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Increasing co financing rates for EU funds - boosting European economic recovery

09/08/2011

The European Commission has agreed to measures that should make a significant contribution to getting some of the EU's most troubled economies back on track.

Under the proposal, six countries would be asked to contribute less to projects that they currently co-finance with the European Union. The Commission makes available for Greece, Ireland, Portugal, Romania, Latvia and Hungary, supplementary EU co financing, vital for growth and competitiveness-boosting projects in each one of these countries. As a result, they will have to find less national match-funding at a time when their domestic budgets are under considerable pressure and therefore programmes that have not been executed so far for lack of national funding may be launched and inject fresh money in the economy.

Commissioner for Regional Policy Johannes Hahn commented:

"With this measure we will be able to provide extra breathing space for those Member States which have to carry the heaviest burden of the economic crisis. By adopting this approach we are showing consistency as well. We cannot ask for cuts in the budget and at the same time for co-funding for EU projects. This proposal ensures that more projects, which now are stuck in a pipeline due to lack of national match funding, can be effectively realised. This means that more much needed growth and new jobs will be created."

Read the full press release