1. its financial instruments
December 2004 EN
Cohesion Policy and
its financial instruments

2. EU Structural policy 2000-06 following enlargement 40% to 49,9%
December 2004 EN
EU Structural policy
following enlargement
40% to 49,9%
of EU population
(155→224 Mio.) in eligible areas (Obj. 1&2)
213 to 233 bn. Euro
for Structural funds by 2006 (one third of the EU budget)
400 to 480
Structural Funds’ programmes
211 to 264
NUTS 2-Regions

3. History Integration of the Structural funds 1989 1993
December 2004 EN
History
Integration of the Structural funds
5 common objectives
Standardised administration rules
Decentralised management
Raising of the Structural funds' budget to 14 bn ECU p.a.
(ca. 20% of EU-Budget)
Introduction of a new Objective 4
Simplification of procedures
New cohesion and fisheries instruments
Raising of the Structural funds' budget to 32 bn ECU p.a. (ca. 30% of EU budget)
1994
1999
1989
1993
1960: The European Social Fund (ESF) enters into force
1974: Start of European Regional Development Fund (ERDF)
1957
1988
2000
2006
Concentration of regions covered and financial resources
Phasing-out for some Objective 1,2 and 5b regions
3 common objectives
Introduction of pre-accession instruments for candidates countries (ISPA)

4. Regional GDP per head in 2001
December 2004 EN
Regional GDP per head in 2001
for EU27 in purchasing power parities
< 50
>= 125
No data
Index EU 25 = 100
Source: Eurostat

5. Funds Region EU Cohesion policy and funds linked Community policies:
December 2004 EN
EU Cohesion policy and funds
Funds
ERDF
ESF
EAGGF
FIFG
Cohesion
Fund
Regional development
linked Community policies:
State Aid
Sustainable development
Equal opportunities
RTD
SME promotion
Information society
Employment and
social integration
EU cohesion policy
Rural development
Region
analysis, multi-annual programming,
management, co-financing,
evaluation
Other EU policies and concepts: Lisbon/Gothenburg strategy, enlargement,
budget, institutional Reform,
Global influences: general economic development, foreign investment, national policies

6. Legal framework TEC December 2004 EN Council by unanimity,
assent of EP, comments
by ECS/CoR
ERDF, ESF: Codecision
EAGGF, FIFG, Cohesion
Fund,
General Regulation
(EC) 1260/1999
on Structural Funds
ERDF Regulation
ESF Regulation
EAGGF Regulation
FIFG Regulation
Cohesion Fund Regulation
Commission‘s Regulations:
EAGGF/SAPARD Regulations
Regulation on Information/Publicity
Eligible expenditure
Financial control
Financial corrections
TEC
Art. 161
Art. 162
Art. 148
Art. 37
Commission‘s Decisions:
Decisons (Objective 1 and 2 regions)
Communications (Community initiatives)
Decisions on single programmes

7. Programming cycle 1 2 3 4 5 regulatory framework financial means,
December 2004 EN
Programming cycle 1
regulatory framework
financial means,
eligible regions/areas 2
regional analysis (SWOT), strategy,
plan/programme draft/complement 3
negotiations:
Member State/region-Commission 4
programme decision 5
programme management
project selection
evaluation/ modification

8. The Structural Funds and Instruments 2000-2006 (1)
December 2004 EN
The Structural Funds and Instruments (1)
ERDF
ESF
EAGGF-G
FIFG
European
Regional
Development
Fund
Social
Agriculture
Guidance and
Guarantee Fund-
Guidance Section
Financial
Instrument
of Fisheries
Guidance
Infrastructure
Investments
RTD
SME
...
Vocational
Training
Employment
Subsidies
of rural areas
Investment
in tourism
of Fishing
Areas
Modernising
Fisheries'
Industries
Cohesion Fund
for Member
States with a
GDP below 90%
environmental
and trans-
port (TEN)
infrastructure
(project selection)

9. sustainable development
December 2004 EN
The Structural Funds and Instruments (2)
Community Initiatives
INTERREG III
URBAN II
EQUAL
Leader+
cross-border,
transnational
and inter-
regional
co-operation
development of
deprived urban
areas
transnational
networking
and exchange
strategies for
sustainable
rural develop-
ment
ERDF
Infrastructure
sustainable development
planning
studies
culture
RTD
SME
...
ERDF
Infrastructure
public transport
employment
social inclusion
culture
information
SME
...
ESF
innovative
employment
actions in
EU networks
EAGGF-G
local action
groups

10. December 2004 EN
EU Structural Funds
Amounts available in billions of Euro; for new Member States:
Objective 1
Objective 2
Objective 3
Community Initiatives
Cohesion Fund
Objective 1
Objective 2
Objective 3
Community Initiatives
Cohesion Fund 60
AT BE CY CZ DK EE FI FR DE GR HU IR IT LV LT LU MT NL PL PT SK SL SP SW UK 50 40 30 20 10

11. December 2004 EN

12. Narva, Estonia: ISPA finances better environment
December 2004 EN
Narva, Estonia: ISPA finances better environment
Several environmental projects in Estonia focus on waste water treatment.
These projects include the improvement of the facilities in Narva City and Viljandi.

13. Bremen, Germany: new enterprises in old buildings
December 2004 EN
Bremen, Germany: new enterprises in old buildings
The “Lichthaus” is a former workers’ council building, belonging to a bankrupt shipbuilding area.
Funded by the URBAN initiative, it now hosts 10 new media companies and has created 50 new jobs.

14. Valencia, Spain: new motorway
December 2004 EN
Valencia, Spain: new motorway
Cofinanced by the
European Regional
Develpment Fund,
Objective 1.

15. Porto, Portugal: funding of biotechnology facilities
December 2004 EN
Porto, Portugal: funding of biotechnology facilities
The University of Porto in the Norte region has received funding for new laboratories.

16. Northumberland, UK: energy from windmills
December 2004 EN
Northumberland, UK: energy from windmills
Within the Northern Energy Initiative in Northumberland, Northeast England, the ERDF has financed this windmill park.

17. Cohesion Policy 2007-2013 3 Objectives Budget: € 336.1 bn
December 2004 EN
Programmes and
Instruments
Eligibility
Priorities
Allocations
Convergence objective %
including a special programme for outermost regions (EUR 264 bn.)
Regional and national
programmes
ERDF
ESF
Cohesion Fund
Regions with a GDP/head
75% of average EU25
Statistical effect:
75% of EU15
and >75% in EU25
Member States
GNI/head 90%
EU25 average
innovation;
environment/
risk prevention;
accessibility;
infrastructure;
human ressources;
administrative capacity
transport (TENs);
sustainable transport;
environment;
renewable energy
67.34%
= bn. EUR
8.38%
= bn. EUR
23.86%
= bn. EUR
Cohesion Policy
3 Objectives
Budget: € bn
(0.41% of EU-GDP)
Regional competitiveness and employment objective %
(EUR 57.9 bn.)
Regional programmes
(ERDF)
and national
programmes
(ESF)
Member States
propose a list of
regions
(NUTS I or II)
"Phasing-in"
Regions covered by objec-
tive 1 in period
and not covered by the
convergence objective
Innovation
environment/risk
prevention
accessibility
European employment
strategy
83.44%
= bn. EUR
16.56%
= 9.58 bn. EUR
European territorial co-operation objective 3.94%
(EUR 13.2 bn.)
Cross-border and
transnational
programmes and
networking (ERDF)
Border regions and
greater regions of
co-operation
innovation;
environment/
risk prevention;
accessibility
culture, education
35.61% cross-border
12.12% ENI
47.73% transnational
4.54% f. networks