Select Committee on European Scrutiny Eighteenth Report


11  EUROPEAN SOCIAL FUND FOR 2007-13

(a)
(25853)
11636/04
COM(04) 493

(b)
(27217)
13531/05
COM(05) 523

Draft Regulation on the European Social Fund




Amended draft Regulation on the European Social Fund


Legal base(a) and (b) Article 148 EC; co-decision; QMV
Document originated(b) 17 October 2005
Deposited in Parliament (b) 23 January 2006
DepartmentWork and Pensions
Basis of consideration (b) EM of 2 February 2006
Previous Committee Report (a) HC 42-xxxii (2003-04), para 10 (13 October 2004)
(b) None
To be discussed in Council (b) No date set
Committee's assessmentPolitically important
Committee's decision(a) Cleared
(b) Not cleared; further information requested

Background

11.1 In October 2004, the previous Committee reported to the House on document (a), the Commission's draft of a Regulation to establish the European Social Fund for 2007-13.[18]

11.2 Our predecessors also reported on the draft of a Regulation (the General Regulation) laying down general provisions on the European Social Fund, the European Regional Development Fund and the Cohesion Fund, including the total size of the budget for the Funds and the broad objectives to which they would contribute.[19]

11.3 The draft Regulation on the European Social Fund (ESF) supplements the proposed General Regulation. The purpose of the ESF would be to strengthen economic and social cohesion by supporting Member States' policies aimed at achieving full employment, improving the quality of work and productivity, promoting social inclusion and reducing regional employment disparities.

11.4 The ESF would have four broad priorities:

  • increasing the adaptability of workers and enterprises;
  • increasing access to employment for job-seekers and economically inactive people, preventing unemployment, prolonging working lives and increasing the participation of women and migrants in the labour market;
  • reinforcing the social inclusion of people at a disadvantage and combating discrimination; and
  • supporting reforms in employment.

11.5 The draft Regulation would require Member States to ensure that action supported by the ESF is consistent with the implementation of the European Employment Strategy.

11.6 The previous Committee kept document (a) under scrutiny pending progress reports on the negotiations and the settlement of the budget for the Funds, which could have a significant effect on the priorities of the ESF.

Document (b)

11.7 The European Parliament gave the draft ESF Regulation a first reading in July 2005. It adopted 85 amendments. Document (b) gives the Commission's opinion on them. It also set out a revised text of the draft Regulation, incorporating the European Parliament amendments which the Commission is willing to accept.

11.8 The Commission has accepted most of the amendments in whole or part. They include amendments to:

  • emphasise the contribution the ESF should make to the achievement of the Community's priorities for a high level of employment and more and better jobs, in line with the Lisbon strategy and the European Employment Strategy;
  • reinforce the role of the ESF in combating social exclusion by improving access to employment;
  • strengthen the references to promoting equality between men and women; and
  • give additional examples of activities which may be supported by the ESF, such as apprenticeships and e-learning.

For example, the Commission has incorporated the European Parliament's eighth amendment into the following new recital:

    "The ESF should also act in a preventive way by tackling the relevant dimensions and consequences of demographic changes in the active population of the Community, in particular through lifelong vocational training."

The Government's view on document (b)

11.9 The Parliamentary Under-Secretary of State at the Department of Work and Pensions (Mr James Plaskitt) tells us that the Government welcomes the amendments that strengthen the link between the ESF and the European Employment Strategy and that reflect the Lisbon strategy for jobs and growth. The Government is keen to ensure that the ESF is used where it can add value to Member States' policies to increase employment and improve the skills of the workforce.

Conclusion

11.10 In our view, the amendments incorporated in the revised text of the draft Regulation (document (b)) are minor and do not significantly change the substance of the proposal.

11.11 Document (a) has been superseded by document (b) and so we clear it. We ask the Minister for progress reports on the negotiations on document (b). We shall keep it under scrutiny until the budget for the Structural and Cohesion Funds has been settled.



18   See headnote. Back

19   See (25864) 11606/04: HC 42-xxxii (2003-04), para 10 (13 October 2004). Back


 
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