EU Regional Funding Boosts Jobs and Innovation

The Federal Ministry for Economic Affairs and Energy (BMWi) just published the final report on the research project Evaluation of the ERDF Programs in the Funding Period 2014–2020 in Germany. The study shows that the German regions benefit in many ways from support provided by the European Regional Development Fund (ERDF). The proven effects of the funding range from a significant increase in employment and innovation activities of supported companies, to reductions in greenhouse gas emissions and the creation of new public research infrastructures with international appeal. In particular, in eastern Germany, the funding is clearly associated with a positive contribution to economic performance. In western Germany, economically weaker regions benefit disproportionately.

The BMWi is currently preparing the negotiations on EU cohesion policy from 2028 onward. Given limited financial resources, it is important to demonstrate the effectiveness of European funding. With this study on the European Regional Development Fund (ERDF), the German government highlights the tangible contributions EU funding makes to employment, innovation, climate protection and regional development in Germany. Investments in businesses and public institutions are visible symbols of European solidarity. The study combines comprehensive company data with innovative methods. This provides a solid foundation for further developing the EU structural funds to be future-proof and effective.

Cohesion policy is one of the core policy areas of the European Union. Through various structural funds, it contributes – via funded projects across all European regions – to strengthening economic, social and territorial cohesion and to reducing regional disparities between European regions. Currently, EU structural funds account for about one-third of the EU budget. As part of its responsibility for coordinating the European structural funds, the BMWi commissioned the study with the aim of initiating negotiations on the reorientation of EU cohesion policy based on broad-based evidence of the effects and relevance of the structural funds. The study was conducted by a consortium consisting of Gefra – Society for Financial and Regional Analyses, the ifo Institute – Leibniz Institute for Economic Research, Dresden branch, and Ramboll Management Consulting.

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(Source: Ministry for Economic Affairs and Energy)