Joint Statement: Building on what works: an EU budget that delivers for people and regions

68 European networks agree on a common position on next EU Budget

Brussels, Belgium – 17 March 2026

Dedicated social and territorial investment is key for competitiveness as it supports quality employment, fosters social cohesion, protects rights, and strengthens societal foundations. By increasing labour market participation, improving skills and productivity, and reducing long-term welfare dependency, ESF and ERDF investments also contribute to fiscal sustainability and economic resilience across Member States.

As the Commission’s EU budget proposal is debated by Member States and the European Parliament, we are concerned with the National and Regional Partnership Plans (NRPP) proposal to merge the European Social Fund (ESF), the European Regional Development Fund (ERDF), and 12 shared management funds. This stands to weaken their social and regional impact, as echoed by the European Parliament, Economic and Social Committee, and Committee of the Regions.

Clear and dedicated support for the ESF and ERDF is critical to prevent dilution of their strategic focus, erosion of accountability, and increased governance complexity. The proposed 14% social spending target is significantly lower than what is guaranteed in the current ESF+ and ERDF spending for social objectives, while covering a broader scope. This means weakening investments in employment, training, social inclusion, poverty reduction, and essential territorial infrastructure. It also undermines the EU’s ability to deliver on the European Pillar of Social Rights (the Pillar), including its poverty reduction targets and the forthcoming Anti-Poverty Strategy, as well as to implement the Social Economy Action Plan, and uphold broader single market goals such as the “right to stay”. The national centralisation of the budget proposals further risks turning EU Funds into a bargaining chip in broader negotiations between national and regional authorities; thus jeopardising their effectiveness.

The EUFunds4Social Coalition brings together European social services, NGOs, public health and service providers, lifelong learning and social economy actors, workers, and social partners. Together, we represent millions of organisations, enterprises, and people, of which those most excluded in society. Since March 2025, our joint statements have been endorsed by over 60 European networks and over 350 organisations overall, to ensure social investment is
strengthened, not weakened, in the next EU budget. Our priority is ensuring that higher social spending is secured, and resources earmarked in particular for supporting the inclusion of disadvantaged people through the next EU budget.

A strong and dedicated social budget is key to helping all communities thrive and sustaining Europe’s social market economy as a global example of inclusive growth. Against this backdrop, we call for a stand-alone ESF and ERDF, each with its own dedicated regulation, budget and mission.

Our joint demand: stand-alone ESF & ERDF

1. Protect ESF and ERDF as independent funds: Stand-alone funds ensure clarity, effective implementation, and stronger policy impact. Bundling ESF and ERDF with agriculture, migration and defence budgets risks diluting their strategic focus, weakening the EU’s capacity to deliver on social and territorial commitments.
2. Preserve distinct roles: ESF provides direct support for people through employment, education and training, skills development, social inclusion, poverty reduction and social and health services. ERDF supports regions through social infrastructure, territorial cohesion and local development.
3. Guarantee accountability and predictability: Independent funds allow the EU to uphold its obligations under the Pillar while supporting regions in addressing inequalities and social challenges. This safeguards transparency, governance and funding predictability, ensuring social and territorial investment is not crowded out by broader policy priorities. Without clear, accessible and predictable funding frameworks many initiatives risk delay or dismantling, undermining the very competitiveness which the new MFF strives to promote.

What stand-alone ESF and ERDF must guarantee

1. Secure strong and dedicated budgets for ESF and ERDF: ESF and ERDF must be backed by robust, ring-fenced budgets that are at least equal to current funding levels adjusted for inflation and provided as grants, not loans. Predictable, grant-based funding is essential to ensure continuity of social and territorial services, avoid disruption of ongoing initiatives, and provide stability for long-term investment planning at local and regional level.
2. Maintain ESF as the EU’s core tool to invest in people: The ESF must remain the Union’s primary instrument for people-centred investment, with a dedicated regulation aligning with the EPSR, the EU Anti-Poverty Strategy, and Social Economy Action Plan.
3. Define clear ESF objectives to preserve its mission: The ESF must include clear and binding objectives that safeguard its scope and core functions, including job quality, workers’ protections and non-discrimination, employment support, education and training, skills development, social inclusion, poverty reduction, and access to social services.
4. Protect ESF earmarking for social priorities: To ensure achieving its objectives, the ESF must preserve ESF+ thematic concentration of 25% for social inclusion, 3% for material support to address the most deprived persons, 5% to fight child poverty, as well as to implement the Youth Guarantee, and provide capacity-building for civil society and social partners.
5. Secure direct funding for social inclusion: The Employment and Social Innovation (EaSI) strand, currently under ESF+, supports social innovation, evidence-based policymaking, and social dialogue including core funding to EU networks, social partners, social enterprises and the social economy, and microfinance institutions. In the current proposal, direct funding for social inclusion is part of the EU Facility, but its focus, budget and functioning must be protected.
6. Strengthen ERDF for social and territorial investment: The ERDF is essential for reducing regional inequalities and supporting social infrastructure, including inclusive early childhood education and care, family and community-based long-term care, social housing, and local services.
7. Align ERDF with ESF-driven reforms: Structural reforms require coordinated investment in infrastructure and services. A stand-alone ERDF must therefore support strong territorial objectives and ensure alignment with ESF interventions supported by practical arrangements that help end beneficiaries to combine both funds within a single project. This would maximise impact, avoid fragmented investments, and ensure that infrastructure spending effectively supports social and labour market reforms.

Implementing lessons from 2021–2027: strengthen rights, participation and access

Reinstate and enforce enabling conditions: Enabling conditions are essential to ensure that EU Funds drive reform and innovation in social systems, not investment in outdated models. They ensure compliance with fundamental rights, including of people with disabilities, and require strategic frameworks promoting employment, gender equality, education and training, social and Roma inclusion, and health. To avoid inconsistent application, they need structural civil society involvement, stronger monitoring, and transparent enforcement. Their achievements should be fully preserved to ensure that EU funding continues to support fundamental rights, the implementation of the UN Convention on the Rights of Persons with Disabilities, and the Pillar.

Strengthen and mainstream the partnership principle across all EU funds: Legally required for shared management funds, the Partnership Principle has often been applied superficially. The next MFF should extend its implementation to all EU funding, including those under direct management, with meaningful and systematic participation of social actors and level of government through capacity-building, financial support, and multi-stakeholder fora. This improves the impact of EU Funds by grounding them in local needs.

Improve access for small not-for-profit actors: Many of the most innovative social support organisations in Europe are small not-for-profit actors. Yet they face barriers to EU funding, exacerbated by the NRPP proposal merged funds, complex governance, and reduced social spending. For a better use of EU Funds, small actors and grassroots organisations need better support, including simpler procedures, lighter reporting, capacity-building (including national
helpdesks), stable pre-financing, and fair co-financing rules.

Read the statement for full list of signatories