The European Regional Development Fund has been created in 1974 as a basic EU
Regional Policy instrument to finance programmes which aims at the development of the most backward regions. Currently, it is one of the most important EU Funds, because it includes the largest number of areas of support. In general, the task of this fund in both programming periods is to reduce the gaps among the levels of development of various regions and the extent to which the least favoured regions, including rural and urban areas, declining industrial regions, areas with severe and permanent geographical, natural and
45
demographic handicaps, such as islands, mountainous areas, sparsely populated areas and border regions, are lagging behind.95
In the period 2007 – 2013, the assistance of the ERDF concentrates on investments in transport, information and communication and energy infrastructure, education promotion, research, development and innovation in the Convergence objective regions. Furthermore, it supports small and medium-sized enterprises and job creation, protection of environment, tourism development and promotion of culture, etc. However, in the Regional Competitiveness and Employment regions is the ERDF support limited to more specialized areas such as innovation and knowledge economy, research, development and technology, entrepreneurship promotion, as well as environmental and renewable energy sources and development of access to transport and telecommunication services. This different approach to various types of regions was selected by the European Commission on the grounds that the more backward regions need to develop their basic infrastructure, functioning of public institutions, education system and restructuring of production and labour market, at first. Regions under the Regional competitiveness and employment objective are already in their economic performance at a higher level and therefore the support from the ERDF aims mainly at innovation, technology and education. This approach will be also followed in the next programming period.
The scope of the ERDF support, even in the programming period 2014 – 2020 focuses on the area of investment in transport, information, communication and energy infrastructure, education promotion, research, development and innovation. Furthermore, it supports small and medium-sized enterprises, environment, tourism development, promotion of culture, etc. All this applies to the less developed and transition regions. The support of investments in the environment, transport infrastructure, communication and information technologies will be excluded from the ERDF funds for more developed regions.96 However, the change in the period 2014 – 2020 comes in the form of thematic concentration97 which is closely connected with the fulfilment of Europe 2020 Strategy objectives. The proposal for a Regulation on the ERDF and the Investment in growth and jobs goal clearly sets that there must be used at least 50 % of ERDF spending of the
95 EUROPEAN COMMISSION [online], 2011g, ref. 42.
96 Proposal for a Regulation on the ERDF and the Investment in growth and jobs goal stipulates that the resources from this fund shall not support the production, processing and sale of tobacco and tobacco products, companies in difficulty, the reduction of greenhouse gas emissions or the decommissioning nuclear power plants.
46
member state for the thematic objectives of research and innovation, competitiveness of small and medium-sized enterprises in the less development regions. For the goal of shift towards a low-carbon economy there must be allocated a minimum of 6 % of this amount in the less development regions. In the more developed regions and transition regions shall be used 80 % of the total ERDF funds for the above-mentioned objectives, but the shift towards a low-carbon economy objective must get at least 20 %. There is a different focus on the needs of the less and more developed regions in the future period. It is also important to recall that ERDF is the only fund that will be able to finance all investment priorities set out in Article 9 of the General Regulation in the period 2014 – 2020.98
Special adjustment for obtaining funds from the ERDF requires area of urban development. In the EU Member States, more than two thirds of the population live in cities and there are also produced more than two thirds of the EU GDP. High population density in cities is a cause of greater visibility of negative phenomena such as unemployment, poverty, etc. In the period 2014 – 2020, there will be ensured the sustainable urban development through the integrated actions to tackle the economic, social and environmental issues which these cities are facing, as well as it is in the period 2007 – 2013. Investments should be made through the single national strategies to focus the funds on specific urban problems. Examples of areas that can be promoted through integrated urban development strategy may strengthen economic growth and employment, the environment and revitalization of industrial sites, cultural and natural heritage, public services and others. Investments should be mainly in low-carbon strategies, urban transport, urban and environmental regeneration of deprived urban areas. For this purpose, each member state shall draw up a list of cities where integrated actions will be implemented. Then this list will be a part of the Partnership Contract. Subsequently, the European Commission will choose 300 cities from across the EU, but maximum of 20 cities of each member state that will be involved in urban development platform, which aims to create dialogue and exchange experiences in solving the problem. EU Member States should spend at least 5 % of the total ERDF funds intended for the country in sustainable urban development.99
Member States can use also an integrated approach in the period 2014 – 2020. Integrated regional investments combine the possibility of financing the priority axes of the
98 EUROPEAN COMMISSION [online], 2011g, ref. 42. 99 Ibidem.
47
Operational Programmes from the Structural Funds. The ERDF and the ESF can co- finance each other in development project to the amount of up to 5 %. Contrary to the current period, complementary manner of Structural Funds decreased from 10 %, in the Regional competitiveness and employment objective even from 15 %. In the period 2007 – 2013 can be combined assistance between the ERDF and the Cohesion Fund for the Operational Programmes focused on environment or infrastructure.100 Newly, the ERDF should allocate 0.2 % of the total appropriations for the state to support innovative measures in the context of sustainable urban development. Innovative measures consist of studies, demonstration and pilot projects to address sustainable urban development which can be focused on all thematic objectives.101
Special attention is paid to the outermost regions, but there are no changes between programming periods. Additional funding from the ERDF for these regions will be spent to support the thematic objectives, the provision of public services and freight services, the activities related to constraints due to natural or demographic conditions. At least 50 % of the additional funds must be spent on thematic objectives 1, 2 and 3.102
3.3.2 The European Regional Development Fund changes and the European