Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on specific provisions concerning the European Regional Development Fund and the Investment for growth and jobs goal and repealing Regulation (EC) No 1080/2006
Date: 2011-10-06
Institutions: European Commission
Subjects: European Regional Development Fund, aid to undertakings, job creation, less-favoured region, peripheral region, renewable energy, research and development, small and medium-sized enterprises, sustainable development, urbanisation

EUROPEAN COMMISSION 

Brussels, 6.10.2011 
COM(2011) 614 final 

2011/0275 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on specific provisions concerning the European Regional Development Fund and the 
Investment for growth and jobs goal and repealing Regulation (EC) No 1080/2006 

{SEC(2011) 1138 final} 
{SEC(2011) 1139 final} 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

On  29  June  2011,  the  Commission  adopted  a  proposal  for  the  next  multi-annual  financial 
framework  for  the  period  2014-2020:  A  Budget  for  Europe  20201.  .  In  its  proposal,  the 
Commission  decided  that  cohesion  policy  should  remain  an  essential  element  of  the  next 
financial package and underlined its pivotal role in delivering the Europe 2020 strategy2.  

The  Commission  therefore  proposed  a  number  of  important  changes  to  the  way  cohesion 
policy is designed and implemented. Concentrating funding on a smaller number of priorities 
better  linked  to  the  Europe  2020  Strategy,  focusing  on  results,  monitoring  progress  towards 
agreed  objectives,  increasing  the  use  of  conditionalities  and  simplifying  the  delivery  are 
among the major hallmarks of the proposal. 

This Regulation sets out the provisions governing the European Regional Development Fund, 
and  repealing  Regulation  (EC)  No  1083/2006.  It  draws  on  the  work  undertaken  since  the 
publication of the Fourth Cohesion Report in May 2007 which outlined the main challenges 
facing regions in the next decades and launched the debate on the future cohesion policy. On 
9  November  2010,  the  Commission  adopted  the  Fifth  Cohesion  Report  which  provided  an 
analysis  of  social  and  economic  trends  and  outlined  orientations  for  the  future  cohesion 
policy.  

Cohesion  policy  is  the  main  investment  instrument  for  supporting  the  key  priorities  of  the 
Union as enshrined in the Europe 2020 strategy. It does so by focusing on the countries and 
regions where needs are greater.  One of the greatest successes of the EU has been its capacity 
to  raise  living  standards  for  all  its  citizens.  It  does  this  not  only  by  helping  poorer  Member 
States  and  regions  to  develop  and  grow  but  also  through  its  role  in  the  integration  of  the 
Single Market whose size delivers markets and economies of scale to all parts of the EU, rich 
and poor, big and small. The Commission's evaluation of past cohesion policy spending has 
shown many examples of added value and of growth- and job- creating investment that could 
not have happened without the support of the EU budget. However, the results also show the 
effects  of  dispersion  and  lack  of  prioritisation.  At  a  time  when  public  money  is  scarce  and 
when growth enhancing investment is more needed than ever, the Commission has decided to 
propose important changes to cohesion policy. 

The  ERDF  aims  to  strengthen  economic  and  social  cohesion  in  the  European  Union  by 
correcting  imbalances  between  its  regions.  The  ERDF  supports  regional  and  local 
development  by  co-financing  investments  in  R&D  and  innovation;  climate  change  and 
environment;  business  support 
interest; 
telecommunication,  energy  and  transport  infrastructures;  health,  education  and  social 
infrastructures; and sustainable urban development. 

to  SMEs;  services  of  common  economic 

1 
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COM(2011)500 final. 
Communication from the Commission: Europe 2020 – A strategy for smart, sustainable and inclusive 
growth, COM(2010)2020 final, 3.3.2010. 

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2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

2.1.  Consultation and expert advice 

The  results  of  the  public  consultations  of  Fifth  Progress  Report  on  Economic  and  Social 
Cohesion, the EU Budget Review3, the proposals for the multi-annual financial framework4, 
the  Fifth  Cohesion  Report5  and  consultations  following  the  adoption  of  the  report  have  all 
been considered when making the proposals.  

The  public  consultation  on  the  Conclusions  of  the  Fifth  Cohesion  Report  was  held  between 
12 November  2010  and  31  January  2011.  A  total  of  444  contributions  were  received. 
Respondents  included  Member  States,  regional  and  local  authorities,  social  partners, 
interest  organisations,  non-governmental  organisations,  citizens  and  other 
European 
stakeholders. The public consultation asked a series of questions about the future of cohesion 
policy. A summary of the results was published on 13 May 20116.  

The results of the ex-post evaluations carried out on the 2000-2006 programmes, and a broad 
range  of  studies  and  expert  advice,  were  used  as  input.  Expert  advice  was  also  provided 
through  the  High  Level  Group  reflecting  on  future  Cohesion  Policy,  composed  of  experts 
from national administrations, with 10 meetings held between 2009 and 2011. 

The results of the public consultation on the Fifth Cohesion report show that there is general 
agreement  with  the  notion  of  concentration  of  funding.  There  is,  however  a  concern  about 
decisions on concentration not being taken at the right level. In particular, many contributions 
emphasise  the  need  for  flexibility  and  the  need  not  to  overlook  territorial  specificities. 
Moreover, several expressed concern that limiting priorities too much at EU level would not 
allow the flexibility necessary to define appropriate regional development strategies.  

2.2. 

Impact assessment  

Options were assessed in particular in relation to the ERDF contribution to two public goods: 

– 

– 

contribution to employment, R&D and innovation through enterprise support; 

investing  in  basic  infrastructure  (e.g.  transport,  energy,  environment,  social  and 
health infrastructure). 

Other areas where the ERDF makes an important contribution to the provision of EU public 
goods  were  not  addressed,  as  successive  evaluations  and  academic  research  have  not 
identified particular problems in these areas as regards the scope of intervention of the ERDF. 

With respect to enterprise support it can be argued that such support, in particular in the form 
of  grants,  is  most  needed  for  small  enterprises,  for  innovative  activities,  and  in  areas  in 
industrial  decline  undergoing  structural  change.  The  case  for  investing  in  large  enterprises, 

3 

4 

5 
6 

Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic and Social Committee, the Committee of the Regions and the national parliaments: The EU 
Budget Review, COM(2010) 700 final, 19.10.2010.  
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  Committee  and  the  Committee  of  the  Regions:  A  Budget  for  Europe  2020, 
COM(2011) 500 final, 29.6.2011. 
5th Report on Economic, Social and Territorial Cohesion, November 2010. 
Commission  Staff  Working  Paper:  Results  of  the  public  consultation  on  the  conclusions  of  the  fifth 
report on economic, social and territorial cohesion, SEC(2011) 590 final, 13.5.2011. 

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less  innovative  areas,  and  regions  which  are  attractive  to  investors  without  support  is  much 
weaker.  The  case  for  funding  infrastructure  is  strongest  in  less  developed  regions  where 
public authorities do not have sufficient funds for investment, and where the investment costs 
cannot  be  recovered  as  the  population  is  low  income.  The  case  for  investing  in  basic 
infrastructure in more developed regions is much weaker. 

The options examined included the status quo, changes to make funding more targeted, and an 
option which would be significantly more restrictive in scope compared with current funding 
options.  The  option  of  increased  targeting  was  chosen,  which  increases  the  efficiency, 
effectiveness and EU added value of funding, but at the same time leaves regions sufficient 
flexibility  regarding  investment,  and  minimises  the  risk  that  activities  requiring  funding  fall 
outside the scope of intervention.  

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

European regional policy has an important role to play in mobilising local assets and focusing 
on the development of endogenous potential.  

Article 174 of the Treaty on the Functioning of the European Union (TFEU) calls for action 
by the European Union to strengthen its economic, social and territorial cohesion and promote 
overall harmonious development by reducing disparities between the levels of development of 
regions and promoting development in least favoured regions. 

The goal of economic, social and territorial cohesion is promoted through three EU funds. As 
stipulated in Article 176 of  the TFEU, the aim of the ERDF is to promote the development 
and structural adjustment of lagging regions and of declining industrial regions. 

Article  174  of  the  TFEU  states  that  particular  attention  shall  be  paid  to  rural  areas,  areas 
affected by industrial transition, and regions which suffer from severe and permanent natural 
or demographic handicaps such as the northernmost regions with very low population density 
and island, cross-border and mountain regions. 

Article 349 of the TFEU states that specific measures shall be adopted to take account of the 
structural  social  and  economic  situation  of  the  outermost  regions,  which  is  compounded  by 
certain  specific  features  which  severely  restrain  their  development.  The  specific  measures 
shall include conditions of access to the Structural Funds. 

The timing of the review of EU funding to promote cohesion is linked to the proposal for a 
new Multiannual Financial Framework, as contained in the Commission Work Programme. 

As  the  EU  Budget  Review  has  highlighted,  the  "EU  budget  should  be  used  to  finance  EU 
public goods, actions that Member States and regions cannot finance themselves, or where it 
can secure better results".7 The legal proposal will respect the principle of subsidiarity as the 
tasks of the ERDF are set out in the Treaty and the policy is implemented in accordance with 
the principle of shared management and respecting the institutional competencies of Member 
States and regions.  

The  legislative  instrument,  and  the  type  of  measure  (i.e.  funding)  are  both  defined  in  the 
TFEU, which has provided the legal basis for the Structural Funds, and states that the tasks, 
priority objectives and the organisation of the Structural Funds shall be defined in regulations. 

7 

COM(2010) 700 final, 19.10.2010. 

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4. 

BUDGETARY IMPLICATION 

The Commission's proposal for a Multi-Annual Financial Framework foresees an amount of 
EUR 376 billion for economic, social and territorial cohesion for the period 2014-2020.  

Proposed budget 2014-2020 

EUR billion  

Convergence regions  

Transition regions  

Competitiveness regions  

Territorial cooperation  

Cohesion Fund  

Extra  allocation  for  outermost  and  sparsely  populated 
regions  

Connecting  Europe  Facility  for  transport,  energy  and 
information and communication technologies (ICT)  

*All figures in constant 2011 prices 

162,6 

39 

53,1 

11,7 

68,7 

0,926 

40 (with an additional EUR 10 billion 
ring  fenced 
the  Cohesion 
inside 
Fund) 

The Commission's proposal has established, with the aim of enhancing the contribution of the 
funds in delivering on the headline targets of the Europe 2020 strategy, minimum shares for 
the European Social Fund (ESF) for each category of regions. The application of the shares 
result  in  a  minimum  overall  share  for  the  ESF  of  25%  of  the  budget  allocated  to  cohesion 
policy,  i.e.  EUR  84  billion.  This  implies  that  a  maximum  of  EUR  183,3  billion  remains 
available for the ERDF for the period 2014-2020. 

5. 

SUMMARY OF CONTENT OF THE PROPOSED REGULATION 

The proposed Regulation determines the scope of intervention of the ERDF, and also defines 
a  negative  list  of  activities  which  will  not  be  eligible  for  support.  It  defines  investment 
priorities for each of the thematic objectives.  

Transition  regions  and  more  developed  regions  will  be  required  to  focus  the  largest  part  of 
their  allocation  (except  for  the  ESF)  on  energy  efficiency  and  renewable  energy, 
competitiveness of SMEs, and innovation. Less developed regions will be able to devote their 
allocation to a wider range of objectives reflecting the broader range of development needs. 
The mechanism proposed provides that: 

– 

– 

at least 80% of resources are focused on energy efficiency and renewables, research 
and innovation and SME support in more developed and transition regions of which 
20% for energy efficiency and renewables. Given the ongoing restructuring needs in 
those regions phasing out from the Convergence objective, the minimum percentage 
shall be reduced to 60%. 

at least 50% of resources are focused on energy efficiency and renewables, research 
and innovation and SME support in less developed regions of which 6% for energy 
efficiency and renewables. 

The proposed Regulation provides for an increased focus on sustainable urban development. 
The increased focus is to be achieved through the earmarking of a minimum of 5% of ERDF 

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resources  for  sustainable  urban  development,  the  establishment  of  an  urban  development 
platform to promote capacity building and exchange of experience, and the adoption of a list 
of cities where integrated actions for sustainable urban development will be implemented. 

The proposed Regulation aims to contribute to an increased orientation on results of funding 
by  defining  common  indicators  related  to  physical  outputs  as  well  as  results  relating  to  the 
final objective of funding. 

The  proposed  Regulation  mentions  the  need  to  pay  special  attention  in  operational 
programmes  to  specific  difficulties  of  regions  with  severe  and  permanent  natural  or 
demographic handicaps.  

Finally,  the  proposed  Regulation  contains  specific  provisions  for  the  use  of  the  specific 
additional allocation for the outermost regions. 

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2011/0275 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on specific provisions concerning the European Regional Development Fund and the 
Investment for growth and jobs goal and repealing Regulation (EC) No 1080/2006 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 178 and 349 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 

Having regard to the opinion of the European Economic and Social Committee8, 

Having regard to the opinion of the Committee of the Regions9, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

Article  176  of  the  Treaty  provides  that  the  European  Regional  Development  Fund 
(ERDF) is intended to help to redress the main regional imbalances in the Union. The 
ERDF therefore contributes to reducing the gap between the levels of development of 
the various regions and the extent to which the least favoured regions, including rural 
and urban areas, declining industrial regions, areas with severe and permanent natural 
and  demographic  handicaps,  such  as  islands,  mountainous  areas,  sparsely  populated 
areas and border regions, are lagging behind. 

The  provisions  common  to  the  ERDF,  the  European  Social  Fund  (ESF)  (hereinafter 
referred to as 'the Structural Funds') and the Cohesion Fund are set out in Regulation 
(EU) No […]/2012 of […] laying down common provisions on the European Regional 
Development  Fund,  the  European  Social  Fund,  the  Cohesion  Fund,  the  European 
Agricultural  Fund  for  Rural  Development  and  the  European  Maritime  and  Fisheries 
Fund  covered  by  the  Common  Strategic  Framework  and  laying  down  general 
provisions  on  the  European  Regional  Development  Fund,  the  European  Social  Fund 

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OJ C , , p. . 
OJ C , , p. . 

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(3) 

(4) 

(5) 

and  the  Cohesion  Fund  and  repealing  Regulation  (EC)  No  1083/200610  [Common 
Provisions Regulation - CPR].  

Specific  provisions  concerning  the  type  of  activities  which  may  be  supported  by  the 
ERDF under the thematic objectives defined in Regulation (EU) No […]/2012 [CPR] 
should  be  laid  down.  At  the  same  time,  expenditure  outside  the  scope  of  the  ERDF 
should be defined and clarified, including as regards the reduction of greenhouse gas 
emissions  in  installations  falling  under  Directive  2003/87/EC  of  the  European 
Parliament  and  of  the  Council  of  13  October  2003  establishing  a  scheme  for 
greenhouse  gas  emission  allowance  trading  within  the  Community  and  amending 
Council Directive 96/61/EC11. 

In order to address the specific needs of the ERDF, and in line with the Europe 2020 
strategy12  that  cohesion  policy  should  support  the  need  to  deliver  smart,  sustainable 
and  inclusive  growth,  it  is  necessary  to  set  out  within  each  thematic  objective  laid 
down in Article 9 of Regulation (EU) No […]/2012 [CPR] the ERDF-specific actions 
as 'investment priorities'. 

The  ERDF  should  contribute  to  the  Europe  2020  strategy,  thus  ensuring  greater 
concentration  of  ERDF  support  on  the  priorities  of  the  Union.  According  to  the 
category of regions supported, the support from the ERDF should be concentrated on 
research  and  innovation,  small  and  medium-sized  enterprises  and  climate  change 
mitigation.  The  degree  of  concentration  should  take  into  account  the  level  of 
development  of  the  region  as  well  as  the  specific  needs  of  regions  whose  GDP  per 
capita for the 2007-13 period was less than 75% of the average GDP of the EU-25 for 
the reference period. 

(6) 

A common set of indicators to assess progress of programme implementation should 
be  set  out  before  the  Member  States  draft  their  operational  programmes.  These 
indicators should be complemented by programme-specific indicators. 

(7)  Within the framework of sustainable urban development, it is considered necessary to 
support  integrated  actions  to  tackle  the  economic,  environmental,  climate  and  social 
challenges affecting urban areas and to define a procedure to establish the list of cities 
covered by such actions and the financial allocation set aside for such actions. 

(8) 

(9) 

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12 

Building on the experience and strengths of the integration of measures in the field of 
sustainable  urban  development  into  operational  programmes  supported  by  the  ERDF 
during  the  2007-2013  period,  a  further  step  should  be  taken  at  Union  level  by 
establishing an urban development platform. 

In  order  to  identify  or  test  new  solutions  to  issues  relating  to  sustainable  urban 
development  which  are  of  relevance  at  Union  level,  the  ERDF  should  support 
innovative actions in the field of sustainable urban development. 

OJ L , , p. . 
OJ L 275, 25.10.2003, p. 32. 
Communication  from  the  Commission:  Europe  2020  - A strategy  for  smart,  sustainable  and  inclusive 
growth, COM(2010) 2020 final, 3.3.2010. 

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(10)  The ERDF should address the problems of accessibility to, and remoteness from, large 
markets  facing  areas  with  an  extremely  low  population  density,  as  referred  to  in 
Protocol No 6 on special provisions for Objective 6 in the framework of the Structural 
Funds  in  Finland  and  Sweden  to  the  1994  Act  of  Accession.  The  ERDF  should  also 
address  the  specific  difficulties  encountered  by  certain  islands,  mountainous  areas, 
border regions and sparsely populated areas whose geographical situation slows down 
their development, with a view to supporting their sustainable development. 

(11)  Specific attention should be paid to the outermost regions, namely by extending, on an 
exceptional basis, the scope of the ERDF to the financing of operating aid linked to the 
offsetting  of  the  additional  costs  resulting  from  their  specific  economic  and  social 
situation, which is compounded by the handicaps resulting from the factors referred to 
in Article 349 of the Treaty, namely their remoteness, insularity, small size, difficult 
topography  and  climate  and  their  economic  dependence  on  a  few  products,  the 
permanence and combination of which severely restrain their development. In order to 
support the development of existing and new economic activities, at least 50% of the 
specific  additional  allocation  should  be  allocated  to  actions  contributing  to  the 
diversification and modernisation of the economies of the outermost regions. 

(12) 

(13) 

In  order  to  define  procedures  for  the  selection  and  implementation  of  innovative 
actions, the power to adopt acts in accordance with Article 290 of the Treaty should be 
delegated to the Commission in respect of the content and scope set out in Article 9. It 
is of particular importance that the Commission carries out appropriate consultations 
during  its  preparatory  work,  including  at  expert  level.  The  Commission,  when 
preparing  and  drawing-up  delegated  acts,  should  ensure  a  simultaneous,  timely  and 
appropriate transmission of relevant documents to the European Parliament and to the 
Council. 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Regulation, 
implementing powers should be conferred on the Commission in respect of the list of 
cities  to  participate  in  the  urban  development  platform.  Those  powers  should  be 
exercised  in  accordance  with  Regulation  (EU)  No  182/2011  of  the  European 
Parliament and of the Council of 16 February 2011 laying down the rules and general 
principles  concerning  mechanisms  for  control,  by  Member  States,  of 
the 
Commission’s exercise of implementing powers13. 

(14)  This Regulation replaces Regulation (EC) No 1080/2006 of the European Parliament 
and  the  Council  of  5  July  2006  on  the  European  Regional  Development  Fund  and 
repealing Regulation (EC) No 1783/199914. In the interests of clarity, Regulation (EC) 
No 1080/2006 should therefore be repealed, 

13 
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OJ L 55, 28.2.2011, p. 13. 
OJ L 210, 31.7.2006, p. 1. 

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HAVE ADOPTED THIS REGULATION: 

Chapter I 

Common provisions 

Article 1 

Subject-matter 

This Regulation establishes the tasks of the European Regional Development Fund (ERDF), 
the scope of its support with regard to the Investment for growth and jobs and the European 
territorial  cooperation  goals  and  specific  provisions  concerning  ERDF  support  for  the 
Investment for growth and jobs goal. 

Article 2 

Tasks of the ERDF 

The  ERDF  shall  contribute  to  the  financing  of  support  which  aims  to  reinforce  economic, 
social and territorial cohesion by redressing the main regional imbalances through support for 
the development and structural adjustment of regional economies, including the conversion of 
declining industrial regions and regions lagging behind. 

Article 3 

Scope of support from the ERDF 

1. 

The ERDF shall support: 

(a)  productive  investment,  which  contributes  to  creating  and  safeguarding 
sustainable  jobs,  through  direct  aid  to  investment  in  small  and  medium-sized 
enterprises (SMEs); 

(b) 

investments in infrastructure providing basic services to citizens in the areas of 
energy,  environment, 
information  and  communication 
technologies (ICT); 

transport,  and 

(c) 

investments in social, health and educational infrastructure; 

(d)  development  of  endogenous  potential  by  supporting  regional  and  local 
development and research and innovation. These measures shall include: 

(i) 

fixed investment in equipment and small-scale infrastructure; 

(ii) 

support for and services to enterprises, in particular SMEs; 

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(iii)  support  to  public  research  and  innovation  bodies  and  investment  in 

technology and applied research in enterprises; 

(iv)  networking,  cooperation  and  exchange  of  experience  between  regions, 

towns, and relevant social, economic and environmental actors; 

(e) 

technical assistance. 

In more developed regions, the ERDF shall not support investments in infrastructure 
providing basic services to citizens in the areas of environment, transport, and ICT. 

2. 

The ERDF shall not support: 

(a) 

the decommissioning of nuclear power stations; 

(b) 

the  reduction  of  greenhouse  gas  emissions  in  installations  falling  under 
Directive 2003/87/EC; 

(c) 

the manufacturing, processing and marketing of tobacco and tobacco products; 

(d)  undertakings in difficulties as defined under Union State aid rules. 

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Article 4 

Thematic concentration 

The  thematic  objectives  set  out  in  Article  9  of  Regulation  (EU)  No  […]/2012  [CPR]  and 
corresponding investment priorities set out in Article 5 of this Regulation to which the ERDF 
may contribute shall be concentrated as follows: 

(a) 

in more developed regions and transition regions: 

(i) 

(ii) 

at least 80% of the total ERDF resources at national level shall be allocated to 
the thematic objectives set out in points 1, 3 and 4 of Article 9 of Regulation 
(EU) No […]/2012 [CPR] ; and 

at least 20% of the total ERDF resources at national level shall be allocated to 
the  thematic  objective  set  out  in  point  4  of  Article  9  of  Regulation  (EU)  No 
[…]/2012 [CPR] ; 

(b) 

in less developed regions: 

(i) 

(ii) 

at least 50% of the total ERDF resources at national level shall be allocated to 
the thematic objectives set in out in point 1, 3 and 4 of Article 9 of Regulation 
(EU) No […]/2012 [CPR] . 

at least 6% of the total ERDF resources at national level shall be allocated to 
the  thematic  objective  set  out  in  point  4  of  Article  9  of  Regulation  (EU)  No 
[…]/2012 [CPR]. 

By  derogation  from  point  (a)  (i),  in  those  regions  whose  GDP  per  capita  for  the  2007-13 
period was less than 75% of the average GDP of the EU-25 for the reference period but which 
are eligible under the category of transition or more developed regions as defined in Article 
82(2)(b) and (c) of Regulation (EU) No [ ]/2012 [CPR] in the 2014-2020 period, at least 60% 
of  the  total  ERDF  resources  at  national  level  shall  be  allocated  to  each  of  the  thematic 
objectives set in out in points 1, 3 and 4 of Article 9 of Regulation (EU) No […]/2012 [CPR]. 

Article 5 

Investment priorities 

The ERDF shall support the following investment priorities within the thematic objectives set 
out in Article 9 of Regulation (EU) No […]/2012 [CPR]: 

(1) 

strengthening research, technological development and innovation: 

(a) 

enhancing  research  and  innovation  infrastructure  (R&I)  and  capacities  to 
develop  R&I  excellence  and  promoting  centres  of  competence,  in  particular 
those of European interest; 

(b)  promoting  business  R&I  investment,  product  and  service  development, 
technology transfer, social innovation and public service applications, demand 

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stimulation,  networking,  clusters  and  open 
specialisation; 

innovation 

through  smart 

(c) 

supporting  technological  and  applied  research,  pilot  lines,  early  product 
validation actions, advanced manufacturing capabilities and first production in 
Key Enabling Technologies and diffusion of general purpose technologies; 

(2) 

enhancing access to and use and quality of ICT: 

(a) 

extending broadband deployment and the roll-out of high-speed networks; 

(b)  developing ICT products and services, e-commerce and enhancing demand for 

ICT; 

(c) 

strengthening ICT applications for e-government, e-learning, e-inclusion and e-
health; 

(3) 

enhancing the competitiveness of SMEs: 

(a)  promoting  entrepreneurship, 

in  particular  by  facilitating 

the  economic 

exploitation of new ideas and fostering the creation of new firms;  

(b)  developing  new  business  models 

for  SMEs, 

in  particular 

for 

internationalisation; 

(4) 

supporting the shift towards a low-carbon economy in all sectors: 

(a)  promoting the production and distribution of renewable energy sources; 

(b)  promoting energy efficiency and renewable energy use in SMEs; 

(c) 

supporting  energy  efficiency  and 
infrastructures and in the housing sector; 

renewable  energy  use 

in  public 

(d)  developing smart distribution systems at low voltage levels; 

(e)  promoting low-carbon strategies for urban areas; 

(5) 

promoting climate change adaptation, risk prevention and management: 

(a) 

supporting dedicated investment for adaptation to climate change; 

(b)  promoting investment to address specific risks, ensuring disaster resilience and 

developing disaster management systems; 

(6) 

protecting the environment and promoting resource efficiency: 

(a) 

(b) 

addressing the significant needs for investment in the waste sector to meet the 
requirements of the environmental acquis; 

addressing the significant needs for investment in the water sector to meet the 
requirements of the environmental acquis; 

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(c)  protecting, promoting and developing cultural heritage; 

(d)  protecting  biodiversity,  soil  protection  and  promoting  ecosystem  services 

including NATURA 200015 and green infrastructures; 

(e) 

action to improve the urban environment, including regeneration of brownfield 
sites and reduction of air pollution; 

(7) 

promoting  sustainable 
infrastructures: 

transport  and  removing  bottlenecks 

in  key  network 

(a) 

(b) 

supporting  a  multimodal  Single  European  Transport  Area  by  investing  in  the 
Trans-European Transport Network (TEN-T) network; 

enhancing  regional  mobility  through  connecting  secondary  and  tertiary  nodes 
to TEN-T infrastructure; 

(c)  developing  environment-friendly  and  low-carbon  transport  systems  and 

promoting sustainable urban mobility; 

(d)  developing comprehensive, high quality and interoperable railway system; 

(8) 

promoting employment and supporting labour mobility: 

(a)  development  of  business 

incubators  and 

investment  support  for  self-

employment and business creation; 

(b) 

local  development  initiatives  and  aid  for  structures  providing  neighbourhood 
services  to  create  new  jobs,  where  such  actions  are  outside  the  scope  of 
Regulation (EU) No […]/2012 [ESF]; 

(c) 

investing in infrastructure for public employment services; 

(9) 

promoting social inclusion and combating poverty: 

(a) 

investing  in  health  and  social  infrastructure  which  contribute  to  national, 
regional and local development, reducing inequalities in terms of health status, 
and transition from institutional to community-based services; 

(b) 

support  for  physical  and  economic  regeneration  of  deprived  urban  and  rural 
communities;  

(c) 

support for social enterprises; 

(10) 

investing  in  education,  skills  and  lifelong  learning  by  developing  education  and 
training infrastructure; 

15 

Set  up  as  a  coherent  European  ecological  network  of  special  areas  of  conservation  pursuant  to 
Article 3(1)  of  Council  Directive  92/43/EEC  of  21  May  1992  on  the  conservation  of  natural  habitats 
and of wild fauna and flora, OJ L 206, 22.7.1992, p. 7. 

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(11) 

enhancing 
institutional  capacity  and  an  efficient  public  administration  by 
strengthening  of  institutional  capacity  and  the  efficiency  of  public  administrations 
and public services related to implementation of the ERDF, and in support of actions 
in  institutional  capacity  and  in  the  efficiency  of  public  administration  supported  by 
the ESF. 

Chapter II 

Indicators for ERDF support for the  
Investment for growth and jobs goal 

Article 6 

Indicators for the Investment for growth and jobs goal 

Common indicators, as set out in the Annex to this Regulation, shall be used where relevant 
and in accordance with Article 24(3) of Regulation (EU) No […]/2012 [CPR]. For common 
indicators, baselines shall be set at zero and cumulative targets shall be fixed for 2022. 

For programme-specific output indicators, baselines shall be set at zero and cumulative targets 
shall be fixed for 2022. 

For  programme-specific  result  indicators,  baselines  shall  use  the  latest  available  data  and 
targets shall be fixed for 2022, but may be expressed in quantitative or qualitative terms. 

Chapter III 

Specific provisions on the treatment of particular territorial 
features 

Article 7 

Sustainable urban development  

1. 

2. 

The  ERDF  shall  support,  within  operational  programmes,  sustainable  urban 
development through strategies setting out integrated actions to tackle the economic, 
environmental, climate and social challenges affecting urban areas.  

Each  Member  State  shall  establish  in  its  Partnership  Contract  a  list  of  cities  where 
integrated actions for sustainable urban development  are to  be  implemented and an 
indicative annual allocation for these actions at national level. 

At  least  5%  of  the  ERDF  resources  allocated  at  national  level  shall  be  allocated  to 
integrated  actions  for  sustainable  urban  development  delegated  to  cities  for 

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management  through  Integrated  Territorial  Investments  referred  to  in  Article  99  of 
Regulation (EU) No […]/2012 [CPR]. 

Article 8 

Urban development platform  

1. 

2. 

The  Commission  shall  establish,  in  accordance  with  Article  51  of  Regulation  (EU) 
No  […]/2012  [CPR],  an  urban  development  platform  to  promote  capacity-building 
and networking between cities and exchange of experience on urban policy at Union 
level  in  areas  related  to  the  investment  priorities  of  the  ERDF  and  to  sustainable 
urban development. 

The Commission shall adopt a list of cities to participate in the platform on the basis 
of the lists established in the Partnership Contracts, by means of implementing acts. 
Those implementing acts shall be adopted in accordance with the advisory procedure 
referred to in Article 14(2). 

The list shall contain a maximum number of 300 cities, with a maximum number of 
20 per Member State. Cities shall be selected based on the following criteria: 

(a)  population, taking account of the specificities of national urban systems; 

(b) 

the  existence  of  a  strategy  for  integrated  actions  to  tackle  the  economic, 
environmental, climate and social challenges affecting urban areas. 

3. 

The  platform  shall  also  support  networking  between  all  cities  which  undertake 
innovative actions at the initiative of the Commission. 

Article 9 

Innovative Actions in the field of Sustainable Urban Development 

1. 

2. 

3. 

At the initiative of the Commission, the ERDF may support innovative actions in the 
field  of  sustainable  urban  development,  subject  to  a  ceiling  of  0,2%  of  the  total 
annual ERDF allocation. They shall include studies and pilot projects to identify or 
test new solutions to issues relating to sustainable urban development  which are of 
relevance at Union level. 

By  derogation  to  Article  4  above,  innovative  actions  may  support  all  activities 
necessary to achieve the thematic objectives set out in Article 9 of Regulation (EU) 
No […]/2012 [CPR] and corresponding investment priorities. 

The Commission shall adopt delegated acts in accordance with Article 13 concerning 
procedures for the selection and implementation of innovative actions. 

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Article 10 

Areas with natural or demographic handicaps  

Operational programmes co-financed by the ERDF covering areas with severe and permanent 
natural  or  demographic  handicaps  referred  to  in  Article  111(4)  of  Regulation  (EU)  No 
[…]/2012 [CPR] shall pay particular attention to addressing the specific difficulties of those 
areas. 

Article 11 

Outermost regions 

1. 

The specific additional allocation for the outermost regions shall be used to offset the 
additional  costs,  linked  to  the  handicaps  referred  in  Article 349  of  the  Treaty, 
incurred in the outermost regions in supporting: 

(a) 

the  thematic  objectives  set  out  in  Article  9  of  Regulation  (EU)  No […]/2012 
[CPR]; 

(b) 

freight transport services and start-up aid for transport services; 

(c)  operations linked to storage constraints, the excessive size and maintenance of 

production tools, and lack of human capital in the local market. 

At  least  50%  of  the  specific  additional  allocation  shall  be  allocated  to  actions 
contributing  to  the  diversification  and  modernisation  of  the  economies  of  the 
outermost regions, with a particular focus on the thematic objectives set out in points 
1, 2 and 3 of Article 9 of Regulation (EU) No […]/2012 [CPR]. 

The specific additional allocation may also be used to help finance operating aid and 
expenditure  covering  public  service  obligations  and  contracts  in  the  outermost 
regions. 

The  amount  to  which  the  rate  of  co-financing  applies  shall  be  proportionate  to  the 
additional costs referred to in paragraph 1 incurred by the beneficiary in the case of 
operating aid and expenditure covering public service obligations and contracts only, 
and may cover the total eligible costs in the case of expenditure for investment. 

2. 

3. 

4. 

Financing under this Article shall not be used to support: 

(a)  operations involving products falling within Annex I to the Treaty; 

(b) 

aids to transport of persons authorised under Article 107(2)(a) of the Treaty; 

(c) 

tax exemptions and exemption of social charges. 

Chapter IV 

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Final provisions 

Article 12 

Transitional provisions 

1. 

2. 

1. 

2. 

3. 

4. 

5. 

This Regulation shall not affect either the continuation or modification, including the 
total or partial cancellation, of assistance approved by the Commission on the basis 
of Regulation (EC) No 1080/2006 or any other legislation applying to that assistance 
on 31 December 2013, which shall consequently apply thereafter to that assistance or 
the projects concerned until their closure. 

Applications to receive assistance made under Regulation (EC) No 1080/2006 shall 
remain valid. 

Article 13 

Exercise of the delegation 

The  power  to  adopt  delegated  acts  is  conferred  on  the  Commission  subject  to  the 
conditions laid down in this Article.  

The power to adopt delegated acts referred to in Article 9(3) shall be conferred on the 
Commission for an indeterminate period of time from 1 January 2014. 

The delegation of power referred to in Article 9(3) may be revoked at  any  time  by 
the European Parliament or by the Council. A decision to revoke shall put an end to 
the  delegation  of  the  power  specified  in  that  decision.  It  shall  take  effect  the  day 
following  the  publication  of  the  decision  in  the  Official  Journal  of  the  European 
Union  or  at  a  later  date  specified  therein.  It  shall  not  affect  the  validity  of  any 
delegated acts already in force.  

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to 
the European Parliament and to the Council. 

A  delegated  act  adopted  pursuant  to  Article  9(3)  shall  enter  into  force  only  if  no 
objection  has  been  expressed  either  by  the  European  Parliament  or  the  Council 
within a period of two months of notification of that act to the European Parliament 
and the Council or if, before the expiry of that period, the European Parliament and 
the  Council  have  both  informed  the  Commission  that  they  will  not  object.  That 
period shall be extended by two months at the initiative of the European Parliament 
or the Council. 

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Article 14 

Committee procedure 

1. 

2. 

The Commission shall be assisted by the Coordination Committee of the Funds. That 
committee  shall  be  a  committee  within 
the  meaning  of  Regulation  (EU) 
No 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  4  of  Regulation  (EU) 
No 182/2011 shall apply. 

Article 15 

Repeal 

Regulation (EC) No 1080/2006 is hereby repealed. 

References to the repealed Regulation shall be construed as references to this Regulation. 

Article 16 

Review 

The European Parliament and the Council shall review this Regulation by 31 December 2022, 
in accordance with Article 177 of the Treaty.  

Article 17 

Entry into force 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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Common indicators for ERDF support under the Investment for growth and jobs goal 
(Article 6) 

ANNEX  

UNIT 

NAME 

Productive 
investment 

enterprises 

Number of enterprises receiving grants  

enterprises 

enterprises 

Number of enterprises receiving financial support 
other than grants 

Number  of  enterprises  receiving  non-financial 
support 

enterprises 

Number of new enterprises supported 

EUR 

EUR 

full 
equivalents 

Private  investment  matching  public  support  to 
SMEs (grants) 

Private  investment  matching  public  support  to 
SMEs (non-grants) 

time 

Number of jobs created in assisted SMEs 

Tourism 

visits 

Number of visits to supported attractions  

ICT 
Infrastructure 

persons 

Population  covered  by  broadband  access  of  at 
least 30 Mbps 

Transport 

Railway 

km 

Total length of new railway line 

 of which: TEN-T 

km 

Total length of reconstructed or upgraded railway 
line 

 of which: TEN-T 

Roads 

km 

Total length of newly built roads 

of which: TEN-T 

km 

Total length of reconstructed or upgraded roads 

of which: TEN-T 

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Urban transport 

passenger trips 

Increase of passenger trips using supported urban 
transport service 

Inland 
waterways 

Environment 

tonne-km 

Increase of cargo transported on improved inland 
waterways 

Solid waste 

tonnes 

Additional waste recycling capacity 

Water supply 

persons 

Additional  population  served  by  improved  water 
supply 

m3 

Estimated 
distribution network 

reduction  of 

leakage 

in  water 

Wastewater 
treatment 

population 
equivalent 

Additional  population 
wastewater treatment 

served  by 

improved 

Risk  prevention 
and management 

persons 

Population  benefiting 
measures 

from 

flood  protection 

Persons 

Population  benefiting  from  forest  fire  protection 
and other protection measures 

Land 
rehabilitation 

Hectares 

Total surface area of rehabilitated land 

Soil sealing 

hectares 

Change in land sealed due to development 

and 

hectares 

Surface  area  of  habitats  in  better  conservation 
status 

Nature 
biodiversity 

Research, 
Innovation  

Persons 

Enterprises 

Number of R&D personnel/researchers working 
in newly built or equipped research infrastructures 

Number of enterprises cooperating with assisted 
research institutions  

Full time 
equivalents 

Number of posts for R&D personnel/researchers 
created in assisted entities  

EUR 

Enterprises 

Private investment matching public support in 
innovation or R&D projects 

Number of enterprises that introduced new or 
significantly improved products, new to the 
market as a result of supported innovation or 
R&D projects  

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Enterprises 

Number of enterprises that introduced new or 
significantly improved products, new to the firm 
as a result of supported innovation or R&D 
projects  

and 
Energy 
Climate change 

Renewables 

MW 

Additional 
production 

capacity 

of 

renewable 

energy 

Energy 
efficiency 

Households 

Number  of  households  with  improved  energy 
consumption classification 

kWh/year 

Users 

Decrease  of  primary  energy  consumption  of 
public buildings 

Number  of  additional  energy  users  connected  to 
smart grids 

GHG reduction 

tonnes of CO2eq 

Estimated decrease of GHG in CO2 equivalents 

Social 
infrastructure 

Childcare 
education 

& 

Persons 

Service  capacity  of  supported  childcare  or 
education infrastructure 

Health 

Persons 

Capacity of supported health services 

Housing 

Households 

Number  of  households  benefiting  from  improved 
housing conditions 

Cultural heritage  Visits 

Number of visits at supported sites 

Urban 
Development 

Persons 

Population  living  in  areas  with  integrated  urban 
development strategies 

square metres 

New open space in urban areas 

square metres 

New  public  or  commercial  buildings  in  urban 
areas 

square metres 

New housing in urban areas 

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