EAPN: Fighting for a Social Europe Free of Poverty

1. EAPN: Fighting for a Social Europe Free of Poverty Tanya Basarab, EAPN Development Officer Vincent Caron, EAPN Policy Officer EAPN EU Inclusion Strategies Group Brussels 11th February 2012 Financing Inclusion through EU Funds EUROPEAN ANTI-POVERTY NETWORK RÉSEAU EUROPÉEN DES ASSOCIATIONS DE LUTTE CONTRE LA PAUVRETÉ ET L’EXCLUSION SOCIALE

2. Structure of Presentation • Presentation of the EU Programme for Social Change and Innovation & other EU Financial Mechanisms 2014-2020 (Tanya Basarab) • Presentation of the Commission’s legislative package on the future of Structural Funds (2014-2020) (Vincent Caron)

3. EU Programme for Social Change and Innovation (EUPSCI) • Progress within EUPSCI: A new programme with 3 axes – total 958.19 million (1% of Structural Funds): • Progress (60% - €574 million) • European Microfinance Facility (20%) • EURES (15%) • Overall spending for Progress remains the same, but no more minimum spending per strand within the programme so figures are for everything together (employment and social policy and working conditions legislation)

4. EU Programme for Social Change and Innovation (EUPSCI) • Progress objectives: • analysis, comparative data, studies (20%) • Mutual learning and information sharing (25-50%) • Social experimentation (17%) • The capacity of the Union and national oganisations to develop, promote and implement the EU employment and social policy legislation. (20%) !!! EAPN is funded under this objective.

5. EU Programme for Social Change and Innovation (EUPSCI) • European Microfinance Facility: • Support to micro-finance targeting also disadvantaged groups • Managed by European Investment Bank through European Investment Fund (50/50 with EC) • 15 actors in 13 countries • Guaranteeing loans (83 mln) • Capacity building of institutions (5 mln) • Financing social enterprises (93 mln)

6. EU Programme for Social Change and Innovation (EUPSCI) • EURES: • - Analysis of the job market • Matching CVs and calls, particularly in areas where some member states have high demand • Your first EURES Job – supporting young people for job mobility • Information and guidance for job seekers • Integration of job seekers (intra EU) • All based on EU migration policy, so addressing only EU citizens

7. EU Programme for Social Change and Innovation (EUPSCI) • EAPN focuses on PROGRESS: Concerns (1) • Shifting the overall wording in the program from “employment and social policy and legislation on working conditions” to “policy and legislation in the fields of employment, social protection, social inclusion, combating poverty and improving working conditions” • Specifying follow-up on key EU priorities identified so far under Social OMC work

8. EU Programme for Social Change and Innovation (EUPSCI) • EAPN concerns (2) • Including the reinforced Social OMC among key instruments that should deliver on Europe 2020 • Including participation of relevant stakeholders, including NGOs and people experiencing poverty and social exclusion in the policy-making processes • Including awareness-raising and transnational calls to help foster stakeholder involvement with Europe 2020, EPAP and the Social OMC

9. Other EU Funds • All funding instruments should contribute to Europe 2020 objectives and flagship initiatives. All programmes include innovation and refer to social inclusion but not coherent on meaning. • Horizon 2020 (the new research programme) 80 billion, easier access to NGOs and opportunities under “inclusive and secure societies” • Erasmus for All (education, training, youth and sports) – 2% allocated to adult learning. Europe for Citizens – 229 million budget – (EU related debates and citizen engagement) • Citizenship Programme (equality and anti-discrimination work)

10. What can members do? • Small chance to achieve change on EUPSCI, but talk to your SPC members about EAPN concerns and give them our amendmentproposals. • EAPN will try to secure some calls to support national NGO engagement with EU processes • Will continue to advocate for support to bottom-up innovation, not only social experimentation lead by public authorities.

11. Update on the future of Structural Funds: Overview of the Commission’s legislative package • Key figures: a contrasted picture • A decrease of 5,3% : 336 EUR billion against 354,8 EUR billion • An increase of the minimum overall share for the ESF of 25% of the budget allocated to cohesion policy: 84 EUR billion ; Minimum shares for the European Social Fund will be established for each category of regions (25% for convergence regions; 40% for transition; and 52% for competiveness regions) • ERDF budget: 183,3 EUR billion • Convergence regions: 162,6 EUR billion • Transition regions: 39 EUR billion • Competitiveness regions: 11,7 EUR billion • Cohesion Fund: 68,7 EUR billion • Connecting Europe Facility for transport, energy and ICT: 40 EUR billion

12. The General Regulation: A higher but underused social inclusion potential 1/3 • General principle: Structural Funds to deliver the Europe 2020 priorities of smart, sustainable and inclusive growth taking into account of the Integrated Guidelines and National Reform Programmes • The main novelties for aligning Structural Funds with Europe 2020 • A simplified architecture: 2 goals “Investments in Growth and Jobs” and “European Territorial Cooperation” with 3 categories of regions: • Less developed regions (less than 75% of the average GDP of the EU27); • Transition regions (GDP between 75% and 90% of the EU 27 average) • More developed regions (GDP above 90% of the EU 27 average) • A Strategic approach linking the Europe 2020 Strategy to Cohesion Policy: • A Common Strategic Framework; • Partnership contracts drawn up by MS in cooperation with partners setting out the indicative allocation of support by the EU by thematic objective at national level for each of the Funds… • Operational programmes

13. The General Regulation: A higher but underused social inclusion potential 1/3 A more prominent role given to social inclusion and NGOs involvement • Promoting social inclusion and combating poverty as the 9th thematic objective • A more assertive partnership principle: • NGOs shall be involved in the preparation of Partnership Contracts, progress reports as well as in the preparation, implementation, monitoring and evaluation of operational programmes (including the participation in monitoring committees); • Setting up by the Commission of a European code of conduct • Horizontal principles: promotion of equality between men and women and non-discrimination as well as sustainable development • Promoting territorial development through community-led local initiatives in the framework of local development strategies • Simplified delivery system: encourage and facilitate the use of flat rates and lump sums for small projects

14. The General Regulation: A higher but underused social inclusion potential 3/3 • Some worrying structural changes • Introduction of macro-economic conditionalities prior to the disbursement of Funds. For Member States facing excessive budget deficit and, thus, not complying with the growth and stability pact rules, Structural Funds could be suspended by the European Commission. • Risk to penalize people facing poverty and social exclusion (as beneficiaries) • A growing focus on thematic concentration whose level depends on the categories of Regions concerned and that could lead to prioritize growth-enhancing priorities (competitiveness of SMEs, innovation, energy efficiency, ICT…)

15. Increased ESF role in reducing poverty and social exclusion • An increased and secured ESF Budget: a minimum share for the ESF, representing at least 25% of the budget allocated to Cohesion Policy (i.e. EUR 84 billion). • Promoting social inclusion and combating poverty clearly identified as one of the four thematic objectives: through active inclusion, the integration of marginalized communities, but also through combating discrimination, enhancing access to affordable, sustainable and high quality services, promoting social economy and social enterprises and community-led local development strategies. • A minimum ring-fencing allocation of 20% dedicated to promoting social inclusion and combating poverty. • An attempt to facilitate transnational co-operation • Giving effectiveness to the partnership principle: explicit reference of non-governmental organizations as relevant partners for the implementation of the OPs with a possible use of global grants and capacity-building (but only in less developed Regions). • Promotion of social innovation : testing and scaling-up innovative solutions to address social needs)

16. ERDF Regulation: still focused on the growth and jobs model • 3 “social-oriented” priorities: • Promoting employment and labour mobility; • Promoting social inclusion and combating poverty (investments in health and social infrastructures/ physical and economic regeneration of deprived urban and rural communities/ support for social entreprises) • Investments in skills, education and lifelong learning by developing education infrastructures • But: • A high level of thematic concentration: In more developed and transition regions, at least 80% of ERDF resources (50% in less developed regions) would be concentrated around purely growth-enhancing expenditure (energy efficiency and renewable energy; SME competitiveness and innovation) • A relative failure to mainstream social considerations in the investment priorities like R&D, ICT, competitiveness of SMEs, Climate change, Environment and energy efficiency, transports, infrastructures.

17. Provisional Timeline • February 2012: Adoption of the Common Strategic Framework • End of 1st semester of 2012: Publication of the European Code of Conduct followed by a 3 months consultation period • 2012: discussion/ vote of the Structural Funds’ Regulation (ESF, ERDF, Cohesion Fund…) at the European Parliament and the Council • 2013: Preparation/ Adoption of the Partnership contracts and OPs

18. EAPN Actions • January 2011: EAPN Response to the 5th Cohesion Report • In 2010, 2011: participation to structured dialogue meetings organised by DG REGIO • 2011: Meetings with DG EMPL (ESF Coordination Unit) • October 2011: Letter to Directors General in charge of Cohesion Policy • Ongoing activities: • End of February 2012: EAPN Response to the Commission’s legislative package • - End of February 2012: Proposals for amendments on the General Regulation, ESF, ERDF

19. EAPN Main concerns • Defend an ambitious Cohesion Policy budget – restoring the threatened 5% cut • Defend the 20% allocation ring-fenced for social inclusion and the fight against poverty that is under threat • The impression of sidelining the Europe 2020 objectives through introduction of macro-economic conditionality and no proper ‘social’ monitoring process beyond the NRPs; • Integrated social inclusion approaches still play a marginal role outside the ESF; • The growing focus on thematic concentration in all funds that seems likely to weaken the social strand; • The little progress being made towards more effective social inclusion indicators (hard and soft indicators)

20. What can Members do? • Contacting their Government Representatives/ Managing Authorities and their MEPs to raise EAPN concerns and give them our proposals for amendments • EAPN will work on helping NNs to get involved from the start in the partnership contracts and OPs.

21. Thank you for your attention • For more information • On EUPSCI and other EU Funds: Tanya Basarab, EAPN Development Officer • Tany.basarab@eapn.eu • On Structural Funds: Vincent Caron, EAPN Policy Officer • Vincent.caron@eapn.eu • See: www.eapn.eu EUROPEAN ANTI-POVERTY NETWORK RÉSEAU EUROPÉEN DE LUTTE CONTRE LA PAUVRETÉ ET L’EXCLUSION SOCIALE SQUARE DE MEEUS, 18 – 1050 BRUSSELS TEL: 0032 2 226 58 50 – FAX: 0032 2 26 58 69 www.eapn.eu - team@eapn.eu