EU funding mechanisms

• Author: Guio, A-C.; Marlier, E.; Frazer, H.
• Pages: 152-179

Feasibility Study for a Child Guarantee (FSCG) Final Report

152

8. EU funding mechanisms285

This chapter provides some insights into how extensively and in what ways EU funds have

been used to support policies and programmes in favour of children in the four T Gs. It i s

based on consultation with the FSCG country experts, an analysis of eight case studies,

and published assessments of the use of EU funds. It is important to keep in mind that this

analysis cannot compl etely reflect the full impact of EU-funded activities that are already

ongoing on the ground, and that have been triggered by the operational programmes

(OPs). This is in part because some operations not explicitly targeted at vulnerable children

may nevertheless benefit them. Future analyses may benefit from available or ongoing

evaluations planned as part of the management of EU funds.

The EU has a diversity of funds that can apply to children286. The EU funds under

consideration here are in the first instance some of the European Structural and Investment

Funds (ESIF): the European Social Fund (ESF), the European Regional Development Fund

(ERDF), and in some Member States the European Agricultural Fund for Rural Development

(EAFRD). We also consider the Fund for European Aid to the Most Deprived (FEAD) and the

Asylum, Migration and Integration Fund (AMIF) given their relevance for the TGs and the

EU school scheme.287

The ESIF are EU financial instruments for strengthening economic and social cohesi on.288

In the 20 14-2020 pr ogramming period, the ESIF are concentrated on the E urope 2020

agenda, which is aimed at promoting ‘smart, sustainable and inclusive growth’ in the EU,

and its five target a reas. Targets that influence the living conditions of children are:

education (rates of early school-leaving below 10%); poverty and social exclusion (at least

20 million fewer people in, or at risk of, poverty/social exclusion); and, i ndirectly,

employment (75% of people aged 20-64 to be in work).289

Under the ESF regulations, Member States are asked to earmark at least 20% of their ESF

spending for ‘promoting soci al inclusion, combating poverty and discrimination’. Al though

this target is a great achievement in itself, Member States tend to allocate this funding to

the active inclusion priority, which is often interpreted very broadly, th us leaving an open

question as to the extent to which it clearly targets populations experiencing poverty and

exclusion. The Europe 2020 strategy is monitored in the Europ ean Semester. The Annual

Growth Survey (AGS) and country sp ecific recommendations (CSRs) are key instruments

in the process of implementation.290

Two of the thematic objectives (TOs) of the ESF, TO 9 ‘promoting social inclusion and

combating poverty’ and TO 10 ‘i nvesting in education, skills and life-long learning’, are

closely related to the children in the four TGs. TO 8 ‘promoting employment and supporting

labour mobility’ is also related as it seeks to promote ‘equality between men and women

285 This chapter draws heavily on the five FSCG Policy Papers, the four FSCG Target Group Discussion Papers,

and the discussions at the FSCG’s four fact-finding workshops. These papers in turn draw on the 28 FSCG

Country Reports. See ‘List of FSCG Experts, List of documents generated within the FSCG and References’.

286 EU funds might be either co-managed between Member States and the European Commission or directly

managed by the commission (or agencies). Structural funds follow the shared management principle. Most of

the funds referred to in this chapter have both direct and shared management components, the latter being

more significant in terms of financial volume.

287 The school scheme has combined two previous schemes (the school fruit and vegetables scheme and the

school milk scheme) under a single legal framework since the 2017/2018 school year and supports the

distribution of fruit, vegetables, and milk to schools across the Union as part of a wider programme of education

about agriculture and the benefits of healthy eating.

288 See here for ESIF regulations 2014-2020.

289 The Europe 2020 strategy is the EU's agenda for growth and jobs for the current decade. See here for

information on the European Semester, which provides a framework for the coordination of economic policies

across the EU.

290 See here for information on the European Semester timeline.

Feasibility Study for a Child Guarantee (FSCG) Final Report

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and reconciliation between work and private l ife’.291 Additionally, TO 11 ‘enhancing

institutional capacity and ensuring an efficient public administration’ allows for institutional

reforms i n this area. Although the TOs of the ERDF and ESF do n ot refer specifically to

children at risk of poverty or social exclusion, the regulations indicate that funding may be

used to improve education, health/social infrastructure, and access to affordable and high-

quality services, including: out-of-school care and childcare; interventions preventing early

school-leaving; and promoting equal access to good-quality early-childhood, primary, and

secondary education. Furthermore, wh en readi ng in detail the investment priorities and

their key measures, we can find many references to children, including those at risk of

poverty.292 In short, the regulations give many opportunities to invest in children, and

allow the Member States to draft their respective OPs according to their needs and priorities

in agreement with the Commission.

8.1 The use of EU funds

The current programming period of the ESIF lasts seven years, beginning in 2014 and

ending in 2020. The operation of funds can be extended for three more years, up to 2023,

subject to the ‘n+3’ rule. According to different reports, including the Country Reports

prepared within the framework of the FSCG, in most Member States both the planning

process and implementation have been delayed. This means that the information provided

for this report is limited, as in many cases i ntermediary evaluations are not avai lable and

data are usually late, in some cases a year after implementation; several cases refer to

what is planned under the OPs but not necessarily implemented.

8.1.1 Allocation of funds to children and priorities

8.1.1.1 ESF and ERDF

Based on the FSCG Country Reports, we can say that most Member States are making use

of the EU funds for supporting children. Nevertheless, investment in children is not clearly

visible in the strategic and monitoring framework of most EU funds.293 Generally, spending

rates are still very l ow. In fact, an overview of implementation progress shows that the

reported expenditure on projects selected at the end of 2017 in the programmes supported

by the ES IF amounts to 15% of the total committed. Although it had more than doubled

in 12 months, it still represented a low execution rate, especially if compared with the

previous programming period.294 In most Member States there is big gap between the

selection and expenditure rates in the different TOs; although in many cases the selection

rate reaches 80%, the expenditure rate is below 20%, demonstrating that actual spending

is very low and there are substantial delays in implementation.295

TO 10 ‘investing in education, skill s and life-long learning’ frequently includes priorities to

prevent early school-leaving and school drop-out, and improved access to ECEC services,

including childcare. However, in man y cases it is almost impossible to d etermine the

participation rate for children in vulnerable situations. This is the same for TO 9 ‘promoting

social inclusion and combating poverty’. Based on 2017 administrative data, 25.6% (€86.4

billion) of the total ESF allocation was earmarked for social inclusion measures. According

to Brozai tis et al. (2018), Member States use d the ESF to address child poverty mainly

through fou r types of measure: social inclusion measures (€21.4 billion); reduction and

291 Regulation (EU) No 1304/2013 of 17 December 2013 on the European Social Fund, Article 3 (a) vi.

292 In Annexes 8.1-8.4, we refer to the investment priorities for the relevant TOs that allow for developing

programmes, projects, and measures with the CG.

293 Brozaitis et al. (2018).

294 European Commission (2018e).

295 Ibid.