Structural Funds and Cohesion Funds

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Structural Funds and Cohesion Funds are funds allocated by the European Union for two related purposes, firstly support for the poorer regions of Europe, and, secondly, support for integrating European infrastructure especially in the transport sector. Current programmes run from 1 January 2000 to 31 December 2006, with €195 billion budget for Structural Funds, and €18bn for the Cohesion Fund.

Together with the Common Agricultural Policy, the structural and cohesion funds make up the great bulk of EU funding, and the majority of total EU spending.

1 Objectives
2 Funding
3 See also
4 External links

[edit] Objectives

Under the Structural Funds there are 3 Objectives:

Objective 1: promoting the development and structural adjustment of regions whose development is lagging behind;
Objective 2: supporting the economic and social conversion of areas facing structural difficulties;
Objective 3: supporting the adaptation and modernisation of policies and systems of education, training and employment.

These objectives are met through four major funds:

European Regional Development Fund (ERDF)
European Social Fund (ESF)
Financial Instruments for Fisheries Guidance (FIFG)
European Agricultural Guidance and Guarantee Fund (EAGGF)

[edit] Funding

For 2000-2006, €135bn was allocated to 50 "Objective 1" regions, covering 22% of the EU population. The primary criterion for inclusion as "Objective 1" was for a region to have less than 75% of the average EU GDP per capita. The accession of 10 new member states in Eastern Europe on 1 May 2004 has meant that many of the poorer regions in western Europe no longer qualify; there are some transition arrangements. All Objective 1 regions with less than 90% of the EU GDP per capita average have access to the Cohesion Fund.

Most EU funding is not paid directly by the European Commission but via the national and regional authorities of the Member States. [1]