Cohesion Policy

The EU’s main investment policy

Cohesion Policy targets all regions and cities in the European Union in order to support:

• job creation
• business competitiveness
• economic growth
• sustainable development
• improvements to citizens’ quality of life

In order to reach these goals and address the diverse development needs in all EU regions, €392 billion – almost a third of the total EU budget – has been set aside for Cohesion Policy for the period 2021-2027.

How funding is delivered

Cohesion Policy is delivered through specific funds:

• The European Regional Development Fund (ERDF), to invest in the social and economic development of all EU regions and cities.
• The Cohesion Fund (CF), to invest in environment and transport in the less prosperous EU countries.
• The European Social Fund Plus (ESF+), to support jobs and create a fair and socially inclusive society in EU countries.
• The Just Transition Fund (JTF) to support the regions most affected by the transition towards climate neutrality.

In detail: 2021-2027 Cohesion Policy EU budget allocations

Cohesion Policy and the Commission's political priorities

Cohesion Policy help to deliver many EU policy objectives. It complements EU policies such as those dealing with:

• Education
• employment
• energy
• the environment
• the single market
• research and innovation

The projects financed in the regions and cities contribute to the goals of the Commission priorities, notably:

• “A European Green Deal”
• “A Europe fit for the digital age”
• “An economy that works for the people”

Territorial dimension

Cohesion Policy provides special care and investment tools to territories to address specific issues:

• Border regions and cross-border cooperation (Interreg)
• Urban areas
• Remote, islands, mountainous or sparsely populated areas
• Outermost regions

Cohesion Policy underpins European solidarity

The bulk of Cohesion Policy funding is concentrated on less developed European countries and regions in order to help them to catch up and to reduce the economic, social and territorial disparities that still exist within the EU.

The Just Transition Fund alleviates the socio-economic costs triggered by the climate transition. It supports the economic diversification and reconversion of the territories concerned, and helps people to adapt in a changing labour market.

The effects of the coronavirus pandemic on the economic situation of EU regions is addressed by REACT-EU, the Recovery Assistance for Cohesion and the Territories of Europe.

Legislation

The EU goal of Economic, Social and Territorial Cohesion is defined in articles 174 to 178 of the Treaty on the Functioning of the European Union.

Cohesion Policy legislation 2021-2027