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The future of the European Social Fund is at stake

16 July 2026

The EU is preparing its next long-term budget, and with it, important decisions about the future of social funding. While the discussion may sound technical, the choices made in the coming months will have a direct impact on people’s lives, shaping how support reaches those experiencing poverty, unemployment, exclusion and other social challenges.

The first episode of Eurocities’ new podcast series, Cities with no margins, explores what is at stake for cities as the future of the European Social Fund Plus (ESF+) is debated.

The episode, called ‘The European Social Fund at a crossroads’ looks at proposals that would bring different EU funding programmes together under national plans. The aim is to simplify funding rules and administration. However, many cities fear that a more centralised system could weaken their role in designing and delivering programmes that respond to local needs.

As Benedek Jávor, Head of the Representation of Budapest to the EU, warns, the proposed model creates risks for cities because it “systematically excludes the local and regional level from decision making”

Through conversations with representatives from Budapest, Ghent and the European Parliament, the episode asks a crucial question: if decisions move further away from the places where people live, will social funding still reach those who need it most?

 

Why it matters for people, not just institutions

At first glance, debates about governance structures and funding mechanisms can seem distant from everyday life. The podcast shows that the opposite is true.

Across Europe, cities are often responsible for delivering services that help residents find work, learn new skills, access support and overcome barriers that prevent them from fully participating in society. These local services depend on funding that is flexible enough to respond to very different realities from one city to another.

The episode highlights examples from Ghent, where ESF-funded initiatives have helped people facing difficulties entering the labour market. Lieve De Bosscher, Director of Early Childhood Education Services in Ghent, points to projects that created “pathways to upskilling or reskilling and then find entry into the labour market”.

She also warns that local needs can easily be overlooked if cities are not properly involved: “The specific challenges which we are ready to tackle will become invisible.”

These concerns are about much more than administration. They are about how Europe tackles poverty, exclusion and inequality in practice

A call from cities and political leaders

While perspectives differ across Europe, the podcast reveals a shared message from cities and policymakers: local governments must be recognised as partners in shaping social investment.

For Budapest, these concerns are not theoretical. The city has already experienced what can happen when national governments control funding decisions and cities have little influence over how resources are allocated. In the podcast, Jávor warns that political tensions between national and local governments can leave cities excluded from funding decisions, with direct consequences for the people who rely on social programmes.

“This could lead to a situation where the cities are completely left out from EU funding on the social spending area,” he says. The result, he warns, would be damaging not only for city administrations but also for residents who depend on services that tackle poverty and support social inclusion.

For city leaders, the concern is that a more centralised funding model could make similar situations easier to repeat elsewhere. If cities have less influence over decisions and fewer guarantees that funding will reach local communities, programmes supporting thousands of residents could become more vulnerable to changing political priorities.

This view is shared by Marit Maij, Member of the European Parliament and co-rapporteur on the future of the European Social Fund, who argues that municipalities have a unique role because they are closest to residents. As she puts it: “They know what is needed in the city or in the municipality.”

Maij is also among those calling for a dedicated social fund in the future EU budget. “It’s super important to make sure that we have a European social fund with a dedicated budget,” she explains in the podcast.

The same message comes from other city leaders. During the Eurocities Annual Conference in Utrecht, mayors of Florence and Zagreb call for ESF+ to remain a standalone fund. Florence Mayor Sara Funaro highlights how essential the fund is for local action, noting that many of the city’s social inclusion initiatives depend on ESF support. In Florence, she explains, around half of the funding for these measures comes from the European Social Fund.

For Zagreb Mayor Tomislav Tomašević, the stakes are equally high. “The next MFF is really important that European Social Fund is still accessible to cities,” he says, highlighting its importance for delivering the EU’s anti-poverty objectives.

Together, these voices make a strong case for preserving a dedicated social fund and ensuring cities have a meaningful role in decisions about how it is used.

Introducing ‘Cities with no margins’

The debate over ESF+ goes to the heart of what the new podcast series is about: how European decisions shape people’s ability to participate fully in city life.

Cities with no margins explores how European policies affect people on the ground and how cities work to ensure that everyone can participate fully in urban life.

Whether because of poverty, unemployment, disability, housing insecurity or other barriers, too many people still struggle to access opportunities that others take for granted. The series looks at the policies and investments that can help address these challenges and create more inclusive communities, aiming to build cities where nobody is pushed to the margins of society.

Across future episodes, listeners will hear from city leaders, policymakers, experts and practitioners working on issues such as housing, employment, skills and social inclusion. The common thread is a simple question: how can Europe help create cities where everyone has the chance to thrive?

The first episode of Cities with no margins arrives at a pivotal moment for European social policy.

As negotiations on the next EU budget gather pace, decisions about the future of ESF+ will influence how cities tackle poverty, support vulnerable residents and create pathways to employment and opportunity. The podcast offers a chance to hear directly from those closest to the debate and to the people affected by its outcome.

Contact

Lucía Garrido Eurocities Writer

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