European Social Fund The ESF post 2013 Dirk Reyntjens, European Commission 18 March 2011

Outline of the presentation Issues being considered The 4 Cs Coherence with Europe 2020, Concentration Conditionality Coordination with other funds Performance orientation Simplification Innovative financing Time line

C1 - Coherence with Europe 2020 Fully aligned with Europe 2020 Four basic scope options actions leading directly to employment; actions leading directly or indirectly to employment and enhancing inclusion actions leading directly or indirectly to employment and social inclusion broad scope for ESF including passive measures Administrative capacity EGF?

(wider for Conv. than for RCE) C2 - Concentration Europe 2020 Local, Regional, National needs Thematic priorities (built around the Headline Targets) Selection (wider for Conv. than for RCE) OP Priority axes (standardisation?)

C3 - Conditionality Fiscal conditionality linked to the respect of the Growth and Stability Pact Conditionality task force considering: Conditionality linking funding to the implementation of structural reforms (Council / European semester / NRP) Ex-ante conditionality (regulatory, strategic, infrastructural planning and institutional preconditions) (Largely status quo)

C4 - Coordination Options discussed in the IA Status quo (mono-fund programmes, cross-financing Extended cross-financing Clarification of eligibility rules (tangible vs intangible) One policy one fund Multi fund programmes

Performance orientation Strongly linked to simplification and legal certainty Three major avenues Enhanced Monitoring and Evaluation More extensive use of the simplified cost-options Linking payments to performance Payment against deliverables Joint action plans

Simplification Streamlining of budget lines (EGF?) More extensive use of the simplified cost-options Linking payments to performance joint action plans Proportionality based on track record f.i. for audit and control Harmonisation and streamlining of rules Clarifications annual closures, revenue generating projects, public procurement

Innovative financing Issues being debated: • Policy based guarantee (social bonds); • Secondary market for micro, small and student loans; (increased liquidity to financial intermediaries with its own budget) • Merger of the microfinance facility and the ESF

Timeline Ongoing: IA and regulation drafting Mid-June 2011: Proposal on future financial perspectives Summer 2011: Legislative proposals End 2012: Adoption of new legislative package and expected agreement on new budget post 2013 2013: Finalisation of new programming documents 2014: Entry into force

Thank you for your attention