EU Structural Funds and Regional Development Policies 2007-2013
European Regional Development Fund (ERDF)
The ERDF is a key component of European regional policy (2007-2013), designed to finance investments that reduce regional imbalances. It provides essential funding for:
- Convergence regions
- Competitiveness and Employment
- European Territorial Cooperation
European Social Fund (ESF)
The ESF is a structural fund of European regional policy (2007-2013) that finances actions to:
- Develop human resources
- Prevent and combat unemployment
- Combat discrimination
- Improve access to the job market for disadvantaged groups
It provides funding to both convergence and competitiveness regions.
Cohesion Fund
The Cohesion Fund is a structural fund of European regional policy (2007-2013). It supports public investment focused solely on the environment and trans-European transport networks in countries with a GDP per head below 90% of the EU average. As a national fund, its aid applies to the entire territory. While Spain met the requirements following the 2004 enlargement, it no longer qualifies for new input, though it maintained access during a transitional period.
Regional Incentives
These are instruments of the Spanish state designed to promote the economy of disadvantaged or struggling areas. They consist primarily of financial aid granted by the state for business investment. Such aid must be compatible with European competition rules and the regional policy guidelines established for 2007-2013. The areas of application are delimited by GDP per capita and unemployment rates, with eligible sectors focusing on extractive and processing industries, particularly those involving advanced technology.
Interterritorial Compensation Fund
This instrument of the Spanish state was created in 1980 to promote the economy of disadvantaged areas, alleviate regional imbalances, and implement the principle of solidarity enshrined in the 1978 Constitution. Since 2001, it has been divided into two parts:
- The Compensation Fund
- The Supplementary Fund
Both finance capital expenditure to promote the creation of income and wealth; however, the Supplementary Fund may also finance start-up investments for a maximum period of two years.