12.01.2024
EUROPEAN FUNDING PROGRAMS WE CAN TAKE ADVANTAGE OF
European funding is a key tool for supporting various projects and initiatives in the member states of the European Union. It is an essential element of the general strategy for sustainable development and stimulation of economic and social progress in the community.
In this context, the advantages of European funding are numerous and play an important role in achieving the common objectives of the EU. Let's look at what types of funding are available and how they contribute to stimulating economic development, innovation and social cohesion within the Community.
Types of European funding
The EU provides funding for a number of projects and programs. In addition, strict rules apply to strictly control how the funds are used and to ensure that they are spent in terms of transparency and accountability.
EU funding is provided in a number of different forms:
- grants - usually people apply for grants by submitting project ideas after a call for proposals;
- subsidies - managed by national and regional authorities;
- loans, guarantees and equity capital – as forms of financial assistance in support of EU policies and programs;
- loans for EU and non-EU countries;
- prizes for the winners of the contests under the "Horizon Europe" program.
Who can get EU funding?
All European citizens and many people in other parts of the world benefit directly or indirectly from the EU budget. Its funds help millions of students, thousands of researchers and many cities, regions and non-profit organizations.
See the most common profiles of beneficiaries applying for EU funding:
- Youth - funding opportunities for young people;
- Researchers - funding programs and open calls for proposals;
- Agricultural producers and enterprises in rural areas - financing opportunities for farmers;
- Small and medium-sized enterprises - financing opportunities for small companies;
- Public institutions – funding opportunities for public bodies;
- Non-governmental organizations, non-profit organizations - funding opportunities for NGOs.
Modes of management
Programs financed by the EU budget can be implemented in three different ways depending on the nature of the funding concerned:
- Direct management – EU funding is managed directly by the European Commission;
- Shared management – the European Commission and the national authorities jointly manage the funding;
- Indirect management – funding is managed by partner organizations or other bodies in or outside the EU.
This means that when the EU provides funding for a specific program or project, it is not always directly involved in day-to-day management. At the same time, although Member States are responsible for spending the majority of the EU budget, the Commission is ultimately responsible for its implementation.
Therefore, the Commission carries out strict and effective control over the way EU funds are spent. The procedure varies depending on how the program is run.
In order to receive funding for a project, the applicant must find a suitable call for proposals/projects and carefully follow the specific application guidelines – each call is different. The project will compete for funding with the projects presented by the other applicants within the framework of the respective call.
With direct management of EU funding, the European Commission is directly responsible for all stages of program implementation. The Commission has the duty to: publish calls for proposals, evaluate submitted proposals, sign grant agreements, monitor project implementation, evaluate results and make payments.
An example of a program managed directly by the Commission is the Program for the Competitiveness of Enterprises and Small and Medium-sized Enterprises (COSME), whose main objective is to support the creation and growth of SMEs. If an applicant is an entrepreneur seeking EU financial support, the contact and management office will be the Executive Agency for the European Innovation Council and for SMEs implementing COSME.
You can apply for this type of funding by responding to calls for proposals. Calls for proposals under direct management are published on the Funding and Procurement Portal (SEDIA).
The application process must be done through the European Commission's funding and procurement portal. For both grants and procurement, the usual application process involves finding a call for which you are eligible, finding a project partner, creating a profile on the portal, registering your organization and submitting a proposal.
In shared management of EU funding, responsibility for managing a program is shared between the European Commission and national authorities in EU countries. Around 70% of EU programs are managed in this way.
For example, if you are a farmer in the EU and have a project to start growing organic vegetables, you can apply for funding under the Common Agricultural Policy (CAP). To do this, you should contact your country's Ministry of Agriculture or another similar institution that is responsible for managing the funds for your project on behalf of the EU.
National, regional and local administrations in EU countries choose which projects to finance and are responsible for their operational management. The Commission works together with EU countries to ensure the successful completion of projects and the correct use of funds.
Cohesion policy and agriculture are the main areas where shared management is used - mainly through the following funds:
- European Fund for Regional Development - regional and urban development;
- Cohesion Fund - for less developed regions;
- European Social Fund Plus – social inclusion and good governance;
- Just Transition Fund – support for the regions most affected by the transition to climate neutrality;
- European Agricultural Fund for Rural Development;
- European Maritime and Fisheries Fund.
More information on the EU budget 2014-2020 can be found on the page for regional and national governing bodies. A web page with contact points by Member State is under development, including for funding under the 2021 EU budget programs – 2027
In indirect management of EU funding, funding programs are implemented partly or entirely by third parties, such as national authorities or international organisations. Funding is in the form of grants, which are applied for at the national level.
Most of the EU's humanitarian aid and international development budget is implemented under indirect management. Indirectly managed programs account for around 10% of the total EU budget.
If you apply for funds managed by an implementing partner under indirect management, you will need to follow the application procedure established by the relevant implementing partner, which will act as the awarding authority. You will need to check the implementing partner's website for specific requirements for the application process.
Examples of implementing partners that provide EU funds under indirect management are:
- International organizations;
- Specialized bodies of the Union;
- Decentralized agencies;
- Joint ventures (public-private partnerships);
- National authorities.
Organizations or individuals wishing to work under indirect management must fall into specific categories defined in the Financial Regulation governing the use of the Union budget. Before becoming implementing partners, they must also carry out an ex ante assessment of their systems, rules and procedures to ensure that the EU funds they will receive will be managed safely.
