PLENARY SESSION 3

As part of the reform of regional policy, in July 2004 the Commission presented a package of proposals

for the Structural Funds (ERDF and ESF) and the Cohesion Fund.

The new Regulation should enter into force on 1 January 2007, the planned date for the abrogation of the

current ESF Regulation ( Regulation (EC) 1784/1999 ). However, the proposal does not apply to any

measures approved before that date. The new Regulation must be reviewed by 31 December 2013 at the

latest.

Goals

The ESF is designed to foster balanced economic and social development in order to support national

policies promoting full employment, improved quality and productivity at work and reduced social

exclusion and regional employment disparities.

Priorities

ESF funding is disbursed under two Structural Funds objectives: "Convergence", for less developed

regions, and "Regional competitiveness and employment", which seeks to meet the challenges of the

modern world by both anticipating and promoting economic change.

The priorities of these two objectives are:

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increasing adaptability

among workers and businesses. Proposals include greater investment in

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improving access to employment

for jobseekers, the economically inactive, women and

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reduce social exclusion

for the economically disadvantaged, and combat discrimination;

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create partnerships to manage reforms

in employment and to combat social exclusion.

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greater investment in human capital, with reforms of education and training systems, greater

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boosting institutional capacity and effectiveness in order to improve governance.

Granted via public tendering procedures,

ESF funding takes the form

participation in education and lifelong learning and developing human potential through research

and innovation;

of individual or block grants,

loans, interest rate subsidies, micro loans or the purchase of goods and services.

Under the "Convergence" objective, the ESF also supports the following priorities:

migrants. Institutions in this field, in particular employment services, need to be modernised and

strengthened, and active and preventive steps taken to identify needs early. Specific measures

must be taken to boost female participation in the labour market and help migrants integrate

better into society;

human resources through lifelong learning schemes, making qualifications and skills more

accessible and fostering enterprise and innovation. Proactive steps must also be taken to

anticipate and manage economic change;