News > SOLIDAR – EU budget vote endangers social cohesion across the Union
SOLIDAR – EU budget vote endangers social cohesion across the Union
Despite all the rhetoric about the need to better integrate economic and social policies and to build a sustainable economy, EU leaders agreed last week on a historical net reduction of the EU budget for the 2014-2020 period. This will have a major impact on the future development of the EU and decisively hamper efforts to achieve the social objectives of the Europe 2020 Strategy.
The deal reached at the European Council limits the maximum possible expenditure for an EU of 28 Member States to about EUR 960 billion (including Croatia), equivalent to 1% of EU Gross National Income. The overall expenditure ceiling has been reduced by 3.4% in real terms, compared to the current budget (2007-2013).
Significant reductions apply to sub-heading 1a “Competitiveness for growth and jobs”, which includes the Erasmus for All programme. Commitments for this sub-heading will not exceed about EUR 125 billion, which represents an increase compared to the previous budget period but a considerable reduction compared to the EUR 139 billion in the Commission proposal. Sub-Heading 1b “Economic, social and territorial cohesion” includes the Structural Funds and will amount about EUR 325 billion (compared to about EUR 355 billion between 2007 and 2013). Not only does this mean a reduced budget for the European Social Fund (ESF), this envelope is further impacted by the inclusion of a EUR 2.5 billion package to support aid for the most deprived people, as originally the Fund for European Aid to the Most Deprived (the former Food Aid Programme) was an additional budget line. Furthermore, in view of the Council recommendation on a Youth Guarantee, EUR 6 billion will be allocated to an integrated youth employment initiative.
SOLIDAR considers EU cohesion policy and ambitious investment in education and training programmes as key to an inclusive and sustainable recovery from the crisis and the development of social progress across the EU, as Secretary General Conny Reuter expressed in last week’s editorial. With a reduced budget for the ESF and, even worse, the abandoning of a minimum share of 25% for the ESF from the overall Structural Fund budget , Europe will not be able to face the challenges of growing inequalities, persistent poverty and social exclusion and the need to invest in a knowledge-based economy. The budget cuts reflect a dangerous shift towards national interests to the detriment of jointly agreed EU objectives. We cannot cut our way to prosperity!
Before the budget can come into effect in January 2014, it has to be approved by the European Parliament. In a joint press release Parliament’s four largest political groups have indicated that the deal as it is may not receive the necessary parliamentary majority.
Significant reductions apply to sub-heading 1a “Competitiveness for growth and jobs”, which includes the Erasmus for All programme. Commitments for this sub-heading will not exceed about EUR 125 billion, which represents an increase compared to the previous budget period but a considerable reduction compared to the EUR 139 billion in the Commission proposal. Sub-Heading 1b “Economic, social and territorial cohesion” includes the Structural Funds and will amount about EUR 325 billion (compared to about EUR 355 billion between 2007 and 2013). Not only does this mean a reduced budget for the European Social Fund (ESF), this envelope is further impacted by the inclusion of a EUR 2.5 billion package to support aid for the most deprived people, as originally the Fund for European Aid to the Most Deprived (the former Food Aid Programme) was an additional budget line. Furthermore, in view of the Council recommendation on a Youth Guarantee, EUR 6 billion will be allocated to an integrated youth employment initiative.
SOLIDAR considers EU cohesion policy and ambitious investment in education and training programmes as key to an inclusive and sustainable recovery from the crisis and the development of social progress across the EU, as Secretary General Conny Reuter expressed in last week’s editorial. With a reduced budget for the ESF and, even worse, the abandoning of a minimum share of 25% for the ESF from the overall Structural Fund budget , Europe will not be able to face the challenges of growing inequalities, persistent poverty and social exclusion and the need to invest in a knowledge-based economy. The budget cuts reflect a dangerous shift towards national interests to the detriment of jointly agreed EU objectives. We cannot cut our way to prosperity!
Before the budget can come into effect in January 2014, it has to be approved by the European Parliament. In a joint press release Parliament’s four largest political groups have indicated that the deal as it is may not receive the necessary parliamentary majority.
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