As part of the negotiation for the EU’s next 7-year budget, the European Commission wishes to radically change how EU funds will be managed after 2027, merging the European Social Fund (ESF+) with agricultural and regional funds to create a financial instrument that will finance national and regional reform plans rather than current ESF+ programmes. While 14 % of the plans shall be dedicated to social objectives, there are no clear safeguards about the allocation, and even less clarity on the involvement of social services in the drafting and implementation of those plans, which risks diverting funding to social infrastructure rather than investing in services required for social inclusion.
On June 11, 2026, alongside Parliament colleagues from across the political spectrum and nearly 150 delegates, the European Social Network (ESN) was hosted at the European Parliament to push for the protection of ESF+.
From the European Commission’s perspective, the goal of combining funding streams is to improve flexibility and simplify processes. Ruth Pasermann, Director of Funds, Programming and Implementation for DG EMPL did stress that a “strong partnership principle” and “an obligation to invest” remain at the heart of any changes.
For ESN, it is vital that ESF+ is kept as a separate fund with its own programming and budget to ensure that EU funds continue to support investment in social services, with earmarked budgets for social inclusion, with at least 25% on developing services for social inclusion.
The MFF proposal, including the idea of reform plans, risks weakening the dedicated focus on social inclusion, child poverty, and material support for the most deprived
As explained by ESN’s Chief Executive Officer, Alfonso Lara Montero, “The MFF proposal, including the idea of reform plans, risks weakening the dedicated focus on social inclusion, child poverty, and material support for the most deprived.”
From a local, regional, and national perspective, it was made clear from attendees the impact of these changes, as well as noting the importance of understanding the role of localities and regions in efforts to improve social inclusion.
Pilar Saénz de Ormijana, Financial Advisor, Spanish Permanent Representation to the EU, Spain - ECOFIN Committee of the Council of the EU, noted that “the delivery model based simply on targets and milestones” is a problem, and that “a strong role of the regions with the possibilities of having regional managing authorities" to “ensure social inclusion is achieved with/through ESF+”.
While the European Parliament has joined ESN’s position in its recent opinion report on the next EU budget, and some national parliaments have expressed their concerns on the Commission’s proposal (DE, CZ), EU Member States’ national governments have been less clear about their position.
Without safeguards, Member States will spend funds differently
That aside, representatives from across the political spectrum were clear at the event about the significant risks at play if the European Commission continues with its current plan.
MEP Marit Maij, S&D, The Netherlands, noted the specific risk that “without safeguards, Member States will spend [funds] differently”, and not on “assisting people to access the labour market and to ensure there will be an end to social exclusion for people from all different backgrounds and contexts”.
MEP Dennis Radtke, EPP, Germany, spoke on the need to “raise awareness to national politicians about the risks of the new MFF for social services and local communities”, to change national debates from reducing national contributions to the future EU budget, and more towards the significant harm that cuts could do to local communities.
As negotiations continue, it is crucial that the European Parliament maintains its position on the future EU budget and that Member States align with it to ensure that social services remain a priority in the next EU budget.
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