European Social Fund

Facts

The 1950s

The creation of the European Social Fund was provided for within the founding treaties of the European Community with the aim of improving the labour market opportunities for the populations of the founding Member States.

The 1960s

In 1961 the ESF commenced in earnest to operate through the agreed-upon contributions made by the Member States. The ESF began financing retraining measures for job-seekers and the reemployment of workers from companies that had been forced to stop production.

In 1962, the European Agricultural Guidance and Guarantee Fund (EAGGF) was established. The ESF's and EAGGF's measures were not harmonised and in the beginning, the ESF was an "assistance fund", reimbursing fifty percent of national costs for the reintegration of the workforce.

The 1970s

In 1973, there was the first enlargement of the European Community, with Denmark, Ireland and the United Kingdom joining the original six members. This added a new dimension to regional development gaps where it became clear that structural instruments being used until that point in time did not suffice to reduce regional and connected social disparities.

In 1974 the first clear social policy focuses became visible in the European Union, when the Commission's Social Policy Action Programme was adopted. It covered selected areas such as the integration of specific groups such as unemployed persons, people with disabilities, and young people into working life; while at the same time representing a measure to secure their rights.

In 1975, the ERDF (European Regional Development Fund) was created with its main aim being to serve as the Community's additional financing instrument for the regional policies of Member States.

The 1980s

In 1981, Greece became the tenth member of the European Communities, while in 1986, Spain and Portugal also joined the European Communities.

In 1987, the Single European Act was ratified setting the stage for radical reforms of the Community's structural policy, while aiming to reduce regional disparities in terms of economic development.

In 1988, the Structural Funds were reformed with key elements of this reform including:

  • regional development programmes
  • focuses on specific targets, such as on assistance for economically deprived regions and on combating long-term and youth unemployment
  • partnership approaches between the Commission, the Member States, and national, regional and local authorities
  • improvements of administration
  • simplification of procedures
  • improved monitoring by means of new monitoring and evaluation mechanisms

In 1989, the EU under the helm of the then European Commission President, Jacques Delors, adopted the Social Charter, with the so-called "Delors I Package" providing for a doubling of resources for the Structural Funds.

The fundamental rights contained therein, which were formulated in a more general way, referred to twelve areas such as: employment and remuneration, improvement of living and working conditions, social protection, equal treatment for men and women, vocational training, promotion of health and safety at work, protection of children and adolescents, elderly persons, and disabled persons.

The 1990s

In 1992, the Treaty on the European Union was signed in Maastricht, consisting of a three-stage plan to achieve economic and monetary union (EMU), while at the same time recognising that also unemployment must be combated.

1995 marked the fourth enlargement of the Community with Austria, Finland and Sweden also becoming Members of the EU. Two new financial instruments were established, namely the Cohesion Fund and the Financial Instrument for Fisheries Guidance (FIFG).