1 The New ESF Challenging the Future Director Pertti Toivonen Ministry of Labour Open Days: European Week of Regions and Cities, Brussels Workshop 10E08: The New European Social Fund October 2006

2 2 Introduction Director Pertti Toivonen Team Leader, Structural Policy Team, Policy Department Ministry of Labour, Finland ESF Head of Mission ESF Committee Member since 1995

3 3 Background Experience-based views on The new European Social Fund and on Finland’s NSRF and national ESF-program as an example

4 4 The New ESF Challenging the Future Overview: Lisbon – EES Cohesion Guidelines The New ESF Basis of The ESF-strategy in Finland ESF-priorities in Finland EU-level ESF EU-level ESF – Final Remarks

5 5 Lisbon – EES – Cohesion Guidelines Europe is not reaching the goals set in the Lisbon Strategy and it is lacking behind other economic areas All EU’s policies should focus on these goals Lisbon Strategy, European Employment Strategy and Cohesion Strategy / guidelines form now a coherent package towards these aims Structural funds have their own role in the cohesion policy but in addition to or via that they are also European funding instruments for Lisbon Strategy – and ESF especially for EES in that

6 6 The New ESF There is a strong need for ESF contribution in securing EU’s competitiveness The new ESF-regulation concentrates strongly also on building of the information society, R&D-funding and regional competitiveness

7 7 The New ESF It should be kept in mind that ESF is a tool for building human capacity and potential especially in the labour market How the global aim to improve competitiveness – especially when it is understood as a market competitiveness (business), developing systems and structures, working (business) environment etc – suites to the principle aim of ESF: targeting the people in the labour market and improving their employment opportunities (Treaty art 146)

8 8 The New ESF There are people in the labour market who are not able to compete with all the requested skills and high education or training to reach these capabilities The best results for ESF have been received when the activities are concentrated on building the potential and skills of the people mentioned above This also relieves the upcoming labour shortage because EU needs all the workers for the labour market

9 ESF has an important role in the new Member States when contributing human capacity – people in the labour market. Human resources are also a major activator in ”The New Regional Policy”. ESF has less resources than ERDF, but ”enough” 9 The New ESF

10 In the Old Member States the resources have decreased substantially. For ex Finland, ESF- funding decreased – 38 %. So we have to concentrate really on measures that bring the most value added – carefully to analyze the specific features of the labour market during – where to concentrate on in order to get most added value to national policies and strategies – innovations in the labour market, special target groups (ageing labour force, special groups of the young, work related immigration, work organisations – especially in SMEs) 10 The New ESF

11 11 The Basis of the ESF-strategy in Finland Two structural changes: structural change of the business branches and the structural change of the labour force Two labour market challenges: the high unemployment rate and the labour shortage Ageing labour force: Finland is one of the first European countries to face the dramatic change in the age pyramid The demand of the workforce is focused on the skillful work force: People with inadequate professional skills have even more difficulties to enter the working life

12 12 ESF Priorities in Finland Priority 1: Developing work organisations, workers and enterprises and promoting entrepreneurship Priority 2: Promoting access to employment and sustainable inclusion in the labour market and reinforcing social inclusion Priority 3: Developing the education, training and service systems in order to promote the functioning of the labour market Priority 4: Transnational and inter-regional ESF activities Priority 5: National reserve for unforeseen regional and local crises linked to economic and social restructuring

13 13 EU-level ESF Partnership is the basic principle for ESF and especially partnership between public authorities and economic and social partners Partnership between the new and the old member states – based for ex. on Twinning experience – should be maintained and developed. We have learned a lot from each other Transnational co-operation – Equal experience – is important to be continued – to exchange best practices. It makes common policy alive – ”European spirit”. Common structure and support from the Commission is needed.

14 14 EU-level ESF – Final Remarks To get common policy lines on EU-level is crucial (package: Lisbon – EES – cohesion guidelines). Common funding makes implementation more efficient and credible. At least seedfunding is needed all over the EU. Knowhow, capable labour force and wellfunctioning labour market are the key factors – even more in the future – when developing European competitiveness in all levels. And here ESF is playing the key role.