Will Europe's children pay the price?
The ESF+ Shift and the Future of Social Investment.
On 1 April, the European Commission introduced amendments to the European Social Fund Plus (ESF+) to enhance skills and resilience in response to geopolitical shifts. These changes will allow Member States to invest more flexibly in strategic sectors such as defence, the green transition, and the automotive industries, as well as in regions impacted by Russia’s war against Ukraine. With a €95.8 billion budget for 2021–2027, the ESF+ remains the EU’s primary instrument for investing in people. New rules will ease the reallocation of resources and introduce targeted support measures—including full EU financing—for border regions.
This announcement comes in stark contrast to the findings ofthe 2025 Joint Employment Report, which highlights that nearly 1 in 4 children in the EU remain at risk of poverty or social exclusion. This marks an increase of 0.6 million since 2019, moving the EU further away from its 2030 poverty reduction targets. Children under 18 continue to face a higher risk (24.8%) than adults (20.6%).
Recent analysis further underscores the urgency of investing in children. The 2024 Employment and Social Developments in Europe (ESDE) report, estimated that an additional €11 billion annually is needed to meet early childhood education and care targets. In response, the Commission has proposed strengthening the Child Guarantee and introducing the EU’s first-ever Anti-Poverty Strategy.
Effective implementation of the European Child Guarantee across all Member States is essential. Children facing poverty or social disadvantage often to healthcare, education, housing and other essential services—undermining their development, well-being and future opportunities. The long-term economic cost of inaction is estimated at 3.4% of Europe’s GDP annually.
The Child Guarantee, supported by €8.9 billion from ESF+ (2021–2027), requires 11 Member States to allocate at least 5% of their ESF+ funds to tackle child poverty. Other Member States have also allocated ring-fenced ESF+ to fund the rollout of services under the Child Guarantee. While this commitment has been met, biennial reports reveal widespread concerns about funding sufficiency, sustainability, and transparency. Significant service gaps persist, particularly in:
- Universal safety nets and access to essential services
- Early childhood education and equal opportunities
- Timely, quality healthcare including mental health
- Social protection and increased child benefits
- Affordable housing and targeted financial aid
- Free school meals and nutrition support
- Strengthened child protection services including social workers
The shift in ESF+ priorities towards defence spending raises two concerns. First, it reflects the continued low prioritisation of child poverty and social inclusion. Second, it highlights the persistent challenges around the absorption capacity and underspending of ESF+ funds – particularly concerning child-focused initiatives.
Eurochild members report that, to date, civil society organisations have only successfully accessed ESF+ funding at national level in Finland, Italy, and Slovakia . Key barriers include poor communication, limited involvement in programme design and monitoring, and burdensome funding procedures.
Rather than reprioritising funds away from social investment, Eurochild calls for action to strengthen the ESF+ framework:
- Ensure ESF+ calls are open to all eligible entities, including CSOs.
- Reduce administrative and financial burdens and invest in capacity building for relevant stakeholders.
- Increase transparency and improve information flow to support CSO’s involvement in implementation and monitoring/evaluation of programmes.
- Foster active engagement and ongoing dialogue with civil society, in line with the EU funding partnership principle. Managing Authorities should actively promote cooperation with all relevant stakeholders.
- Ensure sustainability of national programmes beyond ESF+ by securing national, regional, and local funding. The European Child Guarantee targets children already facing significant hardship—lasting systemic solutions are needed to meet their needs.
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