Skepticism in the Federal Council: EU proposals endanger social funds!

Skepticism in the Federal Council: EU proposals endanger social funds!

Österreich, Land - On May 26, 2025, the EU Committee of the Federal Council in Austria discussed a proposal for the realignment of the European Social Fund Plus (ESF+). The ESF+ is a central financial instrument of the EU that aims to improve employment and educational opportunities and to promote economic and social cohesion in Europe. The EU Commission published the proposal on April 1, 2025 to adapt the requirement to the current challenges of the Member States. But the reactions are critical.

The main criticism of the discussion is that the proposal is primarily in the interest of the eastern EU member states. Austria's Ministry of Social Affairs has clarified that there are no changes to the priorities already specified. Instead, the prescription proposal provides for the ESF+ to expand two new priorities: the support of the defense industry and strategic autonomy as well as measures for decarbonization and qualification in relation to climate change.

financial effects and concerns

The realignment of the fund raises questions about the financial effects on Austria and the Eastern European countries. Michael Bernard from the FPÖ asked about the potential financial consequences. Stefan Schennach from the SPÖ also critically commented, who fears that the social orientation of the fund could be endangered. Marco Schreuder from the Greens emphasized the risk that the fund will be overloaded by new tasks and advocated creating new financial instruments.

• project of the realignment of the ESF+:
• Support of the defense industry and strategic autonomy
• Promotion of decarbonization measures and adjustment qualifications to climate change

In addition, the Neos representative Manuela-Anna Sumah-Vospernik fears that any shifting should not be at the expense of social projects. The concerns are also shared by Ferdinand Tiefnig from the ÖVP, which asks about the perspective of other Member States. The Ministry of Social Affairs found that there is no additional funds in the redistribution, but should be replaced by the existing allocations.

Cohesion policy of the EU in focus

As part of the discussion, the broader context of EU co-cale policy is also relevant. The European Commission has set itself the goal of increasing the effectiveness of cohesion policy in order to reduce economic, social and geographical inequalities. Member States are encouraged to reprogram part of their cohesion for new investments, which also affects strategy 2021-2027. This includes a budget of a total of 392 billion euros. The European goal is clear: investments in strategic priorities such as digital infrastructure, energy transition, and living space.

In addition, an increase in the funds for arriving and subsidized residential projects as well as preferred pre-financing in eastern border regions is planned. This could be particularly relevant for states that are affected by geopolitical tensions. The EU wants to build a resistant infrastructure to promote military mobility and economic stability and at the same time strengthen social cohesion.

The cohesion means that also benefit the ESF+ should also promote social integration and help to reduce unemployment. In order to achieve this, all Member States are called up to work with the available means as best as possible. Historically speaking, the European structural funds are one of the main mechanisms of the EU to counteract economic and social inequality.

In the coming time, the upcoming negotiations in the European Parliament and Council on changes in the Cohesion -Political legal provisions must be carefully pursued in order to protect the interests of all Member States and to find a social compromise. The focus on social cohesion must not be lost.

For further information on the subject of realignment of the ESF+ and the political developments, see [ots://www.ots.at/presseaus-sung/ots_20250526_ots0152/eu-amt-dundesrats-skeeper-seben-zum-zum-eische-zialfonds), [EU Representation] (https://germany.represation.ec.europa.eu/news/strategic-prioritaten-der-eu-e-neue-neue-Kohasatik- 2025-04-01_de) and EU Parlament] (https://www.europarl.europa.eu/factshets/de/93/economic-social-territorial-cohesion).