Funding from the European Regional Development Fund found to drive employment and innovation

The Federal Ministry for Economic Affairs and Energy (BMWE) published the final report of a commissioned study entitled “Evaluation of the ERDF programmes in the funding period 2014–2020 in Germany.” The study shows that German regions benefit from the European Regional Development Fund (ERDF) in numerous ways. Proven effects of the funding include a significant increase in employment and innovation among supported companies, reductions in greenhouse gas emissions and the development of new public research infrastructures with international appeal. In Eastern Germany in particular, the funding is associated with a clear positive contribution to economic performance. In Western Germany, less economically developed regions have reaped a larger share of the benefits.

The BMWE is currently preparing intensively for the upcoming negotiations on EU Cohesion Policy after 2028. In light of limited financial resources, it is more important than ever to demonstrate the effectiveness of European funding. This study on the European Regional Development Fund (ERDF) allows the German government to showcase the tangible effect EU support has had on employment, innovation, climate action, and regional development in Germany. These investments in companies and public institutions are visible signs of European solidarity. The study combines comprehensive company-level data with innovative methods, providing a level of depth not yet seen in ERDF evaluation. This provides a solid basis for making the EU structural funds future-proof and effective.

Cohesion policy is one of the central policy areas of the European Union. Through various structural funds, it supports projects in all European regions with the aim of strengthening economic, social, and territorial cohesion and reducing regional disparities across Europe. Currently, the EU’s structural funds account for about one third of the total EU budget. In its role as coordinating authority for the European structural funds, the Federal Ministry for Economic Affairs and Energy commissioned this study with the goal of continuing the negotiations on the reform of EU Cohesion Policy from a standpoint grounded in robust evidence on the impact and relevance of the structural funding. The study was carried out by a consortium consisting of GEFRA – Gesellschaft für Finanz- und Regionalanalysen (Society for Financial and Regional Analysis), the ifo Institute – Leibniz Institute for Economic Research (Dresden branch), and Ramboll Management Consulting.

The German (PDF, 6 MB) and English (PDF, 6 MB) versions of the “Evaluation of ERDF programmes in the funding period 2014–2020 in Germany” report, as well as additional information, can be found here.