The EUFunds4Social coalition, which brings together 68 European networks mainly from the social economy, and 288 national organisations from 32 countries, has published a new joint statement entitled “Building on what works: an EU budget that delivers for people and regions”, in which it defends the importance of maintaining a European Union budget and programmes focused on people and territories.
Its main concern is the proposal to merge the European Social Fund (ESF+), the European Regional Development Fund (ERDF) and other funds, which, it argues, could weaken the social and territorial impact of each of them.
The statement asserts that a strong social budget is essential to ensure inclusive and sustainable growth in Europe, and that maintaining specific and well-funded instruments will make it possible to better respond to current and future social challenges, while ensuring that the EU remains a model of a social market economy focused on people’s well-being.
According to the signatory organisations, social and regional investment is key to European competitiveness, as it promotes quality employment, improves people’s skills, reduces dependence on social assistance and strengthens social cohesion.
However, as the text states, the current budget proposal sets a social spending target of 14%, lower than the current level, which represents a reduction in essential areas such as employment and training.
The coalition has been warning over the past year that merging the funds could dilute their strategic focus, increase administrative complexity and weaken accountability. It also notes that centralising the budget at national level could turn these funds into tools for political negotiation, reducing their effectiveness.
For this reason, the signatory organisations call for maintaining the ESF and the ERDF as independent funds, with their own objectives, budgets and regulations. In their view, the ESF should remain focused on people, supporting employment, education, social inclusion and poverty reduction, while the ERDF should focus on regional development, territorial cohesion and social infrastructure.
In addition, they call for both funds to have solid budgets, at least equivalent to current levels and adjusted for inflation, and for funding to be provided through grants rather than loans. They also consider it essential to maintain clear and binding targets, as well as to protect the shares allocated to social priorities such as tackling child poverty and supporting the most vulnerable groups.
The published document also highlights the importance of strengthening social innovation and direct funding through specific programmes, as well as improving coordination between the ESF and the ERDF to maximise their impact. It also concludes that it is necessary to ensure respect for fundamental rights, strengthen the participation of civil society and facilitate access to European funds for small organisations and non-profit entities.
