European Commission
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Financial Management

Although the Cohesion Policy funds are part of the Union budget, the way they are spent is based on a system of shared responsibility between the European Commission and national authorities:

  • the Commission negotiates and approves programmes proposed by EU countries, and allocates resources.
  • the EU countries / regions manage the programmes, implement them by selecting projects, control and assess them.
  • the Commission is involved in programme monitoring, commits and pays out approved expenditure and verifies the control systems.

For each operational programme, the national authority appoints:

  • a managing authority (national, regional or local public authority or public/private body to manage the operational programme)
  • an auditing body (national, regional or local public authority or body for each operational programme to oversee the efficient running of the management and monitoring system).

Commitments

Budgetary commitments for programmes are made per annual proportion and per fund. However, the amount corresponding to 50 % of the contribution for the years 2026 and 2027 (‘flexibility amount’) per programme under the Investment for jobs and growth goal in each Member State is definitively allocated to each programme only the mid term review.

Automatic decommitment

A portion of the budgetary commitment is automatically decommitted by the Commission if it remains unused or if no payment application has been received by the end of the third year following the year of the budgetary commitment. This period is shortened to two years for exclusively for the commitments for year 2027.

Conditions for financing 2021-2027

Co-financing ceilings Maximum co-financing rates
Maximum Co-financing ceilings
  • Less developed regions: 80 or 85% (see Article 112(3) of Regulation 2021/1060 for further details)
  • Transition regions: 60% or 70%
  • More developed regions:  40% or 50%
  • Cohesion Fund: 85%
  • European Territorial Cooperation: 85% (see Article 13 of Regulation Interreg for further details)
  • Just Transition Fund:
    • Less Developed Regions: 85&
    • Transition Regions: 70%
    • More Developed Regions: 50%
Eligible expenditure

Eligible expenditure is incurred between 1.1.2021 - 31.12.2029. Co-financed transactions must not be completed before the start date for eligibility. Rules are established at national level except where the specific fund rules state otherwise.

Conditions for financing 2014-2020

Co-financing ceilings Maximum co-financing rates
Maximum Co-financing ceilings
  • Less developed regions: 80 or 85% (see Article 120 of Regulation 1303/2013 for further details)
  • Transition regions: 60%
  • More developed regions:  50%
  • Cohesion Fund: 85%
  • European Territorial Cooperation: 85% 
Eligible expenditure

Eligible expenditure is incurred between 1.1.2014 - 31.12.2023. Co-financed operations must not be completed before the start date for eligibility. Rules are established at national level except where the specific fund rules state otherwise.