On 29 June 2026, the Council of the European Union agreed on a partial general approach for the proposed regulation establishing the European Social Fund (ESF) for the 2028-2034 period, as part of the National and Regional Partnership Plan (NRP Plan) framework. The ESF will support investments in people and reforms in employment, education, and social inclusion, guided by the European Pillar of Social Rights and the 2030 Union headline targets: a 78% employment rate for 20-64 year-olds, 60% adult training participation yearly, and 15 million fewer people at risk of poverty.
The scope of the ESF aligns with the Council Decision on employment guidelines adopted by 1 January 2027 and the European Semester framework. Member States must allocate a minimum ESF resource amount under their NRP Plans, with a focus on youth employment, support for the most deprived, child poverty, and social inclusion. The fund addresses challenges from demographic change, green and digital transitions, and labour and skills shortages, targeting women, young people, persons with disabilities, Roma communities, and those in vulnerable situations. Provisions on social innovation, democracy, rule of law, and fundamental rights are included, and support for gender equality, non-discrimination, and accessibility is encouraged.
The partial general approach leaves certain provisions in brackets, which remain open for further negotiation. The agreement marks a step forward in the legislative process, with the European Parliament expected to adopt its position in the coming months. The ESF is a key instrument for EU social policy, with significant implications for national authorities, which will need to allocate resources and design programmes in line with EU targets. EU producers and service providers in the social and employment sectors may benefit from increased funding, while civil society organisations could gain new opportunities for social innovation projects. However, the minimum resource allocation requirement may strain national budgets, particularly in Member States with fiscal constraints.