The Commissioner provided closing remarks at the end of a two-day conference on the future of the European Social Fund (ESF). He outlined four main messages from the discussion: 1) The ESF will continue to exist in the future as it has supported employment, human capital, and social inclusion for 50 years; 2) The future ESF must be fully aligned with the Europe 2020 strategy; 3) The ESF should have a broad scope to address member state and regional needs while focusing on Europe 2020 priorities; 4) More emphasis needs to be placed on monitoring the ESF's performance and achieving results. The Commissioner said the discussions would help proposals for the new ESF expected in mid-2011 and determining the shape of

1. SPEECH/10/340
Mr. László ANDOR
Commissioner for Employment, Social Affairs and Inclusion
"Shaping the future of the ESF – ESF &
Europe 2020"
Conference on "Future of the ESF" – Charlemagne Building
Brussels, 24 June 2010

2. Madame Gruny,
Monsieur Verrue,
Ladies and Gentlemen,
This conference has provided us with two interesting days of discussion and
exchange of ideas.
I would like to thank you all for your input.
I regret I could not be present for the whole of the conference. However, the
discussions I have listened to and the feedback
I have received confirm that this has been a very useful exercise.
Let me share with you what I believe are the four main messages to take from this
conference.
First, we will have an ESF in the future. It may be an obvious thing to say. But, I
want this point to be absolutely clear right from the start.
For the last 50 years, the ESF has been the main instrument at EU level to invest in
employment, human capital and social inclusion. Various studies prove that these
are key factors for boosting growth.
In addition, the ESF has been THE concrete proof of solidarity between European
citizens. Over the years, the ESF has been developed and adapted to changing
political and socio-economic contexts. This is what has ensured its continued high
relevance. It will still need to evolve and adapt.
The future ESF should therefore be fully aligned in all Member States with the
Europe 2020 strategy and the integrated guidelines. This will increase the relevance
of the fund as a policy instrument.
Many elements of the EUROPE 2020 Strategy qualify for ESF support.
The ESF should contribute to the achievement of several headline targets, notably
the employment target, the educational attainment target, and the poverty reduction
target.
I believe that the ESF is the best instrument we have to show to people what Europe
2020 means for them. I believe that the ESF should continue to intervene
throughout Europe, since these objectives are common to all Member States.
The debate today has shown that the majority of stakeholders want the ESF to have
a broad scope. I share this view.
A broad scope will ensure that the Member States, the regions and local
stakeholders can design operational programmes that address their needs and
specific situations.
However, this has to happen within the policy framework of Europe 2020. A broad
scope should not lead to a dispersion of means.. The Commission will work with the
Member States to establish concentration on priorities relevant for them and their
regions
The ESF is not an island.
Indeed, the ESF is one of the instruments that the EU, the Member States and the
Regions use to support their policy objectives.
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3. Support to employment, human capital and social inclusion should be more visible
at EU level and should have transparent allocation criteria between Member States.
Criteria should be linked to the challenges Member States have to face in terms of
education, training, employment and social inclusion and their capacity to tackle
them.
The ESF is an essential thematic instrument but it also contributes to the economic,
social and territorial cohesion objectives of the Treaty.
Therefore, it would make sense to have some common rules for all the Funds even
if there may be a need for specific rules according to the different types of projects.
This would make coordination between Funds much easier.
In addition, it is urgent to reinforce the political ownership of the funds. I would like to
involve our institutional partners - the European Parliament and the Ministers in
charge of employment and social affairs - more closely in the follow-up of the
programmes' implementation.
We need to shift our focus to what the ESF actually achieves.
This means that we need to put in place systems to monitor the performance of the
actions supported by the ESF. We should also be able to react according to this
information.
Admittedly, in the past, performance reserves largely failed to achieve what they
were set out to do. Yet we have seen successful examples in the Member States.
We could also consider setting up a compliance reserve based, inter alia, on the
achievement of Europe 2020 targets.
Furthermore, a set of core indicators common to all operational programmes could
facilitate the demonstration of results achieved at EU level.
We need also to think about moving towards a more results-based delivery system
for some types of operations.
This could simplify the delivery system through the use of lump sums and flat rates,
and the possibility of introducing budget support elements linked to results in a given
area.
Finally, it would be worth looking at how to promote the use of financial engineering
instruments. This would allow more capital to be invested in the policies supported
by the European Social Fund.
Ladies and Gentlemen,
The discussions on the future of the ESF – thanks to all of you – are now entering a
decisive stage. This is very positive. The messages we got from you are very clear.
They are also very useful for the work that lies ahead.
Time is not yet running out but the pressure is growing: our proposals for the new
ESF are already expected for mid-2011. For the moment, we are still in the listening
mode – and this is why I invite all those who so wish – to send us their ideas. There
is still time.
As Madame Bérès said yesterday, the future of all European instruments and
programmes will depend on the shape of the next financial framework for the years
2014 – 2020.
These discussions – which will start after the summer – come at a critical time for
Europe and its Member States who have recently reaffirmed their determination to
ensure fiscal sustainability and strengthen budgetary consolidation.
Pressure on public finances is high and it is clear that this situation will continue in
the future.
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4. There is no doubt that, in this difficult and complex context, the negotiations on the
next European Budget for seven years will be intense.
At the same time crucial questions will be raised: for instance, whether payments
from Brussels should be conditional to fulfilling obligations under the Treaties, in
particular the Stability and Growth Pact. In my view, it will be our main duty to avoid
measures that would be seen as unfair and counterproductive.
Ladies and Gentlemen,
It will be no easy task. But we have a clear mandate to support the Europe 2020
strategy. And the ESF is its financial lever, to translate our policy objectives into a
reality on the ground.
Thank you.
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