Do European Social Funds Matter in Achieving the Sustainable Development Goals?

Roxana Maria Bădîrcea, Nicoleta Mihaela Doran, Alina Georgiana Manta () and Camelia Cercel (Zamfirache)
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Roxana Maria Bădîrcea: Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, 13 A.I. Cuza, 200585 Craiova, Romania
Nicoleta Mihaela Doran: Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, 13 A.I. Cuza, 200585 Craiova, Romania
Alina Georgiana Manta: Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, 13 A.I. Cuza, 200585 Craiova, Romania
Camelia Cercel (Zamfirache): Doctoral School of Economic Sciences, Faculty of Economics and Business Administration, University of Craiova, 13 A.I. Cuza, 200585 Craiova, Romania

Sustainability, 2025, vol. 17, issue 2, 1-30

Abstract: The aim and novelty of this study lie in analyzing the role of the European Social Fund (ESF) in supporting the implementation of the Sustainable Development Goals (SDGs) within European Union (EU) countries over the 2015–2023 period. EU Member States were grouped into two clusters: Cluster A (15 lower-income states) and Cluster B (12 higher-income states). The study used ESF payments as the explanatory variable and 17 SDG indicators as dependent variables. The methodology combined exploratory factor analysis (EFA) and robust regression to analyze the relationship between the ESF and the SDGs. The ESF has a significant impact on reducing poverty (SDG1), fostering economic growth (SDG8), and enhancing industry and innovation (SDG9), particularly in less-developed regions where its interventions address structural challenges through vocational training, job creation, and infrastructure development. However, its contributions to sustainability goals (SDGs 7, 12, and 13) are limited or even negative in some cases, as economic priorities often overshadow environmental objectives, especially in more-developed regions where climate and energy transitions rely on other funding sources. The ESF excels in fostering partnerships (SDG17) in less-developed regions by mobilizing resources and promoting collaboration, but its role is less impactful in developed regions where institutional frameworks are already well-established.

Keywords: European Social Fund; sustainable development goals; sustainable future (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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