New multiannual EU budget proposes an ambitious target for social investments

The European Commission has presented its proposal for an ambitious Multiannual Financial Framework (MFF) for 2028-2034, amounting to almost €2 trillion.

This budget will help Europe become a strong, prosperous, and secure society and economy over the next decade.

The proposal also includes a new approach to investing in people, with at least 14 % of the envelope for the National and Regional Partnership Plans dedicated to meeting the Union’s social objectives. This represents investments of at least €100 billion.

A new approach to investing in people

The new long-term budget proposal will bring together EU funds implemented by Member States and regions under one coherent EU regulatory framework.

Each Member State will have a single National and Regional Partnership Plan to make sure every euro is used effectively. This covers:

Cohesion policy (including social policy and regional policy),
Common Agricultural Policy,
Fisheries and maritime policy,
Migration, border management and internal security.

The total budget proposed under these Plans is €865 billion. This is composed of €783 billion for Member States National and Regional Partnership Plans, €10.2 billion for an Interreg Plan, and €72 billion for the EU Facility.

The EU Facility will cover Union actions and emerging challenges and priorities and will, among others, support social innovation, microfinance, the social economy, and improved access to health, education and housing.

The National and Regional Partnership Plans and the Interreg Plan will be implemented under shared management while the Facility will have the possibility to resort to shared, direct or indirect management depending on the type of measure and most effective course of action.

Member States may, in addition, request loan support, known as Catalyst Europe, up to a maximum of €150 billion.

An ambitious target for social investments

For the first time, social spending will be tracked, with at least 14% of the Plans’ resources (including loan support and excluding direct support to farmers and the Social Climate Fund) dedicated to meeting social objectives, i.e. reforms and investments that:

support quality jobs and labour mobility,
improve education and lifelong acquisition of skills,
fight poverty and homelessness
promote social inclusion and equality.

Each Member State should submit to the Commission a NRP Plan which shall support all objectives, including the social objectives which cover the mission of the ESF.

The future of the European Social Fund and Social Climate Fund

The role of the European Social Fund is detailed through its own regulation, confirming its place as the EU’s main instrument to invest in Europe’s people, their future and preparedness. This builds on a strong tradition going back to the Treaty of Rome in 1957.

The ESF will be implemented via the new National and Regional Partnership Plans. The Plans will be designed and implemented under shared management, in close partnership between the Commission, the Member States, regions, local communities and relevant stakeholders such as social partners and civil society organisations. They will make the delivery of EU support faster, more flexible and more tailored, to maximise the impact of every euro.

The Social Climate Fund provides EU support of EUR 65 billion in years 2026 – 2032 to ensure that vulnerable groups, small businesses and vulnerable transport users benefit from the green transition linked to the introduction of the linked to the introduction of EU Emissions Trading System 2 (ETS2).

Starting in 2028, the Social Climate Fund will become a part of the National and Regional Partnership Plans, but Member States will be able to make a choice to implement the Social Climate Plans in accordance with the SCF regulation or fully under the NRP Regulation.

Wider EU investments in skills, inclusion and opportunity

Beyond the National and Regional Partnership Plans, several other EU programmes will reinforce social investment.

The European Competitiveness Fund will support skills development, vocational training, and lifelong learning – helping people upskill and improve their qualifications to find quality jobs in key sectors.

Erasmus+ will grow to €40.8 billion, offering more inclusive learning and mobility opportunities for people of all ages and backgrounds.