General Information
European Cohesion Fund
The Cohesion Fund is aimed at Member States whose Gross National Income (GNI) per inhabitant is less than 90% of the Community average. It serves to reduce their economic and social shortfall, as well as to stabilise their economy. It supports actions in the framework of the Convergence objective. It is now subject to the same rules of programming, management and monitoring as the ESF and the ERDF.
For the 2007-2013 period the Cohesion Fund concerns Bulgaria, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia and Slovenia. Spain is eligible to a phase-out fund only as its GNI per inhabitant is less than the average of the EU-15.
The Cohesion Fund finances activities under the following categories:
* trans-European transport networks, notably priority projects of European interest as identified by the Union;
* environment; here, Cohesion Fund can also support projects related to energy or transport, as long as they clearly present a benefit to the environment: energy efficiency, use of renewable energy, developing rail transport, supporting intermodality, strengthening public transport, etc.
The financial assistance of the Cohesion Fund can be suspended by a Council decision (taken by qualified majority) if a Member State shows excessive public deficit and if it has not resolved the situation or has not taken the appropriate action to do so.
European regional development fund (ERDF)
The ERDF aims to strengthen economic and social cohesion in the European Union by correcting imbalances between its regions. In short, the ERDF finances:
* direct aid to investments in companies (in particular SMEs) to create sustainable jobs;
* infrastructures linked notably to research and innovation, telecommunications, environment, energy and transport;
* financial instruments (capital risk funds, local development funds, etc.) to support regional and local development and to foster cooperation between towns and regions;
* technical assistance measures.
The ERDF can intervene in the three objectives of regional policy:
Convergence
In regions covered by the Convergence objective, ERDF focuses its intervention on modernising and diversifying economic structures as well as safeguarding or creating sustainable jobs, with action in the following areas:
* research and technological development (RTD);
* innovation and entrepreneurship;
* information society;
* environment;
* risk prevention;
* tourism;
* culture;
* transport;
* energy;
* education;
* health.
Regional Competitiveness and Employment
For the Regional Competitiveness and Employment objective, the priorities are based on three sections:
* innovation and knowledge-based economy: strengthening regional capacities for research and technological development, fostering innovation and entrepreneurship and strengthening financial engineering notably for companies involved in knowledge-based economy;
* environment and risk prevention: cleaning up polluted areas, boosting energy efficiency, promoting clean public transport within towns and drawing up plans to prevent and limit natural and technological risks;
* access to transport and telecommunications services of general economic interest.
European Territorial Cooperation
For the European Territorial Cooperation objective, the ERDF focuses its aid on three main areas:
* development of economic and social cross-border activities;
* establishment and development of transnational cooperation, including bilateral cooperation between maritime regions;
* increasing the efficiency of regional policy through interregional promotion and cooperation, the networking and exchange of experiences between regional and local authorities.
Specific Territorial Characteristics
The ERDF also gives particular attention to specific territorial characteristics. ERDF action is designed to reduce economic, environmental and social problems in towns. Naturally disadvantaged areas geographically speaking (remote, mountainous or sparsely populated areas) benefit from special treatment. Lastly, the outermost areas also benefit from specific assistance from the ERDF to address possible disadvantages due to their remoteness.
European Social Fund (ESF)
The ESF sets out to improve employment and job opportunities in the European Union. It intervenes in the framework of the Convergence and Regional Competitiveness and Employment objectives.
The ESF supports actions in Member States in the following areas:
* adapting workers and enterprises: lifelong learning schemes, designing and spreading innovative working organisations;
* access to employment for job seekers, the unemployed, women and migrants;
* social integration of disadvantaged people and combating discrimination in the job market;
* strengthening human capital by reforming education systems and setting up a network of teaching establishments.
Source: European Communities, 1995-2008
European regulated funds see inflow of money
FT.com - 27 may 2009
According to the European Fund and Asset Management Association, about €22bn flowed into so-called UCITS funds during the first quarter of the year – a reversal from 2008, when €142bn flowed out in the fourth quarter as panicking investors tried to hoard cash.
European SME week to boost entrepreneurship in difficult times
European Commission - 6 may 2009
Promoting entrepreneurship and raising awareness about business support are the main messages of the first European SME Week launched in Brussels today. More than 1000 events will take place in 35 countries from 6 to 14 May. Today more than ever the contribution of European entrepreneurs for preserving jobs and creating new ones needs to be recognised and supported. The week will also allow entrepreneurs to discover the information, advice, support and ideas available at European, national, regional and local levels to help them develop their activities.
Transparency: All recipients of EU farm aid to be published by April 2009
European Commission - 25 march 2008
All recipients of European Union agricultural and rural development payments will be published in detail under new rules adopted today by the European Commission. By 30 April, 2009, the full name, municipality and, where available, postal code of every recipient will be published in a clear, harmonised manner on nationally-managed websites with a search tool which enables the public to see how much money each person or company received. Amounts will be broken down in direct payments to farmers and other support measures. For rural development policy, which is co-financed between the EU and the national government, the information will cover both EU and national money.
State aid: Commission authorises French tax scheme reducing solidarity tax on wealth with a view to promoting investment in SMEs
European Commission - 17 march 2008
The European Commission has decided not to raise any objections under the EC Treaty rules on state aid to the French tax-relief to a taxpayers' scheme in respect of the solidarity tax on wealth (ISF) for those who invest in SMEs. Relief will be conditional upon investments being made in SMEs.