges for the future of the ESF.

Matthias Wunderling-Weilbier, State Secretary at the Lower Saxony Ministry for Federal and European Affairs and Regional Development, said: 'We must maintain the regionality of the ESF, of course with an appropriate budget. We must all fight for this together. We need your support in the political arena so that these issues can be addressed - today, not tomorrow.'

In order to ensure that the good ideas are not left behind, State Secretary Dr. Schmachtenberg called for an ad hoc working group tob e set up in good time under the leadership of the European Commission and with the participation of all ESF managing authorities in the Member States. 'A timely discussion is needed so that the European Commission can present the draft regulations at an early stage, preferably by 2025, and finalise them by mid-2027 at the latest.'