The European Parliament voted to create a European Regional Development Fund and a Cohesion Fund with a total budget of EUR 243 billion for 2021-2027, which are to strengthen the EU’s economic, social and territorial cohesion, the Parliament informed.
The emphasis is on climate action, social programs and sustainable urban development, with additional funding for the outermost regions.
The Regional Development Fund and the Cohesion Fund have a budget of EUR 243 billion (in 2018 prices). It is the largest EU fund – it accounts for about a quarter of the multiannual financial framework for 2021-2027.
The budget for the Interreg program for 2021-2027 will amount to EUR 8.05 billion (in 2018 prices). These funds come from the pool of the European Regional Development Fund. 72.2 percent of these funds were allocated to cross-border cooperation, and to transnational, interregional and cooperation with the outermost regions – 18.2 percent, 6.1 percent and 3.5 percent of the fund’s resources, respectively.
The new rules require that both Interreg and the Regional and Cohesion Funds allocate at least 30% of their funding to climate action, the circular economy and investment in sustainable growth and job creation. It also includes specific measures for SMEs and regions. the most distant.
The funds are to help improve the situation after the COVID-19 pandemic. Therefore, culture, sustainable tourism, digitization and increasing the resilience of the public health system will also be supported. However, support cannot be given to investments related to nuclear energy or fossil fuels. An exception is made for natural gas projects to replace coal-based systems that were approved on or before December 31, 2025.
The new regulations are to be published in the EU’s Official Journal on June 30 and enter into force the next day.
Source: EU and ISBnews
