(*) Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance where results often follow only after completion of the programmes.
Budget for 2021-2027
Regional policy (million EUR):
Recovery Assistance for Cohesion and the Territories of Europe initiative (REACT-EU) (million EUR):
Regional policy (million EUR):
Financial programming | 264 212.7 |
NextGenerationEU | 0.0 |
Decommitments made available again (*) | N/A |
Contributions from other countries and entities | 0.0 |
Total budget 2021-2027 | 264 212.7 |
(*) Only Article 15(3) of the financial regulation.
Recovery Assistance for Cohesion and the Territories of Europe initiative (REACT-EU) (million EUR):
Financial programming |
|
NextGenerationEU | 30 197.1 |
Decommitments made available again (*) | N/A |
Contributions from other countries and entities |
|
Total budget 2021-2027 | 30 197.1 |
(*) Only Article 15(3) of the financial regulation.
Rationale and design of the programme
Cohesion policy programmes contribute to strengthening the economic, social and territorial cohesion in the EU. They aim to correct imbalances between countries and regions and deliver on the EU’s political priorities, especially the green and digital transition.
Disparities show a generally decreasing trend among the EU regions based on the latest available data (2020), even if the pace of convergence was slower after the financial crisis of 2008. The COVID-19 pandemic and the consequences of the Russian war of aggression against Ukraine may well exacerbate the existing disparities. Divergences threaten the cohesion and long-term sustainability of the EU and hinder the deployment of its full potential.
Tackling these challenges at the EU level is more effective than leaving it to the sole responsibility of Member States. First, EU-level action supports EU-wide priorities, such as ensuring that the recovery is geared to the green and digital transitions. Second, it incentivises closer application of EU legislation and critical structural reforms by Member States, in line with the country-specific recommendations emanating from the EU’s economic surveillance (European semester). Through its multiannual programming framework, the EU also provides stability, certainty and sustainability for investment plans, reducing their vulnerability across economic and political cycles and improving prospects for implementation on the ground. The EU can also support more intensive investments in less-developed and transition regions – which would otherwise not happen – generating spillovers to the rest of Europe, notably via increased connectivity and trade flows, thus supporting the development of the single market. Finally, EU action feeds on and promotes interregional cooperation and the exchange of experience both cross-border and across the EU.
The Cohesion Fund (CF) and the European Regional Development Fund (ERDF) (along with the Just Transition Fund) constitute the EU’s regional policy. Together with the European Social Fund (ESF) , they constitute the EU’s cohesion policy. The CF and the ERDF aim to strengthen the economic, social and territorial cohesion of the EU by promoting sustainable development, particularly in less-developed regions.
The CF provides support to Member States with a gross national income per inhabitant below 90% of the EU average, notably by contributing to projects in the fields of environment and trans-European transport infrastructure networks.
The place-based approach of the ERDF allows for the identification of specific development needs and, as a consequence, the definition of appropriate investment strategies aligned with both EU priorities and regional conditions.
These two funds are macro economically relevant: the funding channelled by the policy is a primary source of public investment in many Member States. The policy also operates as a catalyst for public and private funding.
The programmes have five EU high-level policy objectives.
- A more competitive and smarter Europe, by promoting innovative and smart economic transformation and regional information and communications technology connectivity.
- A greener, low-carbon transition towards a net zero carbon economy and resilient Europe, by promoting clean and fair energy transition, green and blue investment, the circular economy, climate change mitigation and adaptation, risk prevention and management and sustainable urban mobility.
- A more connected Europe by enhancing mobility.
- A more social and inclusive Europe, by implementing the European Pillar of Social Rights.
- A Europe closer to citizens, by fostering the sustainable and integrated development of all types of territories and local initiatives.
All five policy objectives are applicable to the ERDF, while for the CF only policy objectives 2 and 3 are applicable.
The CF and ERDF support investments in key priority areas. The ERDF, delivered through approximately 280 national, regional and interregional programmes, supports investments in infrastructure, productive investments in enterprises and public policies across a range of themes.
The CF which is delivered in 15 Member States, mainly funds capital-intensive environmental and transport investments, predominantly through grants.
Cohesion policy provides stable and predictable support to Member State investments while retaining the appropriate flexibility. This was e.g. demonstrated during the COVID-19 crisis, where the instruments were adapted via the coronavirus response investment initiatives - CRII(+) mobilising much-needed support to the worst-affected sectors with unprecedented speed and flexibility, but also the ensuing migratory and energy challenges following the Russian aggression against Ukraine with the Cohesion’s Action for Refugees in Europe (CARE), Flexible Assistance to Territories (FAST CARE) and Supporting Affordable Energy (SAFE).
Cohesion policy funds are delivered through shared management. Under the shared management mode, the co-legislators fix the legal framework and the overall funding and determine the allocations by Member States and category of region. The Commission adopts the programmes. As regards implementation, the Commission cooperates with Member States' administrations (at national and regional level), which are in charge of the operational implementation. DG Regional and Urban Policy leads on the Commission’s side.
The ERDF is supporting all Member States and is implemented through national, regional and interregional (Interreg) programmes. The CF covers 15 Member States - those with a gross national income per inhabitant below 90% of the EU average.
The ERDF and CF, together with the newly established JTF and the ESF+, are the budgetary instruments of the EU’s cohesion policy. Article 174 of the Treaty on the Functioning of the European Union establishes cohesion policy and describes its objectives.
According to Article 175 of the Treaty on the Functioning of the European Union, the formulation and implementation of the EU’s policies and actions and the implementation of the internal market shall take into account the objectives of cohesion policy and shall contribute to their achievement.
For 2021-2027, the general approach of the 2014-2020 multiannual financial framework was maintained, however, with numerous simplifications that should facilitate implementation. New and more ambitious objectives and features include: adjusted policy priorities, increased climate targets, increased flexibility during reprogramming and midterm review, and updated co-financing rates, stratified along the different types of regions (from 40% to 85% in the less developed regions).
Programme website:
Impact assessment:
- The impact assessment of the CF and the ERDF was carried out in 2018.
- For further information, please consult: https://europa.eu/!nG34XX.
Relevant regulation:
Evaluations:
- The Commission is currently carrying out the ex-post evaluation of the ERDF and CF for the period 2014-2020. More information on the process is available here.
- The public consultation on the ex post evaluation of ERDF and CF for the period 2014-2020 (running between 18.01-12.04.2023) is available here.
Budget
Budget programming of regional policy (million EUR):
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total | |
|---|---|---|---|---|---|---|---|---|
| Financial programming | 261.7 | 43 575.7 | 44 863.5 | 46 110.4 | 47 414.5 | 40 297.9 | 41 689.0 | 264 212.7 |
| NextGenerationEU | ||||||||
| Decommitments made available again (*) | N/A | |||||||
| Contributions from other countries and entities | 0.0 | 0.0 | p.m. | p.m. | p.m. | p.m. | p.m. | 0.0 |
| Total | 261.7 | 43 575.7 | 44 863.5 | 46 110.4 | 47 414.5 | 40 297.9 | 41 689.0 | 264 212.7 |
(*) Only Article 15(3) of the financial regulation.
Budget programming of REACT-EU (million EUR):
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total | |
|---|---|---|---|---|---|---|---|---|
| Financial programming | ||||||||
| NextGenerationEU (**) | 24 038.4 | 6 073.1 | 85.7 | 30 197.1 | ||||
| Decommitments made available again (*) | N/A | |||||||
| Contributions from other countries and entities | ||||||||
| Total | 24 038.4 | 6 073.1 | 85.7 | 30 197.1 |
(*) Only Article 15(3) of the financial regulation.
(**) The total amount of Recovery Assistance for Cohesion and the Territories of Europe initiative (REACT-EU) represents an estimate.
Budget performance – implementation
Multiannual cumulative implementation rate of regional policy at the end of 2022 (million EUR):
| Implementation | Budget | Implementation rate | |
|---|---|---|---|
| Commitments | 42 738.0 | 264 212.7 | 16.2% |
| Payments | 4 188.3 | 1.6% |
Multiannual cumulative implementation rate of REACT-EU under regional policy at the end of 2022 (million EUR):
| Implementation | Budget | Implementation rate | |
|---|---|---|---|
| Commitments | 29 955.7 | 30 197.1 | 99.2% |
| Payments | 13 648.0 | 45.2% |
Annual voted budget implementation (million EUR) (1):
| Commitments | Payments | |||
|---|---|---|---|---|
| Voted budget implementation | Initial voted budget | Voted budget implementation | Initial voted budget | |
| 2021 | 260.8 | 33 942.5 | 37.6 | 1 483.9 |
| 2022 | 42 4772 | 35 044.8 | 4 149.8 | 2 693.7 |
(1) Voted appropriations (C1) only.
- The adoption process of the 2021-2027 programmes has been slower than expected due to the COVID-19 crisis. As a consequence, the whole 2021 allocation (EUR 34.9 billion) has been reprogrammed in four equal tranches for the years 2022-2025.
- In the 2022 budget, the allocation for ERDF and CF together was EUR 43.3 billion (EUR 36.9 billion for ERDF, EUR 6.4 billion for CF) in commitment appropriations. The adoption process of the 2021-2027 programmes accelerated during the last weeks of 2022 and by the end of the year 97.3% of the 2022 multiannual financial framework allocation (EUR 43.7 billion) had been committed. The remaining amount corresponded to the decommitments made on the HU programmes (EUR 1.1 billion) and to late adoptions, carried over to 2023 (EUR 151 million, all on the ERDF line).
- Regarding payments, EUR 4 billion were paid as prefinancing during 2022, EUR 3.4 billion from the ERDF and EUR 0.6 billion from the CF, representing 100% of the voted budget for ERDF and CF.
- The REACT-EU NextGenerationEU commitments in 2021 and 2022 were allocated to the 2014-2020 programmes and those commitments are reported along with the 2014-2020 programmes.
- At the end of 2022 ERDF/REACT-EU reached an implementation rate of 46%. Despite the relatively low implementation rate, in the last months an increased pace of consumption can be observed, which is expected to grow drastically in 2023 and 2024 (as forecasted in the payment profile of REACT-EU and reflected in the claims’ forecasts submitted by Member State).
Contribution to horizontal priorities
Green budgeting
Contribution to green budgeting priorities (million EUR):
| Implementation | Estimates | Total contribution | % of the 2021–2027 budget | ||||||
|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | |||
| Climate mainstreaming | 41.0 | 13 156.8 | 16 150.9 | 16 604.4 | 17 074.2 | 14 511.5 | 15 012.6 | 92 554.5 | 35% |
| Biodiversity mainstreaming ReactEU | 5 035.4 | 1 275.2 | 3 733.4 | 0.0 | 0.0 | 0.0 | 0.0 | 6 314.4 | 21% |
| Biodiversity mainstreaming | 0.0 | 2 645.0 | 2 700.0 | 2 799.7 | 2 878.9 | 2 446.8 | 2 531.3 | 16 002.6 | 6% |
| Clean air | 0.0 | 6 924.2 | 7 070.4 | 7 329.0 | 7 536.4 | 6 405.2 | 6 626.4 | 41 891.5 | 16% |
Cohesion policy uses a ‘categorisation’ information system to capture the information of the thematic content of the 2021-2027 programmes. These multiannual thematic allocations are used to calculate the indicative share of investments under each annual commitment as set above. There are several tracking tools (e.g. climate, biodiversity, clean air, gender, digital).
- The legislation set up minimum thresholds for two of the tracking mechanisms: the climate and the biodiversity mainstreaming.
- For climate mainstreaming, the ERDF and the CF shall contribute 30% and 37% respectively of the EU contribution. Based on the adopted 2021-2027 programmes, the planned targets have been largely exceeded, reaching 33% for the ERDF and 56% for the CF.
- For biodiversity, the ambition is to provide 7.5% of annual spending under the multiannual financial framework to the funds governed by the common provisions regulation. Based on the adopted programmes, 6% has been earmarked so far in regional policy for activities tackling the loss of biodiversity. For the 2021-2027 period, the biodiversity tracking data story available on the Cohesion Open Data Platform presents in more detail the cohesion policy investments benefitting biodiversity
- For clean air, based on the adopted 2021-2027 programmes, 15.9% of the planned EU amounts will be used to support interventions whose objective is to increase the quality of air.
- The calculation of the climate mainstreaming amounts is based on coefficients set out in the table on intervention fields in Annex 1 to the common provisions regulation; the amounts calculated for the other horizontal priorities are based on the assessment by Commission services of the relevance of planned thematic allocations.
- The allocations to the different green budgeting objectives overlap to some extent. The amounts for each priority should not be directly aggregated, as that would result in double counting. Data stories on the Cohesion Open Data platform present the data and the methods for tracking in more detail; see for example the climate tracking tool 2014-2020 or the biodiversity tracking tool 2014-2020.
- For the 2021-2027 period, the climate tracking data story available on the Cohesion Open Data Platform presents in more detail the cohesion policy support to climate action.
- As concerns REACT-EU and its climate contribution, according to Regulation (EU) 2020/2221 and its amendment Regulation (EU) 2022/613, the climate target of 25% is not binding for REACT-EU programmes but rather a political ambition. Climate targeted actions are not the main focus of the projects, with funds being also redirected to tackle the lingering impact of the COVID-19 pandemic and ongoing Russia’s war of aggression against Ukraine. More information is also available in the REACT-EU data story available of the Cohesion Open Data Platform.
- Even though programmes have allocated significant amounts to climate targeted action, in the post-COVID context, other thematic investments have been prioritised, such as actions to support Member State healthcare systems and the development of small and medium-sized enterprises. For these reasons, we do not expect ERDF/REACT-EU-funded projects to reach the target of 25% mentioned in the regulation. In 2021 it was decided to apply a flat percentage rate of climate contribution to all REACT-EU commitments in accrual-based accounting (i.e. 19%), based on the available information at that time. Following the adoption of all programmes at the end of 2022, it was acknowledged that this percentage had increased to 21.1%.
Gender
Contribution to gender equality (million EUR) (*):
| Gender score | 2021 | 2022 | Total |
|---|---|---|---|
| 0 | 0.0 | 38 620.4 | 38 620.4 |
| 1 | 0.0 | 348.9 | 348.9 |
| 2 | 0.0 | 4 606.3 | 4 606.3 |
(*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:
- 2: interventions the principal objective of which is to improve gender equality;
- 1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;
- 0: non-targeted interventions (interventions that are expected to have no significant bearing on gender equality);
- 0*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.
Cohesion policy uses a ‘categorisation’ information system, which specifically focuses on the gender equality dimension, to capture information on the gender contribution of the 2021-2027 programmes. These multiannual thematic allocations are used to calculate the indicative share of investments under each annual commitment as set above.
Based on the adopted programmes, about 8.3% of the planned EU amounts will be used to support interventions whose principal objective is to improve gender equality or interventions that have gender equality as an objective.
For the 2021-2027 period, the gender tracking data story available on the Cohesion Open Data Platform presents in more detail the cohesion policy support to gender equality.
Digital
Contribution to digital transition (million EUR):
| 2021 | 2022 | Total | % of the total 2021-2027 implementation | |
|---|---|---|---|---|
| Digital contribution | 0.0 | 5 012.1 | 5 012.1 | 12% |
- Based on the adopted programmes, more than 12% of the planned EU amounts will be used to finance interventions that support the digital transition.
- The calculation of the amount for the digital transition is based on coefficients applied to the intervention fields in Annex 1 to the common provisions regulation. In the case of digital tracking, the amounts calculated are based on the assessment by Commission services of the relevance of planned thematic allocations.
- For the 2021-2027 period, the digital tracking data story available on the Cohesion Open Data Platform presents in more detail the cohesion policy support to the digital transition.
Budget performance – outcomes
| Baseline | Progress (*) | Target | Results | Assessment | |
|---|---|---|---|---|---|
| Enterprises supported to innovate | 0 | 0% | 148 094 in 2029 | No results | No data |
| Small and medium-sized enterprises supported to enhance growth and competitiveness | 0 | 0% | 450 822 in 2029 | No results | No data |
| Additional dwellings and enterprises with broadband access of very high capacity | 0 | 0% | 3.5 million in 2029 | No results | No data |
| Savings in annual primary energy consumption | 0 | 0% | 345 million MWh/year in 2029 | No results | No data |
| Additional production capacity for renewable energy | 0 | 0% | 9 555 MW in 2029 | No results | No data |
| New, upgraded, reconstructed or modernised railways | 0 | 0% | 5 856 Km in 2029 | No results | No data |
| Annual users of new or modernised facilities for employment services | 0 | 0% | 721 345 in 2029 | No results | No data |
| New or modernised capacity for health care facilities | 0 | 0% | 60.3 million people per year in 2029 | No results | No data |
| Population covered by strategies for integrated territorial development | 0 | 0% | 111.4 million in 2029 | No results | No data |
(*) % of target achieved by the end of 2021.
Link to file with complete set of EU core performance indicators
- The 2021-2027 programmes have faced significant delays in negotiation and implementation. Due to this, performance information on targets will be provided in 2024 for the first time.
- In addition to disruptions due to the pandemic, several factors played into the programmes’ delays.The delayed agreement on the 2021-2027 multiannual financial framework and resulting delayed adoption of the legislative proposals for ERDF/CF meant that the Member State partnership agreements and programmes could only be officially submitted as from mid 2021.
- Recovery instruments supported by NextGenerationEU – in particular the most prominent financial instrument, the Recovery and Resilience Facility and the 2021-2022 REACT-EU allocations under 2014-2020 cohesion policy – and their shorter spending horizons have often led to decisions at the national level to prioritise these resources over 2021-2027 cohesion policy programmes (including ERDF/CF).
- These extra resources, the short negotiation window and the ambitious implementation timeline have had an impact on the preparation of the new 2021-2027 cohesion programmes. While the Commission will provide guidance and support for the coherent implementation of the two instruments, it will be mainly up to the Member States to ensure that both the NextGenerationEU resources and the cohesion policy funds are deployed in a timely and effective way.
- When setting up the targets for performance indicators for the 2021-2027 programmes, a series of assumptions were made and risks were taken into consideration. As the targets for performance indicators are mostly based on past implementation experience, managing authorities could factor in inflation. However, the scale and duration of high inflation is uncertain and could be taken into consideration during the midterm review planned for 2025. The 2021-2027 programmes were adopted by the end of 2022. The Member States will report on the first full year of activity in early 2024.
- The 2014-2020 ERDF/CF programmes will keep going until the end of 2023 under the n + 3 rule. The rule will also apply to most of the 2021-2027 period. It reduces pressure on national and regional programmes to implement promptly.
MFF 2014-2020 - Regional Policy
Budget
Multiannual cumulative implementation rate at the end of 2022 (million EUR):
| Implementation | 2014-2020 Budget | Implementation rate | |
|---|---|---|---|
| Commitments | 262 530.3 | 262 533.4 | 100% |
| Payments | 243 839.4 | 92.9% |
- At the end of December 2022, the overall implementation of the EU budget for the 2014-2020 period stood at 85% for CF and 78% for the ERDF. The speed of investment was influenced by the following main factors:
- the nature of cohesion policy investments, which have a long start-up phase (planning, programming, authorisations) without significant financial execution;
- the regulatory provisions of the 2014-2020 period (e.g. the level of pre-financing, the n + 3 decommitment rule), which did not provide incentives for a fast implementation start in Member States.
- In 2021 and 2022, there was a significant increase in EU payments, which was partly triggered by the progress in project selection rates in recent years. Moreover, the prompt cohesion policy response to the COVID-19 pandemic played an important role in the accelerated implementation of the funds. In particular, the CRII(+) measures provided for 100% co-financing for expenditure declared during the accounting year 2020-2021, while the 2019 annual pre-financing amounts were not recovered in 2020, in order to ease budgetary pressure at national level.
- In addition to the CRII(+) measures, the Commission proposed additional financing under REACT-EU. Over 2021-2023, the original 2014-2020 EU financing is topped up with EUR 50.6 billion (in current prices) under REACT-EU to finance crisis repair measures. This will contribute to a green, digital and resilient recovery of the economy by adding fresh additional resources to existing cohesion policy programmes.
- In 2022, the economic impact of the COVID-19 pandemic and the parallel implementation of other instruments (e.g. REACT-EU and the start of the 2021-2027 period) have affected implementation. The addition of the REACT-EU resources during 2021 and 2022, in the ongoing 2014-2020 programmes, has had a dilution effect on the relative pace of financial implementation due to the increased total amount.
- The Russian invasion of Ukraine in 2022 has further affected the implementation of the programmes. Supported by the Commission, Member States have been adapting their programmes to adjust to the fast-changing environment and to tackle the emerging challenges. The Cohesion’s Action for Refugees in Europe initiative (CARE) proposed by the Commission in March 2022 and adopted in April 2022, provided additional flexibility in cohesion policy funding to support Member States hosting people fleeing the war.
- Apart from the unprecedented influx of displaced persons, the Russian invasion of Ukraine has also exacerbated commodity prices, including for energy and food, caused renewed supply chain bottlenecks and disrupted the labour market. Cohesion policy funds have continued to support Member States in addressing these challenges by offering maximum flexibility for the implementation of cohesion policy investments through the Flexible Assistance to Territories’ (FAST-CARE) proposed by the Commission in June 2022 and adopted in October 2022. FAST-CARE includes changes of both programming periods – 2014-2020 and 2021-2027 – that focus on: i) administrative simplifications, ii) increased flexibility to use the three cohesion policy funds interchangeably and finance already completed projects, and iii) additional liquidity through increased pre-financing from REACT-EU and the option to request costs to be 100% covered by the EU budget without any co-financing from the national budgets.
- In addition, the Commission also contributed to tackle the ongoing energy crisis through targeted amendments to 2014-2020 cohesion policy - named Supporting Affordable Energy (SAFE) - in the context of repowerEU legislative negotiations. The European Parliament and the Council reached a political agreement on repowerEU (including SAFE) in December 2022 and the regulation entered into force on 1 March 2023. It will allow Member States to use up to 10% of their 2014-2020 cohesion policy allocation to support vulnerable households and small and medium-sized enterprises particularly affected by energy price increases as well as short-time work and equivalent schemes, with 100% EU co-financing.
| Baseline | Progress (*) | Target (2023) | Results | Assessment | |
|---|---|---|---|---|---|
| Researchers working in improved research infrastructure facilities | 0 | 54% Estimated: > 100% | 105 327 in 2023 | 57 207 (estimated result: 112 300) out of 105 327 | Moderate progress |
| Enterprises receiving support | 0 | 92% Estimated: > 100% | 2.2 million in 2023 | 2.1 million (estimated result: 2.6 million) compared to a target of 2.2 million. | On track |
| Additional employment (jobs created) in supported enterprises | 0 | 82% Estimated: > 100% | 376 537 in 2023 | 310 081 (estimated result: 513 396) compared to a target of 376 537 | On track |
| Population covered by improved health services | 0 | 65% Estimated: 97% | 91.9 million in 2023 | 59.8 million (estimated result: 89.6 million) compared to a target of 92.1 million | Moderate progress |
| Additional capacity of renewable energy production (ERDF + CF) | 0 | 41% Estimated: 100% | 8 944 in 2023 | 3 640 (estimated result: 8 903) compared to a target of 8 944 | Moderate progress |
| Population benefiting from forest fire protection measures (ERDF + CF) | 0 | 49% Estimated: 93% | 38.1 million in 2023 | 18.6 million (estimated result: 35.4 million) compared to a target of 38.1 million | Moderate progress |
| Households with an improved energy consumption classification (ERDF + CF) | 0 | 73% Estimated: > 100% | 626 249 in 2023 | 459 362 (estimated result: 756 500) compared to a target of 626 249 | On track |
| Trans-European transport networks – total length of new and reconstructed railway lines (ERDF + CF) | 0 | 42% Estimated: < 100% | 3 236 in 2023 | 1 347 km (estimated result: 3 671) compated to a target of 3 236 | Deserves attention |
| Total length of new or improved tram and metro lines (ERDF + CF) | 0 | 32% Estimated: > 100% | 543 in 2023 | 172 (estimated result: 563) compared to a target of 543 | On track |
(*) % of target achieved by the end of 2021.
Link to file with complete set of EU core performance indicators
- Generally, the reported values show a strong upward trend in implementation by the end of 2021 and a plausible relationship between the indicator targets and values from selected projects. This means that most indicator targets set for 2023 will likely be met, thanks to projects that are already in the pipeline.
- One of the indicators which deserves attention is linked to large infrastructure projects in Trans-European transport networks. The implementation of the 2014-2020 period lasts until 2023, so the 2021 achievement values refer to the situation at the eight year of a 10-year implementation cycle. Experience from 2007-2013 shows that many infrastructure investments are fully implemented only by the end of the period.
- Some large infrastructure projects normally take significant time to be finalised (such as building a new metro line), sometimes more than the duration of a funding cycle. In some sectors public institutions are challenged to design and deliver complex projects. In these cases, managing authorities can phase certain large projects over two funding periods and adapt their targets accordingly, thus ensuring that they can be finalised successfully and the objectives be met. Since early 2022 the war in Ukraine and the energy price rise have had an impact on construction prices and labour force, which are also driving reflections on the phasing of projects.
- By the end of 2022 the implementation of the 2014-2020 cohesion policy programmes progressed well, with full execution of the 2022 voted budget. This level of spending was supported in part by the the possibility of temporary 100% EU co-financing provided by CARE between July 2021 and June 2022, and additional measures introduced by FAST-CARE. However, high project selection rates do not automatically translate into prompt expenditure. Expenditure is slower to materialise for projects that are still in the planning or procurement stage, projects with multiannual implementation periods (see above) or projects that are otherwise immature.
- The payment rate has continued to increase throughout the year and currently stands at 71% of the combined ERDF and CF allocation for the 2014-2020 period. For the 2021-2027 period DG Regional and Urban Policy paid EUR 4 billion of prefinancing for ERDF and CF. Additionally prefinancing payments amounted to EUR 0.2 billion for JTF, using NextGenerationEU funds exclusively.
- For some indicators with more important gaps between the decided and implemented values, the forecast indicator values from selected projects are close to or exceed the target values, raising the prospect that the targets could still be achieved. In many of these cases, the high level of project selection is expected to translate into achieved outputs only late in the period. This phenomenon of late achievement of indicator values was demonstrated by the 2007-2013 period. The 2021 reporting exercise suggested that at the end of 2021, many of the 2023 targets for those indicators could still be achieved.
- EU legislation allows for programme amendments during the implementation period. Target values are mainly driven by changes in national or regional needs, changing economic conditions, variability in demand for different supports and the reallocation of funding within and across themes.
- The impact of the COVID-19 pandemic led to increased uncertainty and sharp changes in needs. A wave of programme modification in 2020 and 2021 led to a rise in some common indicator targets, particularly in the areas of enterprise support linked to crisis support during the pandemic. However, the uncertain socio-economic conditions, reduced demand, high unemployment and uncertain prospects for the relaunch of the economy mean that the targets may again be amended in the future. The Commission is carefully monitoring the programmes until closure.
- In response to COVID-19, the Commission proposed specific measures to broaden the list of eligibility measures in the healthcare systems to support the public health response in Member States and to encourage reprogramming in other sectors of their economy, while providing exceptional flexibility for the use of the ESF funds under CRII(+). Specific measures adopted in CRII(+) have enabled Member States to mobilise support from ERDF, ESF and CF and focus it on the most urgent needs (saving lives, preventing job losses through short-time work schemes and supporting small and medium-sized enterprises).
- In relation to the reprogramming to support the immediate response to the pandemic and its effects, new COVID-19-specific indicators were introduced to give an insight into the supported actions and their outputs. The progress in delivering the targets was reported to the Commission for the first time during 2021. Key values from the national reporting of COVID-19 specific indicators, including the contribution for REACT-EU support, indicate the following preliminary achievements by the end of 2021.
- Under the COVID-19 indicators on health-related spending: 42% of the total of EUR 3.7 billion planned was reported as spent by the end of 2021.
- Key COVID-19 specific indicators of health-related outputs show a high rate of execution.
- Of the target of 3.4 billion items of personal protective equipment, as set out in the Member States’ programmes, 84% was achieved.
- Of the target for 13 000 new ventilators, the purchase of over 11 000 ventilators (84%) was reported.
- In relation to the target of EUR 12.4 billion in emergency support to working capital for small and medium-sized enterprises (grants and loans), 70% of the target was implemented.
- Of the target to support over 1 million small and medium-sized enterprises with working capital, the target was 78% achieved by the end of 2021, with around 805 000 enterprises supported.
- The indicators used for the ERDF and CF performance assessment provide a subset of the indicators used by the programmes. For more in-depth information, the cohesion policy programmes report on their results through the Open Data Platform at https://cohesiondata.ec.europa.eu/
Sustainable development goals
Contribution to the sustainable development goals
| SDGs the programme contributes to | Example |
|---|---|
| SDG1 End poverty in all its forms everywhere |
The employment prospects of 26 people with severe and moderate disabilities have been improved with the help of a vocational rehabilitation unit set up in Krosno, Poland. Established under the ‘Employment in ZAZ (the Polish abbreviation for “vocational rehabilitation unit”) and located in the Podkarpackie region of eastern Poland, the unit helps people suffering from mental retardation, autism and mental illness. The unit is managed by the Polish Association for People with Intellectual Disabilities. As part of this ERDF-financed project, two new production and service departments were created: a handicraft store called ‘Artistic Haven’ and a sweet shop known as ‘Na polance’ (In the clearing). Total amount planned for this SDG: EUR 25.2 billion |
| SDG3 Ensure healthy lives and promote well-being for all at all ages |
An innovative Lithuanian start-up has developed the application Mindletic for strengthening physical and emotional health. The application helps users to identify their emotional status, taking into account energy level and mood. Using the anonymised data, the Mindletic team tries to establish the emotional balance of the user. Mindletic was co-created with certified psychologists and professional mental health organisations. Total amount planned for this SDG: EUR 24.5 billion |
| SDG4 Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all |
In Haute-Normandie, France, four training centres of the construction and public works sector have carried out a joint project called ‘CFA numérique’ or ‘digital apprentice training’, aiming at dematerialising educational resources. This led to the deployment of several collaborative platforms for the dissemination of digital educational content, knowledge sharing, building data modelling and augmented reality equipment. These resources have allowed to better align with developments in the training of dual apprentices. The project received EUR 631 million from the ERDF. Total amount planned for this SDG: EUR 37.2 billion |
| SDG5 Achieve gender equality and empower all women and girls |
An ERDF-funded project supported women in Northern Ireland and the Republic of Ireland’s border counties to address gender inequality by developing ideas, building communities and entering politics. The Next Chapter project set up 10 local hubs, or chapters, to tackle gender inequality and limited opportunities for minority communities. In total, around 400 women met on a monthly basis to influence social policy development and to work on community projects. Equality, cohesion and inclusivity are improving through their contribution in a region that has experienced conflict and is becoming ever more diverse thanks to immigration. No amount available as no mapping for SDG 5 |
| SDG6 Ensure availability and sustainable management of water and sanitation for all |
The Czechia-Poland cooperation programme has also supported flood mitigation and preparedness measures. The interventions increase cross border readiness to take action in crisis situations, especially in case of floods. Total amount planned for this SDG: EUR 14.6 billion |
| SDG7 Ensure access to affordable, reliable, sustainable and modern energy for all |
The ERDF support provided to KUNKEL + Partner based in North Rhine-Westphalia, Germany, enabled it to further develop rechargeable zinc-air batteries. This technology offers high energy density, is easy to recycle and, above all, it is very inexpensive. The optimised cell is currently being manufactured in a small industrial series and a demonstrator with 72 cells and a total capacity of 7.2 kWh is being set up. This will go into operation at the municipal utilities of the town of Steinfurt, to temporarily store excess energy from the 100kW peak photovoltaic system. Total amount planned for this SDG: EUR 27.4 billion |
| SDG8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all |
Companies increasingly demand IT skills and competencies. To ensure its citizens have what it takes to compete in the information age, this ERDF-funded ‘Programme your future’ project set out to promote IT courses at Hungary’s leading universities and encourage young people to pursuit a career in IT. The project created a database of IT professionals willing to give guest lectures at universities. A total of 147 lecturers were trained and 11 industry-certified courses were created. All universities were equipped with the latest in digital equipment and teaching aids. The project continues even after students graduate. Upon successfully completing their exams, they are paired with ICT companies for a paid internship programme. Total amount planned for this SDG: EUR 105.5 billion |
| SDG9 Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation |
With ERDF help, the start-up MakeGrowLab from Puławy, in the Lubelskie region, Poland, developed a material produced from biomass using micro-organisms. The Scoby Packaging Materials® is a high-performance nanofiber grown from microbes through the upcycling of local unwanted food/beverages. It can be used as an alternative to plastic packaging and as a storage vessel for food, chemistry, cosmetics and textiles. The product is green and innovative on a global scale. Total amount planned for this SDG: EUR 107.8 billion |
| SDG11 Make cities and human settlements inclusive, safe, resilient and sustainable |
The ERDF co-financed ‘Discovery Passage’ project is part of a complex urban regeneration project of the city of Tarnów, Małopolska region in southern Poland. The new science and technology centre provides information on the most important discoveries, inventions and their authors related to Tarnów. The centre aims to develop and promote the city in the fields of education, science, technology and entrepreneurship and to initiate cooperation between these sectors. Total amount planned for this SDG: EUR 5.7 billion |
| SDG12 Ensure sustainable consumption and production patterns |
In Austria, REACT-EU funds supported Kioto Solar based in Carinthia. The ERDF contributed EUR 1.4 million to the purchase of machines for a new production line of photovoltaic modules that can be integrated into building facades. These innovative, smart and aesthetic modules transform a building into a true solar power plant. As a result of the new production line, photovoltaic modules with dual use (winter garden, facade, carport, roofing solutions, etc.) can be produced automatically at their site in St. Veit. Total amount planned for this SDG: EUR 6.5 billion |
| SDG13 Take urgent action to combat climate change and its impacts |
The “Peute Energy Center” project based in Hamburg, Germany, promoted the use of industrial waste heat to supply heat to three districts of the city. By supplying buildings with industrial waste heat, CO2 emissions of around 8 500 tons will be avoided yearly thanks to ERDF support. Total amount planned for this SDG: EUR 7.2 billion |
| SDG15 Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss |
The Czechia-Poland cooperation programme has supported flood mitigation and preparedness measures. The interventions increase cross border readiness to take action in crisis situations, especially in case of floods. Total amount planned for this SDG: EUR 7.3 billion |
Note: For more information on the cohesion policy financial contribution to SDGs in 2014-2020 see this data story: https://cohesiondata.ec.europa.eu/stories/s/qy7g-4z9g/.