CELEX: 52011PC0607
Language: en
Date: 2011-10-06
Title: Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the European Social Fund and repealing Regulation (EC) No 1081/2006

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		52011PC0607
		
			Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the European Social Fund and repealing Regulation (EC) No 1081/2006 /* COM/2011/0607 final - 2011/0268 (COD) */
			
				
		
		
			
			   	EXPLANATORY MEMORANDUM
1.           CONTEXT OF THE PROPOSAL
Unemployment and persistently high rates of
poverty call for action at EU and national level. Almost 23 million people are
today unemployed and over 113 million are estimated to be living at risk of
poverty or exclusion. Social and employment issues are a primary concern of
European citizens, and an area where more is expected from the Union.
Additional challenges that the Union faces relate to: shortfalls in skill
levels, under-performance in active labour market policy and education systems,
social exclusion of marginalised groups, and low labour mobility. There is a
need both for policy initiatives and for concrete supporting actions.
Many of these problems have been
exacerbated by the financial and economic crisis, demographic and migratory
trends and the fast pace of technological change. Unless tackled effectively,
they constitute a significant challenge for social cohesion and
competitiveness. It is therefore essential to accompany growth-enhancing investment
in infrastructure, regional competitiveness and business development with
measures underpinning sustainable job creation in the areas of labour market
policy, education and training, social inclusion, adaptability of workers,
enterprises and entrepreneurs, and administrative capacity.
The European Social Fund (ESF) supports
policies and priorities aiming to achieve progress towards full employment,
enhance quality and productivity at work, increase the geographical and
occupational mobility of workers within the Union, improve education and
training systems, and promote social inclusion, thereby contributing to
economic, social and territorial cohesion.
As the ESF should be fully aligned with the
Europe 2020 Strategy and its headline targets, it should
support the policies pursued by the Member States under the Integrated
Guidelines adopted in accordance with Articles 121 and 148(4) of the Treaty and
the Recommendations on the National Reform Programmes. The setting of minimum
shares and amounts for the ESF as one of the Structural Funds will ensure that
the Union priorities are adequately reflected in the volume of investment that
directly targets European citizens.
The ESF will also make a valuable
contribution to other important priorities of the Europe 2020 Strategy, such as
strengthening our investment in research and innovation, enhancing the
accessibility and use of information and communication technologies, increasing
the competitiveness of small and medium-sized enterprises, supporting the shift
towards a low-carbon economy, protecting the environment, and promoting the
sustainable use of resources. The ESF will work in synergy with the new
integrated Programme for Social Change and Innovation. Together, they will
constitute the comprehensive European Employment and Social Inclusion
Initiative.
2.           RESULTS OF CONSULTATIONS WITH INTERESTED
PARTIES AND IMPACT ASSESSMENTS
The results of the public consultations for
the 5th Progress Report on Economic, Social and Territorial Cohesion[1] , the EU Budget Review[2] and the proposals for the
multi-annual financial framework[3]
have all been considered for the present proposal.
The public consultation on the conclusions of
the 5th Cohesion Report was held between 12 November 2010 and 31
January 2011 and concluded with the Cohesion Forum. A total of 444
contributions were received. Respondents included Member States, regional and
local authorities, social partners, European interest organisations,
non-governmental organisations, citizens and other stakeholders. The
consultation put forward a series of questions about the future of cohesion
policy. A summary of the results was published on 13 May 2011[4].
In addition, specific conferences and
seminars were organised focusing on the future of the ESF. In June 2010 the
conference ‘ESF and Europe 2020’ brought together over 450 high-level
representatives from public authorities, social partners and civil society at
EU and national level as well as from third countries. In addition, a seminar
with NGOs and social partners on the future of the ESF took place in December
2010.
Furthermore, on 7 October 2010, the
European Parliament adopted a resolution on the future of cohesion policy and the ESF[5]. The European Commission has
also asked for and received exploratory opinions from the Economic and Social
Committee[6]
and the Committee of the Regions[7].
Expert advice was provided through the ESF
Committee ad-hoc group on the future of the European Social Fund, an informal
group of experts from the Member States and the social partners. The ad hoc
group met 7 times between December 2009 and March 2011. In addition, a working
group with Member States representatives was set up to discuss common
indicators. It met four times and laid the ground for the proposed indicators.
The ESF Committee itself issued opinions on the future of the ESF at its
meetings of 3 June 2010 and 10 March 2011. Both the Employment Committee (EMCO) and the Social
Protection Committee (SPC) also issued specific opinions, in January and March
2011, respectively.
The results of the ex-post evaluations
carried out on the 2000-2006 programmes, and a broad range of studies, were
used as input. An impact assessment has been specifically conducted for the ESF
Regulation, as part of a package of three impact assessments also covering the
ERDF and the Cohesion Fund Regulations and the impact assessment for the
General Regulation governing the ESF, ERDF and Cohesion Fund.
The impact assessment for the ESF
Regulation mainly addressed the scope of the instrument and one specific aspect
of simplification. It also discussed the articulation between and
complementarity with the financial instruments available to the Commission’s
Directorate-General for Employment, Social Affairs and Inclusion, notably the
ESF, the European Globalisation Adjustment Fund, the PROGRESS programme, EURES
and the PROGRESS Microfinance Facility.
There is very broad support for the role of
the ESF. The ESF is seen as providing considerable European added value in
allowing Member States and regions to address key European priorities through
European funding. It is considered an essential building block for addressing
the main challenges faced by Europe citizens and for progressing towards the
targets set in the Europe 2020 strategy. Concentration on the main challenges
and Council Recommendations is widely seen as an important precondition for the
effectiveness of support. Reducing the complexity of support and the related
audit burden, notably for smaller beneficiaries, is also seen as an important
area that needs to be addressed.
3.           LEGAL ELEMENTS OF THE PROPOSAL
The European Social Fund (ESF) is
established by Article 162 of the Treaty on the Functioning of the European
Union (TFEU). The timing of the review of EU funding to promote cohesion is
linked to the proposal for a new Multiannual Financial Framework, as contained
in the Commission’s Work Programme.
The present proposal for a Regulation is
based on Article 164 TFEU. Council Regulation
(EU) No […] establishes the framework for action by the Structural Funds and
the Cohesion Fund and lays down, in particular, the thematic objectives, the
principles and the rules concerning programming, monitoring and evaluation,
management and control.
Within this general framework, the present
proposal defines the ESF’s mission and scope, together with the associated
investment priorities addressing the thematic objectives, and lays down
specific provisions concerning operational programmes co-financed by the ESF
and concerning eligible expenditure.
The ESF will operate within the context of
Article 174 TFEU, which calls for action by the European Union to strengthen
its economic, social and territorial cohesion and promote overall harmonious
development by reducing disparities between the levels of development of the regions
and promoting development in the least-favoured regions.
As the EU Budget
Review has highlighted, the ‘EU budget should be used to finance EU public
goods, actions that Member States and regions cannot finance themselves, or
where it can secure better results’[8].
The present proposal respects the principle of subsidiarity as the tasks of the
ESF are set out in the Treaty and policy is implemented in accordance with the
principle of shared management and respecting the institutional competences of
the Member States and regions.
4.           BUDGETARY IMPLICATIONS
The Commission’s proposal for a Multiannual
Financial Framework includes EUR 376 bn for cohesion policy for the period
2014-2020.
 Proposed budget 2014-2020 || EUR bn || Minimum ESF share || Resulting minimum ESF amount EUR bn 
 Less developed regions Transition regions More developed regions Territorial cooperation Cohesion fund Extra allocation for outermost and sparsely populated regions || 162.6 38.9 53.1 11.7 68.7 0.926 || 25 % 40 % 52 % - - - || 40.7 15.6 27.6 - - -   
 Connecting Europe Facility for transport, energy and ICT || EUR 40 bn (with an additional EUR 10 bn ring-fenced inside the Cohesion Fund) || - ||   
*All figures in
constant 2011 prices
With the aim of enhancing the ability of
the Funds to deliver on the headline targets of the Europe 2020 strategy, the
present proposal establishes minimum shares for the ESF for each category of
regions defined in the proposal for a General Regulation. This results in a
minimum overall share for the ESF of 25 % of the budget allocated to
cohesion policy (excluding the allocation to the Connecting Europe Facility),
i.e. EUR 84 billion. The indicated minimum ESF allocation includes the budget
(EUR 2.5 billion) for a forthcoming Commission proposal regarding food support
for the most deprived persons.
5.           SUMMARY
OF THE CONTENT OF THE REGULATION
In terms of scope, the draft ESF Regulation
for 2014-2020 proposes to target the ESF on four ‘thematic objectives’
throughout the European Union: (i) promoting employment and labour mobility; (ii)
investing in education, skills and lifelong learning; (iii) promoting social
inclusion and combating poverty; (iv) enhancing institutional capacity and an
efficient public administration. Each thematic objective is translated into
intervention categories or ‘investment priorities’. In addition, the ESF should
contribute also to other thematic objectives such as supporting the shift
towards low-carbon, climate resilient and resource efficient economy, enhancing
the use of information and communication technologies, strengthening research,
technological development and innovation and enhancing the competitiveness of
small and medium-sized enterprises.
Concentration of funding is required to
achieve a sufficient and demonstrable impact. In order to ensure this
concentration, it is proposed that
–                        
support for administrative capacity should be
limited to Member States with less developed regions or eligible to the
Cohesion Fund;
–                        
at least 20 % of the ESF allocation should
be dedicated to ‘promoting social inclusion and combating poverty’;
–                        
operational programmes should concentrate
funding on a limited number of ‘investment priorities’.
Furthermore, the draft Regulation clarifies
and strengthens the ESF contribution to the Union's commitment to eliminate
inequalities between women and men and prevent discrimination. Member States
should combine a robust mainstreaming approach and specific actions to promote
gender equality and non-discrimination.
Likewise, the draft Regulation aims to
reinforce social innovation and transnational cooperation under the ESF,
through an incentive in the form of a higher co-funding rate for priority axes
dedicated to them, specific programming and monitoring arrangements, and a
stronger role for the Commission in the exchange and dissemination of good
practices, joint actions and results across the Union.
Concerning monitoring and evaluation
systems, the draft Regulation proposes minimum quality standards and a set of
compulsory common indicators. This should ensure that monitoring produces
robust and reliable data that can easily be aggregated at EU level and that
evaluation focuses on assessing the effectiveness and impact of ESF support.
The draft Regulation attaches great
importance to the involvement of social partners and non-governmental
organisations in the programming and implementation of ESF priorities and
operations.. To this end, for the less-developed regions and countries, the
draft Regulation calls for an appropriate amount of ESF resources to be
allocated to capacity building actions for social partners and non-governmental
organisations. Joint activities undertaken by the social partners will also be
supported, considering their vital role in the field of employment, education
and social inclusion. 
In the same spirit, the draft Regulation
proposes a limited number of specific eligibility rules to facilitate access to
ESF funding for smaller beneficiaries and operations and to take account of the
different nature of ESF operations and the different type of ESF beneficiaries as
compared to other Funds. In order to ensure that simplification reaches the
beneficiaries, the draft Regulation proposes to extend the use of simplified
cost options, including by making their use obligatory for smaller operations.
These provisions will reduce the administrative burden on beneficiaries and
managing authorities, strengthen the results orientation of the ESF and will
contribute to reducing error rates.
Finally, specific provisions are introduced
for financial instruments to encourage Member States and regions to leverage
the ESF and thus increase its capacity to finance actions supporting
employment, education and social inclusion.       

2011/0268 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL
on the European Social Fund and repealing
Regulation (EC) No 1081/2006
THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 164 thereof,
Having regard to the proposal from the
European Commission[9],
After transmission of the draft legislative
act to the national Parliaments,
Having regard to the opinion of the
European Economic and Social Committee[10],
Having regard to the opinion of the
Committee of the Regions[11],
Acting in accordance with the ordinary
legislative procedure,
Whereas:
(1)              
Regulation (EU) No […] establishes the framework
for action by the European Social Fund (ESF), the European Regional Development
Fund (ERDF), the Cohesion Fund, the European Agricultural Fund for Rural
Development and the European Maritime and Fisheries Fund and lays down, in
particular, the thematic objectives, the principles and the rules concerning
programming, monitoring and evaluation, management and control. It is therefore
necessary to specify the mission and scope of the European Social Fund,
together with the related investment priorities addressing the thematic
objectives, and to lay down specific provisions concerning the type of
activities which may be financed by the ESF.
(2)              
The ESF should improve employment opportunities,
promote education and life-long learning and develop active inclusion policies
in accordance with the tasks entrusted to the ESF by Article 162 of the Treaty,
and thereby contribute to economic, social and territorial cohesion in
accordance with Article 174 of the Treaty. In
accordance with Article 9 of the Treaty, the ESF should take into account
requirements linked to the promotion of a high level of employment, the
guarantee of adequate social protection, the fight against social exclusion,
and a high level of education, training and protection of human health. 
(3)              
The European Council of 17 June 2010 called for
all common policies, including cohesion policy, to support the Europe 2020
Strategy for smart, sustainable and inclusive growth"[12]. In order to ensure the full
alignment of the ESF with the objectives of this strategy, particularly as
regards employment, education, and the fight against social exclusion, the ESF
should support Member States in implementing the Council recommendations on
broad guidelines for economic policies of the Member States and the Union and the Council decisions on guidelines for
the employment policies of the Member States adopted in accordance with
Articles 121 and 148(4) of the Treaty. It should also contribute to the
implementation of the flagship initiatives, with special regard to the
"Agenda for New Skills and Jobs"[13],
"Youth on the Move"[14],
and the "European Platform against Poverty and Social Exclusion"[15]. It will also support the
activities in the "Digital Agenda"[16]
and the "Innovation Union"[17]
initiatives.
(4)              
The European Union is confronted with structural
challenges arising from economic globalisation, technological change and an
increasingly ageing workforce and growing skills and labour shortages in some
sectors and regions. They have been compounded by the recent economic and
financial crisis, which has resulted in increased levels of unemployment,
hitting in particular young people and other vulnerable groups, such as
migrants. The ESF should aim to promote employment and support labour mobility,
invest in education, skills and life-long learning, promote social inclusion
and combat poverty. In promoting the better functioning of labour markets by
enhancing the transnational geographical mobility of workers, the ESF should,
in particular, support European Employment Services (EURES activities) in
relation to recruitment and the related information, advice and guidance
services at national and cross-border level.
(5)              
In addition to these priorities, in the less developed
regions and Member States, and with a view to increasing economic growth and
employment opportunities, the efficiency of public administration should be
improved and the institutional capacity of stakeholders delivering employment, education
and social policies should be strengthened.
(6)              
At the same time, it is crucial to support the
development and competitiveness of European small and medium-sized enterprises
and to ensure that people can adapt, through acquiring appropriate skills and
through lifelong learning opportunities, to new challenges such as the shift to
a knowledge-based economy, the digital agenda, and the transition to a
low-carbon and more energy-efficient economy. By pursuing its primary thematic
objectives, the ESF should contribute to addressing these challenges. In this
context, the ESF should support the labour force transition towards greener
skills and jobs, in particular in the energy efficiency, renewable energy and
sustainable transport sectors, taking into account the Union's intention to
increase the proportion of the EU budget that is related to climate
mainstreaming to at least 20%, with contributions from different policy fields.
(7)              
The ESF should contribute to the Europe 2020
Strategy, ensuring greater concentration of support on the priorities of the
European Union. The ESF should in particular increase its support for the fight
against social exclusion and poverty, through a minimum ring-fenced allocation.
According to the level of development of the supported regions, the choice and
number of investment priorities for ESF support should also be limited.
(8)              
In order to ensure closer monitoring and
improved assessment of the results achieved at European level by actions
supported by the ESF, a common set of output and result indicators should be
established.
(9)              
Efficient and effective implementation of
actions supported by the ESF depends on good governance and partnership between
all relevant territorial and socio-economic actors, in particular the social
partners and non-governmental organisations. It is therefore necessary that
Member States encourage the participation of social partners and
non-governmental organisations in the implementation of the ESF.
(10)          
The Member States and the Commission should
ensure that the implementation of the priorities financed by the ESF contribute
to the promotion of equality between women and men in accordance with Article 8
of the Treaty. Evaluations have shown the importance of taking the gender
aspect into account in all dimensions of programmes, while ensuring that
specific actions are taken to promote gender equality.
(11)          
In accordance with Article 10 of the Treaty, the
implementation of the priorities financed by the ESF should contribute to
combating discrimination based on sex, racial or ethnic origin, religion or
belief, disability, age or sexual orientation. The ESF should support the
fulfilment of the obligation under the UN Convention on the Rights of Persons
with Disabilities with regard inter alia to education, work and employment and
accessibility. The ESF should also promote the transition from institutional to
community-based care.
(12)          
Support for social innovation is crucial for
making policies more responsive to social change and to encourage and support
innovative social enterprises. In particular, testing and evaluating innovative
solutions before scaling them up is instrumental in improving the efficiency of
the policies and thus justifies specific support from the ESF.
(13)          
Transnational cooperation has a significant
added value and it is necessary to reinforce the Commission’s role in
facilitating exchanges of experience and coordinating implementation of
relevant initiatives.
(14)          
The mobilisation of regional and local
stakeholders is necessary to deliver the Europe 2020 Strategy and its headline
targets. Territorial pacts, local initiatives for employment and social
inclusion, community-led local development strategies and sustainable urban
development strategies may be used and supported to involve more actively
regional and local authorities, cities, social partners and non-governmental
organisations in the implementation of programmes.
(15)          
Regulation (EU) No […] provides that rules on
eligibility of expenditure are to be established at national level, with
certain exceptions for which it is necessary to lay down specific provisions
with regard to the ESF.
(16)          
With a view to simplifying the use of the ESF
and reducing the risk of errors, and with regard to the specificities of the
operations supported by the ESF, it is appropriate to lay down provisions which
complement Articles 57 and 58 of Regulation (EU) No […].
(17)          
The Member States and regions should be
encouraged to leverage the ESF through financial instruments in order to
support for example students, job creation, mobility of
workers, social inclusion and social entrepreneurship.
(18)          
The power to adopt acts in accordance with
Article 290 of the Treaty on the Functioning of the European Union should be
delegated to the Commission for establishing the definition of standard scales
of unit costs and lump sums and their maximum amounts according to different
types of operations and for defining the specific rules and conditions of
policy-based guarantees. It is of particular importance that the Commission
carries out appropriate consultations during its preparatory work, including at
expert level. The Commission, when preparing and drawing up delegated acts,
should ensure the simultaneous, timely and appropriate transmission of relevant
documents to the European Parliament and the Council.
(19)          
This Regulation replaces Regulation (EU) No
1081/2006 of the European Parliament and of the Council of 5 July 2006 on the
European Social Fund and repealing Regulation (EC) No 1784/1999[18]. That Regulation should
therefore be repealed,
HAVE ADOPTED THIS REGULATION:
Chapter I
General provisions
Article 1
Subject matter
This Regulation establishes the mission of
the European Social Fund (ESF), the scope of its assistance, specific
provisions and the types of expenditure eligible for assistance.
Article 2
Mission
1.                      
The ESF shall promote high levels of employment
and job quality, support the geographical and occupational mobility of workers,
facilitate their adaptation to change, encourage a high level of education and
training, promote gender equality, equal opportunities and non-discrimination,
enhance social inclusion and combat poverty, thereby contributing to the
priorities of the European Union as regards strengthening economic, social and
territorial cohesion.
2.                      
It shall do so by supporting Member States in
pursuing the priorities and headline targets of the Europe 2020 strategy for
smart, sustainable and inclusive growth. The ESF shall support the design and
implementation of policies and actions, taking account of the integrated
guidelines for the economic and employment policies of Member States[19] and the Council
Recommendations on the National Reform Programmes.
3.                      
The ESF shall benefit people, including
disadvantaged groups such as the long-term unemployed, people with
disabilities, migrants, ethnic minorities, marginalised communities and people
facing social exclusion. The ESF shall also provide support to enterprises,
systems and structures with a view to facilitating their adaptation to new
challenges and promoting good governance and the implementation of reforms, in particular
in the fields of employment, education and social policies.
Article 3
Scope of support
1.                      
Under the thematic objectives listed below, and
in accordance with Article 9 of Regulation (EU) No […], the ESF shall support
the following investment priorities:
(a)         
Promoting employment and supporting labour
mobility through:
(i)      Access to employment for job-seekers
and inactive people, including local employment
initiatives and support for labour mobility;
(ii)      Sustainable integration of young
people not in employment, education or training into the labour market;
(iii)     Self-employment, entrepreneurship
and business creation;
(iv)     Equality between men and women and
reconciliation between work and private life;
(v)     Adaptation of workers, enterprises and
entrepreneurs to change;
(vi)     Active and healthy ageing;
(vii)    Modernisation and strengthening of
labour market institutions, including actions to enhance transnational labour
mobility;
(b)         
Investing in education, skills and life-long
learning through:
(i)      Reducing early school-leaving and
promoting equal access to good-quality early-childhood, primary and secondary
education;
(ii)      Improving the quality, efficiency
and openness of tertiary and equivalent education with a view to increasing
participation and attainment levels;
(iii)     Enhancing access to lifelong
learning, upgrading the skills and competences of the workforce and increasing
the labour market relevance of education and training systems;
(c)         
Promoting social inclusion and combating poverty
through:
(i)      Active inclusion;
(ii)      Integration of marginalised
communities such as the Roma;
(iii)     Combating discrimination based on
sex, racial or ethnic origin, religion or belief, disability, age or sexual
orientation;
(iv)     Enhancing access to affordable,
sustainable and high-quality services, including health care and social
services of general interest;
(v)     Promoting the social economy and
social enterprises;
(vi)     Community-led local development
strategies;
(d)         
Enhancing institutional capacity and efficient
public administration through:
(i)      Investment in institutional capacity
and in the efficiency of public administrations and public services with a view
to reforms, better regulation and good governance;      
This investment priority is only applicable throughout the territory of the
Member States which have at least one NUTS level 2 region as defined in Article
82(2)(a) of Regulation (EU) No […] or in Member States eligible for Cohesion
Fund support.
(ii)      Capacity building for stakeholders
delivering employment, education and social policies and sectoral and
territorial pacts to mobilise for reform at national, regional and local level.
2.                      
Through the investment priorities listed in
paragraph 1, the ESF shall also contribute to the other thematic objectives
listed in Article 9 of Regulation (EU) No […], primarily by:
(a)         
Supporting the shift towards a low-carbon,
climate-resilient, resource-efficient and environmentally sustainable
economy, through reform of education and training systems, adaptation of skills
and qualifications, up-skilling of the labour force, and the creation of new
jobs in sectors related to the environment and energy;
(b)         
Enhancing the accessibility, use and quality of
information and communication technologies, through the development of digital
literacy, investment in e-inclusion, e-skills and related entrepreneurial
skills;
(c)         
Strengthening research, technological
development and innovation, through the development of post-graduate studies,
the training of researchers, networking activities and partnerships between
higher education institutions, research and technological centres and
enterprises;
(d)         
Enhancing the competitiveness of small and
medium-sized enterprises, through promoting the adaptability of enterprises and
workers and increased investment in human capital.
Article 4
Consistency and thematic
concentration
1.                      
Member States shall ensure that the strategy and
actions set out in the Operational Programmes are consistent and focused on
addressing the challenges identified in the National Reform Programmes and the
relevant Council Recommendations made under Article 148(4) of the Treaty, in
order to contribute to achieving the headline targets of the Europe 2020
strategy on employment, education and poverty reduction.
2.                      
At least 20 % of the total ESF resources in
each Member State shall be allocated to the thematic objective "promoting
social inclusion and combating poverty" set out in Article 9(9) of
Regulation (EU) No […].
3.                      
Member States shall pursue thematic
concentration according to the following modalities:
(a)              
For more developed regions, Member States shall
concentrate 80 % of the allocation to each operational programme on up to
four of the investment priorities set out in Article 3(1).
(b)              
For transition regions, Member States shall
concentrate 70 % of the allocation to each operational programme on up to
four of the investment priorities set out in Article 3(1).
(c)              
For less developed regions, Member States shall
concentrate 60 % of the allocation to each operational programme on up to
four of the investment priorities set out in Article 3(1).
Article 5
Indicators
1.                      
Common indicators as set out in the Annex
to this Regulation and programme specific indicators shall be used in
accordance with Article 24(3) and 87(2)(b)(ii) of Regulation (EU) No […]. All
indicators shall be expressed in absolute numbers.       
Common and programme specific output indicators relate to partially or fully
implemented operations. Where relevant to the nature of the operations
supported, cumulative quantified target values shall be fixed for 2022.
Baseline indicators shall be set at zero.            
Common and programme specific result indicators relate to the priority axes or
the sub-priorities established under a priority axis. Baseline indicators shall
use the latest available data. Cumulative quantified target values shall be
fixed for 2022.
2.                      
At the same time as the annual implementation
reports, the managing authority shall transmit electronically structured data
for each investment priority. The data shall cover the categorisation and the
output and result indicators.
Chapter II
Specific provisions for programming and implementation
Article 6
Involvement of partners
1.                      
The involvement of the social partners and other
stakeholders, in particular non-governmental organisations, in the
implementation of operational programmes, as referred to in Article 5 of
Regulation (EU) No […], may take the form of global grants as defined in
Article 112(7) of Regulation (EU) No […]. In such a case, the operational
programme shall identify the part of the programme concerned by the global grant,
including an indicative financial allocation from each priority axis to it.
2.                      
To encourage adequate participation of the
social partners in actions supported by the ESF, managing authorities of an
operational programme in a region as defined in Article 82(2)(a) of Regulation
(EU) No […] or in Member States eligible for Cohesion Fund support shall ensure
that an appropriate amount of ESF resources is allocated to capacity-building
activities, in the form of training, networking measures, and strengthening of
the social dialogue, and to activities jointly undertaken by the social
partners.
3.                      
To encourage adequate participation of and
access by non-governmental organisations to actions supported by the ESF,
notably in the fields of social inclusion, gender equality and equal
opportunities, the managing authorities of an operational programme in a region
as defined in Article 82(2)(a) of Regulation (EU) No […] or in Member States
eligible for Cohesion Fund support shall ensure that an appropriate amount of
ESF resources is allocated to capacity-building for non-governmental
organisations.
Article 7
Promotion of equality
between men and women
The Member States and the Commission shall
promote equality between men and women through mainstreaming as referred to in
Article 7 of Regulation (EU) No […] and specific targeted actions as referred
to in Article 3(1)(a)(iv), in particular with the aim of increasing the
sustainable participation and progress of women in employment, reducing
gender-based segregation in the labour market, combating gender stereotypes in
education and training and promoting reconciliation of work and personal life
for men and women.
Article 8
Promotion of equal
opportunities and non-discrimination
The Member States and the Commission shall
promote equal opportunities for all, including accessibility for disabled
persons through mainstreaming the principle of non-discrimination, as referred
to in Article 7 of Regulation (EU) No […], and through specific actions
within the investment priorities as defined in Article 3, and in particular
Article 3(1)(c)(iii). Such actions shall target people at risk of
discrimination and people with disabilities, with a view to increasing their
labour market participation, enhancing their social inclusion, reducing inequalities
in terms of educational attainment and health status and facilitating the
transition from institutional to community-based care.
Article 9
Social innovation
1.                      
The ESF shall promote social innovation within
all areas falling under the scope of the ESF, as defined in Article 3 of this
Regulation, in particular with the aim of testing and scaling up innovative
solutions to address social needs.
2.                      
Member States shall identify themes for social
innovation, corresponding to their specific needs in their operational
programmes.
3.                      
The Commission shall facilitate capacity
building for social innovation, in particular through supporting mutual
learning, establishing networks, and disseminating good practices and
methodologies.
Article 10
Transnational cooperation
1.                      
Member States shall support transnational
cooperation with the aim of promoting mutual learning and thereby increasing
the effectiveness of policies supported by the ESF. Transnational cooperation
shall involve partners from at least two Member States.
2.                      
Member States may select themes for
transnational co-operation from a list proposed by the Commission and endorsed
by the ESF Committee.
3.                      
The Commission shall facilitate transnational
cooperation on the themes referred to in paragraph 2 through mutual learning
and coordinated or joint action. In particular, the Commission shall operate an
EU-level platform to facilitate the exchange of experience, capacity building
and networking, as well as dissemination of the relevant outcomes. In addition,
the Commission shall develop a coordinated implementation framework, including
common eligibility criteria, types and timing of actions, and common
methodological approaches for monitoring and evaluation, with a view to
facilitating transnational cooperation.
Article 11
Fund-specific provisions
for operational programmes
1.                      
By way of derogation from Article 87(1) of
Regulation (EU) No […], operational programmes may set out priority axes for
the implementation of social innovation and transnational cooperation as
referred to in Articles 9 and 10.
2.           By way of derogation from
Article 109(3) of Regulation (EU) No […], the maximum co-financing rate for a
priority axis shall be increased by ten percentage points, but not exceeding
100%, where the whole of a priority axis is dedicated to social innovation or
to transnational cooperation, or a combination of both.
3.           In addition to the
provision made in Article 87(3) of Regulation (EU) No […], operational
programmes shall also set out the contribution of planned
ESF-supported actions:
(a)         
to the thematic objectives listed under Article
9(1) to (7) of Regulation (EU) No […] by priority axis, as appropriate;
(b)         
to social innovation and transnational
cooperation, as referred to in Articles 9 and 10, where they are not covered by
a dedicated priority axis.
Article 12
Specific provisions on the
treatment of particular territorial features
1.           The ESF may support
community-led local development strategies, as referred to in Article 28 of
Regulation (EU) No […], territorial pacts and local initiatives for employment,
education and social inclusion, as well as Integrated Territorial Investments
(ITI) as referred to in Article 99 of Regulation (EU) No […].
2.           Complementing ERDF
interventions as referred to in Article 7 of Regulation (EU) No [ERDF], the ESF
may support sustainable urban development through strategies setting out
integrated actions to tackle the economic, environmental and social challenges
affecting urban areas of cities which are listed in the partnership contract.
Chapter III
Specific provisions for financial management
Article 13
Eligibility of expenditure
1.                      
The ESF shall provide support for eligible
expenditure, which, notwithstanding Article 109(2)(b) of Regulation (EU) No
[…], may include any financial resources collectively constituted by employers
and workers.
2.                      
By derogation to Article 60(2) of Regulation
(EU) No […], the ESF may provide support for expenditure incurred for
operations which take place outside the programme area, but within the Union,
provided that the two following conditions are satisfied:
(a)         
the operation is for the benefit of the
programme area;
(b)         
the obligations of the authorities for the
programme in relation to management, control and audit concerning the operation
are fulfilled by the authorities responsible for the programme under which that
operation is supported or they enter into agreements with authorities in the
Member State in which the operation is implemented provided that the conditions
set out in paragraph 2 (a) and the obligations in relation to management,
control and audit concerning the operation are fulfilled.
3.                      
In addition to the expenditure referred to in
Article 59(3) of Regulation (EU) No […], the purchase of infrastructure, land
and real estate shall not be eligible for a contribution from the ESF.
4.                      
Contributions in kind in the form of allowances
or salaries disbursed by a third party for the benefit of the participants in
an operation may be eligible for a contribution from the ESF provided that its
value does not exceed the cost borne by the third party and that it is incurred
in accordance with national rules, including accountancy rules.
Article 14
Simplified cost options
1.                      
In addition to the methods referred to in
Article 57 of Regulation (EU) No […], the Commission may reimburse expenditure paid by Member States on
the basis of standard scales of unit costs and lump sums defined by the
Commission. The amounts calculated on this basis shall be regarded as public
support paid to beneficiaries and as eligible expenditure for the purpose of
applying Regulation (EU) No […].
For this purpose the Commission shall be
empowered to adopt delegated acts in accordance with Article 16 concerning the
type of operations covered, the definitions of the standard scales of unit
costs and lump sums and their maximum amounts, which may be adjusted according
to the applicable commonly agreed methods. 
Financial audit shall exclusively aim at
verifying that the conditions for reimbursements by the Commission on the basis
of standard scales of unit costs and lump sums have been fulfilled. 
Where these forms of funding are used, the
Member State may apply its accounting practices to support operations. For the
purpose of this regulation and Regulation (EU) No […] these accounting
practices and the resulting amounts shall not be subject to audit by the audit
authority or by the Commission. 
2.                      
In accordance with Article 57(1)(d) and (4)(d)
of Regulation (EU) No […], a flat rate of up to 40 % of the eligible
direct staff costs may be used in order to cover the remaining eligible costs
of an operation. 
3.                      
Grants reimbursed on the basis of the eligible
cost of operations, determined in the way of flat-rate financing, standard
scales of unit costs and lump sums as referred to in Article 57(1) of
Regulation (EU) No […] may be calculated on a case-by-case basis by reference
to a draft budget agreed ex ante by the Managing Authority, where the public
support does not exceed EUR 100 000.
4.                      
Grants for which the public support does not
exceed EUR 50 000 shall take the form of lump sums or standard scales
of unit costs, except for operations receiving support within the framework of
a state aid scheme.           

Article 15
Financial instruments
1.                      
Pursuant to Article 32 of Regulation (EU) No
[…], the ESF may support actions and policies falling within its scope through
financial instruments, such as risk-sharing schemes, equity and debt, guarantee
funds, holding funds, and loan funds. 
2.                      
ESF may be used to enhance access to capital
markets for public and private bodies at national and regional levels
implementing actions and policies falling within the scope of the ESF and the
operational programme through ‘ESF policy-based guarantees’ subject to
Commission approval.
The Commission shall be empowered to adopt
delegated acts in accordance with Article 16 to define the specific rules and
conditions for the applications of Member States, including ceilings, for
policy-based guarantees, ensuring in particular that their
use does not lead to excessive levels of debt of public bodies. 
Each application shall be assessed by the
Commission and the Commission shall approve each 'ESF policy-based guarantee'
provided it falls within the remit of the Operational Programme referred to in
Article 87 of Regulation (EU) No […] and provided it is
in accordance with the established specific rules and conditions.          

Chapter IV
Delegations of power and final provisions
Article 16
Exercise of delegation
1.                      
The power to adopt delegated acts is conferred
on the Commission subject to the conditions laid down in this Article.
2.                      
The delegation of power referred to in Article
14(1) and 15(2) shall be conferred for an indeterminate period of time
from 1 January 2014.
3.                      
The delegation of powers referred to in the
first subparagraph of Article 14(1) and the second subparagraph of Article
15(2) may be revoked at any time by the European Parliament or by the Council.
A revocation decision shall put an end to the delegation of the power specified
in that decision. It shall take effect the day following the publication of the
decision in the Official Journal of the European Union or at a later
date specified therein. It shall not affect the validity of any delegated acts
already in force.
4.                      
As soon as it adopts a delegated act, the
Commission shall notify it simultaneously to the European Parliament and to the
Council.
5.                      
A delegated act adopted pursuant to the first
subparagraph of Article 14(1) and the second subparagraph of Article 15(2)
shall enter into force only if no objection has been expressed either by the
European Parliament or by the Council within a period of 2 months of
notification of that act to the European Parliament and the Council, or if, before the expiry of
that period, the European
Parliament and the Council have both informed the Commission that they will not
object. That period shall be extended by 2
months at the initiative of the European Parliament or the Council.
Article 17
Repeal
Regulation (EC) No 1081/2006 is hereby
repealed with effect from 1 January 2014.
References to the repealed Regulation shall
be construed as references to this Regulation.
Article 18
Review clause
The European Parliament and the Council
shall review this Regulation by 31 December 2020 in accordance with Article 164
of the Treaty.
Article 19
Entry in force
This Regulation shall enter into force on
the day following that of its publication in the Official Journal of the
European Union.
This Regulation shall be binding
in its entirety and directly applicable in all Member States.
Done at Brussels,
For the European Parliament                       For
the Council
The President                                                 The
President
ANNEX
Common output and result indicators for ESF investments
(1)                   
Common output indicators on participants
Participants[20] refer to persons benefiting
directly from an ESF investment and who can be identified and asked for their
characteristics, and for whom specific expenditure is earmarked. Other
beneficiaries should not be counted as participants.
·      unemployed, including long-term unemployed*
·      long-term unemployed*
·      inactive*
·      inactive, not in education or training*
·      employed, including self-employed*
·      below 25 years*
·      above 54 years*
·      with primary (ISCED 1) or lower secondary education (ISCED 2)*
·      with upper secondary (ISCED 3) or post-secondary education (ISCED
4)*
·      with tertiary education (ISCED 5 to 8)*
·      migrants, people with a foreign background, minorities (including
marginalised communities such as the Roma)**
·      disabled**
·      other disadvantaged**
The total number of participants is
calculated automatically on the basis of the output indicators.
These data on participants entering an ESF
supported operation are to be provided in the annual implementation reports as
specified in Article 44(1) and (2) and Article 101(1) of Regulation (EU) No
[…]. All data are to be broken down by gender. 

(2)                   
Common output indicators for entities
·      number of projects fully or partially implemented by social partners
or non-governmental organisations
·      number of projects targeting public administrations or public
services 
·      number of micro, small and medium-sized enterprises supported
These data are to be provided in the annual
implementation reports as specified in Article 44(1) and (2) and Article101(1)
of Regulation (EU) No […].         

(3)                   
Common immediate result indicators on
participants
·      inactive participants newly engaged in job searching upon leaving
·      participants in education/training upon leaving
·      participants gaining a qualification upon leaving
·      participants in employment upon leaving
These data are to be provided in the annual
implementation reports as specified in Article 44(1) and (2) and Article 101(1)
of Regulation (EU) No […]. All data are to be broken down by gender.            

(4)                   
Common longer-term result indicators on
participants
·      participants in employment 6 months after leaving
·      participants in self-employment 6 months after leaving
·      participants with an improved labour market situation 6 months after
leaving
These data are to be provided in the annual
implementation reports as specified in Article 44(4) of Regulation (EU) No […].
They are to be collected based on a representative sample of participants
within each priority axis or sub-priority. Internal validity of the sample
should be ensured in such a way that the data can be generalised at the level
of priority axis or sub-priority. All data are to be broken down by gender.
[1]               5th Report on Economic, Social and
Territorial Cohesion, November 2010.
[2]               Communication from the Commission to the European
Parliament, the Council, the European Economic and Social Committee, the
Committee of the Regions and the national parliaments: The EU Budget Review,
COM(2010) 700, 19.10.2010.
[3]               Communication from the Commission to the European
Parliament, the Council, the European Economic and Social Committee and the
Committee of the Regions: A Budget for Europe 2020, COM(2011) 500, 29.6.2011.
[4]               Commission Staff Working Paper: Results of the public
consultation on the conclusions of the fifth report on economic, social and
territorial cohesion, SEC(2011) 590 final, 13.5.2011.
[5]               European
Parliament resolution of 7 October 2010 on the future of the European Social
Fund, P7_TA(2010)0357            
European Parliament resolution of 7 October 2010 on EU cohesion and regional
policy after 2013, P7_TA(2010)0356.
[6]               OJ C 132/8, 3/05/2011.
[7]               OJ C 166/08, 7/06/2011.
[8]               COM(2010) 700, 19.10.2010.
[9]               OJ C , , p. .
[10]             OJ C , , p. .
[11]             OJ C , , p. .
[12]             COM(2010) 2020 final, 3.3.2010
[13]             COM (2010) 682 final, 23.11.2010
[14]             COM(2010) 477 final, 15.09.2010
[15]             COM (2010) 758 final, 16.12.2010
[16]             COM(2010) 245 final/2, 26.8.2010
[17]             COM(2010) 546 final, 6.10.2010
[18]             OJ L 210, 31.7.2006, p. 12.
[19]             Council recommendation of 13 July 2010 on broad
guidelines for economic policies of the Member States and the Union (OJ L 191, 23.7.2010, p. 28–34) and
Council decision of 21 October 2010 on guidelines for the employment policies
of the Member States (OJ L 308, 24.11.2010,
p. 46–51).
[20]             The data processing arrangements put in place by the
Member States must be in line with the provisions of Directive 95/46 of 24
October 1995 on the protection of individuals with regard to the processing of
personal data and on the free movement of such data, in particular Articles 7
and 8 thereof.      
Data reported under the indicators marked with * are personal data according to
Article 7 of the above Directive. Their processing is necessary for compliance
with the legal obligation to which the controller is subject (Article 7(c)).
For the definition of controller, see Article 2 of the above Directive. 
Data reported under the indicators marked with ** are a special category of
data according to Article 8 of the above Directive. Subject to the provision of
suitable safeguards, Member States may, for reasons of substantial public
interest, lay down exemptions in addition to those laid down in Article 8(2),
either by national law or by decision of the supervisory authority (Article
8(4)).