European Social Fund Plus

The funds are redistributive financial instruments that support cohesion within Europe by concentrating spending on the less-developed regions.

The particular aim of ESF+ spending is to support the creation of more and better jobs in the EU, which it does by co-funding national, regional and local projects that improve the levels of employment, the quality of jobs, and the inclusiveness of the labour market in the member states and their regions.

It was established as a "remedial instrument" against the end of nationalist protectionism due to the advent of the European Economic Community.

In 2010 this succeeded the Lisbon Agenda which aimed to make Europe the most dynamic and competitive knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion, and respect for the environment, by 2010.

These common priorities are then taken up in the Employment Guidelines[5] and incorporated into the National Reform Programmes[6] prepared by the individual Member States.

ESF funding is deployed by the Member States in support of their National Reform Programmes as well as their National Strategic Reference Frameworks (NSRF) which establish a member state's main priorities for spending the EU Structural Funds it receives.

It encourages workers to take charge of their working lives through lifelong training, adapting to change and mobility.

One explanation may lie in the co-financing procedures with poorer potential applicants being less likely to gather the required co-funding.

Certification and auditing authorities are also appointed to monitor and ensure compliance of expenditure to the ESF regulation.

These include national, regional and local authorities, educational and training institutions, non-governmental organisations (NGOs) and the voluntary sector, as well as social partners, for example, trade unions and works councils, industry and professional associations, and individual companies.

As an indication, it is estimated that over 9 million individuals from these vulnerable groups are helped each year through participation in ESF projects – see chart 1.

The 2014–2020 cycle had a total budget of €70 billion,[13] 20% of which was dedicated to promoting social inclusion and decreasing poverty.