European Parliament legislative resolution on the proposal for a regulation of the European Parliament and of the Council on the European Social Fund (COM(2004)0493 - C6-0090/2004 - 2004/0165(COD))
Date: 2005-07-06
Institutions: Committee on Employment and Social Affairs, European Parliament
Subjects: Cohesion Fund, economic and social cohesion, operation of the Institutions

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P6_TA(2005)0281

ESF ***I

European Parliament legislative resolution on the proposal for a regulation of the European Parlia-
ment and of the Council on the European Social Fund (COM(2004)0493 — C6-0090/2004 — 2004/
0165(COD))

(Codecision procedure: first reading)

The European Parliament,

— having regard to the Commission proposal to the European Parliament and the Council (COM(2004)

0493) (1),

— having regard to Article 251(2) and Article 148 of the EC Treaty, pursuant to which the Commission

submitted the proposal to Parliament (C6-0090/2004),

— having regard to Rule 51 of its Rules of Procedure,

— having regard to the report of the Committee on Employment and Social Affairs and the opinions of
the Committee on Budgets, the Committee on Regional Development and the Committee on Women's
Rights and Gender Equality (A6-0216/2005),

1.

Approves the Commission proposal as amended;

Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal

2.
substantially or replace it with another text;

3.

Instructs its President to forward its position to the Council and Commission.

(1) Not yet published in OJ.

P6_TC1-COD(2004)0165

Position of the European Parliament adopted at first reading on 6 July 2005 with a view to the
adoption of Regulation (EC) No …/2005 of the European Parliament and of the Council on the
European Social Fund

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 148 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Economic and Social Committee (1),

Having regard to the opinion of the Committee of the Regions (2),

Acting in accordance with the procedure laid down in Article 251 of the Treaty (3),

(1) OJ L …
(2) OJ C 164, 5.7.2005, p. 48.
(3) Position of the European Parliament of 6 July 2005.

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Whereas:

(1)

(2)

(3)

(4)

Council Regulation (EC) No …/2005 [laying down general provisions on the European Regional Devel-
opment Fund, the European Social Fund and the Cohesion Fund] (1) establishes the framework for action
by the Structural Funds and the Cohesion Fund and lays down, in particular, the objectives, principles
and rules concerning partnership, programming, evaluation and management. It is therefore necessary
to define the mission of the European Social Fund (‘ESF’) in relation to the objectives set out in Arti-
cle 146 of the Treaty, and in the context of the Member States' and the Community's work towards
developing a coordinated strategy for employment, as provided for under Article 125 of the Treaty. In
the interest of clarity, Regulation (EC) No 1784/1999 of the European Parliament and of the Council
of 12 July 1999 on the European Social Fund (2) should be replaced.

Specific provisions concerning the type of activities which may be financed by the ESF under the
objectives defined in Regulation (EC) No …/2005 [laying down general provisions on the European
Regional Development Fund, the European Social Fund and the Cohesion Fund] need to be laid down in
accordance with the provisions of Council Regulation (EC, Euratom) No 1605/2002 of 25 June
2002 on the Financial Regulation applicable to the general budget of the European Communities (3).

It is necessary to abide by the overall architecture of the Funds and ensure allocation among the
various objectives in accordance with Regulation (EC) No …/2005 [laying down general provisions
on the European Regional Development Fund, the European Social Fund and the Cohesion Fund].

The ESF should support the policies of Member States which are closely in line with the guidelines and
recommendations made under the European Employment Strategy and the agreed objectives of the
Community in relation to social inclusion, non-discrimination, the promotion of equality between
women and men, education and training, and those which apply the concept of lifelong learning
both within and outside the place of work, with special attention to initial training, to better con-
tribute to the implementation of the objectives and targets agreed at the Lisbon and Goteborg Euro-
pean Councils and the application of Articles 2 and 299(2) of the Treaty, with a particular view to
establishing conditions which will enable higher levels of productivity and competitiveness to be
achieved, greater social cohesion to be generated and better jobs to be created.

(5) This approach takes on greater significance in the light of the challenges stemming from EU

enlargement and the phenomenon of economic globalisation.

(6)

In this connection, the importance of the European social model must be acknowledged. However,
such acknowledgement increases the need for reforms to that model, so that support can continue to
be provided, in particular to people in vulnerable situations.

(7) New lessons have been learnt from the Community Initiative Programme EQUAL, especially in
respect of the combination of local, regional, national and European action, access by non-govern-
mental organisations and management of projects taken on by non-governmental organisations, the
participation of target groups, the identification of policy issues and their subsequent mainstream-
ing,
innovation and experimentation, transnationality, outreach to groups marginalised by the
labour market, and the addressing of the impact of social issues on the internal market.

(8) With a view to better anticipating and managing change, assistance by the ESF should focus,

in
particular, on increasing the adaptability of workers, enterprises and entrepreneurs to the effects of
globalisation and business restructuring, extending workers' qualifications, improving working con-
ditions, taking pro-active measures, such as outplacement and personalised career counselling
tailored to the individual's qualifications, to prevent redundancies from resulting in long-term
unemployment, enhancing access to employment and participation in the labour market with the
goal of achieving full employment, reinforcing the social inclusion of people at a disadvantage and
their access to employment, combating discrimination on the grounds set out in Article 13 of the
Treaty, poverty and social exclusion, and promoting partnerships for reform.

(1) OJ L …
(2) OJ L 213, 13.8.1999, p. 5.
(3) OJ L 248, 16.9.2002, p. 1.

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(9) The ESF should also be used to remedy problems relating to demographic changes in the EU's active
population. Particular attention should be paid to remedying such problems, in particular through
lifelong vocational training.

(10)

In addition to these priorities, in the least developed regions and Member States, under the conver-
gence objective and with a view to increasing economic growth, employment opportunities for
women and men, and quality and productivity at work, and encouraging economically inactive per-
sons to re-enter the labour market, it is necessary to expand and improve investment in human
capital and to improve institutional, administrative and judicial capacity, in particular to prepare and
implement reforms and enforce the ‘acquis’.

(11) Measures taken in the context of the regional competitiveness and employment objective and/or the

convergence objective should take account of Article 299(2) of the Treaty.

(12) The promotion of innovative activities should be integrated as a fundamental dimension in the scope
of the ESF as regards both the convergence objective and the regional competitiveness and employ-
ment objective. It should be ensured that innovative ideas and measures are promoted and tried out
in accordance with the European guidelines and recommendations under the European Employment
Strategy, and with the Community's objectives in the field of social inclusion. For such activities,
the ceiling for contributions from the ESF should be raised to 85 %.

(13) Promotion of transnational cooperation should be integrated as a fundamental dimension in the
scope of the ESF. Coordination measures in the framework of transnational, cross-border and inter-
regional cooperation should be 100 % funded by the ESF.

(14)

It is necessary to ensure the coherence of the action of the ESF with the policies provided for under
the European Employment Strategy, and to concentrate ESF support on the implementation of the
guidelines and recommendations on employment and of the Community's objectives in the field of
social inclusion and Member States' national action plans on social inclusion. The ESF may also
support activities that go beyond national employment plans if they are necessary because of
regional and local particularities and if, as a result, the Lisbon employment objectives, social inclu-
sion and social cohesion can be better achieved. The ESF should also aim at achieving synergies
with assistance from other funds, in favour of sustainable local, regional and national development.
ESF support is also key to achieving social inclusion and education and training targets.

(15) An efficient and effective implementation of the action supported by the ESF relies on good govern-
ance and partnership between all relevant territorial and socio-economic actors and in particular the
social partners and other stakeholders including at regional and local level.

(16) In addition to the need to simplify the legislation in this area, there is a particular need for the
procedures to be revised so that they can be made simpler, quicker and less bureaucratic with a view
to improving effectiveness and quality in the use of funds and ensuring that the timetables for
current actions are more closely adhered to.

(17) Arrangements may be introduced whereby local groups, including non-governmental organisations,
may gain simple and rapid access to Fund support for operations concerned with combating social
exclusion and thereby build up their capacity for action in that field.

(18) The Member States and the Commission must ensure that the implementation of the priorities
financed by the ESF under the Convergence and Regional Competitiveness and Employment Objectives
contribute to the promotion of equality and elimination of inequalities between women and men and
between disadvantaged groups and the societal majority; a gender and minority mainstreaming
approach should be combined with specific action to improve access to employment and to increase
sustainable participation and progress of women, people with disabilities, immigrants and ethnic
minorities — particularly the Roma — in employment.

(19) The ESF should also support technical assistance, in accordance with the budgetary authority's deci-
sions, with a particular focus on encouraging mutual learning through exchanges of experiences dis-
semination, transfer of good practices and on highlighting the contribution of the ESF to the policy
objectives and priorities of the Community in relation to employment and social inclusion and com-
bating social exclusion and discrimination.

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(20) Regulation (EC) No …/2005 [laying down general provisions on the European Regional Development
Fund, the European Social Fund and the Cohesion Fund] provides that eligibility of expenditure is to be
established at national level, with certain exceptions, for which it is necessary to lay down specific
provisions. The exceptions relating to the ESF should therefore be laid down,

HAVE ADOPTED THIS REGULATION:

Article 1

Subject

This Regulation establishes the tasks of the European Social Fund (‘ESF’) and the scope of its assistance with
regard to the ‘Convergence’ and the ‘Regional competitiveness and employment’ objectives as defined in
Article 3 of Regulation (EC) No …/2005 [laying down general provisions on the European Regional Development
Fund, the European Social Fund and the Cohesion Fund] and the types of expenditure eligible for assistance.

Article 2

Mission

1.
The ESF shall strengthen economic, social and territorial cohesion by improving employability and
job opportunities, encouraging a high level of employment and ensuring more and better jobs. It shall do
so by supporting Member States' policies aiming to achieve full employment, improve employment oppor-
tunities and quality and productivity at work in all its aspects, promote social inclusion, combat social
exclusion, including by improving disadvantaged people's access to employment, and promote non-dis-
crimination on all grounds set out in Article 13 of the Treaty and equality between men and women, and
the reduction of national, regional and local employment disparities.

In particular, the ESF shall support action in line with the guidelines and recommendations adopted under
the European Employment Strategy and having regard to the commitments of the Member States'
national action plans on social inclusion and their downstream instruments.

In carrying out the tasks referred to in paragraph 1, the ESF shall support the priorities of the Com-
2.
munity as regards the need to reinforce social cohesion, strengthen productivity and competitiveness, and
promote economic growth and sustainable development. In particular, the ESF shall promote the partici-
pation of economically inactive people in the labour market and support actions which reflect the objec-
tives of the Community in the fields of combating social exclusion, in particular that of disadvantaged
groups such as people with disabilities, education and training, equality between women and men and
non-discrimination.

The ESF shall ensure that the principles developed by the EQUAL programme are taken into consider-
ation, in particular by combining local, regional, national and European initiatives; providing access for
non-governmental organisations and encouraging project leadership by non-governmental organisations;
supporting the participation of target groups; identifying and then incorporating political issues; recog-
nising the practical importance of policy development; innovation and experimentation; pursuing a bot-
tom-up and cross-border approach; promoting access to the labour market for marginalised groups and
addressing the social effects on the internal market.

Article 3

Scope of assistance

1. Within the framework of the convergence and the regional competitiveness and employment objec-
tives, the ESF shall support action and innovative measures in the Member States and in the context of
transnational cooperation under the following priorities:

(a)

increasing adtaptability of workers and enterprises, in particular by promoting:

(i)

lifelong learning and increased investment in human resources by enterprises, especially SMEs,
and workers, through the promotion of responsibility-taking and business start-ups, the devel-
opment and implementation of lifelong learning systems and strategies which ensure improved

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access to in-house training of, in particular, all low-skilled workers, highly-skilled workers and
older workers, transparency of qualifications and competencies including accreditation of those
acquired abroad, dissemination of ICT skills and the promotion of entrepreneurship and inno-
vation;

(ii)

the anticipation and positive management of economic change, notably through increased indus-
trial investment, especially by SMEs, the design and dissemination of innovative and more pro-
ductive forms of work organisation, the improvement of quality of the workplace, including
health and safety at work, by giving specific support to SMEs and micro-businesses and their
representative organisations at national, regional and local level in the implementation of exist-
ing legislation and by promoting an appropriate balance between safety and flexibility, the
identification of future occupational and skills requirements, the adequate supply of possibilities
for part-time work, the development of specific employment, occupational and training services,
as well as outplacement and support services to improve the protection of workers from the
effects of company and sector restructuring, as well as the promotion of vocational education in
SMEs, particularly with regard to apprenticeships, and the taking of measures to enhance the
necessary work skills and promote reorientation, consultancy and professional training on the
employment market;

(b)

enhancing access to employment and the sustainable inclusion in the labour market of job seekers
and inactive people, particularly searching for solutions to long-term and youth unemployment and
the cross-border integration of labour markets, preventing unemployment, and its recurrence, pro-
longing working lives and increasing participation in the labour market of women, people with dis-
abilities, legal migrants, inactive people over 40 but still of working age, the long-term unemployed
and members of ethnic minorities — especially the Roma — in particular by promoting:

(i)

(ii)

the modernisation and strengthening of
in particular employment
services and other initiatives in the context of the European Union's and the Member States'
strategies for full employment;

labour market institutions,

the implementation of active and preventive measures ensuring early identification of needs and
personalised career support, advice and training in connection with individual action plans, job
search, outplacement and mobility, as well as measures encouraging self-employment and busi-
ness creation, the creation of incentives and promotion of working conditions likely to keep
people in employment for longer, specific measures to promote young people's access to the
labour market, in particular through the establishment of occupational traineeships and entre-
preneurship incentives, the use of the social economy and the intermediate labour market model
on a pathway to full employment, childcare and transport support as mechanisms to encourage
inactive people and the unemployed to work;

(iii) mainstreaming and specific action to improve access to employment and increase sustainable
participation and progress of women in employment, and to eliminate direct and indirect
gender-based segregation in the labour market including by addressing the roots of the gender
pay gaps; special attention should be given to women wishing to re-enter the job market after
maternity or parental leave, and women made redundant who have only a few years left to
qualify for pension rights;

(iv) promotion of specific measures to reconcile work and private life, including the facilitating of

access to childcare and care for dependent persons;

(v)

specific action to strengthen the social integration of migrants and increase their participation in
employment, including guidance and language training and validation of competences acquired
abroad;

(vi) special measures to offset the particular constraints arising from the special characteristics of

the outermost regions, in accordance with Article 299(2) of the Treaty;

(vii) mental health support to economically inactive people, where appropriate;

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(c)

reinforcing social inclusion and sustainable inclusion in the labour market of people at a disadvan-
tage and combating social exclusion and all kinds of discrimination in the labour market and com-
munities at large, for example by promoting:

(i)

pathways to integration in employment and society for disadvantaged people, migrants, members
of ethnic minorities — especially the Roma — people living in disadvantaged settlements or
parts of settlements, people without schooling, early school leavers, people with disabilities, the
poor and the long-term unemployed, and the access and ease of return to employment for
people experiencing social exclusion including the over 50s and lone parents, early school
leavers, minorities, asylum seekers and people with disabilities, through employability and social
and community integration measures, including in the field of the social economy, accompanying
actions and promotion of the relevant social support, neighbourhood and care services;

(ii) promotion of specific measures to improve the social inclusion of migrants and increase their
participation in employment, e.g. through advisory services, language teaching and the vali-
dation of skills obtained abroad;

(iii) diversity in the workplace, and combating discrimination through vocational training, encour-
aging access, participation and progress within the labour market, by raising the awareness and
involvement of local communities and enterprises and promoting local development initiatives,
such as urban social projects, lifelong learning and active citizenship;

(iv) the creation of jobs suitable for people with disabilities, and the willingness on the part of

employers to employ people with disabilities;

(v)

specific actions to raise awareness among employers of the requirement to provide reasonable
accommodation under Council Directive 2000/78/EC of 27 November 2000 establishing a gen-
eral framework for equal treatment in employment and occupation (1), to provide information
and assistance to employers as regards making their working environments accessible for dis-
abled persons, and to train employers in equal opportunities recruitment, disability awareness
and non-discrimination;

(vi) actions to facilitate the re-entry to the labour market of those from disadvantaged groups such

as persons with disabilities and those providing care for dependent persons;

(vii) neighbourhood ownership, leadership and democracy — to equip individuals, voluntary and
community groups with the skills to enhance their participation in community life as well as to
connect disadvantaged individuals with employment and other opportunities in the labour mar-
ket;

(d) mobilising for reforms that push for full employment, increased quality of work and inclusion, in
particular by promoting business start-ups and the further development and implementation of part-
nerships and pacts through networking of relevant stakeholders at transnational, national, regional and
local level, such as social partners and non-governmental organisations, especially those in the fields
of social inclusion and equal opportunities for men and women, and of local employment initiatives
and territorial employment pacts, in order to increase employment, skills and opportunities, and
improve outcomes;

(e)

enhancing human capital, in particular through the design and introduction of reforms in education
and training systems.

2. Within the framework of the convergence objective and in the cohesion countries the ESF shall also
support action under the following priorities:

(a)

Expanding and improving investment in human capital, in particular by promoting:

(i)

the implementation of reforms in education and training systems designed to prepare individuals
to work independently and to promote responsibility-taking and business start-ups, with a view
to raising people's responsiveness to the needs of a knowledge-based society and the need for
lifelong learning, improving the labour market relevance of initial education and training and
continually updating the skills of teaching and other personnel;

(1) OJ L 303, 2.12.2000, p. 16.

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(ii)

(iii)

increased participation in education and training throughout the life-cycle,
including through
action to achieve a significant decline in early school leaving and segregation and increased access
to initial vocational training and to education at all levels;

the development of human potential in research and innovation, notably through post-graduate
studies and training and related networking activities between universities, research centres and
enterprises in the form of public-private partnerships or other types of cooperation between the
various economic and social players;

(iv) adaptation of the workplace environment to give consideration to issues of work/life balance;

(b)

Strengthening institutional capacity and efficiency of public administration, public services, the social
partners, civil society and non-governmental organisations at national, regional and local level to
embrace reforms and good governance, especially in the economic, employment, social, environmental
and judicial fields, in particular by promoting:

(i)

(ii)

good policy and programme design, monitoring and evaluation, through studies, statistics and
expertise, support to interdepartmental coordination and dialogue between relevant public and
private bodies;

capacity building in the delivery of policies and programmes, including with regard to the enforce-
ment of legislation, especially through ongoing managerial and staff training and specific support
to key services, inspectorates and socio-economic actors including social partners, relevant non-
governmental organisations and representative professional organisations.

3.
In implementing the objectives and priorities referred to in paragraphs 1 and 2, the ESF shall support
the promotion and mainstreaming of innovative activities as a separate item as well as cooperation
in particular through sharing of information,
between Member States at national and regional
experiences, results and good practices, and through developing complementary approaches and coor-
dinated or joint action.

level,

4.
The ESF shall support information and awareness-raising measures targeting the public, imple-
mented by the Member States with the aim of fighting discrimination and promoting equal treatment
and opportunities for women and men in the workplace and society.

In implementing the social inclusion priority referred to in paragraph 1(c)(i), the financing by the ESF
5.
of actions within the scope of the Regulation (EC) No …/2005 of the European Parliament and of the Council
[on the European Regional Development Fund] (1) may amount to a maximum of 10 % of the priority axis
concerned.

Article 4

Coherence and concentration

1.
The Member States shall ensure that the action supported by the ESF is consistent with the targets,
and underpins the implementation, of the European Employment Strategy and the objectives of the Com-
munity in the fields of social inclusion, education, training and equality between men and women. In
particular, they shall ensure that the actions set out in the strategic frame of reference and in the operational
programmes promote in each Member State the objectives, priorities and targets of the national employ-
ment and social inclusion plans. The Member States shall concentrate support in particular on the imple-
mentation of the employment recommendations made under Article 128(4) of the Treaty as well as of the
relevant objectives of the Community in the field of social inclusion and combating social exclusion. The
ESF may also support measures that go beyond a Member State's national employment plan if they are
necessary owing to regional and local particularities and if, as a result, the Lisbon employment objectives,
social inclusion and social cohesion can be better achieved.

(1) OJ L …

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2. Within operational programmes, resources shall be directed towards the most important needs and
focus on those policy areas to which ESF support can bring about a significant effect in view of the attain-
ment of the objectives of the programme. To maximise the efficiency of ESF support, operational pro-
grammes shall take particular account of the regions and localities facing most serious problems, including
deprived urban areas, declining rural and fisheries dependent areas, islands, mountainous and remote
regions, regions with a low population density or a demographic handicap and those particularly
adversely affected by business relocations.

The relevant elements of the Member States' annual reports referred to in Article 19 of Regulation (EC)
3.
No …/2005 [laying down general provisions on the European Regional Development Fund, the European Social
Fund and the Cohesion Fund], shall be integrated respectively in the corresponding national action plans for
employment and national action plans for social inclusion.

4.
The quantified objectives and indicators selected to monitor the implementation of the national stra-
tegic frame of reference defined in Article 18 of Regulation (EC) No …/2005 [laying down general provisions
on the European Regional Development Fund, the European Social Fund and the Cohesion Fund], shall be those
used in the implementation of the European Employment Strategy and in the context of the agreed objec-
tives of the Community in the fields of social inclusion, non-discrimination, education and training and
equality between women and men. The monitoring indicators for operational programmes should be cohe-
rent with those quantified objectives.

5.
Evaluations undertaken in relation to the action of the ESF shall also assess the contribution of the
action supported by the ESF to the implementation of the European Employment Strategy and to the objec-
tives of the Community in the fields of social inclusion, non-discrimination, the promotion of equality
between women and men and education and training in the Member State concerned.

Article 5

Good governance and partnership

1.
The ESF shall promote good governance and partnership. Its support shall be designed and imple-
mented at the appropriate territorial level, with particular attention to the regional and local level, according
to the institutional arrangements specific to each Member State.

2.
The Member States and the managing authority of each operational programme shall ensure the
involvement and adequate access of the social partners, and adequate consultation and participation of
non-governmental stakeholders, particularly in the areas of social inclusion, non-discrimination and the
equal treatment of men and women, at the appropriate territorial level, which may at the same time be
both the national and regional level, in the programming, implementation and monitoring of ESF support.

The Member States shall take the necessary measures to inform the population and the relevant

3.
stakeholders about the operational programmes and activities eligible for financing by the ESF.

The managing authorities of each operational programme shall encourage adequate participation and

4.
access of social partners to the activities funded under Article 3 of this Regulation.

At least 2 % of ESF resources shall be allocated to capacity-building, training and networking measures,
strengthening the social dialogue and activities jointly undertaken by the social partners, in particular as
regards the strengthening of the role of non-governmental organisations and the Community adaptability
of workers and enterprises referred to in Article 3(1)(a), and to the capacity building activities of repre-
sentative non-governmental organisations active in the fields of social inclusion and non-discrimination.

The managing authority of each operational programme shall encourage adequate participation and
5.
ensure simple and rapid access by the non-governmental organisations concerned to the funded activities,
notably in the domains of social inclusion, in particular of disadvantaged groups such as people with
disabilities, non-discrimination and equality of opportunity between women and men.

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Under the convergence objective, at least 1 % of ESF resources shall be allocated to capacity-building and
measures for the education and networking activities of non-governmental organisations, in particular
those active in the fields of social inclusion and combating discrimination, as provided for under Article 3
(1)(c).

6. When responsibility for implementation is delegated, support in the framework of a programme may
be provided through global grants.

7.
In the context of the programmes' priorities for innovative activities pursuant to Article 3(3),
a fund may be created to support a limited proportion of programmes for small projects involving local
actors. Funding shall be allocated in the form of global subsidies. ‘Small projects’ shall mean those of up
to EUR 300 000.

The managing authority shall ensure access to that fund by non-governmental organisations working in
the domains of social inclusion and anti-discrimination on terms no less favourable than those of the
EQUAL programme.

Article 6

Gender equality and equal opportunities

The Member States and the managing authorities shall ensure that operational programmes include an
analysis of their gender-specific impact, that the allocation of funds suitably reflects the specific needs
of men and women, and that gender equality is promoted in the programming, implementation, moni-
toring and evaluation, including by the setting of specific objectives and targets with clear time-tables,
and the use of qualitative and quantitative gender indicators.

The Member States and the managing authorities shall ensure that gender budgeting is implemented at
all stages of the operational programme.

The Member States and the managing authorities shall ensure a balanced participation of women and
men in the management and realisation of the operational programmes at local, regional and national
level.

Article 7

Non-discrimination

The Member States and the managing authorities shall ensure that operational programmes include a
description of how the social inclusion of people with disabilities and vulnerable groups, and non-discrimi-
nation principles are to be promoted and achieved in the programming, implementation, monitoring and
evaluation phases, using specific indicators.

Article 8

Innovation

In the framework of each operational programme, Member States and managing authorities shall pay par-
ticular attention to the promotion and mainstreaming of innovative activities as a separate item, especially
those which promote closer cooperation between different public, social and economic players. After con-
sulting the Monitoring Committee referred to in Article 47 of Regulation (EC) No …/2005 [laying down
general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion
Fund], the managing authority shall choose the themes for the funding of innovation in accordance with
the European employment guidelines and shall define the appropriate modalities of implementation. Inno-
vative activities should account for at least 1 % of the operational programme. For such activities the ESF
co-financing share shall be 85 %.

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Article 9

Trans-national co-operation

The Member States and managing authorities may set up a specific priority axis within an operational
1.
programme or a specific operational programme in the programming of transnational and inter-regional
cooperation activities. For such activities the ESF share be 85 %. Coordination measures within the frame-
work of transnational and inter-regional cooperation shall be 100 % funded by the ESF.

2.
The Member States shall ensure coherence and complementarity between the action of the Fund and
actions supported through other Community trans-national programmes, in particular in the field of edu-
cation and training, through appropriate co-ordination mechanisms, to optimise the use of Community
resources in support of education and life-long learning.

Article 10

Innovative measures and technical assistance

At least 1 % of ESF resources shall be allocated to the Commission to finance operations of an innovative
nature and pilot projects in the context of labour markets, employment, and vocational training, as well
as operations within the framework of social dialogue, directed at employees and concerning the transfer
of specialised knowledge in areas falling within the scope of the ESF.

Moreover, the Commission shall promote in particular development of fora and the creation of regional
employment pacts when preparing programme planning, exchanges of experience, awareness raising activ-
ities, seminars, networking and peer reviews to identify and disseminate good practices and encourage
mutual learning with the aim of enhancing the policy dimension and contribution of the ESF to the objec-
tives of the Community in relation to employment, notably of young and older people, social inclusion,
non-discrimination and the reconciling of work and family life.

Article 11

Progress and implementation reports

The reports to be submitted every two years and final implementation reports referred to in Article 66 of
Regulation (EC) No …/2005 [laying down general provisions on the European Regional Development Fund, the
European Social Fund and the Cohesion Fund], shall contain a summary and assessment of the implemen-
tation of:

(a) gender mainstreaming as well as of any gender specific action;

(b) mainstreaming of groups suffering discrimination, including actions to secure social integration,

accessibility for and employment of persons with disabilities;

(c)

action to strengthen social integration of migrants and to improve their access to employment;

(d) action to strengthen social integration and employment of people belonging to disadvantaged groups:
members of ethnic minorities, people with disabilities, people living in disadvantaged settlements and
parts of settlements, people who have received no schooling, the poor and the long-term unemployed;

(e) action to strengthen social integration of other disadvantaged groups and to improve their access to

employment;

(f) action to enhance the vocational qualifications of workers;

(g)

innovative activities, including a justification of the themes selected for innovation, a presentation of
their results and of their dissemination and mainstreaming;

(h) action to strengthen cooperation between the public and private sectors;

(i) action to promote the involvement of social players and their integration in local, regional, national

and transnational networks;

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(j)

trans-national, cross-border and inter-regional co-operation activities;

(k) measures to encourage self-employment and business start-ups;

(l)

the coordination of ESF funds with measures under national employment plans, the European
Employment Strategy and the Lisbon Strategy;

(m) actions to address social exclusion and assessment of economic inactivity rates.

Article 12

Eligibility

The ESF shall provide support towards public expenditure which takes the form of non-reimbursable
1.
individual or global grants, reimbursable grants, loan interest rebates and micro-credits and the purchase of
goods and services in accordance with the Member States' laws applicable to public tenders.

2.

The following expenditure shall not be eligible for ESF support:

(a) Reimbursable VAT;

(b)

Interests on debt;

(c) Purchase of infrastructure, depreciable movables, real estate and land.

3.
Notwithstanding paragraph 2 of this Article, the eligibility rules set out in Article 6 of Regulation (EC)
No …/2005 [on the European Regional Development Fund] shall apply to actions co-financed by the ESF
which fall within the scope of Article [2] of that Regulation.

Notwithstanding national eligibility rules, the expenditure declared under the operational programmes

4.
co-financed by the ESF can include:

(a)

(b)

the allowances or salaries disbursed by a third party to the benefit of the participants in an operation
and certified to the beneficiary, on condition that such disbursements constitute the national public co-
financing to the operation, in conformity with national rules in force;

the indirect costs of an operation fixed on a flat-rate basis, up to 20 % of the directs costs declared for
this operation, according to the type of operation, the context in which it is implemented and its
location.

Article 13

Transitional provisions

This Regulation shall not affect neither the continued implementation nor the modification, including the
total of partial cancellation, of measures approved by the Council or by the Commission on the basis of
Regulation (EC) No 1784/1999, which applied prior to 1 January 2007.

Applications made under Regulation (EC) No 1784/1999 shall remain valid.

Article 14

Repeal

Regulation (EC) No 1784/1999 is repealed with effect from 1 January 2007.

References to Regulation (EC) No 1784/1999 shall be construed as reference to this Regulation.

Article 15

Review clause

Acting in accordance with the procedure laid down in Article 251 of the Treaty, the European Parliament
and the Council shall review this Regulation by 31 December 2013 at the latest.

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Article 16

Entry in force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official
Journal of the European Union.

It shall apply from 1 January 2007.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at …, on …

For the European Parliament
The President

For the Council
The President

P6_TA(2005)0282

European Fisheries Fund *

European Parliament legislative resolution on the proposal for a Council regulation on the European
Fisheries Fund (COM(2004)0497 — C6-0212/2004 — 2004/0169(CNS))

(Consultation procedure)

The European Parliament,

— having regard to the Commission proposal to the Council (COM(2004)0497) (1),

— having regard to Article 37 of the EC Treaty, pursuant to which the Council consulted Parliament

(C6-0212/2004),

— having regard to Rule 51 of its Rules of Procedure,

— having regard to the report of the Committee on Fisheries and the opinions of the Committee on
the Committee on Budgetary Control and the Committee on Budgets

Regional Development,
(A6-0217/2005),

1.

2.

Approves the Commission proposal as amended;

Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

Specifies that the appropriations indicated in the proposal for a regulation are purely indicative until

3.
agreement is reached on the financial perspective for the period relating to 2007 and the following years;

4.
Calls on the Commission to confirm, once the next financial perspective has been adopted, the
amounts indicated in the proposal for a regulation or, should the case arise, to submit the adjusted amounts
for approval by the European Parliament and the Council, thereby ensuring their compatibility with the
ceilings;

5.

Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

Asks the Council to consult Parliament again if it intends to amend the Commission proposal substan-

6.
tially;

7.

Instructs its President to forward its position to the Council and Commission.

(1) Not yet published in OJ.