European Social Fund - How ESF Funds Are Allocated

How ESF Funds Are Allocated

The level of ESF funding differs from one region to another depending on their relative wealth. EU regions are divided into four categories of eligible regions, based on their regional GDP per capita compared to the EU average (EU with 25 or 15 Member States) and split between the two objectives.

Convergence objective includes:

1. convergence regions: with a GDP per capita of less than 75% of the EU-25 average;
2. phasing-out regions: with a GDP per capita of more than 75% of the EU-25 average but less than 75% of the EU-15 average.

The regional competitiveness and employment objective includes:

1. phasing-in regions: with a GDP per capita of less than 75% of the EU-15 average (in the period 2000-2006) but more than 75% of the EU-15 average (in the period 2007-2013);
2. competitiveness and employment regions: applies to all other EU regions.

In convergence regions, ESF co-financing of projects can reach 85% of total costs. In regional competitiveness and employment regions, 50% co-financing is more common. For the richer Member States and regions, ESF funding complements existing national employment initiatives; for less-wealthy Member States, ESF funding can be the main source of funds for employment-related initiatives. The eligible regions for the current ESF programming round (2007–2013) are shown on the map.