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Regional Policy - Performance

Cohesion Fund and European Regional Development Fund

Programme in a nutshell

Concrete examples of achievements (*)

2.5 million
businesses
received support through grants, equity, loans, guarantees and advice between 2014 and 2022.
7.9 million
additional households
had broadband access of at least 30 megabits per second between 2014 and 2022.
370 000
jobs
were directly created in supported enterprises between 2014 and 2022.
68 million
people
benefited from new or modernised health services between 2014 and 2022.
643  000
additional energy users
connected to smart electricity grids between 2014 and 2022.
29 million
citizens
benefitted from flood protection between 2014 and 2022.
31.7 million
people
lived in areas that developed integrated urban development strategies between 2014 and 2022.

(*) 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):

[notranslate]RegioWeb:budg_01:pie[/notranslate]

 

Recovery Assistance for Cohesion and the Territories of Europe initiative (REACT-EU) (million EUR):

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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.

Budget

Budget programming of regional policy (million EUR):

[notranslate]RegioWeb:budg_02:table[/notranslate]

 

When kick-starting the implementation of 2021-2027, the Member States faced delays due to challenges linked to COVID-19, the war of aggression against Ukraine, the energy crisis and the final stages of implementation of 2014-2020 programmes as well as the need to deliver on RRF. Administrative capacity was an issue as a result as the Member States had to spread their resources, under difficult circumstances. 

 

more or less

Financial programming:
- EUR 9 635.1 million (- 4%)
compared to the legal basis *

 

(*) Top-ups pursuant to Art. 5 MFF regulation are excluded from financial programming in this comparison.

 

Budget programming of REACT-EU (million EUR):

[notranslate]RegioWeb:budg_12:table[/notranslate]

 

Budget performance – implementation

Cumulative implementation rate of regional policy at the end of 2023 (million EUR):

[notranslate]RegioWeb:budg_03:table[/notranslate]

 

Cumulative implementation rate of REACT-EU under regional policy at the end of 2023 (million EUR):

[notranslate]RegioWeb:budg_13:table[/notranslate]

 

Annual voted budget implementation (million EUR) (1):

[notranslate]RegioWeb:budg_04:table[/notranslate]

Contribution to horizontal priorities

Green budgeting

Contribution to green budgeting priorities (million EUR):

[notranslate]RegioWeb:budg_05:table[/notranslate]

 

  • Cohesion policy uses a ‘categorisation’ 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 European Regional Development Fund (ERDF) and the Cohesion Fund (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 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 benefiting biodiversity. 
  • For clean air, based on the adopted 2021-2027 programmes, close to 16% of the planned EU amounts will be used to support interventions with as main objective improving air quality, or with a substantial co-benefit for improving air quality.. 
  • 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. 
  • In relation to the taxonomy for sustainable activities, the cohesion policy funds system of 182 intervention fields, referred to above, have undergone an alignment analysis with the taxonomy in the context of NextGenerationEU green bond reporting. Resulting from that analysis, groups of intervention fields were assessed as ‘fully aligned’, ‘substantially aligned’, ‘partially aligned’ or ‘not covered’. This system is used under cohesion policy shared management as an alternative to project-based analysis, not least because of the burden of assessing more than 600 000 projects during a programming period.  
  • According to the planned values from the adopted cohesion policy programmes and from the taxonomy perspective, around EUR 79.6 billion was assessed as being fully aligned, EUR 37 4 billion as partially aligned and substantially aligned, while EUR 147 billion was assessed as not covered. 
  • Under the climate tracking methodology, both mitigation and adaptation measures are supported. Mitigation measures include significant investments in renewable energies, energy efficiency and clean urban transport measures. Adaptation includes risk prevention linked to adjusting to the current and future effects of climate change. However, no explicit assignment of the different intervention fields to mitigation or adaptation has been made and there is some overlapping. Finally, there is likely to be an under-reporting of adaptation measures where they are linked to infrastructures that bear a 0% climate coefficient.  
  • In addition to climate tracking, the ‘do no significant harm’ principle was also applied by the national authorities in the assessment of the investment priorities contained in the programmes before adoption. Member States are responsible for the implementation of this principle throughout the programming period. As part of programme implementation, managing authorities can define specific criteria for selecting operations to ensure compliance with the principle. 
  • 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% was not binding for REACT-EU programmes but rather a political ambition. 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 health care systems and the development of small and medium-sized enterprises. For these reasons, ERDF/REACT-EU-funded programmes will not reach the target of 25% mentioned in the regulation. More information is available in the REACT-EU data story on the Cohesion Open Data Platform.  

 

Gender

Contribution to gender equality (million EUR) (*):

[notranslate]RegioWeb:budg_06:table[/notranslate]

 

Gender disaggregated information:
Gender disaggregated information: there is no information available, as the data is not disaggregated by gender. The gender tracking data story on the Open Data Platform can be seen here

 

  • 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, close to 10% of the planned EU amounts will be used to support interventions the principal objective of which 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):

[notranslate]RegioWeb:budg_07:table[/notranslate]

 

  • Based on the adopted programmes, close to 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

[notranslate]RegioWeb:budg_09:progress[/notranslate]

  • It is too early to comment on the established targets for cohesion policy by the end of 2023. However, at this point in the implementation cycle, since there is enough time to catch up, there is no reason to expect that the targets will not be met. 
  • The midterm review in early 2025 will be an occasion for the programmes to re-examine the allocations and targets.. 
  • The indicators listed above are a selection of the corporate output indicators (Annex 2 of the ERDF/CF regulation) across the five policy objectives. Corporate result indicators will be reported after 2025, when values are expected to be achieved. All common indicator values are published on the Cohesion Open data Platform. 
  • The 2021-2027 programmes have faced 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, Russia’s unprovoked war against Ukraine and the energy crisis and the need to implement the crisis and recovery instruments, and the stretched administrative capacity of the Member States, several factors played into the programmes’ delays. 
    • The expenditure period under the 2014-2020 ERDF/CF programmes ran until the end of 2023 (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 and leads to a long overlap in programme periods. 
    • 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 the 2021-2027 cohesion policy programmes (including ERDF/CF). 
    • These extra resources for 2014-2020, the short negotiation window and the ambitious implementation timeline have had an impact on the preparation of the new 2021-2027 cohesion policy programmes. While the Commission provides 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.  
    • While the RRF supported National Reform Plans continue to be implemented as a priority in 2024 and 2025, the 2021-2027 cohesion policy programmes are expected to see accelerating levels of implementation from 2024 onwards.  
  • 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 took a view on inflation and included an assumed rate of inflation in the calculations of indicator targets. As increased energy prices are a significant part of the inflation index, they have been implicitly considered when setting up the targets at the beginning of the programming period. However, the scale and duration of high inflation is uncertain and could be taken into consideration again during the midterm review planned for 2025. The 2021-2027 programmes were adopted by the end of 2022 (except for a few in carry over and the new Hungary–Croatia Interreg programme, which was submitted in 2023). The Member States will report on the first full year of activity in early 2024. 
  • DG Regional and Urban Policy systematically follows up the accepted (14) recommendations issued by the European Court of Auditors since 2020. For example, as REACT-EU adds a significant resources to be used in a relatively short period of time and overlaps with the implementation of the RRF, REGIO will monitor closely the progression of REACT-EU absorption to identify programmes encountering spending difficulties. It will provide targeted support so that the co-financed operations effectively contribute to the achievement of objectives and performance targets. 

MFF 2014-2020 - Regional Policy

 

Please see rationale and design under the 2020-2021 period (further above in the document).

 

Budget

Cumulative implementation rate at the end of 2023 (million EUR):

[notranslate]RegioWeb:budg_08:table[/notranslate]

Performance assessment

[notranslate]RegioWeb:budg_10:progress[/notranslate]

  • Generally, the reported values show a strong upward trend in 2014-2020 implementation by the end of 2022 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. 
  • Two indicators have already been achieved or are very close to the target, respectivley the one relating to the number of enterprises supported and the one relating to job creation.  
  • Two indicators on which there was moderate progress are those linked to large infrastructure projects in trans-European transport networks and new or improved tram and metro lines. The implementation of the 2014-2020 period lasts until 2023, so the 2022 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 that the objectives are met. 
  • 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 previous programming period. The 2022 reporting exercise suggested that many of the 2023 targets for those indicators could still be achieved. The final data will only become available once the programmes are closed in 2025.    
  • 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. 
  • In response to the COVID-19 pandemic, the EU has adopted the largest recovery package to date, to emerge more resilient from the crisis and to support Europe’s digital and green transformation, including the Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU) as well as the Recovery and Resilience Facility, as the largest funding element under NextGenerationEU. In 2022, the second tranche of REACT-EU, worth EUR 11 billion, was made available. By the end of 2022, the full amount of EUR 50.6 billion had been programmed through the ERDF and the ESF. By the end of September 2023, EUR 26.2 billion had been paid out through the programmes.  
  • Financing has gone to medical institutions, researchers, business owners, employees and vulnerable people, enabling the purchase of 3.7 billion items of personal protective equipment and around 12 500 ventilators, along with supporting more than 920 000 enterprises (this information is available on the COVID-19 dashboard on the Cohesion Open Data Platform).  
  • As of September 2023, EUR 8.7 billion was allocated to green investments under REACT-EU (of which EUR 6.6 billion to climate actions) and EUR 3.1 billion to the digital economy; EUR 8.7 billion was allocated to enterprises and business support; EUR 8.8 billion to the health sector and EUR 12.7 billion to labour market measures. 
  • 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 toExample
SDG1
End poverty in all its forms everywhere

In Spain, EU funding has helped the Valencian Institute of Finance create a line of credit through which participative loans are offered to support the growth and development of start-ups in the Spanish autonomous community of Valencia. Priority is given to companies that demonstrate a high degree of innovation. One example of a company supported through loans is FoodRation4All, which is dedicated to actions with a social impact in the food sector. The company’s main project is called ‘Nadie sin su ración diaria’ (No-one without their daily ration). It consists of an app that makes donations to food banks easier and thus supports the social inclusion of people who rely on them.  

Total amount planned for this SDG: EUR 25.2 billion 

SDG3
Ensure healthy lives and promote well-being for all at all ages

The regional Italian ERDF-Sicily programme has contributed EUR 7.5 million to supporting the research infrastructure for the Mediterranean Institute for Transplantation and Advanced Specialised Therapies (ISMETT). A transplant centre of excellence and a reference hospital for the entire Mediterranean area, ISMETT is involved in important research projects to provide patients with the most advanced therapies for end-stage vital organ failure. 

Total amount planned for this SDG: EUR 24.5 billion 

SDG4
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

The Pelgulinna state gymnasium in Tallinn was opened in September 2023. The building followed the principles of sustainable architecture (New European Bauhaus) and the main building material used was local wood. The school has a modern and innovative learning environment and has capacity for around 330 pupils. The ERDF provided EUR 28 million in funding (the total budget was EUR 33 million). 

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 DESAL+ project was implemented in the Canary Islands as well as in Madeira and the Azores islands. Its aim was to increase excellence in R&D in water desalination and in knowledge of the desalinated water-energy nexus. The ERDF co-financed the ERDF as part of the Interreg Madeira-Azores-Canary Islands Territorial Cooperation Programme. 

Total amount planned for this SDG: EUR 14.6 billion 

SDG7
Ensure access to affordable, reliable, sustainable and modern energy for all
The biggest geothermal heating system in the EU was inaugurated in Szeged in southern Hungary in 2023. The EU has contributed with EUR 23 million to provide clean, renewable and affordable energy to over 28 000 households and over 400 public buildings in the area. This will reduce energy costs and the city’s greenhouse gas emissions by 60%. The fact that more than 25% of the EU’s population lives in areas with sufficient geothermal resource means that many other EU regions can use renewable energy to transition away from dependency on Russian gas. 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
The ERDF has provided support to the CYENS Centre of Excellence in Nicosia. The Centre is an integrator of academic research and industrial innovation with the aim of promoting sustainable scientific, technological and economic growth. It facilitates the exploitation of research outcomes and supports innovative start-ups in fields such as interactive media, intelligent systems, emerging technologies (e.g. artificial intelligence and 5G) and art and technology. The Centre promotes measures that benefit both Greek and Turkish Cypriots. Total amount planned for this SDG: EUR 105.5 billion 
SDG9
Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
The renovated railway network in South Moravia was one of the biggest cohesion policy investments in Czechia. The renovation of this line also involved the acquisition of 37 new electric trains. It will contribute to the decongestion of traffic during peak hours in the busy South Moravian railway, which carries approximately 22 million passengers every year. This project benefited from EUR 223 million of cohesion policy funding (the total project budget was EUR 265 million).Total amount planned for this SDG: EUR 107.8 billion 
SDG11
Make cities and human settlements inclusive, safe, resilient and sustainable
The previously abandoned Wintercircus in Ghent has been transformed into a hub for culture, entrepreneurship and innovation by an ERDF-funded project. With total floor space of over 6 000 m², it houses an underground concert hall with 500 seats and 4 300 m² of co-working and office facilities for creative and technology start-ups and scale-ups. The 1 200 m² former circus arena is the centrepiece of the structure, which also contains a cafe, a restaurant, a terrace bar and a shop. Total amount planned for this SDG: EUR 5.7 billion 
SDG12
Ensure sustainable consumption and production patterns

The Sustainable Bottom Line 2.0 project received EUR 1.8 million from the ERDF to help SMEs in the capital region of Denmark with green and circular business development. Around 100 enterprises received a circular potential assessment and around 80 enterprises developed green and circular business models that led to energy and resource efficiency, improved competitiveness and enhanced growth potential. This led to a reduction of almost 7 000 tonnes in greenhouse gas emissions (GHG), almost 100 000 gigajoules (GJ) reduction in energy consumption and a reduction of almost 2 000 tonnes in material consumption. 

 
Total amount planned for this SDG: EUR 6.5 billion 

SDG13
Take urgent action to combat climate change and its impacts
The French Réunion Island has set up a system of vouchers to enable the setting-up of photovoltaic solar installations in private households connected to the public electricity distribution system. The ERDF contributed EUR 5.7 million to the implementation of this project (almost 85% of the project’s total budget). The project is helping to reduce the carbon footprint and develop a local model of green electricity generation, and meets the needs of individuals, encouraging them to take an active role in Réunion’s energy transition. 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

Early detection of forest fires in the regions of Apulia in Italy and Epirus in Greece is now possible thanks to a network of cameras, sensors and weather stations. The ERDF-financed OFIDIA2 project is helping to save property and lives threatened by an increasing number of forest fires in the Mediterranean region’s hot and dry summer months. A network of high-definition cameras, sensors and weather stations connected to control rooms covers 100 hectares of forest in Apulia. In Greece, cameras, drones and two off-road vehicles watch over more than 15 000 km2 of forest in Epirus. 

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/.

Archived versions from previous years

Regional Policy PPS 2023
Regional Policy PPS 2022