(1)

On 17 November 2017, the European Pillar of Social Rights (the ‘Pillar’) was jointly proclaimed by the European Parliament, the Council and the Commission as a response to social challenges in Europe. The 20 key principles of the Pillar are structured in three categories: equal opportunities and access to the labour market; fair working conditions; and social protection and inclusion. The 20 principles of the Pillar should guide the actions under the European Social Fund Plus (ESF+). In order to contribute to the implementation of the Pillar, the ESF+ should support investments in people and systems in the policy areas of employment, education and social inclusion, thereby supporting economic, territorial and social cohesion in accordance with Article 174 of the Treaty on the Functioning of the European Union (TFEU).

(2)

At Union level, the European Semester for economic policy coordination (the ‘European Semester’) is the framework to identify national reform priorities and monitor their implementation. Member States develop their own national multiannual investment strategies in support of those reform priorities. Those strategies should be presented alongside the yearly national reform programmes in order to outline and coordinate priority investment projects to be supported by Union or national funding.

They should also help to use Union funding in a coherent manner and to maximise the added value of the financial support to be received, in particular from the programmes supported by the Union under, where relevant, the European Regional Development Fund (ERDF) and Cohesion Fund the specific objectives and scope of support of which are set out in Regulation (EU) 2021/1058 of the European Parliament and of the Council (4), the ESF+, the European Maritime, Fisheries and Aquaculture Fund (EMFAF) established by a Regulation of the European Parliament and of the Council, the European Agricultural Fund for Rural Development (EAFRD) established by Regulation (EU) No 1305/2013 of the European Parliament and of the Council (5) and the InvestEU Programme established by Regulation (EU) 2021/523 of the European Parliament and of the Council (6) (InvestEU Programme).

(3)

Revised guidelines for the employment policies of Member States were adopted by means of Council Decision (EU) 2020/1512 (7). The text of those guidelines has been aligned with the principles of the Pillar, with a view to improving Europe’s competitiveness and making it a better place to invest, create jobs and foster social cohesion. In order to ensure the full alignment of the ESF+ with the objectives of those guidelines, particularly as regards employment, education, training and the fight against social exclusion, poverty and discrimination, the ESF+ should support Member States by taking into account the relevant integrated guidelines and relevant country-specific recommendations adopted pursuant to Article 121(2) and Article 148(2) and (4) TFEU and, where appropriate, the national reform programmes underpinned by national strategies. The ESF+ should also contribute to relevant aspects of the implementation of key Union initiatives and activities, in particular the Commission communications of 10 June 2016 entitled ‘A new Skills Agenda for Europe’, of 30 September 2020 entitled ‘European Education Area’, and of 7 October 2020 entitled ‘A Union of Equality: EU Roma strategic framework for equality, inclusion and participation’ as well as the Council Recommendations of 15 February 2016 on the integration of the long-term unemployed into the labour market, of 19 December 2016 on Upskilling Pathways, of 30 October 2020 on A Bridge to Jobs – Reinforcing the Youth Guarantee and of 12 March 2021 on Roma equality, inclusion and participation.

(4)

On 20 June 2017, the Council adopted conclusions entitled ‘A sustainable European future: the EU response to the 2030 Agenda for Sustainable Development’. The Council underlined the importance of achieving sustainable development across the three dimensions (economic, social and environmental) in a balanced and integrated way. It is vital that sustainable development is mainstreamed into all Union internal and external policy areas and that the Union is ambitious in its policies that address global challenges. The Council welcomed the Commission communication of 22 November 2016 entitled ‘Next steps for a sustainable European future’ as a first step in mainstreaming the United Nations (UN) Sustainable Development Goals (SDGs) and applying sustainable development as an essential guiding principle for all Union policies, including through its financing instruments. The ESF+ should contribute to the implementation of the SDGs by, inter alia, eradicating extreme forms of poverty (SDG 1); promoting quality and inclusive education (SDG 4); promoting gender equality (SDG 5); promoting sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all (SDG 8); and reducing inequality (SDG 10).

(5)

Recent and ongoing developments have aggravated the structural challenges arising from economic globalisation, social inequalities, the management of migration flows and the increased security threat, clean energy transition, technological change, demographic decline, unemployment, in particular youth unemployment, and an increasingly ageing workforce as well as challenges stemming from growing mismatches between demand and supply of skills and labour in some sectors and regions, experienced especially by small and medium-sized enterprises (SMEs). The green and digital transitions and the transformation of European industrial ecosystems are likely to entail many new opportunities, if accompanied by the right skill sets and employment and social policies and actions. Taking into account the changing realities of the world of work, the Union should be prepared for current and future challenges by investing in relevant skills, education, training and lifelong learning making growth more inclusive and by improving employment and social policies, while taking into account economic and industrial sustainability, labour mobility and aiming to establish a gender balanced labour market.

(6)

Regulation (EU) 2021/1060 of the European Parliament and of the Council (8) establishes the framework for action by the ERDF, the ESF+, the Cohesion Fund, the Just Transition Fund (JTF) established by Regulation (EU) 2021/1056 of the European Parliament and of the Council (9), the EMFAF, the Asylum, Migration and Integration Fund (AMIF), the Internal Security Fund (ISF) and the Instrument for Financial Support for Border Management and Visa Policy as a part of the Integrated Border Management Fund and lays down, in particular, the policy objectives and the rules concerning programming, monitoring and evaluation, management and control for Union funds implemented under shared management. It is therefore necessary to specify the general objectives of the ESF+ and to lay down specific provisions concerning the type of activities that may be financed by the ESF+.

(7)

Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (10) (the ‘Financial Regulation’) lays down rules on the implementation of the general budget of the Union (Union budget), including the rules on grants, prizes, procurement, indirect management, financial instruments, budgetary guarantees, financial assistance and the reimbursement of external experts. Co-financing for grants may be provided from beneficiaries’ own resources, income generated by the project or financial or in-kind contributions from third parties. In order to ensure consistency in the implementation of Union programmes, the Financial Regulation is to apply to the actions to be implemented under direct or indirect management under the ESF+.

(8)

The forms of Union funding and the methods of implementation under this Regulation should be chosen on the basis of their ability to achieve the specific objectives of the actions and to deliver results, taking into account, in particular, the costs of controls, the administrative burden, and the expected risk of non-compliance. For grants, this should include consideration of the use of lump sums, flat rates and unit costs, as well as financing not linked to costs as referred to in Article 125(1), point (a), of the Financial Regulation. To implement measures linked to the socio-economic integration of third-country nationals, and in accordance with Article 94 of the Regulation (EU) 2021/1060, the Commission may reimburse Member States using simplified cost options including lump sums.

(9)

In order to streamline and simplify the funding landscape and create additional opportunities for synergies through integrated funding approaches, the actions which were supported by the Fund for European Aid to the Most Deprived established by Regulation (EU) No 223/2014 of the European Parliament and of the Council (11), and by the European Union Programme for Employment and Social Innovation established by Regulation (EU) No 1296/2013 of the European Parliament and of the Council (12) should be integrated into the ESF+. The ESF+ should comprise of two strands: the strand under shared management (the ‘ESF+ strand under shared management’), to be implemented under shared management, and the Employment and Social Innovation strand (the ‘EaSI strand’), to be implemented under direct and indirect management. This should contribute to reducing the administrative burden linked to the management of different funds, in particular for Member States and beneficiaries, while maintaining simpler rules for simpler operations such as the distribution of food and/or basic material assistance.

(10)

In view of the wider scope of the ESF+, it is appropriate that the aims to enhance the effectiveness of labour markets, promote equal access to quality employment, improve equal access to and quality of education and training to aid reintegration into education systems, promote social inclusion, facilitate access to healthcare for vulnerable persons and contribute to eradicating poverty, are not only implemented under shared management under ESF+ strand under shared management, but also, for actions required at Union level, under direct and indirect management under the EaSI strand.

(11)

This Regulation lays down a financial envelope for the entire duration of the ESF+, which is to constitute the prime reference amount, within the meaning of point 18 of the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources (13), for the European Parliament and the Council during the annual budgetary procedure. It should specify the allocation for the ESF+ strand under shared management and the allocation for actions to be implemented under the EaSI strand.

(12)

With a view to facilitating the implementation of the specific and operational objectives of the EaSI strand, the ESF+ should support activities related to technical and administrative assistance, such as preparatory, monitoring, control, audit and evaluation activities, while communication and dissemination activities should be part of the actions eligible under the EaSI strand.

(13)

The ESF+ should aim to promote employment by means of active interventions enabling integration and reintegration into the labour market, in particular for young people, especially through the implementation of the reinforced Youth Guarantee, for long-term unemployed people, for disadvantaged groups on the labour market and for inactive people, as well as by means of promoting self–employment and the social economy. The ESF+ should aim to improve the functioning of labour markets by supporting the modernisation of labour market institutions such as the public employment services in order to improve their capacity to provide intensified targeted counselling and guidance during the job search and the transition to employment and to enhance the mobility of workers. The ESF+ should promote a gender-balanced participation in the labour market through measures that aim to ensure, inter alia, equal working conditions, improved work-life balance and access to childcare, including early childhood education and care. The ESF+ should also aim to provide a healthy and well-adapted working environment in order to respond to health risks related to changing forms of work, and the needs of the ageing workforce.

(14)

The ESF+ should provide support for the improvement of the quality, inclusiveness, effectiveness and labour market relevance of education and training systems, including by the promotion of digital learning, the validation of non-formal and informal learning and the professional development of teaching staff, in order to facilitate the acquisition of key competences in particular as regards basic skills, including health literacy, media literacy, entrepreneurial skills, language skills, digital skills and competencies for sustainable development, which all individuals need for personal fulfilment and development, employment, social inclusion and active citizenship. The ESF+ should help progression within education and training and transition to work, should support lifelong learning and employability with a view to facilitating full participation in society for all, and should contribute to competitiveness, including through graduate tracking, and to societal and economic innovation by supporting sustainable initiatives that are capable of being scaled up in those fields and adapted to different target groups such as persons with disabilities. Such help, support and contribution could be achieved, for example, by means of online learning, work-based training, traineeships, dual education and training systems, and apprenticeships as defined in the Council Recommendation of 15 March 2018 on a European Framework for Quality and Effective Apprenticeships, lifelong guidance, skills anticipation in close cooperation with industry, up-to-date training materials and delivery methods, forecasting and graduate tracking, training of educators, validation of learning outcomes and recognition of qualifications and industry-based certifications.

(15)

Support from the ESF+ should be used to promote equal access for all, in particular for disadvantaged groups, to quality, non-segregated and inclusive education and training from early childhood education and care, while paying special attention to children coming from a socio-economically disadvantaged background, by means of general and vocational education and training, in particular apprenticeships, to tertiary level, as well as by means of adult education and learning, including through sport and cultural activities. The ESF+ should provide targeted support to learners in need and reduce educational inequalities, including the digital divide, prevent and reduce early school leaving, foster permeability between the education and training sectors, reinforce links with non-formal and informal learning and facilitate learning mobility for all and accessibility for persons with disabilities. Synergies with Erasmus+ established by Regulation (EU) 2021/817 of the European Parliament and of the Council (14), in particular to facilitate the participation of disadvantaged learners in learning mobility, should be supported in this context.

(16)

The ESF+ should promote flexible opportunities for upgrading of skills and acquiring new and different skills by all, in particular entrepreneurial and digital skills, skills for key enabling technologies and skills for the green economy as well as industrial ecosystems in line with the Commission communication of 10 March 2020 entitled ‘A New Industrial Strategy for Europe’. In line with the Skills Agenda for Europe and the Council Recommendation on Upskilling Pathways (15), the ESF+ should support flexible pathways, including accessible, short, targeted, modular training leading to credentials, with a view to providing people with the skills that are adjusted to labour market and industrial ecosystems needs, the green and digital transitions, innovation and social and economic change, the facilitation of reskilling and upskilling and employability, career transitions, geographic and sectoral mobility and supporting in particular low-skilled persons, persons with disabilities and poorly qualified adults. The ESF+ should also facilitate the provision of support to individuals with regard to integrated skills, including employed, self-employed and unemployed persons, through instruments such as individual learning accounts.

(17)

Synergies with Horizon Europe – the Framework Programme for Research and Innovation – established by Regulation (EU) 2021/695 of the European Parliament and of the Council (16) (Horizon Europe) should ensure that the ESF+ is able to mainstream and scale up innovative curricula supported by Horizon Europe in order to equip people with the skills and competences needed for the jobs of the future.

(18)

The ESF+ should support the efforts of Member States to contribute to the eradication of poverty with a view to breaking the cycle of disadvantage across generations and promote social inclusion by ensuring equal opportunities for all, reducing barriers, tackling discrimination and addressing health inequalities. Such support implies mobilising a range of policies targeting the most disadvantaged people regardless of their sex, sexual orientation, age, religion or belief, racial or ethnic origin, in particular marginalised communities such as Roma people, people with disabilities or chronic diseases, homeless people, children and elderly people. The ESF+ should promote the active inclusion of people far from the labour market with a view to ensuring their socio-economic integration. The ESF+ should also be used to enhance timely and equal access to affordable, sustainable and high-quality services that promote the access to housing and person-centred care such as healthcare and long-term care, in particular family and community-based care services. The ESF+ should contribute to the modernisation of social protection systems with a particular focus on children and disadvantaged groups and with a view, in particular, to promoting the accessibility of such systems, including for persons with disabilities.

(19)

The ESF+ should contribute to the eradication of poverty by supporting national schemes aiming to alleviate food and material deprivation and promote social integration of people at risk of poverty or social exclusion and the most deprived persons. With the overall aim that, at Union level, a minimum of 4 % of the resources of the ESF+ strand under shared management support the most deprived persons, Member States should allocate at least 3 % of their resources of the ESF+ strand under shared management to address the forms of extreme poverty with the greatest social exclusion impact, such as homelessness, child poverty and food deprivation. The provision of food and/or basic material assistance to the most deprived persons should not replace existing social benefits provided to them under national social systems or pursuant to national law. Due to the nature of the operations and the type of end recipients, it is necessary that simpler rules apply to support which addresses material deprivation of the most deprived persons.

(20)

In light of the persistent need to enhance efforts to address the management of migration flows in the Union as a whole and in order to ensure a coherent, strong and consistent support to solidarity and responsibility-sharing efforts, the ESF+ should provide support to promote the socio-economic integration of third-country nationals, including migrants, which may include initiatives at local level, complementary to the actions financed under the AMIF, the ERDF and other Union funds which can have a positive effect on the inclusion of third-country nationals.

(21)

Due to the importance of access to healthcare, the ESF+ should ensure synergies and complementarities with the EU4Health Programme established by Regulation (EU) 2021/522 of the European Parliament and of the Council (17) and the scope of the ESF+ should include access to healthcare for people in vulnerable situations.

(22)

The ESF+ should support policy and system reforms in the fields of employment, social inclusion, access to healthcare for vulnerable persons, long-term care, education and training, contributing to poverty eradication. In order to strengthen alignment with the European Semester, Member States should allocate an appropriate amount of their resources of the ESF+ strand under shared management to implement relevant country-specific recommendations relating to structural challenges which it is appropriate to address through multiannual investments falling within the scope of the ESF+, taking into account the Pillar, the Social Scoreboard of indicators, as revised following the adoption of the new targets set out in the Social Pillar Action Plan, and regional specificities.

The Commission and Member States should ensure coherence, coordination and complementarity between the ESF+ strand under shared management and other Union funds, programmes and instruments such as the JTF, the ERDF, the EU4Health Programme, the Recovery and Resilience Facility established by Regulation (EU) 2021/241 of the European Parliament and of the Council (18), the European Globalisation Adjustment Fund for Displaced Workers established by Regulation (EU) 2021/691 of the European Parliament and of the Council (19), the EMFAF, Erasmus+, the AMIF, Horizon Europe, the EAFRD, the Digital Europe Programme established by Regulation (EU) 2021/694 of the European Parliament and of the Council (20), InvestEU Programme, the Creative Europe Programme established by Regulation (EU) 2021/818 of the European Parliament and of the Council (21), the European Solidarity Corps established by Regulation (EU) 2021/888 of the European Parliament and of the Council (22), and the Technical Support Instrument established by Regulation (EU) 2021/240 of the European Parliament and of the Council (23).

In particular, the Commission and Member States should ensure, in all stages of the process, effective coordination in order to safeguard the consistency, coherence, complementarity and synergy among sources of funding, including technical assistance thereof.

(23)

By supporting the specific objectives set out in this Regulation, inter alia, by contributing to the policy objective ‘a more social and inclusive Europe implementing the European Pillar of Social Rights’ as referred to in Regulation (EU) 2021/1060, the ESF+ will continue to contribute to territorial and local development strategies in order to implement the Pillar. It will support the tools set out in Article 28 of that Regulation and thereby also contribute to the delivery of the policy objective ‘a Europe closer to citizens by fostering the sustainable and integrated development of all types of territories and local initiatives’ as referred to in Regulation (EU) 2021/1060, including through poverty reduction and social inclusion measures, taking into account the specificities of urban, rural and coastal regions in view of tackling the socio-economic inequalities in cities and regions.

(24)

In order to ensure that the social dimension of Europe, as set out in the Pillar, is duly put forward and that a minimum amount of resources is targeting those that are most in need, Member States should allocate at least 25 % of their resources of the ESF+ strand under shared management to foster social inclusion.

(25)

In order to address the persistently high level of child poverty in the Union, and in line with principle 11 of the Pillar, which states that children have the right to protection from poverty and that children from disadvantaged backgrounds have the right to specific measures to enhance equal opportunities, Member States should programme an appropriate amount of their resources of the ESF+ strand under shared management for the implementation of the Child Guarantee for activities addressing child poverty in line with the specific objectives of the ESF+ that allow for programming resources towards actions directly supporting children’s equal access to childcare, education, healthcare, decent housing and adequate nutrition. Member States that had an average rate above the Union average of children of less than 18 years old at risk of poverty or social exclusion for the period between 2017 and 2019, on the basis of Eurostat data, should allocate at least 5 % of their resources of the ESF+ strand under shared management to those activities. Operations contributing to this thematic concentration requirement should count towards the 25 % of thematic concentration requirement for social inclusion when programmed under the relevant specific objectives.

(26)

In order to facilitate an inclusive economic recovery after a major crisis and to support youth employment in a changing world of work and in light of persistently high levels of youth unemployment and inactivity in a number of Member States and regions, it is necessary that Member States invest an appropriate amount of their ESF+ resources in measures to support youth employment and skills, including through the implementation of schemes under the Youth Guarantee. Building on the actions supported by the Youth Employment Initiative in the 2014 to 2020 programming period under Regulation (EU) No 1304/2013 of the European Parliament and of the Council (24), which target individuals and on the lessons learnt, Member States should further promote quality employment and education reintegration pathways and invest in early prevention and effective outreach by prioritising, where relevant, long-term unemployed, inactive and disadvantaged young people including through youth work. Member States should also invest in measures aiming to facilitate the transition from school to work as well as adequate capacities of employment services to provide tailor-made and holistic support and better-targeted offers to young people. By fully integrating the Youth Employment Initiative into the ESF+, the delivery of targeted actions for youth employment will be more effective and efficient and the scope will be extended to structural measures and reforms, thus ensuring a better match between support from Union funding and the implementation of the reinforced Youth Guarantee.

Upgrading of skills and acquiring new and different skills should help young people seize the opportunities of growing sectors and prepare them for the changing nature of work, while harnessing the opportunities arising from the digital and green transitions and the transformation of the Union industrial ecosystems. Therefore, Member States that had an average rate above the Union average of young people of 15 to 29 years of age who are not in employment, education or training for the period between 2017 and 2019, on the basis of Eurostat data, should allocate at least 12,5 % of their resources of the ESF+ strand under shared management to those actions.

(27)

In accordance with Article 349 TFEU and Article 2 of Protocol No 6 on special provisions for Objective 6 in the framework of the Structural Funds in Finland, Norway and Sweden annexed to the 1994 Act of Accession (25), the outermost regions and the northern sparsely populated regions are entitled to specific measures under common policies and Union programmes. Due to the permanent constraints, such as depopulation, those regions require specific support.

(28)

Efficient and effective implementation of actions supported by the ESF+ depends on good governance and partnership between all actors at the relevant territorial levels and the socio-economic actors, in particular the social partners and civil society organisations. It is therefore essential that Member States allocate an appropriate amount of their resources of the ESF+ strand under shared management to ensure meaningful participation of the social partners and civil society organisations in the implementation of the ESF+ strand under shared management. That participation should include relevant bodies representing civil society, such as environmental partners, non-governmental organisations, and bodies responsible for promoting social inclusion, fundamental rights, the rights of persons with disabilities, gender equality and non-discrimination. Member States with a country-specific recommendation on capacity building of the social partners or civil society organisations should allocate at least 0,25 % of their resources of the ESF+ strand under shared management for that purpose due to the specific needs they have in that area.

(29)

With a view to rendering policies more responsive to social change as well as to encouraging and supporting innovative solutions, support for social innovation is crucial. In particular, testing and evaluating innovative solutions before scaling them up is instrumental in improving the efficiency of the policies and thus specific support from the ESF+ is justified. Social economy enterprises could play a key role in delivering on social innovation and contributing to economic and social resilience. The definition of a social economy enterprise should be in line with the definitions provided in national law and the Council conclusions of 7 December 2015 on the promotion of the social economy as a key driver of economic and social development in Europe. Moreover, with a view to enhancing mutual learning and exchange of knowledge and practices, Member States should be encouraged to continue their transnational cooperation actions under shared management in the areas of employment, education and training, and social inclusion in line with the specific objectives of the ESF+.

(30)

Member States and the Commission should ensure that the ESF+ contributes to the promotion of equality between women and men in accordance with Article 8 TFEU to foster equality of treatment and opportunities between women and men in all areas, including participation in the labour market, terms and conditions of employment and career progression. They should also ensure that the ESF+ promotes equal opportunities for all, without discrimination in accordance with Article 10 TFEU, promotes the inclusion in society of persons with disabilities on equal basis with others and contributes to the implementation of the UN Convention on the Rights of Persons with Disabilities adopted on 13 December 2006 in New York. The ESF+ should contribute to the promotion of accessibility for persons with disabilities with a view to improving integration into employment, education and training, thereby enhancing their inclusion in all spheres of life. The promotion of such accessibility should be taken into account in all dimensions and in all stages of the preparation, monitoring, implementation and evaluation of programmes, in a timely and consistent manner while ensuring that specific actions are taken to promote gender equality and equal opportunities. The ESF+ should also promote the transition from residential or institutional care to family- and community-based care, in particular for those who face multiple discrimination. The ESF+ should not support any action that contributes to segregation or to social exclusion. Regulation (EU) 2021/1060 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+ strand under shared management.

(31)

All operations should be selected and implemented respecting the Charter of Fundamental Rights of the European Union (the ‘Charter’). The Commission should do its utmost to ensure that complaints are assessed in a timely manner, including complaints related to infringements of the Charter, and should inform the complainant of the result of the assessment in line with the Commission communication of 19 January 2017 entitled ‘EU law: Better results through better application’.

(32)

In order to reduce the administrative burden for the collection of data, reporting requirements should be kept as simple as possible. Where data are available in registers or equivalent sources, Member States should be able to allow managing authorities to collect data from registers.

(33)

With regard to the processing of personal data within the framework of this Regulation, national data controllers should carry out their tasks for the purposes of this Regulation in accordance with Regulation (EU) 2016/679 of the European Parliament and of the Council (26). The dignity of and respect for the privacy of end recipients of operations under the specific objective ‘addressing material deprivation through food and/or basic material assistance to the most deprived persons, including children, and providing accompanying measures supporting their social inclusion’ should be guaranteed. In order to avoid any stigmatisation, the persons receiving food and/or basic material assistance should not be required to identify themselves when receiving the support and when taking part in surveys on the most deprived persons who have benefitted from the ESF+.

(34)

Social experimentation is a small-scale project testing which allows gathering of evidence on the feasibility of social innovations. It should be possible and encouraged for ideas to be tested at local level and for those ideas that are feasible to be pursued on a wider scale, where appropriate, or transferred to other contexts in different regions or Member States with financial support from the ESF+ or in combination with other sources.

(35)

The ESF+ lays down provisions intended to achieve freedom of movement for workers on a non-discriminatory basis by ensuring close cooperation of the public employment services of Member States, the Commission and the social partners. The European network of employment services should promote better functioning of the labour markets by facilitating the cross-border mobility of workers, in particular through cross-border partnerships, and a greater transparency of information on the labour markets. The scope of the ESF+ should include developing and supporting targeted mobility schemes with a view to filling vacancies where labour market shortcomings have been identified.

(36)

The lack of access to finance of microenterprises, social enterprises and social economy is one of the main obstacles to business creation, especially among people furthest from the labour market. Under the EaSI strand, this Regulation should lay down provisions in order to create a market ecosystem to increase the supply of and access to finance for social enterprises as well as to meet demand from those who need it most, and, in particular, the unemployed, women and vulnerable people who wish to start up or develop a microenterprise. That objective will also be addressed through financial instruments and budgetary guarantees under the social investment and skills policy window of the InvestEU Fund. Social economy enterprises, where they are defined under national law, should be regarded as social enterprises within the context of the EaSI strand, regardless of their legal status, insofar as those enterprises fall within the definition of a social enterprise provided for in this Regulation.

(37)

Social investment market players, including philanthropic actors, could play a key role in achieving several ESF+ objectives, as they offer financing as well as innovative and complementary approaches to combatting social exclusion and poverty, reducing unemployment and contributing to the SDGs. Therefore, philanthropic actors such as foundations and donors should be involved in ESF+ actions, as appropriate and provided that they do not have a political or social agenda that is in conflict with Union ideals, in particular in those actions that aim to develop the social investment market ecosystem.

(38)

Guidance under the EaSI strand is needed with regard to the development of social infrastructures and related services, in particular for social housing, childcare and education, healthcare and long-term care, including facilities to assist transitions from institutional- to family- and community-based care services and taking into account accessibility requirements for persons with disabilities.

(39)

Reflecting the importance of tackling climate change in line with the Union’s commitments to implement the Paris Agreement, adopted under the UN Framework Convention on Climate Change (27), and the SDGs, this Regulation will contribute to mainstream climate actions and to the achievement of an overall target of 30 % of Union budget expenditure supporting climate objectives. Relevant actions will be identified during the preparation and implementation, and reassessed in the context of the mid-term evaluation.

(40)

Pursuant to Council Decision 2013/755/EU (28), persons and entities established in overseas countries and territories are to be eligible for funding subject to the rules and objectives of the EaSI strand and arrangements applicable to the Member State to which the relevant overseas countries and territories are linked.

(41)

Third countries which are members of the European Economic Area may participate in Union programmes in the framework of the cooperation established under the Agreement on the European Economic Area (29), which provides for the implementation of the programmes on the basis of a decision under that agreement. Third countries may also participate on the basis of other legal instruments. A specific provision should be introduced in this Regulation requiring third countries to grant the necessary rights and access required for the authorising officer responsible, the European Anti-Fraud Office (OLAF) and the Court of Auditors to comprehensively exercise their respective competences.

(42)

It is appropriate to lay down indicators for the purposes of reporting under the EaSI strand. Those indicators should be output-based, objective, easy to retrieve, and proportionate to the share of the EaSI strand within the entire ESF+. They should cover the operational objectives and funding activities under the EaSI strand, without requiring the setting of corresponding targets.

(43)

In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (30) and Council Regulations (EC, Euratom) No 2988/95 (31), (Euratom, EC) No 2185/96 (32) and (EU) 2017/1939 (33), the financial interests of the Union are to be protected by means of proportionate measures, including measures relating to the prevention, detection, correction and investigation of irregularities, including fraud, to the recovery of funds lost, wrongly paid or incorrectly used. In particular, in accordance with Regulations (Euratom, EC) No 2185/96 and (EU, Euratom) No 883/2013, OLAF has the power to carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union.

The European Public Prosecutor’s Office (EPPO) is empowered, in accordance with Regulation (EU) 2017/1939, to investigate and prosecute criminal offences affecting the financial interests of the Union, as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council (34). In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the financial interests of the Union, grant the necessary rights and access to the Commission, OLAF, the Court of Auditors and, in respect of those Member States participating in enhanced cooperation, pursuant to Regulation (EU) 2017/1939, the EPPO and ensure that any third parties involved in the implementation of Union funds grant equivalent rights.

(44)

Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 TFEU apply to this Regulation. Those rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, prizes, procurement, indirect management, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also include a general regime of conditionality for the protection of the Union budget.

(45)

Since the objectives of this Regulation, namely enhancing the effectiveness of labour markets, promoting equal access to quality employment, improving equal access to, and the quality of, education and training, promoting social inclusion and contributing to the eradication of poverty, as well as the objectives pursued under the EaSI strand cannot be sufficiently achieved by the Member States but can rather, by reason of the scale or effects of the action, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives.

(46)

In order to amend certain non-essential elements of this Regulation, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amending and supplementing the annexes on the indictors. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (35). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(47)

In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission. The implementing powers relating to the model for the structured survey of end recipients should be exercised in accordance with the advisory procedure referred to in Article 4 of Regulation (EU) No 182/2011 of European Parliament and of the Council (36) given the nature of this model.

(48)

In order to allow for a rapid response to exceptional or unusual circumstances, as referred to in the Stability and Growth Pact, that may arise during the programming period, implementing powers should be conferred on the Commission to adopt temporary measures to facilitate the use of support from the ESF+ in response to such circumstances, with a maximum time limit of 18 months. The Commission should adopt the measures that are most appropriate in light of the exceptional or unusual circumstances that a Member State is facing while preserving the objectives of the ESF+, but this should not include amendments to the thematic concentration requirements. Furthermore, the implementing powers in relation to the temporary measures for the use of support from the ESF+ in response to exceptional or unusual circumstances should be conferred on the Commission without committee procedures, given that the scope of application of those measures is determined by the Stability and Growth Pact and is limited to the measures set out in this Regulation. The Commission should also monitor the implementation and assess the appropriateness of the temporary measures. Where the Commission deems it to be necessary to amend this Regulation due to the exceptional or unusual circumstances, the scope of the amendment should not include the thematic concentration requirements related to youth employment nor support for the most deprived persons due to the fact that young people and the most deprived persons are often most adversely affected by such crisis situations. Therefore it is necessary to ensure that those target groups continue to receive an adequate amount of support.

(49)

In the administration of the ESF+, the Commission should be assisted by a Committee as referred to in Article 163 TFEU (the ‘ESF+ Committee’). In order to enable the ESF+ Committee to have all the necessary information at its disposal and obtain a wide range of views of relevant stakeholders, the ESF+ Committee should be able to invite representatives without a voting right provided that the agenda of the meeting requires their participation, including representatives of the European Investment Bank and the European Investment Fund and relevant civil society organisations.

(50)

In order to ensure that the specificities of each ESF+ strand continue to be addressed, the ESF+ Committee should establish working groups for each ESF+ strand. Composition and tasks of those working groups are to be established by the ESF+ Committee. The working groups should have the possibility to invite civil society representatives as well as other stakeholders to their meetings. The tasks of the working groups may include ensuring coordination and cooperation between Member State authorities and the Commission on the implementation of the ESF+, including consultation on the work programme of the EaSI strand, monitoring the implementation of each ESF+ strand, exchanging experience and good practice within and across the ESF+ strands and fostering potential synergies with other Union programmes.

(51)

In order to ensure a greater transparency regarding the implementation of this Regulation, the Commission should establish the necessary links with relevant policy committees active in the social and employment field, such as the Employment Committee, the Social Protection Committee or the Advisory Committee on Safety and Health at Work.

(52)

In accordance with Article 193(2) of the Financial Regulation, a grant may be awarded for an action which has already begun, provided that the applicant can demonstrate the need for starting the action prior to the signature of the grant agreement. However, the costs incurred prior to the date of submission of the grant application are not eligible, except in duly justified exceptional cases. In order to avoid any disruption in Union support which could be prejudicial to Union’s interests, it should be possible to provide in the financing decision, during a limited period of time at the beginning of the multiannual financial framework 2021 to 2027, and only in duly justified cases, for eligibility of activities and costs from the beginning of the 2021 financial year, even if they were implemented and incurred before the grant application was submitted.

(53)

Regulation (EU) No 1296/2013 should therefore be repealed.

(54)

In order to ensure continuity in providing support in the relevant policy area and to allow implementation as of the beginning of the multiannual financial framework 2021 to 2027, this Regulation should enter info force as a matter of urgency on the day following that of its publication in the Official Journal of the European Union and should apply, with retroactive effect with regard to the EaSI strand, from 1 January 2021,