Has the European Social Fund been effective in supporting young people?

Abstract

The European Social Fund (ESF) constitutes a somewhat exceptional and paradoxical part of European Union policy. The division of decision-making powers or jurisdiction between EU-level bodies and the member states has meant that national governments have been reluctant to let the EU increase its powers in the wide area of employment and social policies. For many observers, the EU’s primary contribution in the realm of social protection and employment has been one of ‘social regulation’, rather than ‘social redistribution’. Nonetheless, policymakers perceived such redistribution of resources not as a goal in itself but mainly as an instrument for achieving macro-level goals: economic growth, modernization, restructuring and enhancing the four EU freedoms. Currently, the ESF contributes to the achievement of ‘a smart, sustainable and inclusive growth in the EU’, as defined in the Europe 2020 strategy. Still, high unemployment and increasing poverty risks put the individual social welfare of vulnerable sub-groups in the population under pressure. In particular, young people have been hit hard by the economic crisis, and the ghost of a ‘lost generation’ is threatening their future employment trajectories. This chapter looks at what existing research says about the role of the ESF in dealing with labour market and social integration issues. We further examine available EU documents, existing comparative and time-series data about the role of ESF measures in the past, and ongoing efforts to strengthen the position and employability of young people in the seven countries. We then discuss the relevance of the ESF in the seven countries − how strongly young people have been involved in ESF measures, and how this involvement has varied across countries. We also investigate whether the involvement of young people has been proportional to the share of NEETs in the country. We finally draw lessons based on available cross-national data from the previous (2007–13) and the current (2014–20) ESF funding periods at the national level; and identify lessons for further policy developments to improve the impact of ESF measures on the employment situation of young people in Europe