As Europe redefines its priorities through its future budget, the European Union must ensure that its policies not only safeguard its external boundaries but also protect the Union’s values and its social fabric, and build cohesion between its diverse Member States.
Europe stands at a crossroads with its new Multiannual Financial Framework (MFF) proposal, which will allocate the EU budget up to 2034. The European Commission (EC) makes defence and competitiveness a priority, and this is reflected in the proposed budget. However, funds for employment, social investment and regional development, such as ESF+ and other Cohesion policy Funds, are not only being reduced but may be merged and eliminated altogether.
The Commission’s focus on defence and competitiveness must include safeguarding the principles of democracy, equality and human dignity that define the Union’s identity. Europe’s defence depends on that sense of common European identity which promotes and preserves the social cohesion that fosters unity among its diverse peoples.
What’s at stake?
Should the current EC’s MFF proposal be confirmed, it will dramatically reduce support for social matters. Policies and funds (ESF+) that support social, employment, education and skills policies, as well as vulnerable groups (such as youth, people with disabilities, those furthest from the labour market, women, etc) are at risk from new rules and budget cuts. Poorer European regions could see Social Cohesion Policy Funds disappear.
Economic models like the social economy – which promote quality employment and inclusion of vulnerable groups and foster local development, particularly in rural or underserved areas – also face the prospect of losing critical EU support. Additionally, funding for civil society organisations that advocate for diversity and democracy is also threatened.
These changes raise concerns about investing in people and supporting the implementation of the European Pillar of Social Rights, and ongoing support for vulnerable communities and the future of equality, solidarity, and democratic values within the EU if these foundational support mechanisms are withdrawn.
It’s not just budget numbers – it’s our shared European project that is at stake.
The absence of a dedicated Social Fund in the MFF raises concerns that employment and social policies may be neglected. Without a specific budget line, resources are not assured for those most in need.
Since its establishment in 1957 with the Treaty of Rome, the European Social Fund (ESF) has been a cornerstone of EU investment, effectively addressing territorial disparities, targeting local needs, and supporting innovation and reforms in partnership with local stakeholders, social economy actors, social partners, and civil society. The ESF has driven advancements in employment, training, and social support services, creating opportunities for millions of Europe’s most excluded individuals.
Despite increasing demands, the EC will NOT increase the overall EU budget. It will remain unchanged, even as it incorporates additional expenditures for defence. Consequently, allocations for employment and social investment are likely to decrease.
The European Commission is also encouraging Member States to increase their national defence spending, which may put further pressure on government budgets and result in reduced funding for employment and social policies. Simultaneously, most countries are being asked by the Commission to address their economic challenges through austerity measures, posing additional risks to funding for education, healthcare, employment support, social services, cultural initiatives, and civil society.
What does this mean for the social economy?
Social economy organisations and enterprises support an economy that puts the primacy of people over profit, reinvests in the social objective and local communities, as well as practicing democratic governance and designing innovative solutions for vulnerable groups and regions.
The current MFF threatens to drastically cut social spending which will affect social economy organisations across many sectors including social services, care, education, training, work integration, culture, and civil society.
Additionally, the EC is failing to recognise the social economy’s proven role in fostering industrial autonomy and competitiveness, despite the results seen across essential EU sectors like agriculture, circular economy, industrial production, energy, and housing. These factors threaten the effective implementation of the Social Economy Action Plan.
Defending Europe’s values
Reducing or deprioritising social and regional funding extends beyond diminishing services; it fundamentally challenges the core values and long-term resilience of the European Union.
A weakened social framework diminishes the EU’s capacity to address future challenges effectively.
Democratic governance within the social economy serves as a cornerstone for both social and economic resilience. Insufficient support for such organisations and enterprises limits their ability to respond promptly and efficiently, jeopardising societal preparedness.
Social cohesion is a critical element in protecting Europe, not only from external risks but also from misinformation and autocracy. Civil society is the backbone of democracy, participation, and pluralism; diminishing its capacity ultimately weakens democracy itself.
Why cutting support Is a strategic error
The European Social Fund Plus (ESF+), Cohesion Policy, and broader Social Economy policies play a vital role in supporting communities and regions that might otherwise be left behind.
The Strategic Importance of Cohesion and Social Investment
A Tangible Link Between the EU and Its Citizens
For those located in economically disadvantaged or structurally weaker regions, ESF+ (European Social Fund Plus) and Cohesion Policy funds are the most visible and impactful expressions of EU solidarity. These funds support job creation, skills training, social inclusion, and local development—often in places where national investment has fallen short.
A Strategic Shield to Autocracy and Disillusionment
When people feel abandoned, they become vulnerable to anti-EU narratives propagated by external and internal forces that scapegoat Brussels for local decline. Weakening these supports now risks fuelling further discontent, especially in the face of economic uncertainty, climate transitions, and digital disruption.
The Social Economy as a Resilience Engine
The social economy – cooperatives, mutuals, associations (including charities), foundations & social enterprises – has proven its value in building inclusive, sustainable local economies.
Undermines EU Cohesion Goals and Weakens Resilience in a Time of Transition
As Europe transitions to a green and digital economy, these funds are essential for upskilling workers and supporting vulnerable sectors. Without them, the risk of economic polarisation grows—threatening the EU’s long-term stability and competitiveness.
Reduces Trust in EU Institutions
When people see EU support vanish, they may feel abandoned. This erodes trust not just in national governments, but in the EU project itself.
Strategic Retreat
Cutting support here is not just a budgetary decision; it’s a strategic retreat from the EU’s own values of solidarity, fairness, and cohesion.
Is this the Europe we want to defend?
- A Europe that prioritises hard security at the expense of human security?
- A Europe willing to fund weapons but not well-being?
- A Europe that prepares to protect territory but not all of the people and values within it?
This is not just unwise. It is a betrayal of Article 2 of the EU Treaty, which upholds human dignity, freedom, democracy, equality, the rule of law, and human rights.
For all these reasons, Social Economy Europe (SEE) supports a strong standalone ESF+ and Cohesion Policy. Would that not be feasible, SEE, together with other major EU networks, calls for the next MFF to adhere to at least 2 Criteria and 8 Success Factors:
1. Guaranteed funding is essential to meet Europe’s social goals, especially amid growing challenges, and should be reinforced to fully realize the European Pillar of Social Rights.
2. Multi-level governance and shared management connect local needs with EU priorities, enhancing impact, accountability, and sustainability
3. Horizontal earmarking for social inclusion ensures support reaches the most excluded, safeguarding social cohesion despite shifting priorities.
4. Simplification and flexibility make ESF+ more accessible, especially for smaller initiatives, broadening participation and impact.
5. Enabling Conditions align investments with EU priorities and legal standards, ensuring effectiveness and respect for fundamental rights
6. The Partnership Principle fosters collaboration among stakeholders, improving transparency, targeting, coordination, and monitoring.
7. ESF+ supports local and small-scale initiatives through capacity building, intermediaries, and simplified administration.
8. ESF+ invests in long-term reforms and capacity building, improving access to quality social, health, education, and housing services.
In a first draft of the MFF, the EC omitted ESF and Social Cohesion Policy Funds. In the last few days however the Commission seems eager to commit to social policies and regional funds. With negotiations just starting and the future of social funding still up in the air, this is a call to every European citizen, NGO, social partner, government (local, regional or MS level) and decision-maker to:
- READ OUR JOINT STATEMENT for standalone ESF+ and/or a plea for an MFF that adheres to specific criteria
- SUPPORT US BY SHARING IT WIDELY
- DEFEND OUR SOCIAL EUROPE. THE UNION WE BELIEVE IN
It’s time to speak up. Because without a strong social Europe, there is no strong Europe at all. You can’t guarantee inclusive and sustainable prosperity or strategic autonomy on a social desert.
A Social Europe unites us: unity brings strength, cooperation and resilience for every European citizen.
