The future of the ESF+

The current programming period for the ESF+ will end in December 2027. By 30 June 2025, the European Commission will present proposals for the next Multiannual Financial Framework, which will be pivotal in shaping the future of Cohesion Policy, including the ESF+. Discussions about the direction of the ESF+ post-2027 have already begun.

Key issues

The world and the EU are facing significant challenges.

Climate change and energy costs – Climate change is driving up energy costs and increasing the need for investment in cleaner technologies. However, many cannot afford these changes. Targeted support for the most vulnerable citizens is essential during this transition.
Declining global competitiveness – Europe’s global economic standing is under pressure, highlighting the need for investment in innovation and skills. In 2000, more than 40 of the world’s largest companies were European; today, only 15 remain in that group.
Demographic trends and skills shortages – Europe’s working-age population is shrinking, with 15 million fewer people of working age projected by 2040, and a further 27 million fewer by 2050. This trend is contributing to skills shortages and mismatches.
Social disparities – Social inequalities remain a major issue, with 95 million Europeans at risk of poverty.

In light of these challenges, Cohesion Policy, and particularly the ESF+, play a vital role in strengthening resilience and supporting citizens.

Future directions for the ESF+

A comprehensive and ambitious approach to Cohesion Policy is essential for the resilience of the European project. Future funds must adapt to emerging needs, drawing on lessons from initiatives such as the Recovery and Resilience Facility (RRF), while maintaining a strong focus on economic, social, and territorial cohesion.

The main themes shaping the future of the ESF+ are as follows:

Aligning with the European policy agenda – European cohesion funding could promote explicitly the European policy agenda with the European Pillar of Social Rights at its core, focusing on the adaptation to green, digital and demographic transition, with “social” as a central value.
Integrating European Semester recommendations – European semester recommendations, including the analysis of social convergence challenges, could play a stronger role in the programming. The importance and strengths of the partnership principle should remain at the core of the policy.
Adopting a performance-based approach – A performance-based approach could simplify processes and reduce administrative burden for Member States. Simplification and burden reduction should extent to the beneficiary level, whilst maintaining a robust assurance model.

Opinions and position papers

Group of high-level specialists on the future of cohesion policy – The report ‘Forging a sustainable future together: Cohesion for a competitive and inclusive Europe’ highlights the need for investments tailored to each region’s strengths and challenges, with a focus on human capital to reduce inequalities. Visit the future of Cohesion Policy to learn more.
Mid-term evaluation of the Recovery and Resilience Facility (RRF) – According to this evaluation, the RRF has effectively incentivised structural reforms and investments in Member States by linking funding disbursements to specific targets, marking it as a successful performance-based instrument at the EU level.
9th Cohesion Report – This report highlights the positive impact of Cohesion Policy on growth, employment, and social inclusion, particularly in less developed regions. It also stresses the need for strategies that balance long-term development with flexibility to address new crises.
9th Cohesion Forum – Discussions at the Forum underscored that improving administrative capacity and investing in both infrastructure and human capital are essential to tackle demographic, climate, and digital transitions.

Upcoming

Other opinions and position papers are expected to be finalised by the end of the year. These will also inform the European Commission’s reflections ahead of the proposals to be made on the next programming period.

The ESF thematic network on Simplification will issue a position paper on the ESF+ post-2027 by 30 November 2024.
The ESF+ Committee is set to adopt an opinion on the future of the ESF+ by 30 November 2024.
The ESF+ Evaluation Partnership network on Evaluation, Monitoring and Reporting will adopt an opinion on the post-2027 programming period by December 2024.

Additionally, DG EMPL is currently conducting a series of studies, expected to be published by May 2025. The first study will examine how to ensure the long-term sustainability of ESF+ results. The second will investigate the conditions for structural change. The third will focus on implementation modes and division of labour. Lastly, the fourth study will assess the potential impact of current and future challenges on ESF+ areas of action.