The Regional Policy is the EU’s main investment policy

Regional Policy targets are to support job creation, business competitiveness, economic growth, sustainable development, and improvements to citizens’ quality of life in all regions and cities in the European Union

In order to reach these goals and address the diverse development needs in all EU regions, 351,800 million EUR—almost a third of the EU budget—has been set aside for Cohesion Policy for the period 2014–2020.

How funding is delivered

Regional Policy is delivered through three main funds: the European Regional Development Fund (ERDF), the Cohesion Fund (CF), and the European Social Fund (ESF).

Along with the European Agricultural Fund for Rural Development (EAFRD) and the European Maritime Fisheries Fund (EMFF), they constitute the European Structural and Investment Funds. The UE’s main investment policy – Regional Policy – European Commission.

Regional Policy and the Commission's Priorities

Regional Policy has significant implications in various areas. Investments help to deliver many other EU policy objectives. It complements EU policies such as dealing with education, employment, energy, the environment, the single market, and research and innovation.

The European Structural and Investment Funds directly contribute to the Investment Plan and to the priorities of the Commission.

Regional Policy provides the necessary investment framework to achieve the goals of the EU 2020 Strategy for smart, sustainable, and inclusive growth in the EU.

The five objectives of EU 2020 are:

• Employment: Achieve 75% employment for people aged 20 to 64.
• Research and Development: Invest 3% of the EU’s GDP in R&D.
• Climate change and energy sustainability: A 20% reduction in greenhouse gas emissions in the EU compared to 1990 levels. Obtaining 20% of energy from renewable sources. Increasing energy efficiency by 20%.
• Education: Reduce early school drop-out rates below 10%. Lift at least 20 million people out of poverty or social exclusion, or at risk of experiencing them. Fight against poverty and social exclusion: Lift at least 20 million people out of poverty or social exclusion, or at risk of experiencing them.

Each Member State of the EU has set its own national targets in these areas.

Regional Policy underpins European solidarity

The bulk of Cohesion Policy funding is concentrated on less developed European countries and regions in order to help them catch up and reduce the economic, social, and territorial disparities that still exist within the EU.

Regional Policy shields European regions and cities from the most damaging effects of the financial crisis

With public investment support and flexible implementation of EU investments, such as fund reprogramming or increased co-financing rates in countries like Cyprus, Greece, Hungary, Ireland, Portugal, and Romania, Regional Policy has mitigated the financial crisis effects that began in 2008. Moreover, in a period of sustained fiscal consolidation, EU Regional Policy has become of crucial importance. Without Cohesion Policy, much-needed public investment in less developed Member States would have fallen an additional 45% during the crisis.

Overall financial impact

Cohesion Policy acts as a driver for securing more public and private financial support, not only by obliging Member States to contribute through funding from their national budgets, but also by boosting investor confidence.

After combining national contributions and other private investments, the expected impact of Cohesion Policy for the period 2014–2020 is estimated to reach around 450 billion EUR.

Find more information about EU Regional Policy on the EUROPEAN COMMISSION website.