Opinion of the Committee of the Regions on the 'Proposal for a Council Regulation on the European Social Fund'
Date: 1998-11-19
Institutions: European Committee of the Regions
Subjects: European Social Fund, employment aid, employment policy, equal treatment, small and medium-sized enterprises, social policy

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Opinion of the Committee of the Regions on the ‘Proposal for a Council Regulation on the
European Social Fund’

(1999/C 51/08)

THE COMMITTEE OF THE REGIONS,

having regard to the Communication from the Commission to the Council, the European
Parliament, the Economic and Social Committee and Committee of the Regions on the Agenda
2000 legislative proposals: overall view;

having regard to the proposal for a Council Regulation (EC) on the European Social Fund
[COM(98) 131 final — 98/0115(SYN)] (1);

having regard to the Commission’s decision of 18 March 1998 to consult it on this matter in
accordance with Article 198c(1) of the Treaty establishing the European Community;

having regard to the decision taken by its Bureau on 13 May 1998 to allocate the preparation
of the opinion to Commission 5 for Social Policy, Public Health, Consumer Protection,
Research, Tourism;

having regard to the Opinion on the ‘Proposal for a Council Regulation (EC) laying down
general provisions on the Structural Funds’ (CdR 167/98 fin) (2) adopted by the Committee of
the Regions on 17 September 1998 (rapporteurs: Mr Behrendt and Mr Fraga Iribarne);

having regard to the working document (DI CdR 53/98) adopted by Commission 7 on 26 June
1998 (rapporteur: Lord Tope);

having regard to the Draft Opinion (CdR 155/98 rev. 2) adopted by Commission 5 on
29 September (rapporteurs: Mrs Matthews and Mr Correia),

adopted the following opinion at its 26th plenary session on 18 and 19 November 1998
(meeting of 19 November).

1.

Introduction

ensure consistency and complementarity of actions
across all objectives.

The draft Regulation is one of a package of
1.1.
Regulations on the Structural Funds adopted along
with other legislative proposals under Agenda 2000 on
18 March by the European Commission. The Regulation
defines the general arrangements governing the ESF
(Fund) as a whole and defines the nature of the activities,
which the ESF may finance under Objectives 1, 2, 3, and
the Community Initiative dealing with discrimination
and inequalities in access to the labour market.

1.3.
The Regulations also state that the Member
States and the Commission should ensure that the labour
market dimensions of the Information Society, equal
opportunities between men and women and non-
discrimination on the grounds of age, race, religion,
disability and sexual orientation are issues that must be
taken
and
programming
account when
implementing actions are financed by the Fund.

into

1.2.
The Regulation redefines the scope of the Fund
within the context of the restructuring and simplification
of the Objectives and the implementation of the Euro-
pean Employment Strategy and National Employment
Action Plans. As a consequence, the Commission has
proposed to redefine the eligible actions of the Fund
with the adoption of a common framework for the
implementation of the Fund in all three objectives to

(1) OJ C 176, 9.6.1998, p. 39.
(2) OJ C 373, 2.12.1998, p. 1.

1.4.
The Fund can also provide assistance to SMEs
which are affected by industrial change to meet the
changing needs of workers, changing production systems
and to predict possible future changes.

The Fund will continue to strengthen employ-
1.5.
ment and job qualifications by continued support within
the fields of anticipation, counselling, training and
networking throughout the Union ensuring that activi-
ties will be geographically horizontal and cover the
economy as a whole with no priority given to a particular
sector.

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2. The Regulation

entering long term unemployment and to facilitate
the re-integration of the long-term unemployed and
the young unemployed;

2.1. Mission (Article 1)

2) promotion of social inclusion and equal opportunities

for all to access the labour market;

2.1.1.
The Fund should support human resource
development measures to promote a high level of
employment and social inclusion, gender equality and
economic cohesion. In particular the Fund shall con-
tribute to the actions outlined in the European Employ-
ment Strategy and the Annual Guidelines on Employ-
ment.

2.1.2.
The COR supports the proposed mission,
however believes that the proposal should include the
following text ‘and non discrimination on the grounds
of age, race, ethnic-linguistic group, religion, disability
and sexual orientation’ after ‘gender equality’.

2.1.3.
tive 3 ESF with the European Employment Strategy.

The COR welcomes the integration of Objec-

2.1.4. However, the COR believes local and regional
elected representatives should be fully involved in the
development and implementation of Annual Guidelines
on Employment. As these Guidelines will provide a
framework for the use of ESF, and set priorities for
ESF use, local and regional authorities, (as the main
implementation bodies) must be consulted and fully
involved in the priority setting. In the COR’s view, the
future Objective 3 must not be deployed solely to
fund national government priorities; local and regional
authority policies must also be reflected in the priorities
to be established by each Member State.

2.1.5.
In the COR’s view, one important facet of
future EU and national strategies should be the direct
participation by both local and regional bodies and the
social partners in framing a dynamic growth and
employment policy. The Commission has stated that
working in partnership enables all parties to be involved
in the implementation of the Fund, thus adding to the
credibility and efficiency of the Fund.

3) development of education and training systems;

4) improvement of systems to promote a skilled, trained
adaptable workforce, foster innovation and adapta-
bility in work organizations;

5) improvement in the participation of women in the

labour market.

2.2.1.
The Fund will also contribute to promoting
local development including local employment initiat-
ives and territorial employment pacts and will take
account of the social and labour market dimensions of
the information society.

logistical

The COR welcomes these priority areas, and
2.2.2.
particularly notes the links made to the European
Employment Strategy. The COR welcomes the broad
definition of assistance options, since this enhances
Member States’ and regions
room for
manoeuvre; at the same time, however, given the desire
to use the Structural Fund resources more efficiently, the
ESF should focus on its labour market and employment
policy remits. In this context it should be left up to the
Member States, regions and local authorities to select
from the Objective 3 and ESF assistance options those
core areas and measures which best take account of their
specific requirements in human resource development.
The COR endorses these priorities and has noted
the links established with the European employment
strategy. With particular reference to the prevention
of long-term unemployment, the COR would draw
attention to the role of local and regional authorities,
which is often overlooked by the general public. A large
number of projects in a wide variety of fields (social
action, housing, health) focus on disadvantaged persons
with a view to improving their conditions so as to
facilitate their re-integration into the labour market. It
is also necessary to specify the areas of education which
are considered to be eligible for ESF funding.

2.3. Eligible Activities (Article 3)

2.2. Scope of Intervention (Article 2)

Financial support shall be provided for the following
activities:

The Fund shall support and complement the activities
of the Member States in the following five policy fields:

2.3.1. A s s i s t a n c e t o p e r s o n s

1) development of active labour market policies to
combat unemployment, to prevent men and women

a) education and vocational training, upgrading of

skills and guidance and counselling;

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b) employment aids and aids for self employment;

c) science and technology development, post graduate

training and training for managers;

d) development of new sources of employment.

2.3.2. A s s i s t a n c e t o s t r u c t u r e s a n d s y s -

t e m s

a) development and improvement of the quality and

content of training and qualification systems;

b) modernization and improved efficiency of employ-

ment services;

c) development of links between the world of work
and education, training and research establishments;

d) development of systems for forward planning and
anticipation of employment and industrial change.

2.3.3. A c c o m p a n y i n g m e a s u r e s

a) assistance in the provision services to beneficiaries,

including care services;

b) capacity building to facilitate a pathway approach

to labour market integration;

c) awareness raising.

The COR welcomes the implicit recognition of the role
played by SMEs (small and medium enterprises) in the
creation of long-term, competitive jobs.

2.4. Concentration of Assistance (Article 4)

The ESF will contribute to all three objectives:

a) Objective 1 — promoting the development and
structural adjustments for regions lagging behind;

b) Objective 2 — supporting economic and social
conversion of areas facing structural difficulties;

2.4.1.
Before the ESF programmes are implemented
the Member States must conduct an assessment of the
need for the measures that ESF can support. This
assessment must be done within the three Objectives to
ensure the Fund is concentrated in the appropriate fields,
giving particular emphasis to the creation of an adaptable
workforce and improving the participation of women
in the workforce.

2.4.2. Within these programmes at least 1 % of the
Fund will be made available as small grants to local
groups, with special arrangements to allow speedier
access to the Fund.

2.4.3.
The COR welcomes the concentration on the
most needy areas and the opportunities created for small
groups to participate in the Fund. Consequently the
COR believes that there is no necessity for Objective 3
plans and programmes to be presented at a national
level and stress that the Member States should continue
to be able to put forward Objective 3 plans and
programmes which have been framed and implemented
at regional level. The national plan can encapsulate
regional priorities and ensure consistency with the
measure’s overall priorities. The COR considers that the
tasks assigned to Objective 3 require that programming,
implementation and follow-up are carried out as close
to grassroots level as possible.

2.4.4. Having regard for the Behrendt and Fraga
Opinion on the general regulations which was adopted
at the September plenary, the COR would welcome the
proposed Objective 3 programme to remain horizontal
therefore covering Objective 2 areas.

2.5. Community Initiative (Article 5)

2.5.1.
The Fund shall provide assistance from the
Community Initiative that aims to combat discrimi-
nation and inequalities in access to the labour market.

2.5.2.
The Fund in the future could be used for
activities under the Community Initiative that previously
would only have been funded by the other Structural
Funds.

2.5.3.
The COR welcomes this flexibility, because it
enables a simplified implementation of the Community
Initiative.

c) Objective 3 — supporting the adaptation and mod-
ernization of policies and systems of education
training and employment.

2.6.

Innovative Measures and Technical Assistance
(Article 6)

Objective 3 will operate outside of the Objective 1
and 2 areas and will also provide a frame of reference
for all ESF measures to promote human resources in
a national territory.

2.6.1.
The Commission may finance preparatory,
appraisal, monitoring and evaluation of operations,
which are necessary for the implementation of the
programmes outlined in the Regulation.

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These may include:

a) pilot and innovatory projects in the field of training,

employment and labour markets;

b) studies and exchange of experience;

c)

technical assistance for the monitoring and evalu-
ation and appraisal of the Fund implementation;

d) publicity of the Fund.

2.6.2.
Again the scope of the Fund may be extended
to fund activities which may be funded by the other
Structural Funds.

The COR notes that under Articles 21 and 22
2.6.3.
of the framework regulation, a total of 1 % of Structural
Fund resources are to be earmarked for innovative
measures and technical assistance. It would ask the
Commission to specify more precisely which types of
measures are to qualify for funding under Article 6 of
the ESF Regulation and which activities are to be
excluded.

Management Committee on Agricultural Structures and
Rural Development shall be constituted and shall draw
up its own rules of procedure. The Committee shall give
opinions on draft Commission decisions relating to
the establishment of the list of areas eligible under
Objective 2 and to the corresponding single program-
ming documents.

Management Committee on Fisheries and Aquaculture.
The Committee shall give opinions on draft Commission
decisions relating to the establishment of the list of areas
eligible under Objective 2 and to the corresponding
single programming documents.

Management Committee for Community Initiatives.
The Commission shall submit draft decisions for the
Committee to deliver opinions within a specified time
limit.

2.8.2.
The COR welcomes the establishment of these
committees, but strongly calls for local and regional
elected representatives and NGOs to have seats on these
bodies.

2.7. Application for Assistance (Article 7)

2.9. Transitional Provision (Article 9)

that national arrangements

Application for Assistances from the Fund must be
accompanied by a computerized form, which will be
designed by the Member State and the Commission.
The COR hopes
for
implementing Objective 3 will be sufficiently flexible
and pragmatic to ensure that ESF intervention facilitates
effective and visible action among the target groups
concerned. The COR also urges the Member States
not to introduce implementing procedures that could
compromise the Commission’s stated aim of simplifi-
cation and flexibility.

2.8.

Implementing Provision (Article 8)

In implementing this Regulation the Commission shall
be assisted by five committees. The Commission shall
send a report at three-yearly intervals on the progress in
achieving economic and social cohesion, the role of
the Fund and any proposals concerning Community
measures and policies.

The committees are:

2.8.1.
An Advisory Committee on the Development
and Conversion of Regions will be constituted and
chaired by the Commission. The Commission shall
submit draft decisions for the Committee to deliver
opinions within a specified time limit.

Committee under Article 124 of the Treaty will be
constituted and deliver opinions on draft Commission
decisions relating to single programming documents
under Objective 3 and in the case of ESF, on the
Community Support framework (CSF) and program-
ming documents relating to Objective 1 and 2.

This article cross-refers to the General Regulation on
the Structural Funds.

The Commission proposes that eligible expenditure will
not be acceptable before the date the Commission
receives the draft programme document.

The COR welcomes and accepts this proposal.

3. Conclusions

3.1.
The COR supports the proposed mission, how-
ever believes that the proposal should include the
following text ‘and non-discrimination on the grounds
of age, race, religion, disability and sexual orientation’
after ‘gender equality’, in the regulation.

The COR believes local and regional authorities
3.2.
should be fully consulted by their national Governments
on the development and implementation of Annual
Guidelines on Employment, as these Guidelines will
provide a framework for the use of ESF, and set priorities
for ESF use. (Article 1)

3.3.
The COR welcomes the inclusion of the Infor-
mation Society and social cohesion in the proposed
Regulation. (Article 1)

3.4.
The COR welcomes these priority areas, and
particularly notes the links made to the European
Employment Strategy (Article 2).

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3.5.
The COR welcomes the recognition given to the
need to aid the SMEs. Under the new ESF Regulation,
the creation of long-term, competitive jobs is promoted
by aid to SMEs. Such efforts must in future receive the
closest attention, as it is SMEs, which generate the
largest number of jobs. (Article 2 and 3)

3.6.
The COR welcomes the broad definition of
assistance options, since this enhances Member States’
and regions logistical room for manoeuvre ; at the same
time, however, given the desire to use the Structural
Fund resources more efficiently, the ESF should focus
on its labour market and employment policy emits. In
this context it should be left up to the Member States,
regions and local authorities to select from the Objective
3 and ESF assistance options those core areas and
measures which best take account of their specific
requirements in human resource development (Article 4).

Brussels, 19 November 1998.

3.7.
The COR welcomes the flexibility applied to the
scope of the ESF with regard to the Community
Initiative as it enables a simplified implementation of
the programme (Article 5).

3.8.
The COR calls on the Commission to increase
the appropriation earmarked for innovative measures
from 1,5 % to 1,7 % in the view of need, within the
sphere of the Social Fund, to try out new tactics and to
stimulate innovative measures (Article 6).

3.9.
The COR regrets that local and regional organ-
izations have not been included as representatives of the
Committees to be established for implementing the
ESF provisions. Local and regional organizations are
included on Member State Committees and therefore
should have a voice at Community level (Article 8).

3.10.
The COR recommends that eligible expenditure
for programmes should be acceptable from 1 January
2000, notwithstanding when the application reaches the
Commission (Article 9).

The President

of the Committee of the Regions

Manfred DAMMEYER