EU Budget: Guarantees still needed over social funds

Trade unions are seeking guarantees from the European Commission about the future of the EU’s main social fund amid concerns the proposal for the EU’s new long-term budget could see it put into competition with other objectives, that are now merged into a single fund, such as defence or ‘competitiveness’ spending.

The Commission’s proposal for the next Multiannual Financial Framework positively increases the EU budget but serious questions remain about the amount and allocation of the social spending.

The ETUC calls on the Commission to provide guarantees that ESF+ funding will remain ringfenced for real social spending. Meanwhile, MEPs and national ministers should listen to trade unions and amend the proposal to ensure that the ESF+ has dedicated resources which meet Europe’s increasing social challenges. 

The ETUC is also concerned by the ‘money-for-reform’ approach and the risk EU funds be made conditional on member states carrying out austerity or deregulation reforms. Instead, any funding to private companies should be made dependent on fair pay and working conditions, and respect for collective bargaining.

ETUC General Secretary Esther Lynch said:

“I welcome the inclusion of ESF+ in the announcement today, but merging it with other funds with competing objectives risks undermining it.

“Maintaining the ESF+ is not enough unless it comes with a strong, dedicated budget, clear social objectives and guarantees that funds will support collective bargaining, decent working conditions, and worker protections.

“Workers must not be short-changed, it is important that EU lawmakers ensure adequate resources are ringfenced for real social objectives, that will improve conditions for working people.

“We welcome the fact that the overall budget has been increased but there must be no retreat from the social objectives of the EU.”