Regional policy of the European Union
The policy also has a role to play in wider challenges for the future, including climate change, energy supply and globalisation.
This covers Europe's poorest regions whose per capita gross domestic product (GDP) is less than 75% of the EU average.
This includes nearly all the regions of the new member states, most of Southern Italy, Greece and Portugal, and some parts of the United Kingdom and Spain.
[9][10] Less developed regions also have the lowest percentage of businesses who have made investments to combat climate change or reduce their carbon emissions, at 46%.
[14] There has been general growth in GDP per capita and employment, but regional differences within EU nations remain, with considerable discrepancies between capital and non-capital areas, particularly in younger Member States.
Possible projects include developing clean transport, supporting research centres, universities, small businesses and start-ups, providing training, and creating jobs.
[19][13] This objective aims to reduce the importance of borders within Europe – both between and within countries – by improving regional cooperation.
The objective is currently by far the least important in pure financial terms, accounting for only 2.5% of the EU's regional policy budget.
The cohesion policy accounts for almost one third of the EU's budget, equivalent to almost EUR 352 billion over seven years in 2014-2020,[22] and EUR 392 billion in 2021-2027,[1] dedicated to the promotion of economic development and job creation, and for helping communities and nations get ready for the European Union's transition to a more sustainable and digital economy.
[25] Sustainable energy and natural resources accounted for €10.2 billion, or 34% of overall European Investment Bank cohesion loans, compared to 26% for non-cohesion regions.
[28] The ERDF is intended to be used for the creation of infrastructure and productive job-creating investment and it is mainly for the businesses, while the ESF is meant to contribute to the integration of the unemployed populations into the work life via training measurements.
The funds are managed and delivered in partnership between the European Commission, the Member States and stakeholders at the local and regional level.
[30] Between 2023 and 2024, the Bank plans to allocate at least 40% of the overall finance it provides to projects in cohesion regions, increasing to at least 45% starting in 2025.
The less developed areas of Europe will get at least half of this allocation, and increasing regions that receive its climate action and environmental loans.
[33][34] Financial instruments from the Bank have so far helped around 6,600 projects in Greece, Italy, Poland, Spain, Portugal, Lithuania, Romania, and Cyprus.
[41] Also in 2023, the European Investment Fund spent €14.9 billion in cohesion areas, partnering with 300 institutions throughout Europe to provide finance for over 350 000 small firms, infrastructure projects, homes, and individuals.
