European funds Related EU Grant Loans Programme(s):  Grants in the frame of cooperation activities between regions to strengthen economical and social cohesion and a balanced development of the EU territory  Economic and social regeneration of cities and neighbourhoods in crisis in order to promote sustainable urban development  Grants for the promotion of social dialogue at inter professional and sectoral level  Grants that cover regions struggling with structural difficulties and help to reduce gaps in socio-economic development by cofinancing of productive investment in infrastructures, local development initiatives and business activities.  Support for investment of economic public and private actors in order to reinforce competitiveness, attractivity of regions and employment

The European Commission aims to allocate up to €11.3bn to people and regions affected by economic change.

Faced with a future of intense global competition, the European Union needs effective policies in place to equip individuals to cope with change, promote new enterprise in areas affected by economic change and to anticipate restructuring. The Commission has put forward a proposal to strengthen social dialogue, streamline existing policies, increase funding and refocus existing funding.

The Lisbon agenda is built around the need to generate balanced and sustainable growth which benefits all. At the heart of the Commission’s social agenda is expenditure on policies to promote social cohesion, social dialogue and educational and training opportunities that are the essential ingredients to allow people to adapt to economic renewal and change.

The Commission proposes establishing a 'growth adjustment' fund of around €1bn (annually) to provide support to areas affected by restructuring. It also proposes that Member States hold a reserve for unforeseen restructuring consequences of up to 1% of the 'convergence' and 3% of the 'competitiveness' budgets (around €2.6bn and €1.7bn respectively). Over the period 2007-2013, the cumulative possible contribution from these sources is up to €11.3bn. Structural funding will focus on key objectives such as increasing adaptability or workers and enterprises , preventing unemployment and promoting partnership. In the least prosperous regions, the Structural Funds will concentrate on promoting growth, job creation and dealing with structural adjustment.

The best way to effectively anticipate change is through social dialogue, involving the social partners (employer and employee organisations). The Commission is urging the European social partners to be more pro-active in tackling restructuring. Its Communication asks them to focus on adopting, applying and developing their best practice guidelines on restructuring and to look further at how the European Works Councils can improve their effectiveness and take a lead role in managing restructuring changes.

The Commission's Communication highlights three areas where EU action can help: more focused co-ordination between EU policies (notably employment, industrial and enterprise, trade and competition policies); adapting the regulatory framework including a Green Paper on the Evolution of Labour Law in 2006 and; developing partnerships notably through the establishment of a European ‘Restructuring Forum' comprising the main stakeholders.