EU Boosts Skills Funding

In a significant move to enhance skill development within strategic sectors, the European Parliament and Council negotiators have reached a provisional agreement on amendments to the European Social Fund+ (ESF+). The new funding initiative aims to prioritize the defense and decarbonization industries while also addressing the unique needs of frontline regions.

The ESF+ funding will now focus on bolstering skills in the defense sector and industries working towards decarbonization. Regions adjacent to Russia, Belarus, and Ukraine are set to receive additional support, acknowledging their heightened geopolitical vulnerability. EU countries will benefit from increased pre-financing and co-financing rates if they allocate a minimum of 10% of their resources to these prioritized sectors.

Micro, small, and medium-sized enterprises will have priority access to the fund, allowing them to develop skills aligned with the new priorities. The agreement also incorporates rule of law conditionality, ensuring that funds are not reallocated in the event of breaches of EU values. This initiative underscores the EU’s commitment to investing in people and strengthening societal resilience.

Rapporteur Marit Maij expressed confidence in the agreement, noting its commitment to maintaining the social core of the fund while shifting focus to strategic sectors. The agreement awaits formal adoption by both the Parliament and the Council before the new rules can be implemented.