Supporting economic development
Under the 2014-2020 long-term EU budget, over half of EU funding was channelled through the 5 European structural and investment funds (ESIF). They are jointly managed by the European Commission and the EU countries. Member States can still commit funds under them until the end of 2023. For the structural funds under the current long term budget, see also EU regional and urban development.
The purpose of these funds is to invest in job creation and a sustainable and healthy European economy and environment.
The 2014-2020 ESIF mainly focus on 5 areas:
- research and innovation
- digital technologies
- supporting the low-carbon economy
- sustainable management of natural resources
- small businesses
The 5 funds
The European structural and investment funds are:
European regional development fund (ERDF) – promotes balanced development in the different regions of the EU.
European regional development fund (ERDF)
European social fund (ESF) - supports employment-related projects throughout Europe and invests in Europe’s human capital – its workers, its young people and all those seeking a job.
European social fund (ESF)
Cohesion fund (CF) – funds transport and environment projects in countries where the gross national income (GNI) per inhabitant is less than 90% of the EU average. In 2014-20, these are Bulgaria, Croatia, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia and Slovenia.
Cohesion fund (CF)
European agricultural fund for rural development (EAFRD) – focuses on resolving the particular challenges facing EU's rural areas.
European agricultural fund for rural development (EAFRD)
European maritime and fisheries fund (EMFF) – helps fishermen to adopt sustainable fishing practices and coastal communities to diversify their economies, improving quality of life along European coasts.
European maritime and fisheries fund (EMFF)
How the funds are managed
All these funds are managed by the EU countries themselves, by means of partnership agreements.
Each country prepared an agreement, in collaboration with the European Commission, setting out how the funds would be used during the funding period 2014-2020.
Partnership agreements lead to a series of investment programmes channelling the funding to the different regions and projects in policy areas concerned.
- jobs, growth and investment
- digital single market
- energy union and climate
- internal market
- economic and monetary union
- justice and fundamental rights
- European Regional Development Fund and Cohesion Fund
- European Social Fund
- European Maritime and Fisheries Fund
- CAP payments (shared management)