Sat May 03 2025

EU Structural Funds

The Structural Funds are financial instruments through which the EU pursues the policy of economic and social cohesion between regions of member states. These funds, through specific actions set by each country, elaborate programs to support development, production conversion, training and qualification of human resources in order to reduce regional disparities (art. 174 and 175 TFEU).

The funds available to reach the goals are:  

  • European Regional Development Fund (ERDF). Lend support to the development and adaptation of regional economies, including the conversion of declining industrial regions and regions lagging behind.
  • European Social Fund (ESF). Supports policies of Member States aimed at achieving full employment, quality and productivity at work and promotes social inclusion, including access to employment for disadvantaged people and reduces employment disparities.
  • Cohesion Fund. It supports actions in the areas of transport, environmental protection and renewable energy. It can be applied to the following countries: Greece, Spain, Ireland and Portugal. Following enlargement, also 10 new EU Member States can benefit from it. 
    The European Investment Bank and European Investment Fund may participate in the planning and implementation of cohesion policy interventions.

The action aims to achieve three objectives for 2007-2013:

  1. Convergence;
  2. Regional competitiveness and employment;
  3. European territorial cooperation.
Convergence objective

The Convergence objective aims to assist the developing process of less developed regions by improving growth and employment. It is foreseen a transitional support to all those phasing-out regions, that is the ones that would have been eligible under the Convergence objective, had the threshold eligibility remained at 75% of the average GDP of EU-15 members and not of EU-25.

Eligible territories 
EU member states with a gross domestic income less than 90% of the European average (Cohesion Fund). NUTS level 2 regions with GDP per capita less than 75%.

Financial Instruments 
European Regional Development Fund (ERDF) - European Social Fund (ESF) - Cohesion Fund (does not apply to Italy).

Allocated resources 
251.16 billion euros (81.5% of total funds available)

Regional Competitiveness and Employment

The "Regional Competitiveness and Employment" objective refers to regions not covered by the "Convergence" objective and seeks to prefigure economic and social change, promote innovation, entrepreneurship, environmental protection and develop job markets. It is granted a transitional support to all those regions which are going through the phasing-in, in other words, the NUTS level 2 regions covered by previous objective with GDP more than 75% of the EU average of EU-15.

Eligible territories 
All regions that are not affected by the "convergence" objective or transitional support (NUTS level 1 or 2 regions, depending on the Member States)

Financial Instruments 
European Regional Development Fund (ERDF) - European Social Fund (ESF)

Allocated resources 
49.13 billion euros (about 16% of total funds available)

European Territorial Cooperation

It strengthens cross-border, transnational and interregional cooperation through joint initiatives at regional and national cooperation and through exchange of experiences between regions. This objective will merge the operations financed by Interreg, Leader, Equal and Urban.

Eligible territories 
It covers the EU territory in all aspects, promoting greater integration in accordance with the following breakdown:

Cross-border cooperation contributes to the integrated development of areas divided by national borders that have common problems requiring common solutions.
Transnational cooperation affects the macro regions where it is necessary to strengthen integration and socio-economic cohesion.
Interregional Cooperation aims to improve the effectiveness of regional development policies through experience exchange.

Financial Instruments 
European Regional Development Fund (ERDF)

Allocated Resources
7.75 billion euros (about 2.5% of total funds available)

Please find in the relared website the EU Treaties, regulations concerning the provisions on the European Regional Development Fund (ERDF), European Social Fund (ESF), Cohesion Fund, the implementing rules and regulations CIPE Resolution No 36/2007.