Commission Proposal for Future ESF 2014-2020: Focus on Results and Simplification

1. Key elements of the Commission proposal for the future ESF2014-2020ESF CommitteeCracow1 December 2011

2. Legislative package The General Regulation Common provisions for cohesion policy, the rural development policy and the maritime and fisheries policy Common provisions for cohesion policy only (ERDF, CF, ESF) Fund specific regulations ERDF regulation CF regulation ESF regulation ETC regulation EGTC regulation

3. Guiding political principles of the reform • Concentration on Europe 2020 Strategy • Focus on results • Better coordination and harmonisation between the funds • Simplification

4. Geographical coverage of support • Three categories of regions • Less developed regions (GDP per capita < 75% of EU average) • Transition regions (GDP per capita between 75% and 90%) • More developed regions (GDP per capita > 90%)

5. Budget for Cohesion Policy post 2013

6. ESF - minimum shares • At least 25% of the Cohesion envelope for the ESF  € 84 billion • (25% for the less developed regions, 40% for the transition regions and 52% for the more developed regions) • Why? • Important contribution to the Europe 2020 strategy and its headline targets • Key factor for medium term growth (OECD) • Expression of European solidarity In 2010, 10 million people were reached out

7. Strengthening the Strategic Approach Common Strategic Framework Partnership contract Operational Programmes

8. Reinforcing Integrated Programming Integrated programme approach The Common Strategic Framework at EU level and the Partnership Contract at national level covering all the CSF Funds Possibility for Member States to prepare and implement multifund programmes combining ERDF, ESF and the Cohesion Fund Possibility for Member States to establish "multi-category" operational programmes which cover less developed, transition, and more developed regions or any combination of these Possiblity to finance operations from more than one fund

9. Conditionality Ex ante conditionality Conditions to be fulfilled prior to the submission of Partnership Contracts and operational programmes Directly related to the thematic objectives or horizontal conditions of effectiveness Non-fulfillment of conditionality constitutes a basis for suspension of payments Reinforced macro conditionality for the funds Closer link between cohesion policy and the economic governance of the Union

10. A focus on results (1): Performance framework and reserve Performance framework Focuses on the achievement of programme objectives with milestones and targets for performance for 2016, 2018 and 2022 In case of significant shortfalls, possible suspension of payment during the implementation or even possible financial correction at the end of the programming period Performance reserve 5% set aside at the beginning of the programming period (exception for ETC and for the EMFF) The performance reserve is established per Fund,perMember Stateand per category of region

11. A Focus on Results (2): Indicators Fund Specific Common Indicators Common output and, where appropriate, result indicators Fund specific rules on baselines, targets and reporting Programme Specific Indicators Output indicators, where appropriate Result indicators related to the priority axis

12. AFocus on Results (3): Evaluation Ex-ante evaluation Evaluation during the programming period Ex-post evaluationby the Commission

13. A focus on results (4):the Joint Action Plan • Optional approach – operation implemented and financed based on outputs and results agreed between the Member State and the Commission • JAP adopted by the Commission, based on a proposal by the Member State • Payments correspond to the achievement of ‘milestones’

14. Specific provisions for the ESF

15. 18 Investment priorities in 4 thematic objectives Promoting employment and supporting labour mobility Promoting social inclusion and combating poverty Investing in education, skills and lifelong learning 4. Enhancing institutional and administrative capacities ESF contribution to the other thematic objectives notably: Supporting an environmentally sustainable economy (low carbon…) Enhancing the accessibility, use and quality of ICT Strengthening research and innovation 4. Enhancing the competitiveness of small and medium-sized enterprises Scope

16. Thematic concentration LESSDEVELOPEDREGIONS 60% OP budget on 4 investment priorities TRANSITION REGIONS 70% OP budget on 4 investment priorities MORE DEVELOPED REGIONS 80% OP budget on 4 investment priorities 20% ESF budget on Social Inclusion / poverty reduction

17. Ensuring a strong involvement of social partners and NGOs • Reinforced provisions on partnership in the General Regulation • Specific provisions in the ESF regulation • Possibility to involve social partners and NGOs through global grants • In the less developed regions or in the MS eligible for the Cohesion Fund: • appropriate amount of ESF resources to be allocated to capacity-building activities and to activities jointly undertaken by social partners • appropriate amount of ESF resources to be allocated to capacity-building of NGOs

18. Gender equality and non discriminationat the core of the ESF In the general regulation • Mainstreaming the principle for equality between men and women and non discrimination In the ESF regulation • Obligation to plan specific targeted actions for equality between men and women and non discrimination (dedicated investment priorities)

19. Transnationality and social Innovation • A clear requirement for Member States • The ESF shall promote social innovation • MS shall support transnational cooperation • A large range of freedom for Member States in the choice of themes • Strengthening the role of the Commission as facilitator

20. Reinforcing the territorial approach Possibility to continue ESF support to local employment initiatives, territorial employment pacts… Integrated approach to community-led local development Facilitates integrated investment by small communities including local authorities, NGOs, and economic and social partners Integrated approach and common rules = can be financed jointly from ERDF, ESF, EAFRD and EMFF Possible support of sustainable urban development strategies At least 5% of the ERDF resources to be allocated to integrated actions for sustainable urban development The ESF may complement the ERDF for the actions falling under its scope

21. Specific provisions for financial management • Eligibility of expenditure: Equipment is now eligible • Simplified cost options : • obligatory for small projects • higher ceiling for lump sums • more legal security provided • Financial instruments • Possible use of the ESF through risk-sharing schemes, equity and debt, guarantee funds, holding funds and loan fund • ESF policy-based guarantee

22. Timeline 5th Report on Economic, Social and Territorial Cohesion + Public Consultation Proposals for Cohesion Policy 2014-2020 Public Consultation on CommonStrategic Framework Entry into forceand adoption of Partnership Contracts and programmes March 2010 June 2011 Oct. 2011 Dec. 2011 Jan. 2012 Nov. 2010 2012 – 2013 2014 Adoption of newlegislative packageand agreement on budget post-2013 Proposal bythe Commission of Multi-annual Financial Framework Communication from the Commission: Common Strategic Framework Adoption of Europe 2020 Strategy