Financial management – Regional policy

Although cohesion policy funds are part of the EU budget, the way they are spent is based on a system of shared responsibility between the European Commission and national authorities:

  • the Commission negotiates and approves programs offered by EU countries, and allocate resources.
  • EU countries/regions manage shows, implement by selecting projects, monitor and evaluate their.
  • the Commission is involved in the monitoring of the programme, undertakes and pays approved expenses and checks the control systems.

For each programthe national authority designates:

  • a managing authority (national, regional or local public authority or public/private body responsible for managing the operational programme)
  • a audit body (national, regional or local public authority or body for each operational program responsible for ensuring the proper functioning of the management and monitoring system).

Commitments

Budgetary commitments for programs are made by annual tranche and by fund. However, the amount corresponding to 50% of the contribution for the years 2026 and 2027 (“flexibility amount”) per program under the investment objective for jobs and growth in each Member State is definitely not allocated to each program only on the occasion of the mid-term review.

Automatic release

Part of the budget commitment is automatically decommitted by the Commission if it remains unused or if no request for payment has been received by the end of the third year following the year of the budget commitment. This period is reduced to two years only for commitments in 2027.

Financing conditions 2021-2027

Co-financing ceilings

Maximum co-financing rate:

  • Less developed regions: 80 or 85% (see Article 112(3) of Regulation 2021/1060 for more details)
  • Transition regions: 60% or 70%
  • More developed regions: 40% or 50%
  • Cohesion Fund: 85%
  • European Territorial Cooperation: 85% (see article 13 of the Interreg regulation for more details)
  • Just Transition Fund:
    • Less developed regions: 85&
    • Regions in transition: 70%
    • More developed regions: 50%

Eligible expenses

Eligible expenses are incurred between 1.1.2021 and 31.12.2029. Co-financed operations must not be completed before the eligibility start date. The rules are established at the national level, unless otherwise specified in the specific rules of the fund.

Financing conditions 2014-2020

Co-financing ceilings

Maximum co-financing rate:

  • Less developed regions: 80 or 85% (see article 120 of regulation 1303/2013 for more details)
  • Transition regions: 60%
  • More developed regions: 50%
  • Cohesion Fund: 85%
  • European Territorial Cooperation: 85%

Eligible expenses

Eligible expenses are incurred between 1.1.2014 and 31.12.2023. Co-financed operations must not be completed before the eligibility start date. The rules are established at the national level, unless otherwise specified in the specific rules of the fund.

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