Expert articles

Funds and other forms of financial support of the European Union

 

The European Union has united many states with different levels of economic development. In order to bridge the gap between the member states and to accelerate the development of the less developed members of the EU, a system of financial contributions was established to allow funds to be distributed among the states. Since its accession to the EU, the Slovak Republic has ranked among the EU’s most subsidized states and has utilized financial support from the EU through the so-called programming periods (2004-2006, 2007-2013. On 20th June 2014, the European Commission adopted a Partnership Agreement with Slovakia for the period of 2014-2020.

The Partnership Agreement sets out a strategy for the optimal use of European structural and investment funds in the regions and cities of the country. It is implemented through five separate funds and their respective operational programs. The Partnership Agreement funds include the European Social Fund (ESF), the European Regional Development Fund (ERDF), the Cohesion Fund (CF), the European Agricultural Fund for Rural Development (EAFRD) and the European Maritime and Fisheries Fund (EFNRH). The amount of funding in the Partnership Agreement is €15.3 billion, of which €13.7 billion will be allocated to the Structural and Cohesion Funds, €1.55 billion to the European Agricultural Fund for Rural Development, and €15.8 million to the European Maritime and Fisheries Fund.

The European Regional Development Fund supports the strengthening of economic, social and territorial cohesion, the construction of infrastructure and the creation of investment connected to job creation. In addition to these aims, it is also concerned with the support of small and medium sized enterprises, technological development, the protection and improvement of the environment and the development of the tourist industry.

The European Social Fund is the main instrument through which the EU can achieve its social goals. On this basis, it is used to enhance the field of employment, for example through the support of work mobility, the promotion of social inclusion, investment into education and the fight against poverty. A particular emphasis is placed on the education and employment of young people; the Youth Employment Initiative (YEI) aims to support young people in developing their skills and qualifications and improving their access to the job market. The EU has allocated approximately €3.2 million for the funding of this initiative.

The Cohesion Fund supports member states with a per capita gross national income lower than 90% of the EU average to eliminate economic and social inequalities and to promote sustainable development. These initiatives are implemented through investment into trans-European transport networks and environmental measures.

The goal of the European Agricultural Fund for Rural Development is to promote sustainable development throughout the EU, and the European Maritime and Fisheries Fund was established to deal with maritime issues and the development of the fishing industry.

The strategies, priorities and goals of financial support provided by the EU are implemented through targeted operational programmes:

 

  1. Operational programmes for investment into growth and employment

 

The Research and Innovation operational programme is designed to modernize and streamline research and development, improve the quality of infrastructure of universities and enhance the competitiveness of small and medium sized enterprises. This operational programme has funded the National Information System for Supporting Research and Development in Slovakia – Access to Electronic Information Resources and the National Telepresence Infrastructure to Support Research, Development and Technology Transfer.

The Integrated Infrastructure operational programme primarily finances the modernization of railways, roads and public transport and the optimization of access to information and communication technologies. The core of the investment in the information society is the creation of high quality digital content and widening access to broadband internet. A number of different projects including the Modernization of Electrified Tramlines in Košice and the Development of Broadband Connections were approved within the framework of this operational programme.                                                      

The Human Resources operational programme integrates funds to improve the quality and level of education and to increase employment among young people below the age of 29, for example through the support of start-up projects. These activities are covered by the Youth Employment Initiative (YEI) for which €72 million has been allocated. This operational programme has co-funded a number of projects including Graduate Practice Starts Employment (Absolventská prax štartuje zamestnanie), Success in the Job Market (Úspešne na trhu práce) and We Want To Be Active in the Job Market (Chceme byť aktívni na trhu práce).

The Quality of Environment operational programme is intended to improve the condition of the environment, ensure the effective use of natural resources, and develop flood protection and adapt to the effects of climate change. Among the projects funded by this operational programme are Investment in the Waste Management Sector (Investovanie do sektora odpadového hospodárstva), Emission Controls for Ore Bridge VP1 (Kontrola emisií pre rudné mosty VP1) and Monitoring and Evaluation of Water Quality (Monitorovanie a hodnotenie stavu vôd).

The Integrated Regional operational programme finances the safe and ecological transport in the regions, easier access to efficient and high quality public services and the improvement of quality of life in regions with a particular emphasis on the living environment. The operational programme is also intended to offer support in the field of social and health infrastructures. The programme has funded projects such as Energy Efficiency for Residential Buildings (Energetická efektívnosť bytových domov) and Finance of Administrative Capacities in the Ministry of Health (Financovanie administratívnych kapacít MZ SR).

The Effective Public Administration operational programme supports activities focused on improving the quality and streamlining of public administration and the judiciary. Among the priorities of this programme are the support of systems and processes of public administration including the strengthening of institutional capacities and the development of transparent rules for public procurement programmes. A second priority for the programme is the realization of widespread judicial reforms, the streamlining of the judicial system and improving law enforcement. Among the projects approved under this programme are Reform of the Collection and Processing of Stastical Data in Public Administration (Reforma zberu a spracovania štatistických údajov vo verejnej správe) and Streamlining the System of Central Planning and Management of Human Resources in State Administration (Zefektívnenie systému centrálneho plánovania a riadenia ľudských zdrojov v štátnej správe).

The Technical Assistance operational programme funds the expert and efficient support for the management and implementation of Eurofunds with a particular focus on increasing the efficiency of management and the increased flow of funds throughout the entire period of projects. Among the projects approved under this operational programme are  Development of Analytical and Strategic Elements of the National Strategy for the Regional Development of the Slovak Republic and Presentation of the Development of the Expert Community (Vypracovanie analytickej a strategickej časti Národnej stratégie regionálneho rozvoja SR a prezentovanie vypracovaných častí odbornej verejnosti) and Evaluation of the the Fulfilment of the Goals of Political Cohesion (Hodnotenie plnenia cieľov politiky súdržnosti).

The Rural Development programme strengthens competitiveness in the forestry, agriculture and food sectors. The Fisheries operational programme also belongs within the framework of the Ministry of Agriculture and rural development and supports the sustainable and competitive development of the fishery industry with a focus on the efficient use of resources and environmental protection.

  1. Operational programmes for European territorial cooperation

Cooperative projects are the result of joint efforts by member states to intensify cross-border regional cooperation between member states. Investment has led to improvements in links in infrastructure, increases in the overall level of education at all levels, better collaboration between universities and colleges and the creation of an environment for investment in improving the state of natural and cultural heritage.

Cross-border Cooperation Programmes include, for example, Interreg Europe, a programme designed to improve the efficiency of regional development programmes.

Transnational Cooperation Programmes include the Central Europe programme which is intended to foster innovation, use natural and cultural resources and to increase the attractiveness of towns and villages. The Danube Transnational Programme provides a framework for the implementation of joint programmes and knowledge exchanges between national, regional and local bodies in the states of the Danube region.

International Cooperation Programmes include the ESPON 2020 programme (European Spatial Observation Network), the European Observational Network for Territorial Development and Cohesion, the European Territorial Cooperation Project URBACT III and the European Territorial Cooperation Project INTERACT III.

The independent Operational Program for Food and Basic Material Assistance also plays a significant role. The aim of this program is to reduce the economic burden on socially disadvantaged groups by securing basic commodities such as food and basic hygiene needs. It is implemented by providing food and hygiene packages to selected recipients who are in difficult social situations and providing hot meals to homeless people. A secondary goal of this programme is an initiative intended to reduce food waste.