EU Structural Funds - Essay Example

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EU Structural Funds

Indeed, this approach towards collective growth broadly forms the guideline for the distribution of the Funds; especially during the current budgetary cycle (DNSRF 2006, p. 7, 9). The Structural Funds are split into the European Regional Development Fund (ERDF) and the European Social Fund (ESF) (DNSRF 2006, p. 7, 10), based on the kind of activities they foster - while they are distributed based on 'Objectives'. Objectives are the eligibility criteria drafted by the EU which determine the volume of investment aid that can be assigned to a region. The areas that are eligible for investment aid are identified by the Member States based on the EU's Regional State Aid Guidelines (DNSRF 2006, p. 6, 7). The 2000-2006 programme had three Objectives, namely, Objective 1, Objective 2 and Objective 3, and also a few Community Initiatives like 'Interreg'. The 2007-2013 perspective has three Objectives again, but has the following changes: the Convergence Objective (which replaces Objective 1), to develop those regions with a GDP per Capita below seventy-five percent of the EU average; the Regional Competitiveness and Employment Objective (which replaces Objectives 2 and 3), to support the more prosperous regions; and the Cooperation Objective (which replaces 'Interreg'), to foster cross-border and trans-national cooperation (DNSRF 2006, p. 7, 11). ...Show more

Summary

European Union (EU) Structural Funds are funds that are allotted by the EU to its Member States to be "used to promote regional development and employment" (Draft National Strategic Reference Framework [DNSRF] 2006, p. 6, 1). The funds are allocated in budgetary cycles of seven years each…
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