Description
The 'cohesion financial instrument', as the Cohesion Fund was originally called, was established on 1 April 1993 and entered into force in 1994 with the aim of strengthening the EU's economic, social and territorial cohesion and helping the countries concerned catch up with the rest of the EU.
The beneficiaries of the Cohesion Fund were originally Greece, Ireland, Portugal and Spain (1994-1999); since 2004, the Fund has supported Czechia, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia, Bulgaria and Romania (since 2007) and Croatia (since 2013).
The budget of the Cohesion Fund expanded considerably after the 2004 enlargement: from € 18 billion in 1994-1999 to € 30.6 billion in 2000-2006, reaching € 68.5 billion in 2007-2013 and € 61.4 billion in 2014-2020.
Created under the Maastricht Treaty as a necessary complement to the single market in the package of cohesion policy instruments, the Cohesion Fund is designed to support investments in transport infrastructure and climate and environmental protection. Its main objectives include improving water supply and waste treatment, energy efficiency, renewable energy and road and rail infrastructure.
The Fund focuses on Member States with a gross national income (GNI) below 90 % of the EU average to promote convergence between European economies. Cohesion Fund support, like all funding under cohesion policy, has contributed to the increase in national incomes of beneficiary countries. Ireland and Spain were the first countries to see their GNI rise above the eligibility threshold of 90 % of the EU average.
Bridges, metros, airports, high-speed trains and more
The Cohesion Fund has financed emblematic projects that have transformed entire regions and cities, helping them to catch up with the rest of the EU. For example, in 1998, the Fund supported the construction of the 'Vasco da Gama' bridge in Lisbon, Portugal, which at 12.3 km is the longest bridge in the EU. It also financed the 'Alqueva Dam' on the Guadiana River in southern Portugal, one of the most important strategic water reserves in Europe.
The Fund has also played a key role in the development of the Trans-European Transport Network (TEN-T), supporting the construction and modernisation of 7 800 km of TEN-T roads, 3 650 km of TEN-T railways and numerous aqueducts and tunnels. It financed the longest railway tunnel in south-eastern Europe, under construction between Elin Pelin - Vakarel - Kostenets in Bulgaria. It has also supported the construction of the second track in the section between Koper (an important port on Slovenia's Adriatic Sea) and Divaccia, which will significantly increase freight capacity and provide a connection to the Austrian rail network.
In Spain, the Cohesion Fund contributed to the construction of the country's modern high-speed rail network. The Madrid-Barcelona-French border high-speed line, with a total length of 804 kilometres, is one of the main axes of communication between Spain and the rest of Europe.
Thanks to the Fund, the Warsaw-Gdynia railway line in Poland has improved passenger transport along the Baltic-Adriatic corridor and modern rolling stock now circulates between the country's major cities.
The Fund has also invested in sustainable public transport in cities, for example in the Warsaw, Budapest, Bucharest, Sofia and Prague metros. In Bratislava, the Petrzalka tram line, with its famous bridge, was also built with Cohesion Fund support.
Finally, the Fund contributed to the construction of airports to improve connections with the Member States that joined the EU in the 2000s: the airports of Tallinn, Warsaw, Wroclaw and Rzeszów are just a few examples.
Combating climate change and protecting the environment and the health of citizens
The Fund has also supported investments in infrastructure, including bringing clean drinking water to 6 million people and connecting 10.5 million people to waste water treatment plants. It also supported the recycling of 4.2 million tonnes of municipal waste.
A project of great environmental importance for a green and sustainable economy, which improves the quality of life of thousands of citizens, is the waste treatment plant in Alexandropolis, Greece, which reduced the waste collected from 4 municipalities in the Prefecture of Rhodope and 2 municipalities in the Prefecture of Evros by 60 %.
The southern wastewater treatment infrastructure in Malta and water management for the largest urban agglomerations in Latvia improved wastewater treatment and drinking water quality for citizens.
In the clean energy sector, the Cohesion Fund supported the installation of technologies using renewable energy to produce electricity for almost 20,000 households in Lithuania.
Finally, the Fund invested in forest fire protection for 8.3 million people and flood protection for 11.4 million people. The projects supported include the construction of a flood protection system and a reservoir to protect the Upper Tisza area from flooding from the Tisza River in Hungary.
For the programming period 2021-2027, more than 37 % of the Fund's € 48.03 billion allocation will support climate objectives. EUR 6.9 billion will be allocated to clean urban transport, EUR 3.3 billion to energy efficiency and EUR 16.9 billion to investments in the TEN-T road and rail network.
Currently, the Cohesion Fund supports 15 Member States with a gross national income (GNI) per capita below 90 % of the EU average at the time of the agreement on the Multiannual Financial Framework 2021-2027: Bulgaria, Czech Republic, Cyprus, Croatia, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia and Slovenia.
Source: Press Office of the Representation in Italy
