This contribution focuses on Austria and its response to Youth Guarantee (YG) by explaining the reasons of the Austrian government not to participate in the YG, but to continue using a significant part of ESF funding for the 2014-2020 period for programmes with a high intake of young adults. This chapter therefore explores the specifics of an example for such an ESF co-funded programme -- the Initiative for Adult Education ("Initiative Erwachsenenbildung") in the context of the overall framework for using ESF funding in Austria. By analysing a specific adult education initiative, it is demonstrated that EU funding has strongly changed many aspects of adult education in Austria, while processes on national and regional level keep their crucial impact on how adult learning policies are implemented. [For the complete volume, "Europe's Lifelong Learning Markets, Governance and Policy: Using an Instruments Approach. Palgrave Studies in Adult Education and Lifelong Learning," see ED616323.]