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Framework Conditions of Public Funding
The legal and financial framework of public funding throughout Europe is provided by the European Union (EU) - meaning that public funding has to follow certain criteria applicable to all EU member states.
The objectives of public funding are the overall advancement and maintenance of economic growth and development in all different economic regions within the EU in the long term.
This is to be achieved by strengthening competitiveness and employment, improving qualification, and boosting research and development activities to reduce inequalities between regions of differing economic development.
The EU's Convergence and Competitiveness Regions
The EU has defined two key target areas, which receive diverse levels of support:
- "Convergence Regions" that require comprehensive support in order to bridge the gap with well-developed regions in Europe.
- "Regional Competitiveness and Employment Regions" that receive assistance to maintain and expand their economic competitiveness levels.
Western Germany has largely been defined as a "Regional Competitiveness and Employment Region".
Eastern Germany is classified as a "Convergence Region."
Both areas, Convergence as well as Regional Competitiveness and Employment Regions, are eligible for a broad variety of public financial support programs.
Please note: For most programs, company size is one decisive criterion determining the possible incentives rate. The European Commission has set out a classification system applicable throughout Europe. Please refer to the following site for more information:
